Welfare Spending

Deirdre Costigan Excerpts

Tuesday 15th July 2025 Commons Chamber

[Helen Whately]

My hon. Friend makes an important point about the problem of a welfare trap, where people would better be better off on benefits than working full time on the minimum wage.

[Deirdre Costigan (Ealing Southall) (Lab)]

Will the hon. Lady give way?

[Helen Whately]

I will first make a little progress, but then I will be happy to give way to the hon. Lady.

Last week’s welfare fiasco saw a Bill that was meant to save money become a Bill that will cost money. We have also seen the fiasco of the winter fuel payments cut, with the Government having to row back on their tough talk because taking money from low-income pensioners is not, in fact, the way to make savings. And now we are debating the future of the two-child limit, which Cabinet Ministers, including the Prime Minister, have indicated is the next tough choice that they are not going to make.

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[Deirdre Costigan]

Does the hon. Member seriously believe that any family anywhere in the country will take seriously the Conservative party lecturing them on personal and fiscal responsibility, when this is the party that not only brought the economy to its knees through the uncosted promises of Liz Truss’s Government, but partied in the back garden of No. 10 when the rest of us were under covid restrictions?

[Helen Whately]

If I could take the hon. Lady back a bit, she might remember when we came into office in 2010, and we had to bring down the deficit year after year to get the country’s finances under control.

Giving children the best start in life is not as simple as handing out more money. It is about giving parents the community support they need as they encounter the challenges of bringing up a child, which is why we launched the family hubs. It is about education, but school teachers around the country are being let go. It is about growing up in a household with someone in work, but across the country people are being made redundant because of the Chancellor’s jobs tax.

I know that I will not win over everyone here with my argument. For instance, I do not expect to convince the four remaining Reform MPs, because their leader has said that he would remove the two-child limit—the hon. Member for Clacton (Nigel Farage) believes that is the right thing to do and said that he is not finished yet on benefit giveaways. But asking the taxpayer for ever more in taxes to pay for their neighbour’s benefits is not the right thing to do. The country, taxpayers and future generations cannot afford this. The Prime Minister, the Chancellor and Cabinet Ministers have been unable to rule out more tax rises this autumn. Businesses, working people, pensioners, savers, homeowners—whose pocket will be picked next?

Last week, the Office for Budget Responsibility warned that the UK’s finances are in a very “vulnerable position”. Now more than ever we need the Government to take the tough decisions—but will they? I know Labour Back Benchers are itching to vote to scrap the limit, but where are the Government on this? Will they take the position of the Prime Minister in 2020, in 2024 or now, or will they have to abstain because the Government just do not know? Soon we will see.

Only the Conservatives understand the importance of personal responsibility, fairness and living within our means. Labour, the Lib Dems, the SNP, the Greens and Reform all voted last week for more welfare spending. Will they do the same today, or will they vote with us to back the people getting up every morning, going out to work, doing the hard yards, making the hard choices and working hard to build our country?

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[Deirdre Costigan (Ealing Southall) (Lab)]

I have visited St Anselm’s food bank in Southall on many occasions and spoken to its brilliant volunteers, but the people who find it hard to speak to me are those collecting the food. Being poor and unable to feed their family is not something they want to shout about. I can see the distress written on their faces. Those mums and dads have not decided to live in poverty. Many of them have jobs, but they just cannot make ends meet. They are the casualties of 14 years of Conservative Government—of public services that were cut to the bone, leaving people without a vital safety net when things go wrong; of a jobs market that left workers on bargain-basement terms and conditions and low-wage jobs with no protections; and, of a welfare system with a basic rate that just was not enough to live on, instead pushing people into relying on sickness benefits.

[David Pinto-Duschinsky]

Does my hon. Friend agree that, exactly because of those problems, we should all welcome the uplift to the basic rate of UC, which will lift the income of 6.5 million families?

[Deirdre Costigan]

I absolutely welcome that point. The Conservatives put 1 million more children into poverty, with 800,000 children now relying on food banks such as St Anselm’s to eat. In the motion today, the Conservatives have the bare-faced cheek to blame those families, as if parents choose to let their kids go hungry. The only people to blame for this are Liz Truss’s Conservative party, who gambled with the country’s finances, betting it all on pie-in-the-sky promises they knew they could not pay for, bringing the economy crashing down overnight. Families in Ealing and Southall are still suffering the consequences; 40,000 of them are having to go to the food bank this year.

Under this Labour Government, we want to make food banks the exception and not the norm. That is why Labour has opened new breakfast clubs, such as the one in Wolf Fields in Southall; expanded nurseries, such as in Allenby primary; extended free school meals for all those on universal credit; and reduced energy bills by £150 for more than half a million Londoners.

We know, however, that we need to change the whole busted system that puts people into poverty in the first place. That is why Labour is ending the low-paid, bargain-basement jobs of the Tory era. Our Employment Rights Bill will end zero-hours contracts, with families no longer wondering from week to week if they can get enough hours to afford food. We are stopping fire and rehire, extending sick pay to low-income workers, and we have raised the minimum wage for 3 million working families. Our next step is to address the injustices faced by those working in the gig economy.

[Jake Richards (Rother Valley) (Lab)]

My hon. Friend is talking about other areas of public policy that affect welfare. Is not the other side of the coin the 2.8 million people out of work due to long-term sickness and the state of our NHS? The fact that waiting lists are coming down month after month under this Labour Government will help people who are currently on benefits to get back into work.

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[Deirdre Costigan]

I agree with my hon. Friend, and we are making huge progress on reducing those waiting lists. We are also fixing the broken welfare system that the Conservatives left behind. We are increasing the basic rate of universal credit to help those families who rely on it, so that it starts to become enough to live on, and they do not have to use food banks. We have changed the rules, so that people are no longer better off on sickness benefit. That is how the Conservatives left the welfare system, but we are the Labour party, and we believe in good jobs as the best route out of poverty. We have put more than £1 billion into helping people find those good jobs.

What do the Conservatives have to say for themselves? There is no apology to the almost 1 million children that they put into poverty and left reliant on food banks. There is no apology to the almost 3 million people on long-term sick left living on benefits when many of them wanted to work. There is no apology to the tens of thousands of families struggling to get by on bargain-basement jobs. They created the problem, and as their motion shows today, they have absolutely no plan to fix it. All they can do is blame the very families their policies have forced into poverty. It is clear that only this Labour Government are serious about getting Britain working, ensuring that those who cannot work have a decent living income, finally ending reliance on food banks, such as St Anselm’s in Southall, for good.