(2 days, 1 hour ago)
Commons ChamberThis has been an extraordinary afternoon in the Chamber. Listening to the debate, we have surely all been moved by the stories we have heard of the experiences of hon. Members, of the experiences of their families, loved ones and constituents, and of how the welfare system has served its vital purpose of providing a safety net in times of desperate need, particularly for people whose disabilities or ill health have made it impossible for them to make ends meet on their own. It is clear that there is broad consensus across the House that the welfare system needs reform. There has also been consensus that what we were debating was a bad Bill. It was a rushed and chaotic compromise that would harm disabled people, create a two-tier benefit system, and barely make a dent in the overall welfare bill. How could anyone justify voting for something that would not make a single disabled person’s life better? It is clear that many, many Members could not.
I said that it “was” a bad Bill, because while we have been debating it, it has more or less disintegrated. Less than two hours ago, the Minister for Social Security and Disability told us, in an unprecedented intervention, that clause 5 of the Bill is to be removed in Committee. That takes out all the changes to personal independence payment, and with them almost the entirety of the remaining savings in the Bill. Describing it as chaos now feels like an understatement.
We have a Government with a supermajority who were voted in on a manifesto for change, a welfare system that everyone agrees needs reform, and public finances that simply must be brought under control, but the Government are now serving up a Bill with next to nothing in it. They had already U-turned once; it seems they cannot even deliver a U-turn. The Prime Minister told the country that he was distracted at NATO, and he flew back home on Thursday to sort the problem out. This is what sorting it out looks like. Once again, his calamitous negotiations are letting the country down.
Last week, we offered the Prime Minister help in the national interest and set out three tests that he would need to meet to have our support on welfare legislation. The first was that the welfare bill must come down. We all know people whose lives would not be possible without the help that our welfare system provides. Each and every one of us in the Chamber wants a welfare system that is there for those who need it, but if the welfare bill spirals out of control, it puts that support in jeopardy. The Bill now makes no meaningful changes to a system that we all agree is not working, and I reckon it will now save less than £1 billion from a sickness benefits bill that will be rising to nearly £100 billion by the end of the decade. That is a total dereliction of duty by a Government who claim to want welfare reform and fiscal discipline.
Secondly, we said that we would support plans that get people into work, but the Bill will not help a single person into work. Ministers said, “Trust us, employment support is coming,” but why would anyone trust this Government on jobs when 100,000 were lost in May alone? None of us have seen the Government’s plan to get more disabled people into work, and apart from new red tape and making it more expensive to hire people, I do not think there is one. Thirdly, we said that we must not have more tax rises in the autumn. Given that the Chancellor had already committed to that, it should have been the simplest of those three conditions to agree to, but this desperate climbdown blows an even bigger hole in her Budget. She is pushing us into a doom loop of higher taxes, fewer jobs and more welfare. At this rate, the time is coming when our constituents will not even have a welfare system to call on in times of trouble.
What is left for us to vote for or against this evening? All of us in this House know that welfare needs reform and want to see more people helped into work. All of us in this House—surely most of us, at least—recognise that the country must live within its means. The remnants of this Bill will manifestly achieve none of that. In fact, the only purpose it will now serve is to etch forever into the statute book the moment when this Government totally lost control.
On a point of order, Madam Deputy Speaker. In the light of the shambles this afternoon, with the Bill being ripped apart literally before our eyes in this Chamber and the Minister unable even to tell us how much it will now save, can you please advise me whether it should still be rushed through to be debated next week in Committee of the whole House, or whether the Government should in fact withdraw it?
The hon. Member has put her point on the record. She has been a Minister in the past and so will know that the scheduling of business is a matter for the Government, and not for the Chair.
Universal Credit and Personal Independence Payment Bill (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7),
That the following provisions shall apply to the Universal Credit and Personal Independence Payment Bill:
Committal
(1) The Bill shall be committed to a Committee of the whole House.
Proceedings in Committee, on Consideration and on Third Reading
(2) Proceedings in Committee shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.
(3) Any proceedings on Consideration and proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on the day on which proceedings in Committee of the whole House are commenced.
Programming committee
(4) Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee of the whole House, to any proceedings on Consideration or to proceedings on Third Reading.—(Chris Elmore.)
Question agreed to.
Universal Credit and Personal Independence Payment Bill (Money)
King’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Universal Credit and Personal Independence Payment Bill, it is expedient to authorise the payment out of money provided by Parliament of:
(a) any increase in the administrative expenses of the Secretary of State that is attributable to the Act;
(b) any increase in sums payable by virtue of any other Act out of money so provided that is attributable to increasing—
(i) the standard allowance or limited capability for work and work-related activity element of universal credit;
(ii) the personal allowance, support component, severe disability premium or enhanced disability premium of income-related employment and support allowance.—(Chris Elmore.)
Question agreed to.
(3 days, 1 hour ago)
Commons ChamberI thank the right hon. Lady for advance sight of her statement.
This is a Government in chaos: open rebellion from their own Back Benchers, unfunded U-turns costing billions, and welfare plans that are not worth the paper they are written on. Their latest idea is a two-tier welfare system to trap people in a lifetime on benefits and deny them the dignity of work, while leaving the taxpayer to pick up the ever-growing bill.
It is a long-held Conservative belief that those who can work, should work. Work provides security and purpose. That is why we launched universal credit, simplifying complex benefits and ensuring that work always paid. And it works. In the decade up to the pandemic, we got the number of people on benefits and the benefits bill itself down. Some 800 jobs were created for every day that we were in office, giving millions of people the dignity and security that work brings.
But then, during the pandemic, we saw something new. The health and disability bit of our benefits system started to break. The bill is forecast to hit £100 billion by 2030. One in every four pounds of income tax will be spent on health and disability benefits—more than the entire defence budget. That is not fair for the taxpayer, not fair for people who are written off, and certainly not sustainable for the country.
Despite Labour having 14 years in opposition and now a year in government, they still do not have a plan to bring down the welfare bill or get people into work. What we have before us now is a rushed and chaotic compromise that is not reform in any sense of the word. It is woefully unambitious about savings, conspicuously lacking in compassion and achieves no meaningful change of a system we all know is broken. Thanks to the Government’s latest climbdown, we are left with a plan that will save just £2.5 billion of a £100 billion bill by introducing a two-tier system. Two people diagnosed with Parkinson’s a week apart will now receive different levels of support—all to clear up an internal Labour argument. The Government’s own impact assessment shows that these plans will not get a single person into work. The idea that work is the guiding motivation for these changes is laughable.
