Welfare Debate
Full Debate: Read Full DebateJosh Fenton-Glynn
Main Page: Josh Fenton-Glynn (Labour - Calder Valley)Department Debates - View all Josh Fenton-Glynn's debates with the Ministry of Housing, Communities and Local Government
(2 days, 2 hours ago)
Commons ChamberMy right hon. Friend is absolutely right. The first duty of Government is national security. We will not even have social security if we do not have national security. We have to find a way to fund defence. There is no time to waste. As I will set out in my speech, there are plenty of opportunities to make substantial welfare savings, to cut taxes, to bring down the deficit and to fund defence.
To be fair, some Government Members understand the situation that the country is in. Some of them know that their constituents understand it, too. That is why they sometimes go through the motions, as with their amendment today, albeit they hid it at the very end, with some wording that they want to “bring down the benefits bill”. I wonder whether Labour Whips were hoping that their leftie Back Benchers would not read that far. Though Labour talks about bringing down the bill, there is no date. It is the same thing when the Prime Minister says that he wants to bring welfare spending down
“as soon as we possibly can.”
It is nonsense. Without a date or plan, it is just empty words. No one trusts this Government on welfare. Apparently there will not even be any savings in the Prime Minister’s 10-year plan.
Josh Fenton-Glynn (Calder Valley) (Lab)
The hon. Member says that we do not have a plan to bring down welfare spending. We are putting £3.5 billion into getting young people back into work. Can the hon. Member tell me how the Opposition arrived at their £36 billion figure—the Institute for Fiscal Studies does not know—and, indeed, how much they will put into getting young people back into work?
I will set out how we will achieve our £36 billion in savings, if the hon. Gentleman will just sit back and listen. All we have heard from him and his party are plans to spend more money, and he simply reiterated that just now. We do not bring the benefits bill down by spending more money.
This is not just about the welfare bill. Let us talk about what is happening to our country. A total of 6.7 million people of working age are not working and are on out-of-work benefits, and 700,000 of them are under the age of 25. This is a disaster. All those young people are sitting at home whiling away the day instead of going out to work and getting on with their lives. One in four adults now identify as disabled. Claims for personal independence payment have doubled since 2019, but the country is not twice as sick. Hundreds of thousands of households claimed more than £32,000 in benefits last year, and some of them claimed more than £60,000. That is almost twice the average take-home pay of a British worker. People who are working are asking, “Why do I bother?” We cannot expect taxpayers to keep funding a welfare system that is clearly so broken and so unfair.
What would the hon. Lady say to people who are not on benefits, who ask, “Can we afford to have another child?”, and decide that they cannot? The fact is that someone who is in work and decides to have another child will not be given a pay rise.
None of what I am saying should come as a surprise, given that 204 Labour Members have more PIP claimants in their constituencies than the size of their majorities. No wonder the Welfare Secretary has said that all his MPs ask him is, who can they tax more in order to pay more benefits? Most Labour Members see no problem with the size of the welfare bill. The Disability Minister himself said that
“the current level of spending is not a great concern”,
but some of them know that the anger is building out there. People who work are getting tired of being taxed to the hilt to pay for people who do not. Some Labour MPs will desperately want to reassure their constituents. They will be hoping that the Timms and Milburn reviews will give them some succour, but they will not face the facts, and neither will they bring down the benefits bill. Labour spin doctors may try to say otherwise, but nobody is buying it.
The Conservatives are the only ones with a plan that backs welfare savings—no ifs, no buts. Our reforms will save £36 billion.
The hon. Member asks “How?” from a sedentary position. I have our plan with me here and, if he will just listen, I will set it out.
As I said, our reforms will save £36 billion. When the Prime Minister was asked about them, he said that they were just a number. He could not be more wrong. Savings are important, but reforming the welfare system is a good thing to do in its own right. We have not just plucked a big round number out of thin air; it takes hard graft to work out who should get support and what help they should get. It also involves saying who will not get benefits any more, which is not something that welfare party Members will ever have the courage to do.
