Lord Davies of Stamford
Main Page: Lord Davies of Stamford (Labour - Life peer)Department Debates - View all Lord Davies of Stamford's debates with the Department for Work and Pensions
(8 years, 2 months ago)
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Lord Freud
I am grateful to have the opportunity to pay tribute to Iain Duncan Smith. He was a remarkable champion for reform in the welfare state. I say with feeling that there is a reason why no one has transformed the system in the last 70 or 80 years and that is that it is very difficult to do. He had the political guts to get on and do it, and I am very proud to have supported him in getting the programme as far as it is. I think that he will go down in history for that achievement.
As my noble friend said, the OBR forecast shows that we gave more money to the disabled in the last Parliament, and the same is projected for this Parliament. In particular, a real-terms increase in the area of PIP/DLA is now baked in. My noble friend is of course right that the next step in the process is the need to find the right way to help disabled people back into the workplace and to achieve our objective of halving the disability gap.
Lord Davies of Stamford (Lab)
My Lords, the noble Lord gave an assurance that the DWP will not replace the £4.4 billion of savings from the PIP programme, which it is now going to abandon, with cuts elsewhere in the DWP budget. However, he has not answered the obvious and important question of how those savings are going to be compensated. Surely there are only three possibilities. They will have to be compensated by spending cuts in other departments, by tax increases or by an increase in the fiscal budget being run by the Government. Which is it, or will it be a combination of all three? Surely it is the height of fiscal irresponsibility simply to announce that £4.4 billion of projected savings will no longer be arriving without any idea at all of how they will be replaced.
Lord Freud
My Lords, the Chancellor and the Secretary of State are saying that at the Autumn Statement we will look at the whole picture and at how the finances of the country should be organised. At that stage, there will be lots of moving parts and we will be able to see how this fits in.