Commons Sense

House of Commons · Ministers' Questions

Welfare Spending: Economic Impact

Monday 8 December 2025 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Conservative party observed rising numbers of people not in education, employment, or training but took no action.
  • Government projects levels of employment at Budget, addressing questions around unemployment and welfare spending.
  • Welfare budget rose three times faster under previous government compared to projections under current Government.

Topics (select to filter)

Questions & Answers

Q1 Sarah Bool Con South Northamptonshire
Economy Employment Benefits & Welfare
Context

The Conservative MP referenced basic economic principles suggesting that increased subsidization can lead to more of the subsidized behavior. She questioned how Labour's approach might affect employment rates.

Question

Why does this Government believe that subsidising unemployment through huge increases to the welfare bill will not lead to more unemployment? Will the Secretary of State accept that those changes disincentivise work, and will he tell the House how much the Budget is expected to increase unemployment?

Answer from The Secretary of State for Work and Pensions (Pat McFadden)

The Conservative party watched the number of those who are not in education, employment or training grow year by year and did nothing about it. The hon. Lady will find that, at the Budget a couple of weeks ago, the Office for Budget Responsibility projected that the levels of people in employment will rise in every year of the forecast.

Partly answered

Not addressed: Did not directly address whether increased welfare spending might lead to more unemployment and did not provide an unemployment projection as requested.

How: Referring Back To Previous Administration

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Q2 Peter Bedford Con Mid Leicestershire
Economy Employment Benefits & Welfare
Context

The Conservative MP questioned the government's approach to welfare reform, pointing out that it has led to increased spending while also potentially harming hard-working families.

Question

In their first Budget, the Government hiked taxes on employers, leading to a sustained increase in unemployment. Earlier this year, we saw a botched attempt to reform welfare, which is now going to cost us more in welfare spending, and in the Chancellor’s “Nightmare before Christmas” Budget, she hammered hard-working families with yet more tax rises. Why do the Government loathe aspiration and hard work in favour of an economy based on welfare and state dependency?

Answer from The Secretary of State for Work and Pensions (Pat McFadden)

The hon. Gentleman will find that the welfare budget had risen three times as fast as a proportion of GDP under the previous government compared to what is projected under this Government. We have begun to make changes through the reform to universal credit—that is more change in the system than his party introduced in many years—and, critically, to employment support for both the long-term sick and disabled and the young unemployed.

Partly answered

Not addressed: Did not fully address why current policies favour welfare over hard work and economic growth as questioned by the MP.

How: Comparing With Previous Administration

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