Welfare Spending

Luke Murphy Excerpts

Tuesday 15th July 2025 Commons Chamber

[Luke Murphy (Basingstoke) (Lab)]

I am grateful to the Opposition for initiating a debate that enables us to discuss one of the most critical issues facing our nation: child poverty. Every child growing up in poverty represents a future diminished, opportunity denied and potential unfulfilled. Every child deserves the best start in life, so that they can learn, achieve and go on to live the best life that they deserve. That is why tackling child poverty is now firmly back at the top of the Government’s agenda.

For 14 years, the previous Government presided over a shameful legacy that led directly to this crisis. As others have said, they left us with 4.5 million children in relative poverty, including 3,000 in my constituency. Since 2010, child poverty increased by a staggering 900,000 children, but instead of trying to tackle the problem, the Conservatives decided in 2015 to abolish the target of eradicating child poverty. Their motion and, indeed, their rhetoric allude to the idea that Governments should “make work pay,” but when they were in government they oversaw the first Parliament on record with living standards lower at its end than at its start.

Some within the Conservative ranks have today shown a shocking disregard for this issue. They have talked of personal responsibility, but their version of personal responsibility appears to be lecturing others on it rather than taking any themselves. If they were taking personal responsibility on child poverty, they would come to the House and explain why it rose by 90,000 children. Was it a matter of policy design, was it a matter of policy failure, or was it, indeed, the fault of the children themselves?

[Tom Hayes]

Does my hon. Friend agree that people in disadvantaged and poorer areas typically live in overcrowded, poor-quality rented accommodation, and that this Labour Government’s efforts to improve the quality of rented accommodation should be commended as a way of tackling child poverty?

[Luke Murphy]

Absolutely. As one who has fought outside the House for significant investment in affordable housing, particularly social housing, I greatly welcome the Government’s massive investment in the affordable housing programme.

It falls to this Government to fix the mess that the Conservatives left behind. We are committed to driving down poverty and driving up opportunity in every part of our country, delivering the change that the country so desperately needs. We have already made a considerable downpayment on the comprehensive strategy on child poverty that is due later this year, providing free school meals for all children in households receiving universal credit, for which so many of my Labour colleagues campaigned for many months and years; delivering free breakfast clubs in schools; reforming universal credit deductions with a new fair repayment rate, which the Minister mentioned earlier and which puts hundreds of pounds back into the pockets of 700,000 of the poorest families; and increasing the standard allowance of universal credit.

Looking ahead, our plan to get Britain working involves the biggest investment in employment support in a generation, including an additional £1 billion a year by the end of the Parliament for work, health and skills support through a “Pathways to Work” offer.

[Adrian Ramsay]

The hon. Gentleman has rightly highlighted the terrible record of the previous Government and the number of children who went into poverty during that period, which includes an extra 250,000 who went into poverty as a result of the introduction of the two-child benefit cap. He has listed some actions that this Government are planning to take. Will he add to that list his support for scrapping the cap, and will he join figures in his own party, such as Lord Kinnock and Mark Drakeford, in supporting the introduction of a wealth tax for the super-rich, so that we can fund the tackling of inequality and support the most vulnerable?

[Luke Murphy]

I will not get ahead of our Chancellor when it comes to the announcements about taxation that will be made later in the year, but I am confident that those on the Front Bench know that they have our full support in delivering the final recommendations of the child poverty taskforce, also later in the year.

This Government will never allow young people to be written off, as the Tories did for years. As I said at the beginning of my speech, I am pleased that the Conservatives initiated the debate, which has given us all a chance to discuss child poverty and their record on welfare, both of which are shocking. I lament the fact that they have failed to recognise the scale of their failure today, but I am pleased that this Government are getting on with the job of returning people to work, ensuring that social security is there for those who need it, and tackling the moral stain on our country that is child poverty.

--- Later in debate ---

[Danny Kruger]

It just doesn’t flow as well, but yes, apologies Madam Deputy Speaker.

[Luke Murphy]

In 2023, the shadow Minister said:

“The narrative that the public has now firmly adopted—that over 13 years things have got worse—is one we just have to acknowledge and admit.”

Does he still acknowledge and admit that things got worse under his Government?

[Danny Kruger]

I am grateful to the hon. Member’s archaeology in finding my previous quotes. Many things did get worse over the last decade and a half—of course I recognise that. But much of it was as a consequence of the global financial meltdown that his party presided over. We spent many painful years fixing the deficit that Labour left us.

