Helen Whately MP: speeches

Speeches

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  My hon. Friend makes an important point about transparency, and he recognises that this policy has had an impact not only on pensioners, but on other parts of Government, and therefore on other constituents. It is another thing that I hope the Government Back Benchers in the Chamber are taking note of, to pass on to their colleagues who, for some reason, have chosen not to be present to discuss this topic this afternoon.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  I will continue, because I know that many Members wish to speak this afternoon—at least on the Opposition Benches. From the moment the Government announced this policy, we were deeply concerned about the impact it would have, which is why we led the opposition to the cut, and why we forced a vote on it back in September. The vote was a chance for Labour MPs to make a stand. Instead, 348 Labour MPs chose to support the winter fuel payment cut. We then saw the Government trying to avoid telling people the impact the cut would actually have, so we are trying again today. I put it to the Minister that now is his chance to be straight with people. What did the Government know when the cut was announced? Did they know how many pensioners would miss out? Did they know how many would end up in hospital? Their own report from 2017 found that cutting the winter fuel payment could cause nearly 4,000 pensioners to die. Did Ministers ask if that was likely to happen this winter? I would be happy to give way to him if he wanted to answer my questions right now, but, given they have not been answered for months, I fear he will not.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  I will in a moment—I was hoping the Minister might have answers, but he does not. To this day, the Government have not published a full impact assessment setting out the truth about their policies. Is that because they do not know themselves, or because they do not want to admit the harm that they were willing to do? Thanks to the effort of colleagues and the public, we have, however, been able to glean some information in the months since. The Secretary of State admitted to the Work and Pensions Committee that she had seen internal modelling showing that 100,000 pensioners would be pushed into poverty because of their political choices. Thanks to a freedom of information request, the Government were forced to publish their equality analysis, showing that 71% of people with a disability would lose their winter fuel payment, while official NHS data shows that the number of over-65s attending A&E this winter soared by nearly 100,000 compared with last year, despite this being a less cold year. And now, as I have said, it feels as if spring is here. It is time for the Government to be honest with the public and tell us what this policy has done in practice. I hope they will not tell us that they did not monitor the results, because that surely is not credible. It is time to tell us how many eligible pensioners did not receive the winter fuel payment this year; time to tell us how the cuts have hit pensioner poverty; and time to tell us what those cuts did to hospital admissions. Ministers need to know this information so that they can prepare responsibly for next year. Back Benchers need to know this information so that they can represent their constituents effectively. And the public deserve to know the consequence of the actions of the Government they elected.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  Yes. My hon. Friend makes a really important point. He has been every effective in his use of parliamentary questions to scrutinise the Government and get data from them—they do not like to give it willingly. He identifies the long delays for pension credit approvals and therefore access to winter fuel payment. Some will have applied before the deadline for pension credit and got the whole way through winter without getting money, or even knowing whether they were going to get any money. We know well from charities such as Age UK, which represents pensioners, that pensioners are very reluctant to get themselves into debt. If they did not know whether they were getting the payment, they would have been very reluctant to spend money in the hope that they might.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  I could not have made the point better than my right hon. Friend. I have one final question before I conclude: what was all this for? We clearly know who lost out and who suffered as a result of the cut to the winter fuel payment, but who benefited? To govern is to choose. All those who got inflation-busting pay increases after Labour did its deals with its trade union friends were the ones to benefit. Billions for the unions, but nothing for the pensioners. This will be the legacy of yet another Labour Government. The last one increased the state pension by just 75p a week; this one have taken away the winter fuel payment. By contrast, it was the Conservatives who introduced and protected the triple lock, which saw the state pension increase by £3,700 during our time in office; it was the Conservatives who reduced the number of pensioners living in absolute poverty by 200,000—Labour will undo that by a quarter in its first year—and it was the Conservatives who delivered nearly £12 million in winter fuel payments and cost of living payments for pensioners, because we understand the need to help the most vulnerable through the winter. It is astonishing how many people Labour has already let down in just eight months—pensioners, farmers, business owners, young people looking for jobs, and, yesterday, disabled people—in its rush to fix its financial mess. Earlier we heard the Prime Minister say that if a party has a big majority, it does not need to consult, so the onus is on all of us here. Colleagues, and especially Labour Members, have an opportunity today to make the Government listen. It is a chance to stick to our principles, stick up for our constituents and vote to see the truth.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  I was indeed extremely shocked by that statistic; that is one reason why we need to have this debate today and try to get some of the data out of the Government. They were at the time, and continue to be, incredibly reluctant to share whatever they know about the impact of this cut on people, including the terminally ill.