(3 days, 8 hours ago)
Commons ChamberI am careful, actually, to look at the data and constantly refer to facts that are accepted by the OBR and the Government. These facts are not challenged. We have 300,000 people currently waiting to undergo a work capability assessment. We need emergency measures to clear the backlog. I am surprised that anybody could disagree with what I am saying.
The lack of in-person assessments has created a feedback loop where dependency grows and work expectations diminish. The longer that is allowed to continue, the harder it becomes for people to reintegrate into society. This is a system that writes people off rather than helping them back into employment. I would have thought we could all agree on that. We must not abandon these people; this is about human dignity.
Getting people off long-term benefits and into employment brings significant mental health benefits. It also helps our straitened finances. The cost of sickness and disability benefits is projected to reach £100 billion annually by the end of the decade. Some households receive more than £30,000 a year in universal credit alone, with disability benefit payments pushing support well above that. The current system financially incentivises individuals to demonstrate incapacity rather than engage with work. I agree that the Government have redeployed work coaches to re-engage long-term inactive claimants, but systematic incentives remain unchanged. Failure to tackle long-term benefit dependency impoverishes the nation by increasing fiscal burdens and reducing labour force participation.
The Office for Budget Responsibility reported that the working-age incapacity benefit caseload reached 7% in 2023-24 and is forecast to hit 7.9% by 2028-29. We must stop paying full benefits to young people who are neither working nor studying. Those young people should be working or studying.
I will make some progress, if I may. The Centre for Social Justice estimates that by 2026 there will be a gap of over £2,500 between earnings and combined benefit income for under-25s. I could go on making those arguments, but I will proceed to the next part of my speech, on immigration.
I accept that the greatest failure of our last Government was immigration. I admit, and I apologise on behalf of my Government, that the 2021 to 2024 Boriswave allowed—[Interruption.] Why should I not apologise? Why should I not be honest? It allowed over 4 million non-UK migrants into the country. Many of them will soon qualify for indefinite leave to remain. ILR’s granting of access to benefits and public services on the same basis as citizens is destroying financial incentives. The scale of it is financially significant.
I agree that the Home Secretary has announced some sensible moves. I supported her when, for example, she came to the House to extend the standard qualifying period for ILR from five years to 10. As Karl Williams of the Centre for Policy Studies has noted, policymakers cannot say with confidence how many migrants currently hold ILR or what their economic circumstances are. Experimental DWP data shows that about 211,000 ILR holders receive universal credit—that is completely unsustainable. If Migration Observatory estimates are correct, between 27% and 37% of ILR holders receive universal credit. This is a worrying problem that needs resolution.
I turn next to increasing tax. I have long argued for a much simpler tax system where we close loopholes but keep taxes low, especially for married families. Corporate tax complexity creates an inherent bias towards huge multinationals who can hire departments of accountants to reduce their liabilities. A free market relies on everyone paying their fair share. We need creative ways of ensuring that companies like Amazon and Starbucks can operate freely—we all use them—while paying a fair contribution. Then we can help lighten the burden on family farms, working people and small firms. Increasing taxes on working people risks undermining growth by reducing take home-pay and incentives.
Figures from the Office for National Statistics show that direct taxes reduced income inequality by only 4.4 percentage points: limited redistribution for a heavy burden. Higher taxes on the wealthy simply encourage them to leave. Data from the Henley & Partners 2025 migration report suggests that the UK may lose 16,500 millionaires this year. What is the point of it? Why are we driving these wealth creators out of the country? [Interruption.] There is so much to say, Madam Deputy Speaker, but I know that I will weary the House if I go on too long.
May I end on one point? It is quite controversial and difficult to say. I know I am going to get into trouble for saying it, but I have got to say the truth as I believe it. We all know that the triple lock is unsustainable. We cannot have a situation where people of my generation are consuming an ever greater proportion of national wealth through the state pension. Frankly, our Government never dared tackle it, having brought it in, because they knew that the Labour party would crucify them at the ballot box. Now, the Labour party is caught in the same bind. The fact is that it is completely unfair on younger people if the burden of older people, through the triple lock, increases year by year.
We laugh at the French because of their failure to achieve sensible pension reform, but we ourselves have got to have the courage, frankly, to end the triple lock—and I think this will only be done with consensus between the two parties. I am absolutely sure that the Government could come to the Leader of the Opposition and say, “This is unsustainable. Will you share this burden with us?” That may seem very unpopular, but actually many older people—people of my generation—all have children and we all have grandchildren, and we all see our children struggling to get into the housing market. If the Government and the Opposition were prepared to have the courage to deal with the triple lock, I am not sure that it would be as unpopular with older people as is sometimes maintained. After all, we could always relieve the burden on those on pension credit and find ways of helping people who really could not afford to live. But the triple lock must go. That is not a popular policy, but in our hearts, I think we know that it is the right one.
