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Welfare Cap 2025-01-29
29 January 2025
Lead MP
Alison McGovern
Debate Type
General Debate
Tags
Economy
Other Contributors: 25
At a Glance
Alison McGovern raised concerns about welfare cap 2025-01-29 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The welfare cap was intended to control public spending, but it has led to repeated breaches and an £8.6 billion overspend in 2024–25 due to higher forecast expenditure on Universal Credit and disability benefits. The government inherited a legacy of low growth, high cost of living, and high inactivity with employment and social security systems ill-equipped to meet the requirements of an older, sicker nation.
Hitchin
Agrees that investment in the NHS is fundamental for people to get back to work and contribute economically. The NHS is the bedrock that ensures people can thrive and contribute to society.
Jeremy Corbyn
Ind
Islington North
Asks whether it will be policy of DWP to automatically offer advice and support to people on benefits or give more support to voluntary agencies. Questions the previous requirement for the Department to provide welfare advice.
Daisy Cooper
LD
St Albans
The hon. Member acknowledges the efforts of jobcentre staff but raises concerns about barriers to employment such as special educational needs and NHS support, suggesting that public services must be robust for a strong economy.
The Minister agrees with Daisy Cooper on the importance of strong public services, including the NHS. She emphasises the need for collaboration between MPs and jobcentre staff to better understand local challenges. The Minister also outlines plans to improve work quality, increase employment rates through youth guarantees, and publish a Green Paper on health and disability reforms.
The Member questions whether an increase in welfare spending would fit within the current cap, seeking clarity on future financial decisions.
Peter Swallow
Lab
Bracknell
Swallow argues that the previous Conservative government failed to adequately support people who could work back into employment, resulting in a higher number of economically inactive individuals. He supports Labour's approach and criticises the lack of action by the Conservatives.
Alison McGovern
Lab
Nottingham East
McGovern acknowledges that under her government, there was no comprehensive plan left behind regarding rising inactivity rates as suggested. She highlights their current efforts through a White Paper and plans for health and disability reform.
Helen Whately
Con
Faversham and Mid Kent
Whately argues that the current government lacks ambition to control welfare spending, despite previous commitments and the recent breach of the cap. She criticises the lack of detailed plans from the opposition.
Hendon
Pinto-Duschinsky questions Helen Whately on youth inactivity rates under the previous Conservative government, suggesting that while progress was being made, it was insufficient compared to other OECD countries.
Jeevun Sandher
Lab
Loughborough
Sandher discusses systemic issues such as an overburdened NHS, low pay and training economy, and a punitive social security system that pushed people into destitution. He supports the government's decision to breach the cap rather than impose cuts.
Kemi Sandher
Lab
Dudley South
The hon. Member agrees that ten-minute appointments at local jobcentres are insufficient for those seeking employment support. They advocate for a change in tone and attitude towards individuals on welfare, emphasising the need to support people into well-paid jobs rather than stigmatising them as workshy.
Kirsty Blackman
SNP
Paisley and Renfrewshire North
The hon. Member questions why the Government supports a welfare cap that perpetuates poverty by limiting benefits for families with more than two children, highlighting the detrimental impact of such policies on child poverty.
Robin Swann
UUP
South Antrim
The hon. Member recognises that many economically inactive individuals have a desire to work but face systemic barriers. He supports changes aimed at providing more support and changing attitudes towards people in need.
Daisy Cooper
LD
St Albans
The Liberal Democrats argue against the Conservative legacy, citing years of mismanagement that led to increased welfare spending due to neglected public services. They advocate for urgent action on NHS and social care crises to empower people to enter the workforce.
Hendon
The hon. Member highlights the £8.6 billion breach of the welfare cap caused by Conservative failures, emphasising the need for significant changes in fraud and error reduction strategies within the Department for Work and Pensions.
Ranvir Singh
Lab
Dewsbury
The speaker emphasises the Conservative government’s failure in economic growth and job creation. They cite figures showing slower GDP growth than other G7 countries under previous Conservative rule, with GDP rising by only 6% over a decade. The speech also highlights a rise in NEETs (Not in Employment, Education or Training) among young people and the impact of poor health on employment rates.
Jeremy Corbyn
Ind
Islington North
The speaker cautions against hardwiring welfare spending decisions for five years. He raises concerns about maintaining the two-child benefit cap and removing winter fuel payments, which contribute to child poverty. The speech emphasises the need to address poverty levels, increased child poverty, and educational underachievement among children in poverty.
Jeremy Corbyn
Lab
Islington North
Corbyn condemns the welfare cap as it limits necessary support to those in need. He advocates for a societal approach that supports individuals when they require help and emphasises the importance of flexible working arrangements.
John McDonnell
Ind
Hayes and Harlington
McDonnell suggests scrapping the welfare cap debate, calling it farcical. He argues for a focus on poverty strategies rather than debates on breached caps, citing the negative impacts of austerity measures.
Responding to comments about Labour's work on child poverty, Alison McGovern highlights ongoing efforts but also agrees with the need to move beyond welfare cap discussions towards a comprehensive strategy addressing overall poverty.
Kirsty Blackman
SNP
Aberdeen North
Blackman acknowledges government efforts to support employment and improve jobcentre services. However, she points out that 38% of universal credit claimants are already employed but require additional support due to low wages or inflexible work hours.
Critiques the welfare cap, arguing it is backwards as it sets caps on welfare expenditure before solving underlying issues such as unemployment and poor living conditions.
Robin Swann
DUP
Fermanagh and South Tyrone
Agrees that long-term planning is needed rather than short-term solutions, citing the withdrawal of programmes under the European social fund in Northern Ireland that helped people find employment.
Kirsty Blackman
SNP
Aberdeen North
Supports the argument against a welfare cap and emphasises the importance of long-term planning, advocating for more support to help individuals get into work.
Dan Tomlinson
Lab
Chipping Barnet
Compliments the Secretary of State's efforts on these issues but highlights a case where jobcentres failed to properly support people into employment, suggesting improvements in matching employers and employees.
Government Response
The Minister defends the importance of fiscal responsibility and proper public spending controls. She outlines plans for significant welfare fraud reduction efforts and a new Green Paper focusing on health and disability reforms, aiming to fundamentally change how social security is approached.
Shadow Response
None
Shadow Response
The shadow minister responds with a critique of current welfare policies, focusing on the insufficient support for job seekers and the stigmatisation of those relying on benefits. They propose changes to improve training programmes and healthcare access, aiming to reduce long-term reliance on social security.
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Assessment & feedback
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