Budget Resolutions

Melanie Ward Excerpts

Tuesday 2nd December 2025 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

This was a positive, progressive Budget with fairness at its heart. These fiscal decisions will benefit most people, but particularly those who have been really struggling with the cost of living crisis over recent years. Those with the broadest shoulders have been asked to do their fair share of the heavy lifting, with all but the top 10% income households seeing the proportion of their net income increase by 2028-29. Fairer policies benefit us all, not just the recipients. As the International Monetary Fund has shown, reducing income inequality stimulates growth, but we also know that fairer societies improve educational attainment, social mobility, trust between communities, health status and much more.

Collectively, these tax reforms are forecast to raise over £8 billion in 2029-30 from wealth and the wealthy. The total package of tax changes has allowed the Chancellor to make some incredibly important decisions to help with the cost of living crisis and boost living standards, including increasing the minimum wage and living wage, increasing the state pension, freezing rail fares and fuel duty, and cutting £150 from next year’s energy bills.

I particularly want to talk about the abolition of the so-called two child limit. It is now believed that this measure drive the increase in child poverty from 3.6 million in 2010 to 4.5 million in 2024, causing a multitude of poverty-related harms, including an increase in the prevalence of young people not in education, employment or training. A person is five times more likely to be NEET if they experience childhood poverty, and more than half of the current NEET population belong to this cohort. Getting rid of this harmful, damaging policy will lift 350,000 children out of poverty almost immediately, and another 150,000 will be prevented from being drawn into poverty over the life of this Parliament.

I commend the former Work and Pensions Secretary, my right hon. Friend the Member for Leicester West (Liz Kendall), and the former Employment Minister, my hon. Friend the Member for Birkenhead (Alison McGovern), for bringing forward spending on employment support. I know that the current Employment Minister is keen to continue that work and escalate it. Analysis commissioned by the Work and Pensions Committee showed that supportive employment programmes such as the new deal for young people and the new deal for disabled people introduced by the former Labour Government in the noughties led to between 5% and 11% of that group getting into sustained employment for a minimum of three years. Applying this approach to the current group of unemployed and economically inactive people would ensure that schemes such as Connect to Work, WorkWell, and Individual Placement and Support, could increase employment by at least 5%, generating savings to the Exchequer of £20 billion by the end of this Parliament.

[Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)]

Will my hon. Friend join me in recognising the work of charities such as Kirkcaldy Foodbank and Kirkcaldy YMCA, which joined me in Parliament earlier this year to call on the then Secretary of State for Work and Pensions, who they met, to lift the two-child cap? They underlined the need for this cruel policy to be scrapped. Indeed, Kirkcaldy Foodbank has fed 833 children so far this year, and it has welcomed the lifting of the cap. Will my hon. Friend join me in recognising that lifting the two-child cap was the only possible step to ensure that child poverty levels go down, instead of up?

[Debbie Abrahams]

I absolutely agree. It is a shame that we need food banks at all—this is the state of what we have inherited, unfortunately.

I commend the Health Secretary for the work that has been done to increase capital investment in the NHS, which will boost NHS productivity. A recent Health Equity North report, “Health for Wealth”, showed that by reducing the inequalities between the north and the south, and by improving health in the north, we can increase productivity by £18 billion a year. On health inequalities, I hope we can focus on the weighting given to resource allocation.

My final point is about the commitment to index pre-1997 accrued pensions for inflation, capped at 2.5%, where scheme rules allow. This means that pensioners whose pension schemes became insolvent through no fault of their own, and that have failed to keep pace with inflation, will now have the situation rectified. That will benefit more than 250,000 pension protection fund and financial assurance scheme members, and I give credit to the Pensions Action Group and the Deprived Pensioners Association, and to the Pensions Minister for listening to me.

This is a very good Budget. It gives hope, particularly to my constituents and others like them, so I am very grateful.

--- Later in debate ---

[Stephen Gethins (Arbroath and Broughty Ferry) (SNP)]

It is good to be able to make my presentation today, after the past few days of drama. The Budget is meant to be a showcase for this place. The Conservatives will be well aware of past years when Budgets unravelled in the days just after they were delivered, but I think we all found it quite something to see a Budget unravel in the days before it was even delivered.

Now, there are a couple of more serious points. The Scottish Government get most of their finances from Westminster. We continue to live in an overly centralised state. I say this constructively, because the Health Secretary is a constructive person: engagement with the devolved Administrations should happen before a Budget, not after. It is unacceptable for the First Minister to offer meetings and get no response. That is unacceptable not just for the First Minister of Scotland, but for the First Ministers of Northern Ireland and Wales, who should be afforded a similar courtesy.

We have had a lot of silence from Scottish Labour about the Chancellor over the past few days—a lot of silence.

[Melanie Ward]

Will the hon. Member give way?

[Stephen Gethins]

Ah! Is the hon. Lady about to disagree with her Scottish leader? Please, I would love to hear it.

