Welfare Spending

Helen Whately Excerpts

Tuesday 4th November 2025 Commons Chamber

[Helen Whately (Faversham and Mid Kent) (Con)]

I beg to move,

That this House regrets the failure of the Government to get people off welfare and into work; believes that reforming the welfare system is a moral mission; and therefore calls on the Government to take urgent action to fix Britain’s welfare system by restricting welfare for non-UK citizens, stopping benefits for those with lower-level mental health conditions, increasing the number of face-to-face assessments, reforming the Motability Scheme so that only those with serious disabilities qualify for a vehicle, and retaining the two-child benefit cap, to get people into employment and build a stronger economy.

All of us surely remember our first job and the moment we got our first paycheque. I was 16, I got paid £40 and I bought myself a pair of shoes. They were nothing fancy, but I remember that feeling. It was the first time I had money in my pocket that I had earned to spend how I pleased. It was a moment of liberation from which there was no going back. Of course, as we get older, it is not so simple. We have more obligations and bills to pay, but the basic fact is the same. Having a job and paying our own way is how we get independence, freedom and agency. We can make our own choices and have a chance to build up our financial security. Not every job takes us on a path paved with gold, but if we are not in work, we do not even have a chance of changing our fortune.

Millions of people up and down the country know what I am talking about. They are the people who get up each morning and go to work, or the people who go to work every evening if they are doing a night shift, while some people are doing both to make ends meet. However, it is not everyone: in fact, it is not a lot of people. Let us look at the numbers. There are 6.5 million people of working age on out-of-work benefits, nearly 1 million young people are not in any form of employment, education or training, and every single day 5,000 people are signing on to long-term sickness benefits with no requirement to work. Those numbers should worry all of us in this place. They are not just statistics; we are talking about people—mums, dads, women in their 50s, young men in their 20s—who are missing out, sat at home rather than at work, and waiting for the handout to drop into their bank account rather than out there putting their shoulder to the wheel.

For every person on benefits and out of work, there are many more who suffer the consequences of worklessness, such as the increasing number of children who are growing up in workless households. More than 1 million children across our country have neither the income nor the culture of work, so worklessness gets passed from one generation to the next, stunting life chances—opportunities, prosperity and longevity—in every sense of the word.

This applies to entire communities: there are large parts of our country where being on benefits is not a rarity, it has become the norm. From our great cities such as Birmingham and Liverpool to historic seaside towns such as Blackpool, around a quarter of the population are in out-of-work benefits. Drop into some of the poorest areas of those cities and you will find communities where the majority of people are on benefits. Think what that means in practice along a street, door after door. And watch out if you are the odd one out actually trying to go to work, as I heard on one of my visits recently. A whole family were yelling at their son, who was trying to break the cycle of worklessness, because his 7 am alarm clock was disturbing their sleep.

As shadow Secretary of State for Work and Pensions, I travel the country talking to people and finding out the facts on the ground. One story that stuck with me is about a young man in his 20s from Bridgend in Wales. He is on benefits, but he got a place on a course at the local college—the exact course he wanted to do. It had the potential to give him skills and transform his life. It could have got him off benefits and into work at the job he really wanted to do, but it did not happen. Why? Because he was terrified of being worse off—that he would lose his personal independence payment and end up broke. That is wrong. And let us be frank: his story is not a one-off. It is going on all around the country. Everywhere, every day, people are deciding they are better off on benefits.

Our welfare system should be a safety net but it has become a welfare trap, condemning people to live off the state rather than off their elbow grease. Of course, help should be there for people who are unable to work or who need a lot of support to do so. In fact, if the system worked better, it might be able to help some people—those who really need it—more. Instead, we have many thousands of people making rational decisions to claim benefits rather than work, the benefits bill rocketing, and still people who are disabled facing a struggle to get help and make ends meet.

[Sarah Smith (Hyndburn) (Lab)]

Does the hon. Lady not recognise that personal independence payment is not a benefit paid on your ability to work—it is paid regardless—so providing that case study is perhaps not the most appropriate to making the argument she is trying progress?

[Helen Whately]

Of course I know that, but if the hon. Lady had talked to as many people who receive PIP as I have, she would know that many people worry that if they go into training or work, they will then, when they are reassessed, lose their PIP. Even though in theory, yes, you can work if you can while you are getting PIP, people worry that because they are working it will be then be seen as them not actually needing it and that they do not actually have that level of health problem. That is why at the moment it is acting, in the way in works, as a barrier and a disincentive to work, and that is why it needs reform.

Reforming welfare is not cruel to people on benefits—quite the opposite. What is cruel is ducking the challenge, accepting the status quo and continuing to spend millions of pounds of taxpayers’ money on keeping people on benefits, but that is exactly what the Labour party is doing. Just a few months ago, the Prime Minister and the former Work and Pensions Secretary did have a go at doing something about it. They set out some welfare cuts—rushed and poorly thought-through, as I said at the time—but their Back Benchers were having none of it. We have never seen anything like it. It was the very definition of shambles in this Chamber. Right in the middle of the debate, their savings Bill became a spending Bill, with the Government frantically making concessions that we still live with, such as the Timms review into PIP.