There are things that the Government could do. They could reform the fit note system, which sees 94% of people who apply told that they are too sick to do any work at all. They could say today that they would make all sickness benefit assessments face to face. They could get a grip of the rising claims for common mental health problems, such as anxiety and depression. Claims for those and neurodevelopmental conditions such as ADHD are the main reason for the steep rise in the number of people on sickness benefits, making up more than half of all new claims. The Centre for Social Justice has found that the Government could save up to £9 billion by reforming those benefits. However, nothing that we have seen from Labour over the past couple of weeks suggests that it has the courage and conviction to grip that problem. In the meantime, our welfare bill will only continue to rise.
We agree on the need for reform and have set out the conditions under which we would support the Government: first, the welfare budget must come down; secondly, we need to get people back into work; thirdly, there must be no new tax rises to pay for increases in welfare spending. But with the welfare bill ever growing, unemployment rising and jobs disappearing, the Bill fails on all accounts.
Will the Secretary of State confirm whether the changes she is announcing today will be paid for through borrowing or taxation? Where are these good jobs she claims to be creating, when vacancies are going down and unemployment is going up? Has she read the impact assessment for the Government’s Employment Rights Bill, which makes it clear that it will be harder for people to find work as a result? Why did it take the Government a year to publish the terms of reference for their PIP assessment review, and when can we expect changes if it does not report back until autumn 2026? Could I try one more time to ask what the difference is between the Secretary of State’s right to try guarantee and our chance to work guarantee?
Finally, is this it? Are there any more savings? Are the Government not going to get any more people into work? Is this the extent of their ambition for reforming the welfare system during their time in office? In five years’ time, will this be the Secretary of State’s legacy?
I am in listening mode, and I listened carefully to what the hon. Lady said: once again, her strategy seems to be to rail against the problems that she and her party created. She has some chutzpah to talk about a two-tier system, when that is precisely what the Conservatives introduced when they protected people on legacy benefits when they moved on to UC and replaced DLA with PIP. They were part of that, and the hon. Lady should admit that rather than making those points. She said we should bring back face-to-face reassessments. We are doing so—it was the Conservatives who switched them off.
To be honest, I am still no clearer about what the Conservatives’ policy actually is. The hon. Lady and the shadow Chancellor, the right hon. Member for Central Devon (Sir Mel Stride), claim that they had a plan to cut £12 billion from the welfare bill in their manifesto, but the truth is that it was nothing but a vague idea about turning PIP into vouchers. She talks about fit notes—I think the Conservatives tried to reform them about three or four times but completely failed, as have all their other efforts. The one change the Conservatives did propose was to the work capability assessment, and their consultation was ruled illegal by the courts.
What is beyond doubt is the mess that they left our welfare state and country in. Economic inactivity was rising; it is coming down under Labour. Disability benefits were doubling, with the cost to taxpayers soaring. We are putting in place real reforms based on our values—fair for those who need support and for taxpayers. That is the leadership that this country deserves.
(1 week, 3 days ago)
Commons ChamberI call the shadow Secretary of State.
Two weeks ago, the hon. Gentleman’s Government told people they were U-turning on winter fuel payments because the economy is on a “firmer footing”. The next day, the unemployment figures were released, showing that a quarter of a million jobs have been lost since the Chancellor’s job-taxing Budget. The country is now losing 100,000 jobs a month. These figures are worse than even the most pessimistic forecast. Is that what a firm footing looks like to the hon. Gentleman?
A firm footing for economic recovery looks like kicking the Conservative party out of office and growing the economy once again, and that is what we see if we look at the data. The hon. Lady likes to look at one month’s data—well, let us look at it. Data from the Office for National Statistics show that vacancies rose by 27% between April and May. I know the Conservatives want to pretend that everything was wonderful a year ago, but every business and every voter in this country knows that that was not the case.
Honestly, who does the Minister think he is fooling with this spiel? Growth forecasts have been slashed and inflation has surged. What world is he living in? The Government have been in office for a year and people are losing their jobs because of the decisions that they have made. How does he think his “everything’s fine” mantra actually sounds to one of the people who have lost their jobs or to a business facing a tax bill that it cannot afford? Has the Secretary of State even told her Back Benchers, who will be strong-armed into voting for cuts next week, that the welfare cuts Bill that we will be debating will get a grand total of zero people into work, according to the Government’s own impact assessment?
The hon. Lady asks about what is going on with the economy. What is going on is that we have had four rate cuts over the past year. What is going on is that we have signed three trade deals over the past year. What is going on is that employment has gone up and inactivity has gone down. I know that the Opposition love to latch on to one month’s data, but let us look at the whole period of this Government: wages have increased by more under this party in the past 10 months than they did in the first 10 years of the Conservative Government.
More than half of new health and disability benefits claims are now for mental health, yet under the Government’s welfare cuts Bill the personal independence payment could be stripped from three quarters of claimants with arthritis and two thirds of those with heart disease but fewer than half of those with anxiety. Does the right hon. Lady believe this is the right decision?
I have great personal respect for the hon. Lady but she really needs to make up her mind: first she says our proposals are too late, then she says they are rushed; she criticises us for being cruel, and then says the Opposition are going to vote against our Bill because it does not go far enough. But her deputy, the hon. Member for East Wiltshire (Danny Kruger), has let the cat out of the bag, saying in a recent Westminster Hall debate:
“I am not able to tell…exactly what we would do.”—[Official Report, 7 May 2025; Vol. 766, c. 301WH.]
The truth is that the Conservatives are a broken party with no ideas, let alone a strategy—and, unless they change course, they have no future either.
Goodness me; I asked the right hon. Lady quite a serious question, so that was a very disappointing answer. However, she and I are in agreement that the benefits bill needs to come down, and that will need real reform of the system, so why is she pressing ahead in a panic with her half-baked cuts rather than doing the job properly? We would support a proper rethink of which conditions should get what help, and a better system for people struggling with mental health or neurodiversity, who would be better off in work than parked on benefits. Why did not she make that part of her plan?
Let me tell the hon. Lady what we are doing to improve mental health support for people in this country and to make sure that it is treated with equal importance to physical health: we have made significant progress towards recruiting the additional 8,500 mental health workers we said we would recruit in our manifesto to reduce delays and provide support; we have confirmed funding to help an extra 380,000 patients get access to talking therapies; and we are investing the biggest ever amount in employment support for sick and disabled people. I say to the hon. Lady, who left 2.8 million people out of work due to long-term sickness and 1 million young people not in education, employment or training, that it is about time she apologised to the country and made up her mind about whether she will back our reforms.
(3 weeks, 3 days ago)
Commons ChamberI feel for the Minister, sent here by his bosses to complete what must be the most humiliating climbdown a Government have ever faced in their first year in office. For nearly a year, the Conservatives have campaigned against this cut, and for nearly a year, the Government have tried to hold out. Just four weeks ago, I stood here and asked the Minister how long this tone-deaf final stand could go on for. Loyally, he held the line. He defended the cut one final time. He said their plan for pensioners was right on track. Well, today he has been sent to end that “courageous” last stand, and—unless it is coming next—he has been sent without the one thing that pensioners up and down the country deserve: an apology.
