Spring Statement Debate

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Department: HM Treasury

Spring Statement

Lord Bishop of Leicester Excerpts
Thursday 27th March 2025

(5 days, 23 hours ago)

Lords Chamber
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Lord Livermore Portrait Lord Livermore (Lab)
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I am grateful to the noble Baroness for her concern. She talks about employment, but, according to the OBR, it will rise by 1.2 million people over the course of the forecast, so I am not sure that what she is saying there is correct. As I have said repeatedly during this Question, the impact assessment she refers to takes no account of the £1 billion investment in helping people get back into work, so I am afraid that the impact assessment figures she is using are not correct. The OBR will look at the additional £1 billion over the course of the summer and come back with an updated impact assessment that takes it into account.

Lord Bishop of Leicester Portrait The Lord Bishop of Leicester
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My Lords, I appreciate the work that the Government are doing to stimulate the economy and to get people back into work. I understand the dilemma that the Government face with the spiralling costs of welfare. But I am left to wonder: how is it that the DWP’s own impact assessment, which I understand includes the £1 billion investment that the Minister referred to, does also state that 250,000 people will be pushed into relative poverty, including 50,000 children? How can the Government of one of the richest countries in the world justify policies that push people into poverty?

Lord Livermore Portrait Lord Livermore (Lab)
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I hate to contradict the right reverend Prelate, but I am afraid that the impact assessment does not take account of the dynamic effects of the £1 billion invested from the £4.8 billion of savings—the OBR has said that very clearly. It will look at that and come back with its assessment of what the impacts will be. He asked me how I can justify reforming the system. I do not know how we can justify a system where one in eight young people is not in employment, education or training. I do not understand how we can justify a system that writes off an entire generation and leaves them consigned to a life on benefits. I do not understand how we can have a system that writes off people and does not give them the support to get them back into work. I think that is the moral thing to do.