Welfare Reform Bill

Debate between Lord Hamilton of Epsom and Lord Wigley

Monday 23rd January 2012 Lords Chamber

[Lord Hamilton of Epsom]

My Lords, I find it remarkable that the noble Lord, Lord McKenzie, says that the Labour Party in principle supports a cap, but in this particular instance thinks that somehow it should be alleviated. We face a considerable deficit in this country and the social security bill is certainly one of the largest elements of public spending. If we continue to find all sorts of ways of alleviating measures that the Government are taking, no savings whatever will be made to the social security bill.

This is also an opportunity to change attitudes completely. We are privileged in our House to have the right reverend Prelates on the Bishops’ Benches. I think it was Alastair Campbell who said of Tony Blair, “We don’t do God”, but in this House we do not have to be inhibited in that way. We can talk about the morality of a benefits system that encourages single mothers to have more children, because the more children they have the more benefit they get. Is that moral? I have my doubts. Is it moral for a Somali family to move down from the Birmingham area to Hampstead because they wanted to live in a more salubrious part of London where it was extremely expensive to house them? Is it moral to have a benefits system that pins people in their houses and prevents them going out and looking for work, given that underlying this is the Government’s intention that people should be encouraged to go and find work?

Of course people will have to move, but that is what people in the private sector do. I question the morality of having a benefits system that gives people infinitely more money than the take-home pay of people on average earnings in this country. It is the taxpayers who are paying for these very high levels of benefit. I support this cap and I hope that the House will vote against the amendment.

[Lord Wigley]

My Lords, in Committee when we addressed this question, there was a suggestion that as many as 200,000 people—I have not heard the figure gainsaid—may have to move from areas of high rents to areas of low rents. The noble Lord who has just spoken said that of course people will have to move. But where will they move to? We have heard mention of Middlesbrough in the north-east and Merthyr Tydfil in south Wales—areas where unemployment is high, the chances of getting a job are very low indeed and where local circumstances place tremendous pressures on social services departments. If not just the generality of those who cannot afford the rent in expensive areas such as the south-east but particularly those with special needs covered by the amendment are moved to areas that may not have the resources to cope with them, we will inevitably build up pressures when we should avoid doing so. We will build up pressures in the communities to which those people may move. Even more seriously, we will build up pressures for families who will essentially be forced to move away from their relatives, grandparents and friends in school. Is this really the sort of policy that our Government support? I urge the House to support this amendment.

Welfare Reform Bill

Debate between Lord Hamilton of Epsom and Lord Wigley

Monday 12th December 2011 Lords Chamber

[Lord Wigley]

My Lords, we delved into this issue in quite considerable depth in Committee, and I do not want to rake over areas that we have covered. However, I suspect that there is a fundamental question here, which I think the Minister accepts—namely, that there will always be some people who find it difficult, if not impossible, to handle a lump-sum budget that is meant to cover a month. In those circumstances, some mechanism—whether it is a voluntary one making a facility available, as suggested by the noble Baroness, Lady Meacher, a moment ago, or some other mechanism—has to be brought forward by the Government to ensure that these people are helped to avoid getting into financial difficulties. That must be in the interests of the Government and everybody who is concerned about children, in particular, who may be vulnerable as a consequence of such action. I think that the House would be very glad to hear from the Minister how he sees the operation of a mechanism that will ensure in a minority of cases where the monthly pattern does not fit that a system is in place to answer the needs of these vulnerable families.

[Lord Hamilton of Epsom]

My Lords, I am a relative newcomer to this debate but I should like to pick up one point made by the noble Baroness, Lady Lister, who said that cost had never been an issue here. I cannot quite understand why money would not be saved if payments were made monthly rather than weekly. It seems to me that a saving would be made there, and surely we are trying to achieve savings because of the economic situation that this Government have inherited.

I should like to pick up one other point from the right reverend Prelate the Bishop of Leicester. He seemed to think that it was a bad idea that the Government were trying to introduce a culture change. I should have thought that that was rather a good idea. Surely we are trying to get people into a mindset whereby they move into the world of work and come off benefits. Anything that can be done to encourage that seems to be a good idea. However, I should like some guidance from the Minister on whether there is any saving to be made here and whether he has any idea how much it would come to.