[Melanie Ward]

The hon. Member says that he has not heard much from Scottish Labour MPs about the Chancellor, so let me take this chance to put on record my thanks, and the thanks of my constituents, to the Chancellor for ensuring that this Budget gave £20 million to Kirkcaldy to begin the renewal of our town, after almost two decades of his party’s rule in Scotland.

[Stephen Gethins]

We would have had the money that the hon. Lady talks about had we remained in the European Union and had access to European regional funding, which she does not want any more.

I am astonished at the split in the Labour party over what happens to the Chancellor. I am glad that the Chancellor has the hon. Lady’s confidence, but even the BBC is reporting that “we were misled”. We can all agree that the Chancellor holds a serious post. With the chair of the OBR gone, and the director general of the BBC having recently gone, we have to be sure that the Chancellor has the confidence of this House and those around her. Given the chaos of the past few days, we cannot be sure that that is the case anymore.

On a more positive note, I give the Health Secretary his due: the question of child poverty is close to his heart, as it is to mine, and he speaks passionately and eloquently about it. The Labour party was chucking out Members of Parliament for voting to get rid of the two-child cap, and it voted against our motion just a few weeks ago. A couple of years ago, the leader of the Scottish Labour party even said that getting rid of it would “spook the markets”. The markets have not been spooked. It has been done.

The Scottish Government were ahead of the game. What is the only part of the UK where child poverty is falling? Scotland. What is the only part of the UK that has a Scottish child payment that is driving down child poverty? Scotland. I know that the Health Secretary is constructive and takes this to heart.

--- Later in debate ---

[Gerald Jones]

I thank my hon. Friend and could not agree more. All I can say is, we see that every day in our constituencies, so they must be walking around with their eyes closed and their ears shut. Action needed to be taken, and I am so glad that this Labour Government have taken that action. In addition, freezing fuel duty, increasing the minimum wage and the living wage and increasing pensions by 4.8% in April will help reduce the pressures on many of my constituents.

Over many months, I have been working with dozens of my constituents and the coalfield group of MPs to make the case for changes to the British Coal staff superannuation scheme. The £2.3 billion transferred back to the pension pot will mean about £100 a week for around 376 BCSSS members in Merthyr Tydfil and Aberdare, building on the decision in last year’s Budget to right a similar injustice with the mineworkers’ pension fund. Mineworkers powered our country and many Welsh communities for decades. I am proud that this Labour Government are doing right by them.

[Melanie Ward]

On the BCSSS move, will my hon. Friend join me in recognising the 290 people in my constituency who will benefit and in paying tribute to Billy Ogg from Kingseat in my constituency who has done so much work campaigning for the change alongside many other former coal board staff?

[Gerald Jones]

I join my hon. Friend in congratulating her constituent. So many people in our constituencies have wanted this and worked hard for it, and it will make such a difference to them in their lives and for their prosperity. I absolutely welcome the decision.

Fuel prices in some parts of my constituency are often 10p per litre higher than in other parts—in some cases even within the same chain. For example, fuel at Asda in Merthyr Tydfil is often 7p to 10p per litre dearer than at Asda in Aberdare, which is bizarre, and it is not the only company that does that. I wrote to the suppliers asking for an explanation, and when those explanations were not satisfactory I wrote to the Competition and Markets Authority urging it to undertake a local inquiry. Continuing to freeze fuel duty will help, and I am pleased that the new fuel finder will be implemented shortly to bring additional pressure to bear on suppliers to keep prices competitive.

Thanks to the Government’s Pride in Place initiative, both Merthyr Tydfil and Rhondda Cynon Taf local authorities will each receive £21.5 million, which will be spent on priorities identified by local residents. I am so pleased that we are moving towards doing things with communities rather than to communities. Empowering local residents is so much more beneficial to our local areas.

For many years, as touched on earlier, coal extraction built wealth right across the UK—it powered the Welsh and the UK economy for decades—but the previous UK Conservative Government failed to support any costs associated with the remediation of coal tips owing to that being a devolved area. This Labour Government recognise that the legacy of coal and coal tip safety is very much a shared responsibility. I welcome the £25 million that the Government provided in their first Labour Budget last year along with, building over three years, a further £118 million to support the vital work to keep our coal tips safe. That represents all the funding that the Welsh Government requested for safety works for the rest of this Parliament.

With a significant number of category D tips across Merthyr Tydfil and Rhondda Cynon Taf, that investment is hugely important for my constituents. This is a Government determined to act where Tory inaction left communities unsafe. The funding announcement, along with significant investment from the Welsh Government, shows the impact of two Labour Governments working together for Wales after years of Tory failure.

After years of the previous Conservative Government starving Wales of resources, I am pleased that the Government are building on the biggest settlement to Wales since devolution, with the Budget providing an additional £1 billion of spending power to the Welsh Government through the Barnett formula and by reforming the fiscal framework. That funding will help the Welsh NHS and public services across Wales, and benefit my constituents in Merthyr Tydfil and Aberdare.

There is much more I that could say on artificial intelligence growth, the local growth fund, defence sector deals and the youth guarantee. The Budget will help so many in my constituency—families, young people and pensioners—and I urge hon. Members to support it this evening.