Welfare Spending

Iain Duncan Smith Excerpts

Tuesday 4th November 2025 Commons Chamber

[Sir Stephen Timms]

The hon. Gentleman raises a good, practical point. Quite a lot of GP surgeries certainly do have space and welcome work coaches or an adviser on to the premises, but he is right that that does not work everywhere, so we need to be flexible and have a local approach for each area. That is what Connect to Work will deliver.

We also need to stop people from falling out of work unnecessarily in the first place due to ill health. Stopping work is often not in the interests of either the employee or the employer, but far too often it happens by default. Therefore, Sir Charlie Mayfield has been leading the Keep Britain Working review on how Government and businesses can work together for more inclusive, healthier workplaces. He will report his findings very soon.

This active approach is particularly important for young people, as the shadow Secretary of State suggested in her opening remarks. After 14 years, so many were left not in employment, education or training, and being out of work for a long time at the start of what should be working life does long-term damage to their health, earnings potential and prospects. There are obviously consequences for the social security system as well.

If we do not get somebody on a productive path early on, it can be really hard to change course further down the line, so we are expanding the number of youth hubs, partnering with sports clubs to get help to people in the community and developing a youth guarantee to ensure that 18 to 21-year-olds are earning or learning. As the Chancellor announced last month, learning from the success of Labour’s future jobs scheme, that will include a jobs guarantee. Our youth guarantee trailblazers are up and running, innovating and testing out the best ways to join up support and make the most of young people’s talent and potential, from mental health support to flexible work experience sessions. Those trailblazers will inform the national roll-out of the guarantee so that everybody has the chance to start off their working lives on the right foot.

We are reforming jobcentres by introducing the jobs and careers service: a universal service, moving away from one-size-fits-all and offering much more personalised support. We are also testing changes to the claimant commitment as we look to free up work coaches.

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I am listening carefully to everything the Minister says, including about being productive. The key for him is that for the first time sickness benefit is now within universal credit, which also includes all other benefits. That gives a face-to-face opportunity with all these staff. As he gets more people back to work—particularly those who have mental health problems such as depression and anxiety, for which work is a health treatment, as the health service will say—does he anticipate calculating on the back of that whether any money will be saved as a result? If so, will he at some stage come up with a plan for saving that money?

[Sir Stephen Timms]

I do envisage that, as people get back to work, there will be savings on social security. I think we will see at the Budget projections from the Office for Budget Responsibility of future moves into employment as a result of the changes that we are making, and savings will certainly arise. We want our work coaches, as the right hon. Gentleman has just pointed out, to spend less time on bureaucracy and more time on what they do best, which is giving people the benefit of their expertise and helping people move closer to work.

Good work will also be a key part of the child poverty strategy, which we will bring forward by the end of the year. We will tackle child poverty by increasing family incomes, reducing family costs, building financial resilience and improving local support. Some people will remember that I took the Child Poverty Act 2010 through Parliament, with all-party support at the time. It was quickly scrapped by the coalition Government and the number of children growing up in poverty has gone up by 900,000 since then. Welfare spending has also rocketed. Reducing both child poverty and welfare spending are not opposites.