Welfare

Deirdre Costigan Excerpts

Wednesday 11th November 2026 Commons Chamber

[Deirdre Costigan (Ealing Southall) (Lab)]

The Conservatives are sat here today criticising welfare spending when we all know it was their Government that created the very system they are now complaining about. Universal credit was dreamed up by the Conservatives, and it created a system where people were better off on welfare than in a job. For under-25s, the choice was a poverty-level standard rate of £317 a month or a far higher disability rate of £747 a month—more than double. This of course created a massive incentive for young people to go on the higher rate, and because they got zero support, they were effectively consigned to never getting a job.

Since being elected, Labour has already changed this. We have cut the disability rate from £747 to £556 for those young people who may be able to work with the right support. We have made the higher rate only for those with a severe health condition or disability that is unlikely to change. This is the Labour way to reform welfare: looking after those who will never work and helping them, while encouraging those who can work to get into a good job by removing the perverse incentives that were created by the Conservatives.

The Conservatives also came up with the personal independence payment, although from the way they talk about it in this place, anyone would think it had nothing to do with them. It is a benefit that helps with the additional cost of being disabled, so it is supposed to be paid to those in work as well as to those who are not. In fact, over 80% of recipients are not working. A Unison report found that assessors routinely used the fact that a claimant was employed as justification to reduce or entirely withdraw their PIP award. As a result, disabled people left jobs or went part time to keep their PIP. This was yet another perverse incentive created by the Conservative benefits system, which made people better off not working.

Those perverse incentives are why, in the Tories’ final year in government, the welfare bill rose by £33 billion and almost 3 million people were not working because of long-term sickness. For over a decade, the Conservatives presided over a system that meant people were better off on benefits, and it is only now that they have been kicked out that they have decided it needs to change, but their answer is to slash benefits crudely in a way that would only see massive increases in child poverty and homelessness. It is a false economy, as the money will only have to be spent again on other public services.

[Dr Mullan]

Is the hon. Member’s position that, prior to 2010, under the Labour Government, someone was never better off on welfare than working?

[Deirdre Costigan]

Under the last Labour Government, work was the cornerstone of everything that we did, and we will continue with that under this Labour Government.

As I said, the Opposition’s approach to welfare is a false economy, and we will end up spending the money again on public services. It would just move the cost from the welfare bill to the NHS and local authorities. Their plan to bring back the two-child limit would see 3,660 children in Ealing Southall fall into poverty. That is not just a statistic; it is 3,660 children in Ealing Southall going hungry and cold, and it is the taxpayer who would still end up picking up the tab. The Conservatives’ claim to be able to cut £13 billion from disabled people’s benefits seems like a random number they plucked from the sky with no real plan.

The Leader of the Opposition says she can cut this £13 billion because

“Double amputees run marathons… People with autism”

have set up “tech companies”. She may be right about a very small number of people, but she should tell that to the parents in my constituency with non-verbal and developmentally disabled autistic children—parents who spend every single day of their lives fearing what will happen to their grown-up child when they die. I can only imagine how utterly crass and insensitive the Leader of the Opposition’s comments must sound to those parents.

Instead of scaring those parents, Labour is taking a measured approach to changing the system. We have commissioned the Timms report to look at making PIP fit for the modern world, where we know so much more about the impact of mental health and fluctuating conditions than we did a decade ago, and we have commissioned the Milburn review, which will radically change how we support young people to get into work.

Already Labour is spending £3.5 billion on employment support for sick and disabled people with personalised support through Connect to Work. We have invested in new apprenticeships and introduced a jobs guarantee, with paid work for six months, backed by mentoring and tailored support. Those reforms are part of our work to address the broken welfare system inherited from the previous Government and to ensure that the system supports those who can work while protecting those who cannot.

The Conservatives’ approach to welfare spending is to let it run out of control when they are in government and then come up with crude and financially illiterate cuts when they are out of government and will not have to deliver them. Instead of making families and their children sick, homeless and dependent on food banks, Labour’s choice is to bring down welfare spending in a safe and sustainable way by doing one simple thing: making people better off in work. That is the Labour way and that is the way that we will deliver.