I want to quickly cite the previous Government’s record on young people. Labour Members have boasted of the new Labour years, but in 1997 youth unemployment stood at 650,000, and by the time Blair and Brown had finished in 2010 it was up a third to 940,000. When we left office 14 years later, we had almost halved it down to 560,000—lower even than in 1997. That is the Conservative record.

I will conclude shortly, but I first say to those across the House who want to lift the child benefit cap to consider what they are asking. They are asking working people who pay more in tax than they receive in public services—and who themselves have had to take agonising decisions about whether or not they can afford to have another child given the taxes they pay—to fund the benefits for other people who receive more from the system than they pay in.

Winter Fuel Payment

Luke Murphy Excerpts

Wednesday 19th March 2025 Commons Chamber

[Matthew Patrick]

I will take interventions—I am happy to do so—but I will make some progress first. Hon. Members may have heard earlier that the right hon. Member for Herne Bay and Sandwich (Sir Roger Gale)—I do not believe that he is currently in his seat—said it was nonsense for him to be receiving the winter fuel allowance. I think he revealed—it was news to me—that the Conservative Government had had plans to means-test it. I will be interested if those who wish to intervene would confirm whether he was right.

[Luke Murphy (Basingstoke) (Lab)]

Members on the Conservative Benches have said that they do not think Richard Branson should have been receiving the winter fuel payment. They talk about those above £13,000. If the Conservative party had been so concerned about the very poorest pensioners, pension credit would not have been the most underclaimed benefit in the welfare system, with 700,000 people not claiming it. If they really cared about the most vulnerable pensioners, would they not have done more about that?

[Matthew Patrick]

My hon. Friend makes a good point. There is incredible uptake under this Government because we want to see the poorest pensioners access the support they are entitled to.

--- Later in debate ---

[Joe Robertson]

I am grateful to the hon. Member for giving me the opportunity to talk about means-testing— I did not expect to have that Government argument made by a Liberal Democrat Member, but so be it. There is some sympathy, from across the House, for the argument for means-testing the winter fuel payment, but I assure the hon. Gentleman that nobody on the Conservative Benches thinks that the means-testing cut-off point, if they believe in one, should be £13,500. That means that 10 million pensioners have lost out on the winter fuel payment. Unless the Government can make a fiscal argument for removing winter fuel payments from the very wealthy that actually delivers more funds to the Treasury, this decision should not have been taken at all, and should certainly not have been taken when it harms those on a fixed income of very little.

[Luke Murphy]

The motion talks about ensuring that

“those eligible for Pension Credit receive it”.

To return to the point I made earlier, if Conservative Members were so concerned about vulnerable pensioners, why was there absolutely no movement in the take-up of pension credit under the previous Government? Some 700,000 pensioners are eligible for pension credit, but I do not remember a big campaign on that by the previous Government that made a difference—

[Madam Deputy Speaker (Caroline Nokes)]

Order. The hon. Gentleman’s intervention is far too long.

[Joe Robertson]

I thank the hon. Gentleman for drawing attention to his own Government’s promise to increase the take-up of pension credit. After the past winter, there are still 750,000 pensioners who have not taken it up, so he should not speak with any pride or seek to deflect to previous Governments when his own Government have withdrawn the winter fuel payment and there are still 750,000 eligible pensioners who are not receiving pension credit.

[Luke Murphy]

On that point, will the hon. Gentleman give way?

[Joe Robertson]

I am sorry, but in the time remaining I cannot take another intervention from the hon. Gentleman.

Without the winter fuel payment, over the winter we have seen a 5% increase in the number of people aged over 65 attending A&E, and of those who have attended A&E, there has been a 9% increase in hospital admission. The motion seeks a proper impact assessment and analysis by the Government of the effects of winter fuel payments being withdrawn. This was not a one-off winter, and it was a warmer winter than average. The same will happen next winter, the following winter and the winter after that, unless the Government bring back the fuel payment.

Income Tax (Charge)

Luke Murphy Excerpts

Monday 4th November 2024 Commons Chamber

[Mel Stride]

I stand by our record when I was Secretary of State for Work and Pensions, particularly on the support that the Department gave to the disabled, not least the results that we achieved in encouraging and helping them into work, which is the best possible outcome.

