Welfare Cap

Debate between Ian Blackford and Greg Mulholland

Wednesday 16th December 2015 Commons Chamber

[Greg Mulholland (Leeds North West) (LD)]

I welcome this U-turn. Sometimes, it is right to accept that one is wrong and has made a mistake. I commend the Government for doing so on this issue.

I also commend all those who took part in what was very much a cross-party campaign, in which all the Opposition parties and some Government Back Benchers worked together. I pay tribute to the hon. Member for South Cambridgeshire (Heidi Allen) for the courageous way in which she spoke out, which was noticed around the country and did this place a real service.

I also pay tribute to the other place. Although I will always campaign for that House to be abolished in its current form and replaced, finally, with a wholly elected Chamber, which is what we should have in this country and is the only justifiable way to run a modern democracy, it did show that it has a role to play in this Parliament. I commend my Liberal Democrat colleagues in the other place, who made it clear that they would speak and vote against the tax credit cut. That was crucial in leading to the U-turn.

As a liberal as well as a Liberal Democrat, I will always be extremely proud that it was the great, reforming Liberal Government of 1906 to 1914 that brought in the very welfare state that we are discussing. That is a great achievement of my party.

However, we accepted in our five years in coalition, in difficult financial circumstances, that the welfare state had got out of control and was no longer sufficiently focused on those who needed it. I was a member of the Work and Pensions Committee for five years and that Committee, which had members from all parties, was entirely clear that there was a disincentive to work and that too many people were incentivised to be on benefits, rather than to work. I am very proud that, in the five years of the coalition, we did a lot to tackle that.

[Ian Blackford]

Will the hon. Gentleman remind us how the Liberal Democrats voted when the welfare cap came before Parliament last year?

[Greg Mulholland]

I am very happy to. As usual, the contribution from the SNP Benches contained the usual milk and honey, promising everything to everyone and not taking any difficult decisions. In the end, even in Scotland, the shine will come off and people will start to see the reality of the false veneer of the Scottish National party. That is something that the rest of us will welcome.

I am not even sure that the hon. Gentleman knows what he is talking about. There are two different issues: the household benefit cap and the welfare cap. He seemed to confuse and conflate the two things. We absolutely supported the household benefit cap, which was brought in under the coalition, because it is entirely right and all our constituents support not having a situation in which a single household can take an unlimited amount in benefits, when hard-working families are unable to raise the same amount. The welfare cap is an entirely different thing. It seeks to control the amount of money that the Treasury allocates to welfare as a whole. He does not seem to understand the distinction, which is worrying, given his position.