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  My hon. Friend makes exactly the important point I am making, which is that if the Government thought what they were doing would affect just the very wealthiest in society, they were very wrong.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  I beg to move, That this House calls on the Government to publish data on the number of eligible pensioners it estimates did not receive the Winter Fuel Payment in 2024–25; further calls on the Government to publish data showing the impact of changes to the Winter Fuel Payment on levels of pensioner poverty and the number of hospital admissions; also calls on the Government to set out how it intends to ensure that those eligible for Pension Credit receive it before winter 2025-26; and calls on the Government to apologise for the misery caused to vulnerable pensioners in winter 2024–25. Now that the sun has come out, I suspect that many of us will quickly forget the chill of the winter—the evenings when it was freezing outside and we reached for our jumpers, and perhaps the switch on our central heating too. However, for many pensioners turning up the heating was not an option, because one of the Chancellor’s first acts in her new job last year was to scrap the winter fuel payment for 10 million pensioners—something of which she gave no hint before the election, a time when voters rightly expect political parties to spell out their plans. As a result, millions of older people, many with fixed and far from substantial incomes and many living in draughty homes, missed out on £300 this winter. That money makes all the difference. In fact, for some it is literally a choice between heating and eating. At the same time, energy bills went up. Before the election, the Government did not say they would cut the winter fuel payment, but they did promise to bring our energy bills down—by £300, in fact. Instead, they are up by about £170. It was a promise so easily made and so carelessly broken. Labour Members may not like hearing this, but let us pause for a minute to think about what this means in human terms. I remember well my grandmother in her 90s in layers of jumpers, shawls and blankets in winter, even when she had the heating on. In fact, I remember well giving her a woollen shawl as a Christmas present, because she was always cold. I would describe myself as someone who feels the cold, but I know that what I feel on a winter’s day is not a patch on how someone in their 80s or 90s feels, especially if they have health problems, and I know from my time as a Health Minister about the connection between being cold and ending up in hospital. To help get the winter fuel payment cut past Labour Back Benchers, some of whom do have consciences, the Government claimed that they were going to protect the most vulnerable because those on pension credit would still get it, but let us look at what that really means in practice—at the facts. Pension credit tops up a pensioner’s weekly income to £218.15 if they are single or, if they have a partner, to £332.95 jointly. Someone with an annual income of £11,500 could be ineligible for pension credit. They may be just £1 or £2 over the threshold, but because of the cliff edge, they do not get pension credit and, as a result of the Government’s cut, they would not get the winter fuel payment either. So we are not talking about rich people.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  I do not want to fall into the same trap as the hon. Lady did when she made those accusations. What she has just said does not describe the position of the Leader of the Opposition. I also remind her that today is an opportunity for the Government to answer questions, and that is what she should be looking to the Minister, rather than the shadow Minister, to do.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  My right hon. Friend is exactly right. As I said a moment ago, I do believe that some Labour Members have consciences, but I am not sure which ones. Are those with consciences the ones who are hiding away from the Chamber because they feel guilty and do not want to hear this debate, or the hon. Members here who are actually going to stand up in support of pensioners and join us in the Lobby later.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  The hon. Lady asks about something that I have never said, so I was surprised to hear it.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  Let me make a little progress and then I will be delighted to take more interventions from colleagues. The Chancellor has previously argued that winter fuel payments should be means-tested and cut for the richest pensioners, but who here thinks that someone on an income of £11,500 is rich? Age UK estimated that over 80% of pensioners living below or only just above the poverty line would lose their winter fuel payment. The issue is not just that low-income vulnerable pensioners miss out on help with their heating because they are just above the pension credit threshold—the problem is worse than that. Last summer, the Government knew that over 800,000 people may be eligible for pension credit but did not claim it, meaning that they, too, would miss out on the winter fuel payment. The Pensions Minister at the time, the hon. Member for Wycombe (Emma Reynolds), assured us that the Government would get on top of that. In fact, she told us that her target was to have 100% of those eligible for pension credit claiming it. But here we are many months later, and still around three quarters of a million eligible pensioners are not on pension credit. That is another promise easily made but easily broken. There has been a woeful failure by the Government to close properly that gap, despite all the coverage the winter fuel payment received. Of course, we knew that this would be hard. We, too, had pension credit uptake campaigns in Government. More people signed up, but still many did not. I expect the Government knew that they would fail, too. Their officials would have told them, but it was easier for them to assure the press, the charities and their Back Benchers, “Don’t worry,” just as we have heard their Ministers do about the welfare reforms in the last 24 hours. For them, it was easier to wait for the spring to come and hope that everyone would simply forget. Well I say to them, “We won’t let you forget.” Nor will millions of pensioners and their families: 10 million pensioners are missing out on help with their heating, among them around 1 million of the most vulnerable people in our country, quite literally left in the cold by this Labour Government. That will not be forgotten in a hurry.