Let us be clear: the Government made a choice to cut the winter fuel payment. It is outrageous to claim that the economy has somehow improved from the day they made the cut, and they know it. In fact, by almost every metric, the opposite is true. Inflation was at the 2% target—now it is 1.5 points higher; 150,000 more people are unemployed; and growth forecasts have been slashed in half by the Office for Budget Responsibility. In the meantime, the Government have gone to town with the country’s credit card. Borrowing is up. Debt is up. Who is the Chancellor trying to fool when she suddenly says she can afford this when before she could not? The fact is that last winter she gave pensioners’ fuel money to the unions. Now she realises how unpopular that was, so she is pretending that everything has changed. Perhaps the most surprising thing is that she thinks anyone is taken in.
According to the Government’s own analysis, 50,000 pensioners were plunged into poverty this year and 100,000 extra pensioners ended up in A&E this winter. Their mistake has hurt people, and it is cowardly not to own up to it. Just like their personal independence payment reforms, there were no consultations or proper assessments—just a self-righteous insistence that what they are doing should not be questioned. There is certainly no thought for those affected or concern for the anxiety that their government by press release is causing. This is what happens when a Government come into office with no plan, no principles, no idea what they want to achieve and no idea how to achieve it. They just bumble from one mistake to another, breaking promise after promise. Did they think they could try out new policies like trying a new mattress—unwrap it, see how it feels, sleep on it for a while, but if it causes a political backache, send it back?
This rushed reversal raises as many questions as it answers. It is clear that when the Prime Minister stood up and made his big U-turn announcement in PMQs, he had no plan and no idea how he was going to pay for it. It is a totally unfunded spending commitment. Where is the £1.25 billion needed to pay for this U-turn coming from? I note that the Minister has kicked that can down the road until the Budget. The Government claim that the change will not permanently add to borrowing, so does that mean it will permanently add to taxation?
On the plan itself, is this really the best system of means-testing that the Government could come up with? Is the Minister sure that they have thought it through, or will this unravel, too? What happens if a pensioner earns over £35,000 a year through non-taxable income? Will they have to register for self-assessment and start filling out a tax return in their 80s or 90s? [Interruption.] You didn’t cover that.
Why should someone earning taxed income be disadvantaged? Is it fair that a millionaire pensioner and their spouse might receive a payment, but two people earning £36,000 will not? What happens if someone dies in the period between receiving the payment and having to pay it back? Will the Government go after the deceased person’s relatives?
I have two final questions. After all this, the savings for the Treasury for this coming year may be as little as £50 million. Does the Minister think it is worth it, and will he apologise?
I will deal directly with two of the questions raised because it is important to provide reassurance. The right hon. Lady asks what will happen with the estate of someone who is deceased. I want to be clear that His Majesty’s Revenue and Customs will never pursue any estate for the winter fuel payment alone. She also asks about the level of savings. As I set out in my statement, the savings will be £450 million a year in England and Wales. That is very clear, and it is a significant saving.
More broadly, the hon. Lady talks about an apology. She comes here representing the party of Liz Truss and lectures anybody else about apologies; she comes here representing the party of flatlining wages, rising debt and a 200,000 increase in pensioners in poverty, and asks anybody else to apologise. I have never heard such nonsense. We have listened to pensioners. For all her sound and fury—she was at her most furious today—I still cannot tell what the Conservatives’ policy is, 11 months on. For all the rhetoric and shouting, it sounds like she might support the means-testing of winter fuel payments. After all, that was the policy of her party’s leader, who once also supported means-testing the entire state pension in one of her bolder moments.
Conservative Members say that the policy is not much comfort to pensioners, but Age UK says the exact opposite: charity director Caroline Abrahams said that this announcement is
“the right thing to do”.
Martin Lewis says that it is a “big improvement”. [Interruption.] There is a lot of chuntering from the Conservative Front Benchers. Maybe their Back Benchers can work out what the Front-Bench policy is by the time they get to their feet in a few minutes’ time. I have no idea whatsoever what the Conservative party’s policy is.
More widely, when it comes to pensioners, the Government’s priorities are to raise the state pension and rescue the NHS. The triple lock will see state pension spending rise by £31 billion annually over this Parliament. Some £26 billion is being invested into the NHS because we inherited in England a disgraceful situation in which more than one in five pensioners aged over 75 were on waiting lists. There is no excuse for that legacy from the Conservative party. Neither of those forms of progress—raising the state pension and investing in the NHS—would be possible without the difficult decisions that we have had to make on tax. Those are difficult decisions that every Opposition party has opposed. Only this Government can provide that crucial support for pensioners, because we will do what is necessary to turn that support from rhetoric into reality.
(1 month, 3 weeks ago)
Commons ChamberI suspect that the hon. Members on the Government Front Bench are now surrounded: I suspect that they are the only people left in this Chamber who are prepared to defend the cutting of the winter fuel payment. Dozens of their own MPs have now joined a long list of people telling the Government that they have got it wrong, including the Welsh First Minister—talking about learning lessons from Wales—the money-saving expert Martin Lewis, and voters up and down this country. The Conservatives have led this campaign from the start, but if the Government will not listen to us, will they now listen to everyone else and think again?
We have set out our policy, but here we are 10 months on and I have no idea what the Conservatives’ policy is. I am not even sure that they know what their policy is. For all the shouting, there is no promise to reinstate a universal winter fuel payment. There is one policy from the Leader of the Opposition, the very woman who called for the winter fuel payment to be means-tested in 2022: now, she wants to means-test the entire state pension. Apparently, that is “exactly the sort of thing we will look at”. She thinks that is bold policymaking. It is not—it is bonkers.
The good news is that the Minister has no responsibility for the Opposition.
That is not something that the Leader of the Opposition said. To the point in hand—the winter fuel payment—I wonder for how much longer this tone-deaf final stand will go on. Every time the Government talk about winter fuel payments, they make out that they had no choice, but that is simply not true. To govern is to choose. At best, this policy was only ever going to save £1 billion or so, but they are spending £8 billion on setting up an energy company, and the cost of asylum hotels will rise to £15 billion under Labour. This has always been a choice, and it is the wrong one. Can the Minister guarantee that next winter, every single one of the 750,000 poorest pensioners who missed out on the winter fuel payment this year will receive it?
I can guarantee that this Government are going to deliver on our priorities for pensioners by raising the state pension, with a £470-a-year increase this April, and saving the NHS, with a £26 billion increase every single year. What will the Conservatives be doing? None of that, because they oppose every single measure required to fund it. We know what the Tory plan is, because we have just lived through it: pensioner poverty rising and the NHS collapsing.