It is a pleasure to contribute to the debate and to have heard speeches from both Front Benches. It is also good to be debating again with the Minister for Social Security and Disability, the right hon. Member for East Ham (Sir Stephen Timms), with whom I have had similar debates on welfare reform, from the opposite side of the House, a few times in the past.
I am intrigued by what I have heard so far, although Back-Bench contributions have been limited. I think everyone in the House will agree that we have a moral duty and responsibility to ensure the welfare system in this country is functional and does what it says on the tin. It should be a safety net for those who are in need of support, and we should all work together to find ways to get more people back into work. There is no dispute on that whatever.
The hon. Member for Gedling (Michael Payne) just quoted my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) when he was Secretary of State for Work and Pensions. I was his Minister of State, and at that time we were undertaking regression analysis to ensure there were the right taper levels so that work paid and there were the right incentives for people on universal credit. There is a lot of technicality behind this, and with regard to those circumstances, I am afraid that the hon. Member’s quotation of my right hon. Friend was not totally accurate. I was proud to serve with my right hon. Friend in that Government and of the work we undertook.
Josh Fenton-Glynn
The right hon. Lady talks about incentivising people to get back into work. In the £36 billion of savings, can she point to where the investment in getting people back into work is?
There is plenty of investment, starting with the work that needs to take place at the Treasury to stop putting burdens on businesses. We can have the same conversation in the other debate later this afternoon.
Back in 2010, we inherited a fiscal position in which £1 in every £4 spent was borrowed. When up against a weak fiscal position, the Government of the day have a duty to ensure they incentivise work, get more people off welfare and back into work—particularly at a time when unemployment had been rising. [Interruption.] If the hon. Member listens and goes back and looks at how the last Conservative Government did, he will know that is the case.
We saw around 1 million young people who were not in education, employment or training. Within five years, as I said in my intervention on the Minister, the number of workless households had fallen by 600,000. Over 370,000 fewer children were growing up in households where no one had a job. That is really important, because employment levels for single parents and those with disabilities and barriers to employment had also increased. Of course, it was the combination of the Work programme—all colleagues in the House should give some time to look at this—universal credit and welfare reforms that encouraged more people into work and gave them something we should all care about: the security and dignity that comes with having a job.
None of this is easy. This afternoon, we will hear lots of point scoring, but I stood at the Government Dispatch Box along with my hon. Friends to do the heavy lifting on welfare reform. In fact, it was prior to 2010, during the Government in which the Minister served—I think he was in the Treasury; he may correct me if I am wrong—that the Work programme first came into the public domain. We all heard about how the Work programme was all about working with employers and giving them incentives to do much more to get people into work. That also led to young people getting into work and more apprenticeships.
Apprenticeship starts are not straightforward; we have to incentivise them. People with disabilities had been written off—that was why we had Disability Confident, and I am pleased to hear that more work is being done to look at that scheme to get more people into work. All those people had been written off under previous Governments.
In the past, it was easier to sign people off than to create pathways to meaningful employment. We all have a duty to work with businesses in our constituencies to help people get into work. Madam Deputy Speaker, I am sure you saw in your constituency that employment rates increased for those signed off and on benefits. We also saw a halving of youth unemployment. Those are the things that had been achieved under previous Governments. Then, of course, we had the pandemic—we have heard about that—which absolutely changed the situation.
Under previous Conservative Governments, in every debate, every question time and every Budget—this is why I made the point I did to the Minister—our welfare reforms were not supported universally in the House, including by Labour Members. As the Minister does now, I fielded endless questions, urgent questions and Westminster Hall debates from Labour Members who simply could not accept that supporting people into employment and reducing welfare dependency was the right thing to do for those who had become trapped on welfare.
Nothing is worse than seeing families trapped on welfare, with the intergenerational welfare dependency that creates. All credit to colleagues, including former Secretaries of State, who worked hard to tackle that. We have a duty to find ways to reduce the costs for taxpayers and to do more to create pathways to work.