• 18 Mar 2025 · Welfare Reform · Hansard source

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  I thank the Secretary of State for advance sight of her statement. She and I agree on one thing: the welfare bill is too high. Left unchecked, it will rise to £100 billion by the end of the decade. Spending more on sickness benefits than we do on defence is not the sign of a strong country. This is not just a question of money. We have 3 million people of working-age who are not in work due to ill health, not filling the roles businesses need, not contributing to our economy and not fulfilling their own potential. The best way to get the welfare bill down is to get people off benefits and into work. That is what we did year after year after taking office in 2010. Despite the once-in-a-century pandemic, 4 million more people were in employment when we left office than when we inherited Labour’s mess. Before the pandemic, economic inactivity was at an historic low, but it is true that we then started to see a new phenomenon: growing numbers of people, and—particularly worryingly—young people, claiming sickness benefits. A system set up with good intentions to protect the most vulnerable in society has over time morphed into something broader, driven in part by a well-intentioned but not always helpful medicalisation of life’s ups and downs. In government, we identified the problem and worked up plans to tackle it, but at every point Labour Members opposed them. In fact, the now Chancellor said that not one single penny could be saved from benefits. When they came into office, not only did they cancel or delay pretty much everything we handed over, but they had no plans of their own. They walked into the Department with empty notebooks. All they had done in opposition was oppose, instead of the hard work of coming up with their own answers. That is why the country has had to wait another eight months for this announcement. In that time, taxpayers have shelled out £7 billion in extra sickness benefits, and nearly half a million people have been signed off sick. In fact, 60 people were signed on to sickness benefits while the Secretary of State was talking. None the less, I have been looking forward to hearing what the right hon. Lady would announce today and which of the many things briefed to the media her spinning policy wheel would eventually land on. Governing is hard—we know that. In the last few weeks, the Government have made it look really hard, but that is nothing compared with how hard life can be for a severely disabled person, somebody for whom getting up, getting dressed and getting breakfast—things most of us found easy this morning—are hard if not impossible. For some people, the last few weeks have been deeply frightening. They will be glad of the uncertainty finally ending. I genuinely want the right hon. Lady to succeed, and I welcome her commitment today to increasing the number of reassessments and to having more of them face to face and recorded. I welcome the investment in employment support for disabled people. I welcome, of course, her reannouncing a host of things that we were doing in government. Scrapping the work capability assessment and creating a single assessment is already Government policy that is due to come in in 2026-27. Her big idea seems to be to delay that until 2028. Merging new-style jobseeker’s allowance and employment and support allowance into a new time-limited higher rate is a proposal that we worked up in government. We launched a consultation on tightening up eligibility for PIP and, by the way, we would have gone much further with that. We consulted on ending reassessments for people whose health conditions will not improve, and the right to try guarantee sounds remarkably similar to our chance to work guarantee. Of course, on the Secretary of State’s continued support for WorkWell, I launched that programme with the now shadow Chancellor, my right hon. Friend the Member for Central Devon (Mel Stride). In fact, the only original idea I can see in the entire announcement