(1 year, 4 months ago)
Commons Chamber
Lizzi Collinge (Morecambe and Lunesdale) (Lab)
Thank you, Mr Deputy Speaker. I have been preceded by many wonderful first speeches, particularly from the hon. Member for Huntingdon (Ben Obese-Jecty) and my fellow Cumbrian representative, my hon. Friend the Member for Whitehaven and Workington (Josh MacAlister), to whom I say, “Areet, marra?”
I would like to start my first speech by paying tribute to my predecessor, David Morris. I know he knocked on a lot of Ministers’ doors to get funding for Eden Project Morecambe, and I thank him for it. I made a solemn promise to him that I would deliver Eden Project Morecambe and make it work for local people.
Thanks to boundary changes, I have two other predecessors. Morecambe and Lunesdale has gained a tract of beautiful Westmorland that was formerly represented by the hon. Member for Westmorland and Lonsdale (Tim Farron). I know from speaking to his former constituents that the hon. Member is highly regarded and leaves some big boots to fill.
I also gained Lower Lune Valley ward from my good friend and mentor, my hon. Friend the Member for Lancaster and Wyre (Cat Smith). When I joined the Labour party in 2014 after the birth of my first child, my hon. Friend invited me for a brew. I thought this was a very kind gesture. Little did I know what she had in store for me. I hope she now feels that the aching arms she got from my particularly enormous newborn were well worth it. I would also like to pay tribute to the Labour Women’s Network and the 50:50 Parliament campaign for their tireless work and collective efforts to see more women Members elected.
I would be remiss if I did not mention my predecessor, Geraldine Smith, who is extremely well regarded in the constituency. And what a constituency it is. Morecambe and Lunesdale is definitely the most beautiful constituency in the country. From the golden sands of Middleton, through the beautiful art deco buildings and stunning sunsets of Morecambe, up the lush Lune Valley, across the Arnside and Silverdale national landscape, and into the wild beauty of Westmorland, you would be hard pushed to find a better place to live or work. My constituency has a diverse set of towns and villages, all with their own needs and fantastically strong communities. Their differences should be respected and celebrated. Where their needs overlap, often the solutions need to be tailored to their specific circumstances. In constituencies such as Morecambe and Lunesdale, one size does not fit all, so as our new Government deliver their ambitious programme of national renewal, I will ensure that the voices of all my communities are heard.
My aim is to be a good constituency MP. For me, there is no more honourable ambition, and I am extremely grateful to all the people who supported me and enabled me to have that honour. In His Majesty’s most Gracious Speech, we heard about the Government’s plan to reform our bus system, and as a proud member of the Lancaster District Bus Users Group, I welcome that warmly. I also warmly welcome the new Government’s dedication to farming and rural communities. In his contribution in this place last week, the Secretary of State set out a new deal for farmers, action on water pollution and plans to tackle the nature emergency. Speaking of nature, in Morecambe the shrimps are not only part of the local fauna, and a local delicacy that comes highly recommended, but the local football team, and I look forward to delivering on my promise to them of a new independent football regulator.
Before joining this Chamber, I served as a Lancashire county councillor for eight years, and in that time I have specialised in health and social care and served on our health scrutiny committee. I am sure that Members across the Chamber will agree that we expect the highest standards of care for our constituents, so I pay tribute to the many patients and health campaigners who have worked so hard to ensure safe, equitable care for all. Many a health and care leader in Lancashire and South Cumbria has met me across a committee table. I hope that they found me a fair, if sometimes firm, scrutineer.
I am a humanist. Humanists are people who shape our lives in the here and now, because we believe it is the only life we have, and what is politics if not shaping lives in the here and now? Humanists try to treat everyone we come across with warmth, understanding and respect. We believe that we humans have everything we need: logic, reason, evidence, and empathy to make good, ethical decisions. It is these values that I hope to bring to my role in decision making in this place, so I welcome our Government’s focus on service, integrity and honesty. If we are to rebuild trust in politics, we must adhere to those principles rigorously, and I am sure that Members across the Chamber will do so.
Finally, I dedicate this speech to my family: my mum and dad, who brought me and my sister Hannah up with good morals and lots of love; my husband Miles for always having my back and taking on an unfair share of the family duties, alongside a full-time role with the NHS; my kids for putting up with mummy being away so often; and my grandma and grandad, who we lost in 2022. Grandma, remembering her parents’ hard upbringing—they experienced sometimes abject poverty—always voted Labour, much to the annoyance of my working-class Tory grandad. When I was first elected to the county council, grandad told me, “Ey Liz, I’m reyt proud of you. It’s a pity you’re on the wrong side!” My grandad might not have been a Labour supporter, but he did believe in service, and I look forward to working with Members across the House to serve our country and my people in Morecambe and Lunesdale.