Universal Credit and Personal Independence Payment Bill

Mark Ferguson Excerpts

2nd reading
Tuesday 1st July 2025 Commons Chamber

[Mrs Badenoch]

I will remind the right hon. Lady of our inheritance. We took difficult—[Interruption.] I will. I have said it before, and I will say it again: we had 8% unemployment, and we got it down to 4%. Every single time Labour leaves office, it leaves more people unemployed.

The welfare system needs continual reform. We took difficult decisions and got universal credit through with so much opposition from Labour. We improved the system, but that does not mean it cannot be improved further. We have offered to help, but the Government do not want any help: they just want to make things worse.

By 2030, on this Government’s spending plans, we will hit £100 billion on health and disability benefits alone. That is more than we spend on defence. That should make everyone in this House stop and think, because this Bill does nothing to fix that problem. That is why we cannot support it.

The Conservative party is the only party in this House urging restraint. Unless this House acts, the Government will bankrupt our children. They will bury the next generation under a mountain of borrowing and debt, and they will do it not because we have no choice, but because they lack the courage to choose. A fundamental and serious programme to reform our welfare system is required, and this Bill is not it—it is a fudge. I feel sorry for the Secretary of State: she looks as if she is being tortured.

[Mark Ferguson (Gateshead Central and Whickham) (Lab)]

Will the right hon. Lady give way?

[Mrs Badenoch]

I will in a moment.

We all know why this is happening: this is a rushed attempt to plug the Chancellor’s fiscal hole. It is driven not by principle, but by panic. The changes were forced through not because they get more people into work, but because someone in 11 Downing Street made a mistake. It is clear that these changes were not designed to introduce fundamental reforms.

How did we get here? Last year, at the Chancellor’s first Budget, she left herself no headroom. That same Budget killed growth, meaning that unemployment has increased every month since Labour took office. This is a good time for me to remind the House again that every time Labour leaves office, it does so with unemployment higher than when it came in, and it is doing that again.

--- Later in debate ---

[Mrs Badenoch]

My right hon. Friend is quite right: this is a fiasco, and it is the Chancellor’s fault. She marches Labour Members up and down the hill all the time, and they are the ones who have to face their constituents. We are trying to help to get a welfare system under control and get people into work.

My right hon. Friend the Member for Beverley and Holderness (Graham Stuart) is right to raise the Chancellor. When the economic outlook worsened this spring, she chose to force through these changes to welfare, which are designed not to reform or improve the system, but to address a hole in her numbers. Those changes were rushed for Rachel, as we say. I watched when she made that Budget, and it was quite clear that she had no idea of the consequences of her decision. The country should not have to pay for the mess she has made, and neither should disabled people. Even with the changes in this Bill, welfare spending will still be billions higher at the end of the Parliament. Slowing down how much you increase spending is not a cut.

[Mark Ferguson]

I do not know about the rest of the House, but I am slightly baffled. The Leader of the Opposition has made a virtue of her blank slate and her blank sheet of paper, but is she in favour of more or less? Is she in favour of the actions of her Government or not? This complete lack of taking responsibility is exactly what got us into this mess in the first place.

[Mrs Badenoch]

I am not surprised that the hon. Gentleman is baffled, because he is clearly not listening to what I am saying. We had three conditions. We have been very, very clear that we want to see the welfare budget come down. I will make some progress.

Even with the changes in this Bill, welfare spending will still be higher by billions at the end of this Parliament. Slowing down an increase is not a cut: we need to get this under control.