Welfare Spending

Debate between Blake Stephenson and Ayoub Khan

Tuesday 15th July 2025 Commons Chamber

[Blake Stephenson]

I absolutely agree. It is important that we get people into work so that they can look after their families and make the right decisions for them.

Shifting the financial responsibility of children on to the state risks not only entrenching inequality, but opening the floodgates to unsustainable dependency, encouraging parents to have children beyond their means under the assumption that the state will bear the cost. It is neither equitable nor responsible for the state to incentivise larger families through an open-ended benefits system. That is especially true as the cost of our welfare bill and its burden on the taxpayer continues to rise. The fiscal reality must not be ignored.

Projections from the Child Poverty Action Group and the Institute for Fiscal Studies estimate that removing the cap would create an additional £1 billion annual cost to the public finances. As we grapple with considerable economic pressures, such a policy shift is simply not affordable. Removing the cap would force the Government to raise taxes further, borrow even more money—when borrowing is already out of control—or divert public funding away from other stretched public services. The Government have lost control of the public finances, and working families cannot afford to take another hit.

[Ayoub Khan (Birmingham Perry Barr) (Ind)]

The hon. Gentleman mentioned raising taxes, but does he accept that there are many ways to do that? One way is to look at large corporations and people who have far more money than they will ever use.

[Blake Stephenson]

I certainly accept that there are many ways to raise taxes, but my constituents and businesses in my constituency are paying far too much tax as it is. We cannot continue to squeeze corporations, businesses and hard-working people further to achieve the hon. Gentleman’s aims.

The Government have lost control of public finances. Working families cannot afford to take another hit. I recognise the sensitivity of the debate. It is crucial that we support those in genuine need, and we must work towards ending child poverty. The state, however, simply cannot afford to subsidise unlimited family expansion on the backs of working people.