When there has been such a perpetration of deceit, there must be the alibi—the smokescreen—which is, of course, the fictitious, confected black hole of £22 billion. Labour Members rubbed their hands in glee when the OBR said it would be looking into the matter. It reported back, on the day of the Budget, and what did it find? It found that it was not able to legitimise that black hole of £22 billion, and came up with a figure for in-year fiscal pressure that was below half that. It observed that if it had been focused on that figure at the time of the spring Budget, conversations would have been held, and it is conceivable that the number would have been smaller still.

From our experience in government, we know that it is quite normal practice to manage in-year fiscal pressures, and to net off the underspends against the overspends. In reality, this black hole is “a dead parrot”. It has ceased to be. If it was not nailed to its perch, it would be “pushing up the daisies”. Far from being just “shagged out” after a prolonged squark, Madam Deputy Speaker, it is dead: the black hole is “an ex-parrot”.

[Luke Murphy (Basingstoke) (Lab)]

I am grateful to the shadow Chancellor for giving way. Based on his performance, everyone on the Government Benches heartily welcomes his promotion. Does he accept that the OBR says in the letter he mentions that its forecast would have been “materially different”?

[Mel Stride]

I have just explained exactly what the OBR said. It said that it does not legitimise the black hole—the £22 billion, which has been repeated yet again from the Government Front Bench.

Opportunities were missed in this Budget, not least around driving up productivity. We know that Labour Governments spend money. We know that Labour Governments tax people a lot—that is what they do. What they do not do is spend the money with any strings attached. There has been a 14% pay rise for train drivers and 22% for junior doctors, but not one suggestion that there might be improvements in productivity to accompany that spending. That is unlike the Conservative party when we were in office: under my right hon. Friend the Member for Godalming and Ash (Jeremy Hunt), we had a very clear, fully funded plan for the national health service and a long-term workforce plan to drive up productivity.

Let me come to the issue of welfare. It is gratifying to hear the Secretary of State confirm that the Labour party is going ahead with some of the more important reforms that we brought forward, such as that to the work capability assessment.

--- Later in debate ---

[Luke Murphy (Basingstoke) (Lab)]

I congratulate my hon. Friends the Members for Huddersfield (Harpreet Uppal), for North Somerset (Sadik Al-Hassan) and for Wrexham (Andrew Ranger) on their excellent maiden speeches. As the first ever Labour MP for Basingstoke, I am proud to champion the first Labour Budget in 14 years, delivered by the first ever female Chancellor. I also congratulate the right hon. Member for North West Essex (Mrs Badenoch) on her election as leader of His Majesty’s official Opposition. As the first black woman to lead a major political party, she has achieved a significant milestone.

I will focus on three key points. The first is to recognise that the Budget represents a crucial shift away from the failed policies of the last 14 years. As my hon. Friend the Member for Swansea West (Torsten Bell) has said, the risks in continuing down the same path were immense economically, socially and politically. The previous Parliament saw living standards decline, the lowest growth and highest inflation in the G7, and sky-rocketing hospital and housing waiting lists. The new Leader of the Opposition has claimed that the public now expect too much from government, but my constituents in Basingstoke have lost faith that the state can deliver even the most basic of public services after 14 years of neglect.

That brings me to my second point: the Budget is about fixing our public finances and repairing our public services. Our first fiscal rule ensures that day-to-day spending is sustainably funded, which is essential given the chaos of the Conservatives’ mini-Budget. Crucially, however, our rules allow for increased public investment: an approach welcomed by the International Monetary Fund. Unlike the Conservatives, who, as others have mentioned, planned to cut public investment by a third, we believe in investing in housing, schools and infrastructure. Their opposition to new investments reveals their desire to return us to a path of decline that voters rejected just a few months ago. The Budget will lead to more NHS appointments and better healthcare, more teachers and improved education, and more secure, affordable housing for all.

Finally, the Budget protects and delivers for working people in Basingstoke, just as we promised in our manifesto. The increase in the national living wage will mean £1,400 more for a full-time worker on the living wage. We are addressing the legacy of poverty left by the previous Government, with one in five children in Basingstoke living in relative poverty. Changes to the repayment rate of universal credit will make over a million of the UK’s poorest households £420 better off from next April.

The Budget signifies a decisive move towards a fairer, more prosperous future for Basingstoke and for Britain. Those on the Opposition Benches will regret their opposition to the Budget. I am proud to support it.