The number of job vacancies is falling month on month under this Labour Government, but the number of people employed is also falling. Could the right hon. Lady admit what this means is happening in the economy?
It is quite interesting to get that question from the shadow Secretary of State, since under her Government the employment rate did not get back to where it was pre-covid—the only country in the G7 not to do so. She left 1 million young people not in education, employment or training, and she left near record numbers of people—2.8 million—out of work due to long-term sickness. Businesses are still desperate to recruit. We are overhauling the system to ensure that people get the support they need.
I am disappointed that the Secretary of State did not answer the question. I can answer it, if she will not. It means that businesses have stopped hiring, the growing economy that we left is being hammered by the Government’s jobs tax, and thousands of young people are leaving school and university with worse prospects than this time last year. Businesses need a Government who understand them and back them—that is what jobs depend on. She needs businesses to hire people so she can hit her employment target. What is her message to them?
The shadow Secretary of State fails to recognise that job vacancies were falling under her Government. I would say to her that we are inundated with businesses that are desperate to recruit and to get young people the skills they need. I met a whole group of businesses in Leicestershire last week who are really keen to work with us. I suggest the hon. Lady takes a good, long, hard look at her own party’s record—the number of people she left on the scrapheap—say sorry and get her own policies right first.
(2 months ago)
Commons ChamberEvery penny of taxpayers’ money lost to fraud or error is money wasted, so we Conservatives support many of the measures outlined in the Bill, not least those that continue the hard work done by my colleagues in the Department for Work and Pensions prior to the general election. The Government have a responsibility to ensure that every penny they raise in taxation is spent well. That is fair to taxpayers, who have worked hard to earn that money. When it comes to welfare, at the heart of our system must be the principle that Government support should go only to those for whom it is intended. Every penny that does not undermines the entire system. It erodes public trust and support. That has put support for some of the most vulnerable people in society at risk. That is why, in government, we did the groundwork for the clauses of the Bill that enable banks to help crack down on fraudsters, recognising that while the state should never be able to see what someone spends their money on, it should be able to check whether they are entitled to the money that they are claiming.
The amendments we have tabled to the Bill are constructive, so I am disappointed that the Government have chosen not to support them. Videos from sickfluencers are hard to avoid when searching online about benefits, but rather than helping people to claim something that they may need and should rightly receive, the videos tell people how to game the system. We want taxpayers to get their money back, even if it has already been spent. Why should we tolerate people using social media platforms to help others commit fraud, and to help them cheat the tests that are there to ensure that support goes to those who need it? Why should someone who has committed fraud be able to keep their high-end television or luxury car, just because they spent their ill-gotten gains before the Department got to them? We are clear that both those things should be tackled, but sadly Labour has shown itself to be on the side of the fraudsters.
As I said at the outset, we back the overall purpose of the Bill and much of its content, but I hope that the Secretary of State’s colleagues in the other place will take note of the constructive approach we have taken and the arguments made, particularly those made so articulately by my hon. Friend the Member for South West Devon (Rebecca Smith) today and in Committee. I look forward to seeing the Bill improved before it may become law.
(3 months, 2 weeks ago)
Commons ChamberI beg to move,
That this House calls on the Government to publish data on the number of eligible pensioners it estimates did not receive the Winter Fuel Payment in 2024–25; further calls on the Government to publish data showing the impact of changes to the Winter Fuel Payment on levels of pensioner poverty and the number of hospital admissions; also calls on the Government to set out how it intends to ensure that those eligible for Pension Credit receive it before winter 2025-26; and calls on the Government to apologise for the misery caused to vulnerable pensioners in winter 2024–25.
Now that the sun has come out, I suspect that many of us will quickly forget the chill of the winter—the evenings when it was freezing outside and we reached for our jumpers, and perhaps the switch on our central heating too. However, for many pensioners turning up the heating was not an option, because one of the Chancellor’s first acts in her new job last year was to scrap the winter fuel payment for 10 million pensioners—something of which she gave no hint before the election, a time when voters rightly expect political parties to spell out their plans. As a result, millions of older people, many with fixed and far from substantial incomes and many living in draughty homes, missed out on £300 this winter. That money makes all the difference. In fact, for some it is literally a choice between heating and eating. At the same time, energy bills went up. Before the election, the Government did not say they would cut the winter fuel payment, but they did promise to bring our energy bills down—by £300, in fact. Instead, they are up by about £170. It was a promise so easily made and so carelessly broken.
Labour Members may not like hearing this, but let us pause for a minute to think about what this means in human terms. I remember well my grandmother in her 90s in layers of jumpers, shawls and blankets in winter, even when she had the heating on. In fact, I remember well giving her a woollen shawl as a Christmas present, because she was always cold. I would describe myself as someone who feels the cold, but I know that what I feel on a winter’s day is not a patch on how someone in their 80s or 90s feels, especially if they have health problems, and I know from my time as a Health Minister about the connection between being cold and ending up in hospital.
To help get the winter fuel payment cut past Labour Back Benchers, some of whom do have consciences, the Government claimed that they were going to protect the most vulnerable because those on pension credit would still get it, but let us look at what that really means in practice—at the facts. Pension credit tops up a pensioner’s weekly income to £218.15 if they are single or, if they have a partner, to £332.95 jointly. Someone with an annual income of £11,500 could be ineligible for pension credit. They may be just £1 or £2 over the threshold, but because of the cliff edge, they do not get pension credit and, as a result of the Government’s cut, they would not get the winter fuel payment either. So we are not talking about rich people.
I certainly remember, and I am sure others will, the Government saying that those with the broadest shoulders would take the strain. Does the shadow Secretary of State consider those on this level of income to have the broadest shoulders?
My hon. Friend makes exactly the important point I am making, which is that if the Government thought what they were doing would affect just the very wealthiest in society, they were very wrong.
Is it not very telling that, although when this policy was voted on in this House in September the Government had a majority of 120, there are very few Labour MPs on the Government Benches to defend their own policy in this debate?
My right hon. Friend is exactly right. As I said a moment ago, I do believe that some Labour Members have consciences, but I am not sure which ones. Are those with consciences the ones who are hiding away from the Chamber because they feel guilty and do not want to hear this debate, or the hon. Members here who are actually going to stand up in support of pensioners and join us in the Lobby later.
I am looking forward to the opening speech of the Under-Secretary of State for Work and Pensions, the hon. Member for Swansea West (Torsten Bell), because if we see the same sympathy that he showed for people in his “Newsnight” interview last night, we should be in for a treat.
