(1 week, 2 days ago)
Commons ChamberOf course I know that, but if the hon. Lady had talked to as many people who receive PIP as I have, she would know that many people worry that if they go into training or work, they will then, when they are reassessed, lose their PIP. Even though in theory, yes, you can work if you can while you are getting PIP, people worry that because they are working it will be then be seen as them not actually needing it and that they do not actually have that level of health problem. That is why at the moment it is acting, in the way in works, as a barrier and a disincentive to work, and that is why it needs reform.
Reforming welfare is not cruel to people on benefits—quite the opposite. What is cruel is ducking the challenge, accepting the status quo and continuing to spend millions of pounds of taxpayers’ money on keeping people on benefits, but that is exactly what the Labour party is doing. Just a few months ago, the Prime Minister and the former Work and Pensions Secretary did have a go at doing something about it. They set out some welfare cuts—rushed and poorly thought-through, as I said at the time—but their Back Benchers were having none of it. We have never seen anything like it. It was the very definition of shambles in this Chamber. Right in the middle of the debate, their savings Bill became a spending Bill, with the Government frantically making concessions that we still live with, such as the Timms review into PIP.
I have a great deal of respect for the Minister for Social Security and Disability, the right hon. Member for East Ham (Sir Stephen Timms), but what hope can we have for his review when it was conceived as a bargaining chip to buy off angry Back Benchers? It has taken months to even kick off the review and months to come up with the terms of reference. Now we have them, we see that welfare savings are off the table. And yes, I said “savings”, a word the Secretary of State was careful to steer clear of in questions last week. What a situation this is.
The Chancellor keeps talking about welfare savings; she did so again this morning. However, the review by the Minister for Social Security and Disability ruled out making any savings. The Secretary of State will not even utter the word. Who will win this argument? Will it be the hapless Chancellor with her back against the wall or the wily Welfare Secretary playing a longer game?
While Ministers spar behind the political scenes, the clock is ticking and the benefits bill keeps heading up and up towards £100 billion, with no prospect of the Government slowing that trajectory, let alone actually getting it down. Instead, as the Chancellor as good as told us this morning, the Government will turn to tax rises to fund welfare and more job-destroying, growth-killing policies, reducing opportunities and saddling future generations with the bill, leaving them to pay it off for decades to come. The Government have not only given up on saving money; they have given up on millions of people across Britain.
Oliver Ryan (Burnley) (Lab/Co-op)
On savings and leaving the next generation with a bill, can the hon. Lady remind the House just how much the now shadow Chancellor, the right hon. Member for Central Devon (Sir Mel Stride), increased Department for Work and Pensions spending on welfare during his time in the Department? The figure I have on the tip of my tongue is somewhere north of £30 billion. Could she comment on that?
The hon. Gentleman thinks he is so clever, but I am sorry to say this is a whole lot more serious than that. [Interruption.] I am glad Labour Members liked that. The fact is, if the hon. Gentleman looked a little further than his time in politics, back to 2010, he would know that the welfare bill and unemployment figures came down, and that we had the huge reform of universal credit, led by my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), which made a huge difference. [Interruption.] As has been chuntered by those on the Government Front Bench, yes, of course, the pandemic made a difference. We had a set of reforms going on, and then those on the Front Bench and some of their predecessors—there has been a certain amount of turnover—came in and gave up on those reforms. Where are we now? There are no savings and no plans to get people off welfare and into work.
However, it does not have to be this way. The country knows that this is not working, and people want change. They want a fairer system: one where people who do the right thing are rewarded; where work does pay; where people taking personal responsibility for themselves and their family makes sense; where there is help for those who need it, but not for just anyone who might fancy it; and where welfare is a safety net, not a way of life. It might be hard for Members on the Government Benches to hear, but this is what people out there want. They want it now—let us get on with it.
The Conservatives have set out our common-sense proposals to start fixing the welfare system. We would stop sickness benefits for people with lower-level mental health conditions like anxiety and reform Motability, putting an end to taxpayer-funded cars for people who have conditions like ADHD and tennis elbow. We would bring back face-to-face assessments, which are going down under this Labour Government, and change the sick note system so that it does not just funnel people out of the office and on to benefits. We would prioritise Brits in our welfare system, stopping people with indefinite and limited leave to remain claiming benefits. Of course, we also believe in retaining the two-child benefit cap, because it is fiscally responsible and fair. Removing the cap would cost more than £3 billion and would be deeply unfair on families who are not on benefits—the couples who decide they cannot afford another child, but would pay taxes for someone else to do just that. The Conservatives are the only party fully committed to the two-child benefit cap—no ifs, no buts.
