Welfare Spending

James Wild Excerpts

Tuesday 4th November 2025 Commons Chamber

[James Wild (North West Norfolk) (Con)]

A few hon. Members in this debate have mentioned the record of the last Government, so it is worth putting on the record that, under the last Government, 4 million jobs were created, youth unemployment was halved and a million more disabled people moved into work. Sadly, under this Government, we have already seen unemployment rise every single month that they have been in office. They are going to have the record that every Labour Government have had—of leaving unemployment higher than they inherited. The number of people on health and sickness benefits is also increasing significantly. Under this Government, 5,000 people are being signed on to long-term sickness benefits every day, which is double the rate pre covid.

Simply put, our welfare system is not sustainable, nor fair. It is not fair for taxpayers and it is not fair for people who are left on benefits, without the support that they need. Yet Labour Members have blocked welfare reforms, and the Prime Minister and Chancellor clearly lack the backbone to get on with this urgent work. The Chancellor’s panicked speech this morning underlined that serious welfare reform is not any part of their agenda.

It should be common cause across the House that we understand the value and dignity of work. The moral case for change mentioned in our motion could not be clearer: we must protect the vulnerable and help those who can work to get the support to do so, because work is not just about pay; it is about pride, personal responsibility and the health benefits that come from it. Yet this Government are failing to help people who want work to find it. A welfare system worthy of the name should help people up, not hold them down. We will judge this Government by their record. Unemployment, as I have said, is increasing, and sickness claims are going up.

Helping people is why, when we were in government, my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) introduced universal credit to simplify welfare and reward work, which halved unemployment between 2010 and the pandemic. We were making real progress. Of course, the pandemic created a real challenge for us and we saw a rise in claims, particularly for mental health. The shadow Chancellor, whose name has been taken in vain, actually put in place a number of reforms that were going to drive down the claims that were coming through. He put in place universal support to help people. He put in place WorkWell, a great scheme that has been effective in Norfolk.

The big point is that welfare spending on health and disability benefits is set to hit £100 billion by the end of this Parliament—a point made by the hon. Member for North Durham (Luke Akehurst)—which is twice what we spend on defence. Yet what do we see? We see a Government with no serious intent to bring the total down. Indeed, the PIP review that has been announced, which will not report for ages, specifically excludes savings from its terms of reference.

Despite increasing taxes, the Government are apparently going to lift the two-child policy. My hon. Friend the Member for Bridgwater (Sir Ashley Fox) has already made a good argument for why that should not happen, so I will not repeat it, but it prompts the question of why the Government, despite critiquing the last Government for apparently spending too much on welfare, do not have a plan to do anything. They could look at the plan that the shadow Secretary of State has set out, which would deliver £23 billion across the board. We should be guided by Conservative principles: living within our means, protecting the most vulnerable, and making sure that work always pays and that those who can work do so.

We have a duty to ensure that the system is fair and sustainable. From the moment that Labour Members blocked their own reforms, we have seen a Government with no ideas and a Chancellor who is clear that spending restraint does not form any part of her plans. Taxes are going up and welfare spending is going up, but there is an alternative: back our motion and build a welfare system that truly works for Britain.