When the Government put forward their proposals, they claimed that they were going to save £1 billion. However, the amount of money they would be paying out with the increased uptake of pension credit was going to cost £3.5 billion at that time. Does the shadow Secretary of State have up-to-date figures on whether this policy will actually deliver a saving for the Government?
One of the things we would very much like to see is a full set of figures from the Government, but my hon. Friend makes a very important point. The Government said they wanted everyone who was eligible to sign up for pension credit and therefore be able to access the winter fuel payment, but if everyone had actually signed up for pension credit, the Government would not have saved the money they set out that the policy would save.
The Department for Work and Pensions states that it works to a planned timescale of 50 working days for processing applications. However, on 9 December, in response to my written question, it turned out that, at its peak just before the coldest period, it was 87 working days. Even now, the answer is that it takes on average 56 working days to get pension credit sorted. That is a problem, because the Government directed people to pension credit who cannot then get access to it when they need it, at the coldest time of the year. Is that not a despicable decision?
Yes. My hon. Friend makes a really important point. He has been every effective in his use of parliamentary questions to scrutinise the Government and get data from them—they do not like to give it willingly. He identifies the long delays for pension credit approvals and therefore access to winter fuel payment. Some will have applied before the deadline for pension credit and got the whole way through winter without getting money, or even knowing whether they were going to get any money. We know well from charities such as Age UK, which represents pensioners, that pensioners are very reluctant to get themselves into debt. If they did not know whether they were getting the payment, they would have been very reluctant to spend money in the hope that they might.
Let me make a little progress and then I will be delighted to take more interventions from colleagues.
The Chancellor has previously argued that winter fuel payments should be means-tested and cut for the richest pensioners, but who here thinks that someone on an income of £11,500 is rich? Age UK estimated that over 80% of pensioners living below or only just above the poverty line would lose their winter fuel payment.
The issue is not just that low-income vulnerable pensioners miss out on help with their heating because they are just above the pension credit threshold—the problem is worse than that. Last summer, the Government knew that over 800,000 people may be eligible for pension credit but did not claim it, meaning that they, too, would miss out on the winter fuel payment. The Pensions Minister at the time, the hon. Member for Wycombe (Emma Reynolds), assured us that the Government would get on top of that. In fact, she told us that her target was to have 100% of those eligible for pension credit claiming it. But here we are many months later, and still around three quarters of a million eligible pensioners are not on pension credit. That is another promise easily made but easily broken. There has been a woeful failure by the Government to close properly that gap, despite all the coverage the winter fuel payment received.
Of course, we knew that this would be hard. We, too, had pension credit uptake campaigns in Government. More people signed up, but still many did not. I expect the Government knew that they would fail, too. Their officials would have told them, but it was easier for them to assure the press, the charities and their Back Benchers, “Don’t worry,” just as we have heard their Ministers do about the welfare reforms in the last 24 hours. For them, it was easier to wait for the spring to come and hope that everyone would simply forget. Well I say to them, “We won’t let you forget.” Nor will millions of pensioners and their families: 10 million pensioners are missing out on help with their heating, among them around 1 million of the most vulnerable people in our country, quite literally left in the cold by this Labour Government. That will not be forgotten in a hurry.
My hon. Friend is making a powerful speech. It is absolutely right that we ask the questions we are asking today. The statistic that has shocked me most in this debate is that of the millions of pensioners who lost their winter fuel payment, 44,000 are estimated to have been terminally ill. Is she as shocked as I am by that statistic?
I was indeed extremely shocked by that statistic; that is one reason why we need to have this debate today and try to get some of the data out of the Government. They were at the time, and continue to be, incredibly reluctant to share whatever they know about the impact of this cut on people, including the terminally ill.
Going back to data, this policy does not just impact pensioners, because the Government seconded 500 extra staff to try to deal with pension credit. We know, from another written answer, that those staff came from the services handling child maintenance, counter fraud, compliance and debt, so there is going to be an ongoing impact. Do the Government not need to be transparent about the impact on the Departments that have had to move staff across to try to deal with their own policy?
My hon. Friend makes an important point about transparency, and he recognises that this policy has had an impact not only on pensioners, but on other parts of Government, and therefore on other constituents. It is another thing that I hope the Government Back Benchers in the Chamber are taking note of, to pass on to their colleagues who, for some reason, have chosen not to be present to discuss this topic this afternoon.
My hon. Friend is being exceptionally generous in giving way. Does she agree that the Government need to be completely transparent about the costs of this policy? It has been estimated that it will cost the NHS—already pressed—£169 million. We know from NHS England that 100,000 extra people aged 65 or over have been through A&E this relatively warm winter. Is this policy not a case of robbing Peter to pay Paul?
My right hon. Friend, given his experience in this area, will know very well the connection between heating and health, particularly for older people. The Government must surely ensure that they understand the knock-on impact of the cut to the winter fuel payment on older people’s health, and therefore on admissions to hospital and on hospitals’ ability to cope. As we know, there are then the consequences for older people, who, when admitted to hospital, often end up having long hospital stays, with significant loss of independence and reduction in quality of life as a result.
I will continue, because I know that many Members wish to speak this afternoon—at least on the Opposition Benches.
From the moment the Government announced this policy, we were deeply concerned about the impact it would have, which is why we led the opposition to the cut, and why we forced a vote on it back in September. The vote was a chance for Labour MPs to make a stand. Instead, 348 Labour MPs chose to support the winter fuel payment cut. We then saw the Government trying to avoid telling people the impact the cut would actually have, so we are trying again today.
I put it to the Minister that now is his chance to be straight with people. What did the Government know when the cut was announced? Did they know how many pensioners would miss out? Did they know how many would end up in hospital? Their own report from 2017 found that cutting the winter fuel payment could cause nearly 4,000 pensioners to die. Did Ministers ask if that was likely to happen this winter? I would be happy to give way to him if he wanted to answer my questions right now, but, given they have not been answered for months, I fear he will not.
I will in a moment—I was hoping the Minister might have answers, but he does not.
To this day, the Government have not published a full impact assessment setting out the truth about their policies. Is that because they do not know themselves, or because they do not want to admit the harm that they were willing to do?
Thanks to the effort of colleagues and the public, we have, however, been able to glean some information in the months since. The Secretary of State admitted to the Work and Pensions Committee that she had seen internal modelling showing that 100,000 pensioners would be pushed into poverty because of their political choices. Thanks to a freedom of information request, the Government were forced to publish their equality analysis, showing that 71% of people with a disability would lose their winter fuel payment, while official NHS data shows that the number of over-65s attending A&E this winter soared by nearly 100,000 compared with last year, despite this being a less cold year.
