Welfare Reform and Work Bill
Debate between Emily Thornberry and Amanda Milling(8 years, 6 months ago)
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Amanda Milling
I am going to make some progress.
It is morally right that people who can work are better off in work; why should someone who is able to go to work get more money on benefits than in work? There has been strong support for that argument, both nationally and in my constituency. As I have mentioned in this Chamber before, Cannock Chase is a former mining area, where there is an incredibly strong work ethic. That might go some way to explaining why people would spontaneously say to me on the doorstep that they really supported the cap. That is notwithstanding the general public’s support. A YouGov survey conducted in the previous Parliament demonstrated the strength of public feeling, with around three quarters of respondents supporting the cap.
Amanda Milling
If the hon. Lady does not mind, I am going to make progress.
Not only do people support the cap, but there is evidence that it is working. It is reforms such as these that have helped encourage people back into work. In my constituency of Cannock Chase, unemployment has fallen dramatically. Since May 2010, the number of people claiming jobseeker’s allowance has fallen by a staggering 70%. It is measures such as the benefits cap that have contributed to that fall. That is also evidenced by the figures mentioned by my hon. Friend the Member for Faversham and Mid Kent (Helen Whately). Since the cap was introduced, 16,000 capped households have moved into work. Further analysis shows that households subject to the cap are 41% more likely to go into work, compared with similar uncapped households. There is also evidence to show that those who are subject to the cap are doing more to find work, whether by submitting more applications or attending more interviews.
However, one of my key concerns—this can be seen nationally and in my constituency—is whether the benefits cap goes far enough. Having talked with members of the public, I had a strong sense that the cap was set too high. After all, a family going out to work would have to earn £35,000 in order to net the equivalent £26,000, as my hon. Friend the Member for Weaver Vale (Graham Evans) mentioned.
Amanda Milling
I am going to make progress, because I am conscious of time and the number of Members who wish to speak.
I therefore welcome the proposed reduction in the cap to £20,000 outside London and £23,000 in London, as set out in our manifesto and as included in the Bill. That is something the public support, as the general election result demonstrated. The Government received a clear mandate from the public on 7 May to introduce the benefits cap and the proposed reductions.
In my view, the benefits cap is a key measure at three levels. First, it ensures that our welfare system is fair, by making work pay and ensuring that those who can work are always better off in work than on benefits. Secondly, it ensures that our welfare system is targeted, by making sure that there is safety net for those people who most need support—the most vulnerable. Thirdly, it creates a welfare system that is sustainable, helping to get our economy and public finances on to a firmer footing and helping to reduce the deficit.
To date, the benefits cap has worked to meet those three objectives, helping to create a fair, targeted and sustainable welfare system. I believe that the measures set out in the Bill will help to deliver those further. The amendments that have been tabled would undermine that progress, so I will not be supporting them this evening.