Welfare Spending

Luke Charters Excerpts

Tuesday 4th November 2025 Commons Chamber

[Sir Stephen Timms]

I do envisage that, as people get back to work, there will be savings on social security. I think we will see at the Budget projections from the Office for Budget Responsibility of future moves into employment as a result of the changes that we are making, and savings will certainly arise. We want our work coaches, as the right hon. Gentleman has just pointed out, to spend less time on bureaucracy and more time on what they do best, which is giving people the benefit of their expertise and helping people move closer to work.

Good work will also be a key part of the child poverty strategy, which we will bring forward by the end of the year. We will tackle child poverty by increasing family incomes, reducing family costs, building financial resilience and improving local support. Some people will remember that I took the Child Poverty Act 2010 through Parliament, with all-party support at the time. It was quickly scrapped by the coalition Government and the number of children growing up in poverty has gone up by 900,000 since then. Welfare spending has also rocketed. Reducing both child poverty and welfare spending are not opposites.

[Mr Luke Charters (York Outer) (Lab)]

Will my right hon. Friend join me in recognising the benefit to the labour market of the roll-out of 30 hours of free childcare? I met a single mum in my constituency who is taking on more hours to support her family. That will help her children get out of poverty, thanks to this Government’s efforts.

[Sir Stephen Timms]

My hon. Friend is absolutely right. That is a welcome and much-needed step.

The early years are crucial to somebody’s life chances. Ensuring that children grow up happy, healthy and able to fulfil their potential is certainly, to borrow a phrase from the motion, “a moral mission”. However, it is also about reducing demand on social security, instead of sitting on our hands like the last Government and leaving the system to pick up higher costs further down the line.

The child poverty strategy will build on our cross-Government approach to lifting people out of poverty through rolling out free breakfast clubs, raising the national minimum wage and, as my hon. Friend the Member for York Outer (Mr Charters) points out, expanding free childcare and free school meals to all families on universal credit. It will be an ambitious strategy and in developing it we will consider all the levers available to give every child the best start in life.

To make work pay: that was what universal credit was intended to do. Yet it was left with perverse disincentives to work in the system, forcing people, as many did, to aspire to be classified as sick in order to qualify for a higher payment. We have addressed that by rebalancing the payments in universal credit, alongside other reforms. The system should not force people to aspire to be classified as sick; it should promote and encourage work and provide support to make work feasible.

As the shadow Secretary of State kindly mentioned, we are progressing the review, which I am responsible for.

--- Later in debate ---

[Mr Peter Bedford (Mid Leicestershire) (Con)]

The welfare bill is out of control. A system with laudable aims that was designed to act as a safety net for those who fall on hard times now threatens not only the nation’s finances but the spirt of hard work and self-reliance. That is why I will support the motion.

My Conservative colleagues and I believe in fairness. We are the party of the strivers—the men and women who rise early, work long hours and provide for their families. The shopkeeper who opens up before dawn, the construction workers on site in all weathers, and the parents balancing multiple jobs—these are the people who make Britain great. They keep our economy going and our communities alive. This Government are letting people down. People see many others gaming the system, while their taxes continue to rise to fund a welfare bill that has spiralled out of control.

Of course, I understand that there must always be a safety net—I say that as someone who has lived experience of being on the breadline growing up—but this safety net has turned into a fishing net, with a culture that promotes the idea that it is okay not to work, that it is fine for others to pay for our lifestyle choices and that it is acceptable to rely on the state forever. Since the general election, we have seen over 1 million more people added to universal credit—1 million more people. For all the Government’s talk of saving the NHS and helping people back into work, the numbers tell a different story.

[Mr Charters]

First, I congratulate the hon. Member, because I think his audience here in the Chamber is bigger than his party leader’s for her speech on welfare earlier today. Could he look back to his party’s record in government when it comes to the NHS? As the intelligent man I think he is—I consider him a friend—does he agree that larger NHS waiting lists, which his party left, increase the benefit bill? Does he agree with that easy-to-accept premise?

[Mr Bedford]

When the Conservatives left office, there were just 2 million people on universal credit for health-related reasons. Today, that number stands at 3 million—a remarkable increase that highlights the sheer lack of action by this Government to get welfare under control. It tells the younger generation that aspiration is no longer the British way and that it is easier to depend on the state than to strive.

While the Government continue to spend, it is our constituents—hard-pressed taxpayers—who are footing the bill. We in this House would be wise to remember that there is no such thing as public money; there is only taxpayers’ money. Unfortunately, taxpayers are getting a rough deal. Our approach is different. Only the Conservative party is on the side of the taxpayer. The Government published proposals to save £5 billion in welfare spending.