And now, as I have said, it feels as if spring is here. It is time for the Government to be honest with the public and tell us what this policy has done in practice. I hope they will not tell us that they did not monitor the results, because that surely is not credible. It is time to tell us how many eligible pensioners did not receive the winter fuel payment this year; time to tell us how the cuts have hit pensioner poverty; and time to tell us what those cuts did to hospital admissions. Ministers need to know this information so that they can prepare responsibly for next year. Back Benchers need to know this information so that they can represent their constituents effectively. And the public deserve to know the consequence of the actions of the Government they elected.
Will the shadow Minister be honest with the House, and honest with pensioners: how many would be affected, and by how much, by the means-testing of the state pension, to which the Leader of the Opposition is committed?
Will the shadow Minister tell the House how many pensioners would be impacted by the Leader of the Opposition’s plan to means-test the state pension, and by how much?
I do not want to fall into the same trap as the hon. Lady did when she made those accusations. What she has just said does not describe the position of the Leader of the Opposition. I also remind her that today is an opportunity for the Government to answer questions, and that is what she should be looking to the Minister, rather than the shadow Minister, to do.
I have always said that it is absolute nonsense that somebody like me, who is still working, and my wife, who is still working, should receive the winter fuel allowance. We were going to address that, which was right—so we should have done. If that is what is called means-testing, then I am perfectly happy with that. But what we were not going to do was to take money from the pockets of the poorest pensioners in the country, and that is what this Government have done.
I could not have made the point better than my right hon. Friend.
I have one final question before I conclude: what was all this for? We clearly know who lost out and who suffered as a result of the cut to the winter fuel payment, but who benefited? To govern is to choose. All those who got inflation-busting pay increases after Labour did its deals with its trade union friends were the ones to benefit. Billions for the unions, but nothing for the pensioners. This will be the legacy of yet another Labour Government. The last one increased the state pension by just 75p a week; this one have taken away the winter fuel payment.
By contrast, it was the Conservatives who introduced and protected the triple lock, which saw the state pension increase by £3,700 during our time in office; it was the Conservatives who reduced the number of pensioners living in absolute poverty by 200,000—Labour will undo that by a quarter in its first year—and it was the Conservatives who delivered nearly £12 million in winter fuel payments and cost of living payments for pensioners, because we understand the need to help the most vulnerable through the winter. It is astonishing how many people Labour has already let down in just eight months—pensioners, farmers, business owners, young people looking for jobs, and, yesterday, disabled people—in its rush to fix its financial mess.
Earlier we heard the Prime Minister say that if a party has a big majority, it does not need to consult, so the onus is on all of us here. Colleagues, and especially Labour Members, have an opportunity today to make the Government listen. It is a chance to stick to our principles, stick up for our constituents and vote to see the truth.
Before I begin, will the shadow Secretary of State, the hon. Member for Faversham and Mid Kent (Helen Whately), clarify her earlier comments? Does she not support pay rises for the armed forces? [Interruption.] She is more than welcome to clarify; I can see that she looks a bit confused.
The hon. Lady asks about something that I have never said, so I was surprised to hear it.
I very much thank the hon. Lady for those comments. I know she vociferously criticised pay rises for public sector workers in her speech, so I am glad to have clarified that.
The winter fuel payment was a policy that the Labour Government introduced in 1997, and it stands as one of the great achievements of that Labour Administration. When it was brought in, pensioner poverty was significantly higher than what we face today, and it made a real difference to many pensioners who were struggling with heating, eating, and many other living costs. Along with many things that that Government achieved, we had the shortest NHS waiting times in history, we brought crime down, and we created Sure Start, which made a difference to many young people’s lives. We had record results in schools, we introduced the Disability Discrimination Act 2005, and we brought in the first ever Climate Change Act in 2008. All those things made a huge difference to the lives of people in this country, in particular pensioners.
(3 months, 2 weeks ago)
Commons ChamberI thank the Secretary of State for advance sight of her statement. She and I agree on one thing: the welfare bill is too high. Left unchecked, it will rise to £100 billion by the end of the decade. Spending more on sickness benefits than we do on defence is not the sign of a strong country.
This is not just a question of money. We have 3 million people of working-age who are not in work due to ill health, not filling the roles businesses need, not contributing to our economy and not fulfilling their own potential. The best way to get the welfare bill down is to get people off benefits and into work. That is what we did year after year after taking office in 2010. Despite the once-in-a-century pandemic, 4 million more people were in employment when we left office than when we inherited Labour’s mess. Before the pandemic, economic inactivity was at an historic low, but it is true that we then started to see a new phenomenon: growing numbers of people, and—particularly worryingly—young people, claiming sickness benefits. A system set up with good intentions to protect the most vulnerable in society has over time morphed into something broader, driven in part by a well-intentioned but not always helpful medicalisation of life’s ups and downs.
In government, we identified the problem and worked up plans to tackle it, but at every point Labour Members opposed them. In fact, the now Chancellor said that not one single penny could be saved from benefits. When they came into office, not only did they cancel or delay pretty much everything we handed over, but they had no plans of their own. They walked into the Department with empty notebooks. All they had done in opposition was oppose, instead of the hard work of coming up with their own answers. That is why the country has had to wait another eight months for this announcement. In that time, taxpayers have shelled out £7 billion in extra sickness benefits, and nearly half a million people have been signed off sick. In fact, 60 people were signed on to sickness benefits while the Secretary of State was talking.
None the less, I have been looking forward to hearing what the right hon. Lady would announce today and which of the many things briefed to the media her spinning policy wheel would eventually land on. Governing is hard—we know that. In the last few weeks, the Government have made it look really hard, but that is nothing compared with how hard life can be for a severely disabled person, somebody for whom getting up, getting dressed and getting breakfast—things most of us found easy this morning—are hard if not impossible. For some people, the last few weeks have been deeply frightening. They will be glad of the uncertainty finally ending.
I genuinely want the right hon. Lady to succeed, and I welcome her commitment today to increasing the number of reassessments and to having more of them face to face and recorded. I welcome the investment in employment support for disabled people. I welcome, of course, her reannouncing a host of things that we were doing in government. Scrapping the work capability assessment and creating a single assessment is already Government policy that is due to come in in 2026-27. Her big idea seems to be to delay that until 2028. Merging new-style jobseeker’s allowance and employment and support allowance into a new time-limited higher rate is a proposal that we worked up in government. We launched a consultation on tightening up eligibility for PIP and, by the way, we would have gone much further with that. We consulted on ending reassessments for people whose health conditions will not improve, and the right to try guarantee sounds remarkably similar to our chance to work guarantee. Of course, on the Secretary of State’s continued support for WorkWell, I launched that programme with the now shadow Chancellor, my right hon. Friend the Member for Central Devon (Mel Stride). In fact, the only original idea I can see in the entire announcement is increasing the rate of unemployment benefits—a Labour policy if ever I have heard one.