is increasing the rate of unemployment benefits—a Labour policy if ever I have heard one. This is a now-or-never chance to seize the moment—a now or never for millions of people who will otherwise be signed off for what could end up being a lifetime on benefits—but today’s announcement leaves me with more questions than answers. How many people will be helped back into work and by when? Surely we have not been waiting eight months for just another Green Paper. Where is the fit note reform crucial to stem the flow of people on to benefits? Where is the action on people being signed off sick for the everyday ups and downs of life? Why is the right hon. Lady planning to save only £5 billion when the bill is forecast to rise to over £100 billion? Do the savings she is announcing today include the £5 billion we had already agreed with the OBR for reforming the work capability assessment? If so, she has made virtually no savings of her own. What is the net saving given the additional expenditure planned? Fundamentally, this is too little, too late. The fact is that £5 billion just does not cut it with a bill so big going up so fast. She needed to be tougher. She should be saying, “No more hard-working taxpayers funding the family next-door not to work, no free top-of-the-range cars for people who do not need them, no more sickfluencers helping people to claim money they do not need.” Before the right hon. Lady puts on her angry voice and leans across the Dispatch Box to shout at me about “14 years”, I gently say to her that everybody in this Chamber and around the country knows that we lost and Labour won. Her job now is to govern and mine is to hold her to account. Our country needs everybody who can work to do so. That principle should be at the heart of our welfare system. It is good for the taxpayer, good for the economy and good for the individual and their family, who benefit from security, dignity and purpose that work brings, and it means that those who genuinely cannot work get the support that they deserve. The fact is that fewer people work under Labour. That has happened every time Labour has been in office, and it is already happening now. The Government should have taken their time in opposition to come up with meaningful reforms, but they did not, and the country is already paying the price.

• 17 Mar 2025 · Topical Questions · Hansard source

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  I listened hard to the right hon. Lady’s answer but, given everything I heard, I still do not think she has the support of Cabinet colleagues, with less than 24 hours to go. It was a no. There is never a good time for millions of people to be out of work, but as the world gets more dangerous we can afford neither the benefits bill nor the waste of human potential. Given the opposition of the right hon. Lady’s party to welfare reform, can she assure me that her planned reforms will grasp the nettle and bring the benefits bill down?

• 17 Mar 2025 · Topical Questions · Hansard source

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  We heard yesterday that the Cabinet had not yet seen the welfare plan that the right hon. Lady is apparently due to announce tomorrow. Given all the media briefings, the apprehension of disabled people and the growing number of people not working, none of us would want to see that delayed. Can she assure us that she has got collective agreement so that she can announce her plan here in this Chamber tomorrow?

• 17 Mar 2025 · NEET Young People · Hansard source

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  I asked about what has happened “since” the right hon. Lady’s party has been in government: it is her Chancellor’s tax on jobs and economic mismanagement that are costing young people opportunities. Instead of taxing jobs, Labour should have been ready with a plan for welfare reform at the time of the Budget. They have spent nine months trying to cobble one together and still we wait. Why did the right hon. Lady not make any plans in opposition, and does she regret that?

