Welfare Spending

Ashley Fox Excerpts

Tuesday 15th July 2025 Commons Chamber

[Sir Ashley Fox (Bridgwater) (Con)]

The UK’s benefits system is designed to act as a financial safety net. It exists so that people in hardship through no fault of their own can be supported. Supporting families and helping parents into work requires a balanced and fair system. It must provide meaningful support for those who need it most, while maintaining a sense of fairness for taxpayers. That is why the Conservatives introduced the two-child limit and believe it should be retained—so that people on benefits face the same choices as those in work. The welfare system is growing unsustainably, with spending on health and disability benefits alone set to hit £100 billion by the end of the decade.

[John Glen (Salisbury) (Con)]

Does my hon. Friend acknowledge the words of Richard Hughes of the OBR, who said in a report last week:

“The UK cannot afford the array of promises that it has made to the public”?

He also said that debt is on a trajectory that the UK “can’t sustain”.

[Sir Ashley Fox]

I am grateful to my right hon. Friend for making that point. It is essential that we put Britain’s finances on a sustainable path. All benefits are funded by taxpayers or borrowing, so every time the cost of benefits rises, so does the burden on taxpayers, or the debt we place on future generations.

[Sir John Hayes]

My hon. Friend is right about the cost of benefits, but he is also right to suggest that they need to be directed to those in the greatest need—the most deserving. That is what we all want across this House. Sadly, because of family breakdown and the fragmentation of communities, the state has stepped in to do what was once done, in my early life, by families, individuals and communities. It is really important that this welfare reform is seen in that broader context, and that we direct the money to those with the greatest need.

[Sir Ashley Fox]

I am grateful to my right hon. Friend for making that point. I know that he, like all Conservatives, believes in personal responsibility, living within our means and fairness to the taxpayer.

[Rachel Gilmour]

Will the hon. Gentleman give way?

[Sir Ashley Fox]

I will not take any more interventions.

Many thousands of couples think every year about whether to have children. They make that choice based on several factors, but one of the most important is whether they can afford to bring up that child as they would like to. Under the previous system, pre-2017, there was a fundamental element of unfairness in the system. A family in receipt of benefits saw those increase automatically every time they had another child. That is not true for a family not in receipt of benefits. Why is it that someone on benefits should not have to make the same choices and sacrifices as someone in work? Why should a taxpayer who is unable to afford to have more children subsidise the third, fourth or fifth child of someone not in work?

The welfare bill in this country is increasing at an unsustainable rate. Unemployment is rising, thanks to the action of the Government, and more people than ever are receiving disability benefits, but this Government seem completely powerless to do anything to reverse that trend. The Prime Minister says that his welfare reforms strike the “right balance”, but the truth is that he was forced into a humiliating U-turn by his own Back Benchers and has had to totally gut his plans. Scrapping the Government’s PIP reforms means that the welfare Bill will make no savings at all—indeed, the total package will end up costing the taxpayer about an extra £100 million a year. What a fiasco!

The Government set out to save £4.5 billion, and have ended up spending more taxpayers’ money to buy off Labour rebels. No thought was given to the burden on the taxpayer, or to the extra debt that the Government would incur and the interest that will have to be paid on it by our children. The fact that so many Labour Members want to remove the two-child benefit cap is testament to the irresponsibility with which they treat the public finances. Their solution is always to spend more money—preferably belonging to someone else.

Now, we have the spectacle of the leader of Reform UK, the hon. Member for Clacton (Nigel Farage), saying that he also supports scrapping the two-child cap, despite having been an outspoken supporter of it when it was introduced. Reform supporters in my constituency are rather puzzled by his decision. It suggests that the hon. Member is not guided by any political principle, but is chasing votes in the red wall, where he hopes to win seats from the Labour party. In my view, that confirms that he is wholly unserious about governing this country. There is only one party in this House that is serious about sound money, and that is the Conservative party. We are the only party that is serious about stopping the creeping reliance on welfare, and that cares about taxpayers keeping more of the money they earn.