I have a great deal of respect for the Minister for Social Security and Disability, the right hon. Member for East Ham (Sir Stephen Timms), but what hope can we have for his review when it was conceived as a bargaining chip to buy off angry Back Benchers? It has taken months to even kick off the review and months to come up with the terms of reference. Now we have them, we see that welfare savings are off the table. And yes, I said “savings”, a word the Secretary of State was careful to steer clear of in questions last week. What a situation this is.

The Chancellor keeps talking about welfare savings; she did so again this morning. However, the review by the Minister for Social Security and Disability ruled out making any savings. The Secretary of State will not even utter the word. Who will win this argument? Will it be the hapless Chancellor with her back against the wall or the wily Welfare Secretary playing a longer game?

While Ministers spar behind the political scenes, the clock is ticking and the benefits bill keeps heading up and up towards £100 billion, with no prospect of the Government slowing that trajectory, let alone actually getting it down. Instead, as the Chancellor as good as told us this morning, the Government will turn to tax rises to fund welfare and more job-destroying, growth-killing policies, reducing opportunities and saddling future generations with the bill, leaving them to pay it off for decades to come. The Government have not only given up on saving money; they have given up on millions of people across Britain.

[Oliver Ryan (Burnley) (Lab/Co-op)]

On savings and leaving the next generation with a bill, can the hon. Lady remind the House just how much the now shadow Chancellor, the right hon. Member for Central Devon (Sir Mel Stride), increased Department for Work and Pensions spending on welfare during his time in the Department? The figure I have on the tip of my tongue is somewhere north of £30 billion. Could she comment on that?

[Helen Whately]

The hon. Gentleman thinks he is so clever, but I am sorry to say this is a whole lot more serious than that. [Interruption.] I am glad Labour Members liked that. The fact is, if the hon. Gentleman looked a little further than his time in politics, back to 2010, he would know that the welfare bill and unemployment figures came down, and that we had the huge reform of universal credit, led by my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), which made a huge difference. [Interruption.] As has been chuntered by those on the Government Front Bench, yes, of course, the pandemic made a difference. We had a set of reforms going on, and then those on the Front Bench and some of their predecessors—there has been a certain amount of turnover—came in and gave up on those reforms. Where are we now? There are no savings and no plans to get people off welfare and into work.

However, it does not have to be this way. The country knows that this is not working, and people want change. They want a fairer system: one where people who do the right thing are rewarded; where work does pay; where people taking personal responsibility for themselves and their family makes sense; where there is help for those who need it, but not for just anyone who might fancy it; and where welfare is a safety net, not a way of life. It might be hard for Members on the Government Benches to hear, but this is what people out there want. They want it now—let us get on with it.

The Conservatives have set out our common-sense proposals to start fixing the welfare system. We would stop sickness benefits for people with lower-level mental health conditions like anxiety and reform Motability, putting an end to taxpayer-funded cars for people who have conditions like ADHD and tennis elbow. We would bring back face-to-face assessments, which are going down under this Labour Government, and change the sick note system so that it does not just funnel people out of the office and on to benefits. We would prioritise Brits in our welfare system, stopping people with indefinite and limited leave to remain claiming benefits. Of course, we also believe in retaining the two-child benefit cap, because it is fiscally responsible and fair. Removing the cap would cost more than £3 billion and would be deeply unfair on families who are not on benefits—the couples who decide they cannot afford another child, but would pay taxes for someone else to do just that. The Conservatives are the only party fully committed to the two-child benefit cap—no ifs, no buts.

[The Minister for Social Security and Disability (Sir Stephen Timms)]

I have read somewhere that the list of things the hon. Lady has gone through would, the Conservatives estimate, save £23 billion. Part of that is from housing benefit. Can she tell us how much of the £23 billion would be saved from housing benefit?

[Helen Whately]

I thank the right hon. Gentleman for that question. As he says, we have earmarked potential savings of £23 billion, and housing benefit is one area. There is the other set of savings that I have just gone through. I am very happy to go through some of our sums and how we have got to those figures with him. As I have said to him, I believe that this Government should be picking up on our suggestions, because that is how they could bring down the welfare bill and avoid what we saw the Chancellor clearly rolling the pitch for this morning: tax rises at the Budget.

Times are hard. I do not want the Government to put up taxes. I do not want them to keep spending other people’s money on welfare, because we all know that one day it will run out. I do not want them to keep people living a life on benefits rather than being in work. That is why I have been so clear about what they could and should do.

I have heard Labour Back Benchers say in this Chamber, “I didn’t come here to cut benefits”, and that is why we have offered to help. The Leader of the Opposition, the shadow Chancellor and I have made a big offer to the Government. We will help them make welfare savings, and we will work with them in good faith to get the welfare bill down and get people off welfare and into work. Labour Back Benchers do not want to make the tough decisions on welfare, but our door is open. We will work with the Government in the national interest. It is not too late to make those bold decisions and make serious savings. A vote for our motion is a vote to get Britain’s welfare system back on track, to get the welfare bill under control, and to set out on a moral mission to get millions off welfare and into work.