Oral Answers to Questions

David T C Davies Excerpts

Monday 9th March 2015 Commons Chamber

[Adam Afriyie (Windsor) (Con)]

3. What assessment he has made of the effect of the benefit cap on long-term unemployment.

[David T. C. Davies (Monmouth) (Con)]

8. What assessment he has made of the effect of the benefit cap on rates of employment.

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

The benefit cap is having a positive impact on people’s lives. I believe it is encouraging them to find work. The statistics show that. [Interruption.] Yes, they do. Those affected by the cap are 41% more likely to go into work than a similar uncapped group. It is under this Government that we are seeing long-term unemployment fall to its lowest level since 2009. The employment rate, at 73.2%, has never been higher.

--- Later in debate ---

[Mr Duncan Smith]

I agree with my hon. Friend. There is a fairness element: before we introduced the cap, about £9 million a year was being spent on fewer than 300 families. When asked, 73% of the public support the benefit cap and 77% agree it is fair for no household to get more than the average working household after tax. It seems like the only group that absolutely opposes the cap is the Labour party.

[David T. C. Davies]

Does my right hon. Friend agree that our changes to benefits regulations have ensured that record numbers of people are now in work, and that this coalition Government are delivering jobs, prosperity and growth and that the only alternative from Labour Members is more debt, deficit and dole queues?

[Mr Duncan Smith]

As ever, my hon. Friend puts it succinctly—but that does not stop me answering his question. He is right. There are three figures that are really important. The Minister for Employment, my right hon. Friend the Member for Wirral West (Esther McVey), talked about bringing down unemployment. Under this Government, the International Labour Organisation 12-month-plus employment rate for 16 to 24-year-olds—the hardest to help—is down 59,000 on the year and 16,000 on the election; the 24-month-plus rate is down 30,000 on the year and 2,000 on the quarter; and of those in social housing, never, since records began, have we had so many households in work. That is the real reason for the Government’s long-term economic plan.