Welfare Benefits Up-rating Bill

Debate between Anne Main and Jessica Lee

Tuesday 8th January 2013 Commons Chamber

[Jessica Lee]

I thank the hon. Gentleman for his intervention, and he takes up the case on behalf of his constituent in this House. However, I put the responsibility squarely on his Government, the previous Government, who expanded the welfare state with tax credits and left people on incapacity benefit who for too long were never reassessed. That is unfair to those people and we need to recreate the entire welfare system to improve it.

[Mrs Anne Main (St Albans) (Con)]

It is always worth saying that there is no Government money, only taxpayers’ money. It behoves us to ensure that taxpayers’ money is used as well as it possibly can be.

[Jessica Lee]

I agree with my hon. Friend and thank her for her intervention.

The welfare budget has increased considerably over many years. The Department for Work and Pensions already spends more than £90 billion a year on welfare for working-age people—£1 in every £8 that the Government spend. Limiting certain social security benefits to the 1% that is before the House today, and tax credits is a proportionate approach to funding welfare in the longer term.

My constituents in Erewash often say to me that fairness works both ways. One gentleman said to me that he is working around the clock and his wife has two part-time cleaning jobs, and that they are trying their best to keep things going. Like me, he wants to support people in this society who, for whatever reason, will never be able to stand on their own two feet and get work, but that was not his point. His point was about the standard of living of other people in the area on full benefits. He did not think it right that they should have a higher percentage increase than his family’s budget.

The financial mismanagement of the welfare budget by the last Government—increasing and increasing tax credits without the financial means to pay for it in the long term—has created an imbalance between families, and it is not the fault of those families; it is the responsibility of those in government at the time. The books have to be balanced and accountability is required. Between 2003 and 2010, Labour spent £171 billion on tax credits— more than 60% of the welfare budget increases. How on earth it expected to make that financially viable I simply do not know. At the same time, the number of the most vulnerable and of children living in poverty increased, heading up to between 2 million and 3 million. The last Government failed to tackle the cause of worklessness, and that is why we are in this difficulty.

I take full responsibility for every vote I cast and everything I say in the House—I am happy to do so —but I can reassure my constituents that I do not think anyone in the House takes these decisions on welfare lightly. In the wider picture, however, of maintaining the safety net of the welfare state, preparing people for work and setting them free from welfare dependency, today’s proposals are proportionate and necessary, and I will support the Government.