• 17 Mar 2025 · NEET Young People · Hansard source

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  Back in the autumn, the right hon. Lady said “we will not allow young people not to be in education, employment or training.” How is it possible then that since Labour has been in office there are 100,000 more young people in exactly that situation?

• 3 Feb 2025 · Winter Fuel Payment: Pensioner Poverty · Hansard source

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  I welcome the Minister to his place. I have a simple question for him: how many people are still waiting for their winter fuel payment?

• 3 Feb 2025 · Winter Fuel Payment: Pensioner Poverty · Hansard source

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  So the answer is that the Minister does not know. He does not know how many people are waiting for their winter fuel payment. He does not know how many people are stuck in the pension credit backlog. He does not know when they will hear about their claims. He does not know who has had help from their local council. He does not know how many people who lost their winter fuel payment have ended up in hospital this winter. He and his Department have dodged or refused to answer every single one of those questions in recent weeks. Will he commit to a full review of the winter fuel payment cut so that we can get those answers?

• 3 Feb 2025 · Public Authorities (Fraud, Error and Recovery) Bill · Hansard source

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  A strongly held Conservative principle is that public money must not be wasted. We hold this view not because we are mean, but because the Government do not have money of their own. What they have, they raise through taxation from all of us. A tiny fraction of every penny that they spend is yours, mine and everyone else’s who pays in. Those who spend public money have a duty to spend it wisely, and ensure that it ends up only with those who should have it, for the purpose for which it was intended. In a big, complex system of government in a country of nearly 70 million people, from time to time that will not happen for a range of reasons—from a form that has been accidentally filled in with the wrong information, or a change of circumstance that someone forgot to notify the jobcentre about, to serious organised fraud—but however taxpayers have lost out, it is incumbent on the state to do all that it can to get their money back. That is what taxpayers rightly expect. It is part of the unwritten contract for collecting that money in the first place. Therefore, it will be no surprise to hear that, in principle, we support the Bill’s aim. In fact, much of the Bill continues work that we did in government, and legislation that was interrupted by the election. It is important to put what we are discussing today in context. Before the pandemic, fraud and error across the DWP benefits and tax credit system was at a near record low, but then we had two national crises—first, the pandemic, then war in Ukraine—which piled huge cost of living pressures on families across the UK. During both, we acted rapidly. We set up never-seen-before systems of support in record time. We protected millions of people’s jobs. We paid half of everyone’s energy bills for a year. We got direct payments to the people who needed them the most. I am proud of what we did, and I think that history will look back kindly on how we supported people through those times, but the truth is that when we do something fast at a moment of crisis, that inevitably opens up new vulnerabilities in the system. Disappointingly, against a national spirit of getting through hard times together, some people saw it as a chance to make a quick buck, and we saw a material increase in the amount being lost to fraud within the system. Any and all of us could spell out better uses for that money. That is why, back in May 2022, we published our plan, “Fighting Fraud in the Welfare System”. We increased the number of frontline counter-fraud professionals in the DWP, created a new Public Sector Fraud Authority and started work on new legal powers to investigate and punish fraudsters. It was a good start. In 2022-23, fraud and error were cut by 10%. We saved £1 billion through the Department’s dedicated counter-fraud activities. The next year we upped that to £1.35 billion, exceeding the £1.3 billion target, yet we were still not satisfied. In May last year, we published a second fraud plan to save £9 billion by 2027-28, which included hiring more staff to check claims for accuracy, modernising information-gathering powers, broadening the penalty system and investing £70 million in advanced data analytics. In April, we announced plans for a new fraud Bill to align DWP investigations with HMRC, treating benefit fraud like tax fraud and giving investigators new powers to make seizures and arrests. When the general election was called, the Data Protection and Digital Information Bill had already passed through the House of Commons. The Bill included the powers the Government are introducing today to require third parties, such as banks, to provide relevant information to the DWP. To the extent that this Bill continues that work, I do not envisage substantial disagreement—albeit we have questions on how the law will work in practice. I also have serious concerns about the powers that the Cabinet Office is giving itself. Before I deal with those, let me say that I recognise the concerns that people have about the state getting too much information about their finances. Privacy should never be taken lightly. I do not want to live in a country where