Dr Jeevun Sandher (Loughborough) (Lab)
Today’s motion represents the same failed punitive and cruel social security system that the Conservative party had for 14 years—a system that did not help people into good jobs or get social security spending down, and that led only to destitution. By contrast, our approach is to create good jobs, get good training in place, and help people into those jobs.
Let’s talk about the record of the Conservative party. Let’s talk about the rise in employment. The rise in employment was not among those who they punished. Non-graduate employment fell from about 73% when we were last in office, to 68% when the Conservatives left office. The rise in jobs was not among the non-graduates who they were punishing or those who they drove into destitution; the people who took those jobs were the increasing number of graduates. What was the cruelty that they put forward? They were measures that saw someone sanctioned because they went to their wife’s funeral, or that saw someone get punished because they went to a job interview—sanction after sanction, cruelty after cruelty.
It is the same with the Conservatives’ cuts—cuts that led to 3 million foodbank parcels being handed out. I did not know what a food bank was when I was growing up, yet every one of us in the Chamber knows what they are today. We see the growing destitution and homelessness before us, but what we did not see was any improvement in our country. There was no economic growth, and no extra good jobs. Cruelty and futility—that was the record of the Conservative party.
Think about where we are today. What do we need to do to ensure that people have decent jobs? We know that to live a decent life, a working family is this country needs to include two parents earning about £35,000 each, yet in 80% of this country the average wage is less than that. About 40% of full-time jobs pay less than £35,000. Going beyond that—[Interruption.] Would someone on the Opposition Benches like to intervene?
Oliver Ryan
To quote the shadow Secretary of State, my hon. Friend thinks he is “so clever”, arguing with facts! Those facts are not particularly appreciated by those on the Conservative Benches. Does he agree that what is important in this debate is the people who were left destitute by the policies of 14 years of Conservative government?
Dr Sandher
I could not agree more. When we go forward and think about how to create a good life for people, we first need to create good jobs, but we also need to ensure that people have the training and support they need to get there. That is exactly what this Government are doing.
We are creating good jobs by working with the private sector through our industrial strategy, and ensuring that the private sector gets the support it needs to work with businesses and—yes, of course—with trade unions. We are ensuring that there are good jobs for people to get into in the green economy and healthcare. We are creating the good jobs that people need and, more than that, the training they need. Through our work on the social security system, we are making sure that people can try work without the fear of losing their social security payments. That is the difference between us and the Conservative party. It is a difference in values.
We believe that every single person should be able to afford to live a decent life, that we should create good jobs for them to move into, and that the job of the Government is to work with the private sector to create those jobs directly, so that people can work and earn a decent wage. We are not about being punitive or cruel, and our measures will not lead to more destitution. That is the difference between Labour and the Conservatives. I am proud to be on these Benches; I do not know how they feel today.
Oliver Ryan (Burnley) (Lab/Co-op)
Thank you, Madam Deputy Speaker, for allowing me to contribute briefly on this huge topic. While I am glad to discuss welfare reform, I am perplexed as to why the Conservatives would want to do so, given their completely disastrous record. In response to the hon. Member for North West Norfolk (James Wild), I wonder whether he has read the plans for their £23 billion-worth of welfare cuts, on the back of the fag packet on which it is displayed, because there are no details to speak of on things such as housing benefit, which was raised by the Minister beforehand.
I do not even think it is brass neck any more from the Conservatives; it is just desperate. Their hope is that we forget what they left us only last year, and forget what they were like in government: employment is lower than before the pandemic; 10 million households are now net recipients of Government support; 4.5 million children are growing up in poverty; 2.8 million people have been left languishing on waiting lists and out of work; and 1 million young people are out of work and have been left jobless in the first straits of their lives—all while we have record welfare spending, with billions of pounds spent every year on failure. Indeed, when the shadow Chancellor was at DWP—I made this point earlier—we saw the biggest rise in welfare spending since records began in 1996, including £33 billion in one year alone.
The Conservatives have zero credibility on this issue and a record of expensive failure. It is a disastrous legacy, which they ought to be utterly ashamed of. They left people in this country languishing on benefits and left out of work, and left us to pick up the bill for years to come. I have touched on their plan, so I will not say any more on that, but it feels a bit like standing next to an arsonist who is watching a house on fire and complaining, “Someone should really put that out,” having started the fire.
I am short of time, but I want to say something about reform—real reform, not the turquoise Tories of Reform UK, who I notice are not here for the debate and who I believe would destroy the welfare system as we understand it. We all know that welfare spending must come down, and we all want to get people into work—young people, disabled people and those who can, want and should work. The current system—the Conservatives’ system—does not enjoy public support system because of the Tories’ failure, and risks undermining the whole welfare state and social contract as we know it; hence our reforms earlier this year. If we believe in helping those who really need it—the disabled, the sick and those unable to work, whom the welfare state is designed for—we must make the tough choices that the Conservatives did not make over 14 years.