This is a now-or-never chance to seize the moment—a now or never for millions of people who will otherwise be signed off for what could end up being a lifetime on benefits—but today’s announcement leaves me with more questions than answers. How many people will be helped back into work and by when? Surely we have not been waiting eight months for just another Green Paper. Where is the fit note reform crucial to stem the flow of people on to benefits? Where is the action on people being signed off sick for the everyday ups and downs of life? Why is the right hon. Lady planning to save only £5 billion when the bill is forecast to rise to over £100 billion? Do the savings she is announcing today include the £5 billion we had already agreed with the OBR for reforming the work capability assessment? If so, she has made virtually no savings of her own. What is the net saving given the additional expenditure planned?
Fundamentally, this is too little, too late. The fact is that £5 billion just does not cut it with a bill so big going up so fast. She needed to be tougher. She should be saying, “No more hard-working taxpayers funding the family next-door not to work, no free top-of-the-range cars for people who do not need them, no more sickfluencers helping people to claim money they do not need.”
Before the right hon. Lady puts on her angry voice and leans across the Dispatch Box to shout at me about “14 years”, I gently say to her that everybody in this Chamber and around the country knows that we lost and Labour won. Her job now is to govern and mine is to hold her to account. Our country needs everybody who can work to do so. That principle should be at the heart of our welfare system. It is good for the taxpayer, good for the economy and good for the individual and their family, who benefit from security, dignity and purpose that work brings, and it means that those who genuinely cannot work get the support that they deserve.
The fact is that fewer people work under Labour. That has happened every time Labour has been in office, and it is already happening now. The Government should have taken their time in opposition to come up with meaningful reforms, but they did not, and the country is already paying the price.
I personally like the hon. Lady a great deal, but her entire response seemed to be railing against her own party’s failings and lamenting action that her party failed to take. “Too little, too late,” will indeed be the epitaph of the Conservative party. One thing on which I agree with her that this is a now-or-never moment, and I am proud that this Government are taking it. We are taking decisive action, ducking the challenges that have been ignored for too long.
I am not interested in being tough. This is about real people with real lives, and we must be careful in how we talk about it. I am interested in taking the right steps to change the system in order to transform people’s lives and, crucially, ensure that we have a social security system that lasts. One in three of us will have a health condition in our lifetime, and one in four is disabled. Unless the country, the welfare state, the world of work and all our public services wake up to that fact, the welfare state that the Labour party created will not be there for future generations. That is what we are determined to secure. This is a substantial package of measures that will save around £5 billion by 2029-30. We will have to wait until the OBR comes up with its final costings on all this at the spring statement.
I leave hon. Members with this: a decade ago, former Chancellor George Osborne said:
“Governments…let…unemployed people get parked on disability benefits, and told they’d never work again. Why? Because people on disability benefits don’t get counted in unemployment figures that could embarrass politicians.”
The Labour party is not embarrassed about this situation; we are ashamed of the state the Tories left the country in. We will face up to our responsibilities; it is time that Conservative Members did the same.
(3 months, 2 weeks ago)
Commons ChamberBack in the autumn, the right hon. Lady said
“we will not allow young people not to be in education, employment or training.”
How is it possible then that since Labour has been in office there are 100,000 more young people in exactly that situation?
The hon. Lady had 14 years to solve the problem and the Conservatives’ record is clear: nearly 1 million young people not in education, employment or training, which is one in eight of all our young people; and the number of young people with mental health concerns who are out of work has now reached 270,000. That is the legacy of 14 years of Conservative government, and it is a legacy that this Government are determined to change.
I asked about what has happened “since” the right hon. Lady’s party has been in government: it is her Chancellor’s tax on jobs and economic mismanagement that are costing young people opportunities. Instead of taxing jobs, Labour should have been ready with a plan for welfare reform at the time of the Budget. They have spent nine months trying to cobble one together and still we wait. Why did the right hon. Lady not make any plans in opposition, and does she regret that?
Conservative Members had no plan. Even their own former Chancellor admitted that the numbers were made up. The only thing they put forward were proposals on the work capability assessment, which have recently been ruled illegal by the courts. They had no plan, but they had a clear record: leaving people behind, writing them off and putting them on the scrapheap. This Labour Government will turn that around and get people, and our country, on the pathway to success.
We heard yesterday that the Cabinet had not yet seen the welfare plan that the right hon. Lady is apparently due to announce tomorrow. Given all the media briefings, the apprehension of disabled people and the growing number of people not working, none of us would want to see that delayed. Can she assure us that she has got collective agreement so that she can announce her plan here in this Chamber tomorrow?
The hon. Lady will have to show a little patience. She talks about plans, but we have seen her and the shadow Chancellor, the right hon. Member for Central Devon (Mel Stride), making claims in various newspapers about their plan—but there never was a plan. The former Chancellor, the right hon. Member for Godalming and Ash (Jeremy Hunt), actually admitted that during the election when he said that the numbers had already been scored. The only thing that the previous Government ever put forward was ruled illegal by the courts. They had 14 years to put this right; this Government will act.
I listened hard to the right hon. Lady’s answer but, given everything I heard, I still do not think she has the support of Cabinet colleagues, with less than 24 hours to go. It was a no.
There is never a good time for millions of people to be out of work, but as the world gets more dangerous we can afford neither the benefits bill nor the waste of human potential. Given the opposition of the right hon. Lady’s party to welfare reform, can she assure me that her planned reforms will grasp the nettle and bring the benefits bill down?
That from a member of a Government who left one in 10 working-age people on a sickness and disability benefit, one in eight young people not in education, employment or training, and 2.8 million people out of work due to long-term sickness. That was terrible for them—for their life chances, incomes and health—and terrible for taxpayers who are paying for an ever-spiralling bill for the cost of failure. Unlike the Conservative Government, who wrote people off and then blamed them to get a cheap headline, we will take decisive action, get people into work and get this country on a pathway to success.
(5 months ago)
Commons ChamberA strongly held Conservative principle is that public money must not be wasted. We hold this view not because we are mean, but because the Government do not have money of their own. What they have, they raise through taxation from all of us. A tiny fraction of every penny that they spend is yours, mine and everyone else’s who pays in. Those who spend public money have a duty to spend it wisely, and ensure that it ends up only with those who should have it, for the purpose for which it was intended. In a big, complex system of government in a country of nearly 70 million people, from time to time that will not happen for a range of reasons—from a form that has been accidentally filled in with the wrong information, or a change of circumstance that someone forgot to notify the jobcentre about, to serious organised fraud—but however taxpayers have lost out, it is incumbent on the state to do all that it can to get their money back. That is what taxpayers rightly expect. It is part of the unwritten contract for collecting that money in the first place. Therefore, it will be no surprise to hear that, in principle, we support the Bill’s aim. In fact, much of the Bill continues work that we did in government, and legislation that was interrupted by the election.