the Government can access our bank accounts and look at what we have been spending our money on, and I would not support a Bill that would allow the Government to do that, but I believe that it is right for the DWP to learn lessons from HMRC to recoup taxpayers’ money. The fact of the matter is that if someone receives money from the state, it is not unreasonable for the state to investigate if there are signs they are taking money that they should not be. As I said, I have some questions about how the social security powers in the Bill will be put into practice, and I expect to probe those matters further as the Bill progresses. For instance, on the role of banks, how much testing has been done of the systems that they expect to use? The Horizon scandal is a recent reminder of how computer systems do not always get it right. What progress has been made on the code of conduct, and when will we see it? I also note that no impact assessment has been done on the cost to banks. Has the Minister met the sector and discussed what the changes mean for it? I know there are concerns within the sector about the lack of detail brought forward by the DWP. If the maximum level of scrutiny allowed under the Bill is demanded by the DWP, how would that work in practice for banks and what would it cost? On the sanctions that can be meted out under the Bill, we support the Department for Work and Pensions being given further powers to pursue recovery outside of benefits and PAYE, but are the measures outlined in the Bill tough enough? Why is 40% the maximum amount of someone’s capital that can be reclaimed? Allowing for hardship, which the Bill does, why should someone potentially keep the majority of their ill-gotten gains? It is not clear how the Bill intends to treat carer’s allowance overpayments, which I know from my time as Care Minister are complicated and often accidental, though unfortunately not always. None the less, they are a loss to the taxpayer that should be investigated. We would like to understand in more detail how the savings we are told to expect from the Bill will accrue. How many people does the Government think that will affect, and what proportion is it of the fraud currently being perpetrated? I was concerned the other day to see reports in the media of a number of artificial intelligence schemes being quietly shelved in the Department. It is noticeable that the plans rely heavily on human labour to root out fraud. While I know the Government have to create jobs somehow, I would be interested to hear what consideration has been given to automating some of the processes in future. That too will help ensure that taxpayers’ money does not go to waste. I come to my main area of concern, which is the powers being given to Cabinet Office Ministers and the Public Sector Fraud Authority. I know what it is like to make legislation thinking that I, as a good person, would only use it wisely, but I also know what it is like to be wrongly investigated by a public authority on the grounds of a misleading newspaper article. Looking at the investigatory powers bestowed in chapter 2 of the Bill, how could one not be worried to see a Minister being given powers, with little oversight, to compel a person to release whatever information they wish, in any format demanded, within 10 days, along with the information of anyone connected to them, on any grounds that the Minister deems “reasonable”—and to disclose that information to whomever they think necessary, with the sole right of appeal being only to that Minister? It could be impossible for someone to comply within the timeframe given, yet the Bill includes fines set at £300 a day for missing the deadline. Of course the Government should go after fraudsters, but I worry that some of that power could be abused and that, in its current form, it may breach laws on the state taking someone’s property without due process. I would be interested to hear if experts in the legal sector have been consulted on the legislation as drafted. Have Ministers engaged with the Law Society, the Bar Council or, for that matter, organisations like Liberty and Justice? In the Department for Work and Pensions and the Cabinet Office, it is right to pursue fraudsters with the full might of the law, but the ends cannot justify all means and the process must always be fair, reasonable and proportionate. I look forward to further discussions on the detail of the Bill, and I am sure that colleagues in the other place will be preparing for that, too. In the meantime, we must not let the Bill distract from the elephant in the room. For every penny the Bill will save—welcome though that is—it will do nothing about the billions of pounds that will be racked up in sickness benefits under this Labour Government. It is staggering that they did not come into office with a plan. They have done nothing to halt the tide in the seven months they have been in office, and I hear that they have shelved some of the work we handed over. We have heard not a murmur about what they will actually do, just briefing after briefing to the papers. Why not bring an actual plan to Parliament rather than talking to the papers? I suspect you, Madam Deputy Speaker, might agree with me on that point. We had a plan—where is theirs? Every day the Government scramble about without a plan costs taxpayers millions. Fraud and error in the system is a problem, and I am pleased to pledge the Opposition’s support for tackling them, but let us not use this Bill as a distraction from the big issue. We all agree that the welfare system needs reform. Let us end the briefings and have some action.