The current front door for the work capability assessment is not fit for purpose, and I am glad that we are doing away with it, but neither is the assessment for personal independence payments, as it is considered by many to be out of date and unfit for the modern wave of claimants living with mental health conditions and likewise. I would welcome the Minister’s thoughts on whether more reform in this area would be welcome and will come.
The arguments made for reform, which were explored in the papers earlier this year, still stand. Too many people are rolling on to PIP, too many are failing and falling out of work ill, and too many, having done so, are not re-entering the jobs market. So I am glad that we are stimulating more people into work through measures such as our £1 billion Pathways to Work guarantee. Because of the sheer number of applicants and particularly of successful applicants since the pandemic, we have to consider the appropriateness of some of the thresholds for people currently applying for PIP to ensure that the support is still there for those who really need it.
(4 months, 3 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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Oliver Ryan (Burnley) (Ind)
Let us say it straight: disabled people have been let down by 14 years of Tory Government. The number of disabled people in working households living in poverty doubled under the Tories’ watch, to 1.3 million people last year and the pay gap for disabled people is higher now at 13% than it was a decade ago.
I will touch briefly on the upcoming PIP reforms—I did have a bigger speech planned, but we are short on time. An unsustainable welfare system, one that does not enjoy public support or give disabled people enough good support, does disabled people no favours. What does do them a favour is scrapping the work capability assessment and providing extra funding to get people into to work. To have no answer to the additional 1,000 people a day who are currently going into the PIP system is to keep one’s head in the sand and to provide no real answers to the failure of the current system, which is not flexible or supportive enough.
Ellie Chowns (North Herefordshire) (Green)
Will the hon. Gentleman give way?
Oliver Ryan
I will not give way. The principle of the social contract of the welfare state is at stake, and this Government are defending it.
(7 months, 3 weeks ago)
Commons Chamber
Louise Jones
One reason why I decided to get into politics—I was quite happy doing something else—was because I was looking around this country and seeing the huge systemic issues that were facing us. None of those issues would go away if the Government just said, “We’re going to keep giving out pots of money to people,” and the hon. Lady knows that. As a proud member of the Labour party, I support people receiving fair pay for their fair work, and I support the rises that we gave to our nurses, our soldiers and our teachers. I am very proud of that. We face so many systemic issues that we know we need to make some big changes. Things such as GB Energy, which was in our manifesto that millions of people voted for, is a huge change that will make a difference.
Oliver Ryan (Burnley) (Ind)
My hon. Friend talks about manifesto commitments, and it was a clear manifesto commitment of this Government that we would provide the triple lock throughout this Parliament—something that was only ever suspended under the Conservative party. Does she agree that the £1,500 increase to the state pension that pensioners will see over the course of this Parliament will be a good thing, and put cash into the pockets of pensioners that they did not have under the previous Government?
Louise Jones
My hon. Friend is exactly right. The triple lock is a serious commitment that we are utterly committed to, and it will make a difference to every single pensioner in this country—far more than trying to pretend that we do not face the systemic problems that this country faces.
This winter, pensioners across Beaconsfield, Marlow and the south Bucks villages felt abandoned by the Labour Government. Many across this country voted for a Labour Government in good faith, thinking that they would actually have a reduction in their energy bills of £300, only to discover that many pensioners were going to lose their winter fuel payment, which is a lifeline to pensioners, who have served their communities and worked hard their whole lives. It was brought in by a Labour Government and never abolished during the entire time that the Conservatives and the coalition were in power. There is a reason for that: it is fair, equitable and ensures that no one is left behind. The reason why it was not scrapped before is that a means-tested mechanism was not in place, so it was quite shocking to see that the first act by the new Chancellor was to scrap a winter fuel payment that Labour initially brought in without an impact assessment.
Oliver Ryan
Will the hon. Lady make it clear whether it is the policy of the Conservative party to reintroduce a universal winter fuel payment at the next election?
(9 months, 1 week ago)
Commons Chamber
Oliver Ryan (Burnley) (Lab/Co-op)
I thank the Secretary of State for introducing this important Bill. Fraud is a serious issue, and we simply cannot tolerate the level of fraud that the previous Government left us with. In the year 2023-24, we lost almost as much to fraud as we spent on defence.
We have all heard the stories of people fraudulently claiming covid support and benefits to which they were not entitled. People have been claiming from the safety net not for security in their time of need, but to feather their own nests on the backs of British taxpayers. I am glad that this Government are serious about protecting public money from fraudsters, and I have no time for the whataboutery of the Liberal Democrats.