It is important to put what we are discussing today in context. Before the pandemic, fraud and error across the DWP benefits and tax credit system was at a near record low, but then we had two national crises—first, the pandemic, then war in Ukraine—which piled huge cost of living pressures on families across the UK. During both, we acted rapidly. We set up never-seen-before systems of support in record time. We protected millions of people’s jobs. We paid half of everyone’s energy bills for a year. We got direct payments to the people who needed them the most. I am proud of what we did, and I think that history will look back kindly on how we supported people through those times, but the truth is that when we do something fast at a moment of crisis, that inevitably opens up new vulnerabilities in the system. Disappointingly, against a national spirit of getting through hard times together, some people saw it as a chance to make a quick buck, and we saw a material increase in the amount being lost to fraud within the system. Any and all of us could spell out better uses for that money. That is why, back in May 2022, we published our plan, “Fighting Fraud in the Welfare System”. We increased the number of frontline counter-fraud professionals in the DWP, created a new Public Sector Fraud Authority and started work on new legal powers to investigate and punish fraudsters. It was a good start. In 2022-23, fraud and error were cut by 10%. We saved £1 billion through the Department’s dedicated counter-fraud activities. The next year we upped that to £1.35 billion, exceeding the £1.3 billion target, yet we were still not satisfied.
In May last year, we published a second fraud plan to save £9 billion by 2027-28, which included hiring more staff to check claims for accuracy, modernising information-gathering powers, broadening the penalty system and investing £70 million in advanced data analytics. In April, we announced plans for a new fraud Bill to align DWP investigations with HMRC, treating benefit fraud like tax fraud and giving investigators new powers to make seizures and arrests. When the general election was called, the Data Protection and Digital Information Bill had already passed through the House of Commons. The Bill included the powers the Government are introducing today to require third parties, such as banks, to provide relevant information to the DWP. To the extent that this Bill continues that work, I do not envisage substantial disagreement—albeit we have questions on how the law will work in practice. I also have serious concerns about the powers that the Cabinet Office is giving itself.
Before I deal with those, let me say that I recognise the concerns that people have about the state getting too much information about their finances. Privacy should never be taken lightly. I do not want to live in a country where the Government can access our bank accounts and look at what we have been spending our money on, and I would not support a Bill that would allow the Government to do that, but I believe that it is right for the DWP to learn lessons from HMRC to recoup taxpayers’ money. The fact of the matter is that if someone receives money from the state, it is not unreasonable for the state to investigate if there are signs they are taking money that they should not be.
As I said, I have some questions about how the social security powers in the Bill will be put into practice, and I expect to probe those matters further as the Bill progresses. For instance, on the role of banks, how much testing has been done of the systems that they expect to use? The Horizon scandal is a recent reminder of how computer systems do not always get it right. What progress has been made on the code of conduct, and when will we see it? I also note that no impact assessment has been done on the cost to banks. Has the Minister met the sector and discussed what the changes mean for it? I know there are concerns within the sector about the lack of detail brought forward by the DWP. If the maximum level of scrutiny allowed under the Bill is demanded by the DWP, how would that work in practice for banks and what would it cost?
On the sanctions that can be meted out under the Bill, we support the Department for Work and Pensions being given further powers to pursue recovery outside of benefits and PAYE, but are the measures outlined in the Bill tough enough? Why is 40% the maximum amount of someone’s capital that can be reclaimed? Allowing for hardship, which the Bill does, why should someone potentially keep the majority of their ill-gotten gains?
It is not clear how the Bill intends to treat carer’s allowance overpayments, which I know from my time as Care Minister are complicated and often accidental, though unfortunately not always. None the less, they are a loss to the taxpayer that should be investigated. We would like to understand in more detail how the savings we are told to expect from the Bill will accrue. How many people does the Government think that will affect, and what proportion is it of the fraud currently being perpetrated? I was concerned the other day to see reports in the media of a number of artificial intelligence schemes being quietly shelved in the Department. It is noticeable that the plans rely heavily on human labour to root out fraud. While I know the Government have to create jobs somehow, I would be interested to hear what consideration has been given to automating some of the processes in future. That too will help ensure that taxpayers’ money does not go to waste.
I come to my main area of concern, which is the powers being given to Cabinet Office Ministers and the Public Sector Fraud Authority. I know what it is like to make legislation thinking that I, as a good person, would only use it wisely, but I also know what it is like to be wrongly investigated by a public authority on the grounds of a misleading newspaper article. Looking at the investigatory powers bestowed in chapter 2 of the Bill, how could one not be worried to see a Minister being given powers, with little oversight, to compel a person to release whatever information they wish, in any format demanded, within 10 days, along with the information of anyone connected to them, on any grounds that the Minister deems “reasonable”—and to disclose that information to whomever they think necessary, with the sole right of appeal being only to that Minister? It could be impossible for someone to comply within the timeframe given, yet the Bill includes fines set at £300 a day for missing the deadline.
Of course the Government should go after fraudsters, but I worry that some of that power could be abused and that, in its current form, it may breach laws on the state taking someone’s property without due process. I would be interested to hear if experts in the legal sector have been consulted on the legislation as drafted. Have Ministers engaged with the Law Society, the Bar Council or, for that matter, organisations like Liberty and Justice?
In the Department for Work and Pensions and the Cabinet Office, it is right to pursue fraudsters with the full might of the law, but the ends cannot justify all means and the process must always be fair, reasonable and proportionate. I look forward to further discussions on the detail of the Bill, and I am sure that colleagues in the other place will be preparing for that, too.
In the meantime, we must not let the Bill distract from the elephant in the room. For every penny the Bill will save—welcome though that is—it will do nothing about the billions of pounds that will be racked up in sickness benefits under this Labour Government. It is staggering that they did not come into office with a plan. They have done nothing to halt the tide in the seven months they have been in office, and I hear that they have shelved some of the work we handed over. We have heard not a murmur about what they will actually do, just briefing after briefing to the papers. Why not bring an actual plan to Parliament rather than talking to the papers? I suspect you, Madam Deputy Speaker, might agree with me on that point.
We had a plan—where is theirs? Every day the Government scramble about without a plan costs taxpayers millions. Fraud and error in the system is a problem, and I am pleased to pledge the Opposition’s support for tackling them, but let us not use this Bill as a distraction from the big issue. We all agree that the welfare system needs reform. Let us end the briefings and have some action.
Before I call the next speaker, I just want to make it clear that after the hon. Member for Oldham East and Saddleworth (Debbie Abrahams), I will call the Liberal Democrat spokesman, the hon. Member for Torbay (Steve Darling).