• 3 Feb 2025 · Topical Questions · Hansard source

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  Last week, the right hon. Lady described herself as the HR manager for the Government’s growth plan, so can Liz from HR tell me which of her colleagues should be fired for the addition of 47,000 people to the unemployment figures in December?

• 3 Feb 2025 · Topical Questions · Hansard source

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  Wishful thinking is all very well, but let us talk about the facts. Those 47,000 people probably spent Christmas worrying about how they would pay the bills without a job, and they are now looking for work in an employment market decimated by Labour’s jobs tax. How high does the right hon. Lady forecast unemployment will get under her Government?

• 29 Jan 2025 · Welfare Cap · Hansard source

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  I will make some progress. In government, we were working flat out to tackle that problem. We were changing how we assess people’s capability for work, recognising that the world of work has changed. We developed WorkWell to help people with health conditions or disabilities find and stay in work, and we were reforming the fit notes that GPs give people. Once again, we were opposed by Labour every step of the way. We also had plans to go further. In our manifesto, we committed to £12 billion-worth of savings by reforming sickness benefits. Labour responded at the time by saying that the money is simply not there, and the present Chancellor said that not a single penny could be saved from welfare. It turns out that, on this one occasion, Labour has stuck to its word: it has no plans to control welfare spending. Today, the Government are setting a welfare cap that does not include a penny’s worth of savings at a staggering £195 billion by 2029-30—a 44% increase on this year’s cap. In cash terms, that is more than our entire defence budget. Not content with not saving a single penny, they have given themselves a £10 billion buffer on top of that. That lack of ambition is terrifying. We believe that money can and should be saved from the welfare bill. The Chancellor finally seems to agree with us, because she has been busy briefing the papers in a panic about cutting spending. But where are those plans? Unfortunately, she has not got any because, as I said, until now she did not believe any savings could be made. Perhaps the Employment Minister can give us some clues. I believe she has canned my fit note reforms, so what will she do to get the welfare bill down and by when? How on earth does she expect to get people into work when 50,000 people were added to the unemployment figures in December alone?

• 29 Jan 2025 · Welfare Cap · Hansard source

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  As I am sure the hon. Gentleman heard, I was just acknowledging the fact that the economic inactivity rate started going up in the run-up to and particularly following the pandemic. We have a particular concern, which I am sure the Government share, around growing inactivity among young people. It is a challenge that we are experiencing more than other countries, and there is a lot of work to do to get to the bottom of it. I was involved in that work in government as a Health Minister, and it is imperative that the new Government get a grip on that issue.

• 29 Jan 2025 · Welfare Cap · Hansard source

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  The hon. Lady will know—at least I think she will know—that the vast majority of what she set out in the White Paper was the continuation of things we were doing in government. In fact, if she has read it she will see that it even says that the youth guarantee is essentially a new name for a repackaged set of measures that are already in place. That is literally in the White Paper. I am happy to follow up with her afterwards on the page that she will find that phrase on. I have yet to see a single sign to suggest that this Government can tackle the welfare bill, and the cap they are setting today tells us that they agree. The Opposition will support efforts to bring down welfare costs sensibly. We need a compassionate safety net, but that net should never become a trap. If the Government do not get a grip of the problem, it will put our entire social contract at risk. Ministers have finally twigged that action is required—a Green Paper is, they say, on its way. I urge the hon. Lady to get on with it, because each month that passes see thousands more drift out of work and into a life of inactivity.