This robust Bill closes loopholes, strengthens enforcement and prioritises financial accountability. It is a great step forward for the real change that we promised at the election. The message from me and my constituents is quite clear: those who defraud or attempt to defraud the British public in any way deserve to feel the full weight of the law. I believe in doing what is right to protect taxpayers and hard-working people in business, which is why I will not stand by while fraudsters take advantage of the system. The Bill says, “If you have defrauded the British taxpayer, we will come for you, and we will not mess about.” That is what people in Burnley, Padiham and Brierfield want.
Turning specifically to the strengthening of measures on covid fraud, I am proud that one of the first actions taken by this Government was to appoint the covid corruption commissioner, and that the Bill bolsters the commissioner’s powers and doubles the time limit in which civil claims can be brought, among other measures. A typical example of rampant covid corruption was the bounce back loans, which have already been referred to by other Members. Those loans saw millions of pounds of public money shovelled out of the doors of the Treasury without proper oversight. We have all read the stories and heard about some of the heinous outcomes—huge amounts of public money gone to fake companies as well as people using stolen identities or providing products that were either defective or just plain did not exist. Meanwhile, I have had to explain to my constituents why basic public services have gone to the wall.
To put it into perspective, all in, the previous Government handed the equivalent of £20,000 of taxpayers’ cash to fraudsters every minute of the last Parliament, and now Conservative Members moan that there is no money for anything. If this Bill had become law earlier, much of that fraud could have been prevented by allowing stronger eligibility verification procedures, faster detection of fraudulent transactions and faster financial recovery powers for quicker action against fraudsters.
Moving on to benefit fraud and the Department for Work and Pensions, the same principle applies: those who defraud the British public will feel the full weight of the law, and will have nowhere to hide. We have a moral duty to recover every penny of public money that has been defrauded, and I am glad that the Bill full-throatedly says so. Benefit fraud has tripled since 2019, and since then we have lost almost £10 billion overall to fraud and error. As the now Leader of the Opposition said while in government, fraudsters were let “off the hook” by the Tories. People who work hard to pay their taxes deserve to know that every pound stolen is a pound that cannot be spent on public services, and they deserve to have that money returned. It is simply unforgivable that the previous Government allowed fraud in the benefit system to get to this level.
By voting in favour of the Bill, we will allow this Government crucial investigatory and search and seizure powers that are essential if we really want to tackle fraud in this country. I know that there will be concern from some quarters, but I am reassured that the Secretary of State has taken into consideration the necessary safeguards that will balance the need for effective fraud prevention and recovery. Indeed, if during the passage of the Bill she finds a way to be tougher and go further, she should do it; I am not sure whether two years is enough for a driving ban.
The powers we are extending to the Public Sector Fraud Authority have already proven effective. They are used by the DWP and by HMRC, and by expanding them, we will recover more funds and bring more fraudsters to justice. This is the first update to those powers in 20 years, as the Secretary of State said. Of course, DWP investigators should be given warrant powers, to save police time if nothing else.
The safeguards are in the Bill to make sure we tackle fraud effectively and, as importantly, protect people’s rights, as the Secretary of State has also said. To address a point raised a second ago by the shadow Secretary of State, the hon. Member for Faversham and Mid Kent (Helen Whately), decisions will be made by a human being in the final stages, as with any decision that affects somebody’s benefits. I think that is right, and clearly it is something that the Secretary of State has tried to stipulate.
People in Burnley, Padiham and Brierfield expect their money to be used effectively, and they demand accountability, with fraudsters who exploit the system being held to account and locked up if necessary. As the Secretary of State said, the Bill is tough but fair, with measures designed to save an awful lot of money over the next five years. That is a promising step that I believe will restore public trust and tackle financial mismanagement. I am grateful to the Secretary of State for taking the issue so seriously—more power to her elbow.
(1 year, 1 month ago)
Commons ChamberI am very happy to share the data: there are 200,000 more pensioners living in poverty after 14 years of Conservative government. I am also very happy to publish information showing a 152% increase in pension credit claims, thanks to the big, bold campaign run by this Labour Government.
Oliver Ryan (Burnley) (Lab/Co-op)
My constituents want a fair and robust welfare system, but they have no truck with fraud. Can the Secretary of State assure my constituents that she is doing everything she can to crack down on fraud, and to make sure that those who genuinely need help get it?
My hon. Friend is correct to raise this issue. As I said, we will not tolerate the current levels of fraud in our welfare system. He will be pleased to note the Prime Minister’s recent announcement of the forthcoming fraud, error and debt Bill, which will begin the necessary work to drive down fraud in the Department.