Universal Credit and Personal Independence Payment Bill Debate
Full Debate: Read Full DebateSimon Hoare
Main Page: Simon Hoare (Conservative - North Dorset)Department Debates - View all Simon Hoare's debates with the Department for Work and Pensions
(2 days, 8 hours ago)
Commons ChamberIt is a delight to take part in this debate, and I will speak about my lived experience. I want to put on the record that after I was shot and left the military, I received a war pension, and that having had some of my foot amputated this year, I am undergoing reassessment for that process. At one stage in my life, I was also diagnosed with complex PTSD and suffered extreme mental health issues for about 15 years, which I have openly shared in this Chamber, so I understand how people can be impacted by unforeseen circumstances.
I saw that from a young age, when my dad died and left my mum, me and my two brothers on our own, with literally nothing. We had a roof over our heads, but I watched my mum go without food to put food on our table. I spoke to my mum at the weekend, and she said that the welfare support she had at that time was a lifeline. She said that she could not possibly have seen a way through if we had not had that. I grew up on free school meals, and understood that the system supported us and allowed us to get through what was a very challenging childhood, although I was brought up in a loving environment. Later in life, I lost a business and found that I could not put food on my children’s table. I had support through a challenging time, and did everything I could to work my way out of that and get back on my own two feet.
As a Conservative, I firmly believe that there should be support for people when they need it, because you never know what you are going to face, and the support should be there when it is required. However, welfare should not be an option for people who do not want to work. I have seen many times multigenerational unemployment, whereby families create a career of benefits; they grow up having seen relatives in welfare for many years, and they do everything they can to stay in it. I have seen it at my surgeries, where people say to me, “I can normally cheat the system, but I’m struggling here.” It is not everybody, but I have had people openly admit that to me. As I said, the system needs to be there for people who need it, but at the moment it is my firm view that there are a lot of people who do not need it. It should always provide an incentive for people to return to work where possible, although I also understand that some people will never be able to work and we should support them.
Government figures published in April stated that the total cost of health-related benefits in 2019-20 was £46.5 billion. That has risen to £75 billion this year, and is expected to rise to £97.7 billion by 2029-30. On this trajectory, the cost will almost double within a decade. The OBR predicts that the Government’s welfare reforms will increase costs by 5.3%, but expects GDP to grow by only 1.6%.
I know the Secretary of State agrees that welfare needs reforming, because on 19 July she sent a “Dear Colleague” letter explaining a system that the Government believed was right. We then received another letter on 26 June that said the system has changed. If the Secretary of State has had to change her mind in the space of a week, how can we believe that the system being put forward is right? I do not believe it is, and this Bill is not a serious attempt to reform welfare. I will back that comment up.
We have talked about the social security system. The Government’s forecast for the total cost of the social security system for 2025-25 is £316 billion, and today we are discussing a Bill that does not save even—or saves only about—1% of that cost. That is not reform; it is tinkering around the edges.
Given the rather botched way in which the Government have dealt with this issue and the U-turn that is proving to be unsatisfactory, and given the scale of the changes that need to be made, does my hon. Friend agree that the Government will just move away from any meaningful reform, deeming it to be too difficult or too hot to handle? That does no service to those who are in receipt of benefits, and it is certainly of no benefit to taxpayers.
My hon. Friend is right.
The Government have a huge majority, and they have a chance to reform welfare. If they do not take it at this moment, it will not get reformed. I believe that pausing the Bill would get the support of many Members across the House. The Government should go back, create an assessment process that can actually look at who requires welfare and who does not, and plan the system out before looking at implementing it—a multi-stage approach. I respect the Minister and am looking forward to the Timms review, but we might as well make him the Chair of the Select Committee as well; it is as if he is marking his own homework. We need to have a fairer approach, and the new system does not provide it.
I believe in welfare and have benefited of a good welfare system. I am proud that we have a welfare system to support the people who need it, but it must be affordable and sustainable, and where possible it should put people back into work. I do not believe that any of these changes are going to do that. I believe, hand on heart, that every Member will recognise that saving 1% on the whole social security system is not reform—nobody can ever say it is. It is tinkering around the edges and a missed opportunity.
There is no denying that the ideological austerity of the previous Government over the past 14 years has led to the decimation of our services, the devastation of our communities and extreme poverty, as well as an economic mess, so I get that this Government have to make some extremely difficult decisions. However, the central point in this debate is that we cannot balance the books on the backs of some of the most vulnerable people in our society. It is not the fair thing to do, it is not the right thing to do, and simply put, it is not the Labour thing to do.
Labour Members who oppose the Bill do not come from the same place as Tory Members. We come from a place of sincerity; they come from a place of political game-playing. We continue to come from that place of sincerity, but it is disrespectful to Back Benchers, and in particular to Labour Members, that we continue to be fed things piecemeal, even at this late stage. While I welcome the previous concessions and today’s concession, we have been talking about this for months, and we could have been engaged in the process. We approached it in good faith, and this piecemeal approach makes a further mockery of a process that will result in hundreds of thousands of people being pushed into poverty.
The timescale we have been given already lacks the respect that this democratic House should be afforded, but the piecemeal way in which information is being leaked to us means that we are being asked to rely on the good will of Ministers. I have the greatest respect for Ministers, but we as Back Benchers should be afforded the same dignity, because we have all been elected on the same premise. My constituency of Bradford East suffers from some of the worst health inequalities and child poverty—over half of all children who live in my constituency are living in absolute poverty. I have to go back and face them.
Regardless of what Ministers tell us, the Bill today is the same Bill we had a week ago and the same Bill we had when it was introduced. That is what we are voting on. We can discuss the concessions next week if the Bill makes it, but it must be pulled today, because I cannot go back to my constituency tomorrow and tell my constituents that for the sake of some concessions that were not in the Bill, I voted for it, even though it could deepen the poverty that people on my streets face. That is not the premise I was elected on.
The hon. Gentleman is making a most correct and powerful point, which is that this is not the best way of making law and it is hugely disrespectful to Members on all sides of the House, irrespective of position. Does he agree that that is compounded by the woefully inadequate time that is being set aside for Committee consideration of the Bill and Third Reading next week? That timeframe is very truncated, and we are all absolutely dizzied by the number of U-turns and concessions. The hon. Gentleman is right: it is much better to withdraw the Bill, start again, and bring it back in September.
Absolutely, and I will come on to that point. I have already touched on the seismic nature of the Bill. To be frank, I have spent a decade in this place, and I have never seen a Bill of this seismic nature and with these direct consequences being rushed through in one week. The motion that goes to the House of Lords will be a money motion, which will not allow it to make any amendments before the Bill comes back.
I will not give way at the moment. The Bill opens up that possibility, and it deals with work disincentives inserted into universal credit by the previous Government. The current system forces people to aspire to be classified as sick in order to qualify for a higher payment, and once so classified, it abandons them. We have to change that system.
The House knows that not only is the Minister an honourable man, but he has spent the largest proportion of his parliamentary career looking at these issues. He must surely understand, however, that the confusion that has been expressed in this place is now being felt and expressed in the country at large. I have never seen a Bill butchered and filleted by its own sponsoring Ministers in such a cack-handed way—nobody can understand the purpose of this Bill now. In the interests of fairness, simplicity and natural justice, is it not best to withdraw it, redraft it, and start again?
No, Madam Deputy Speaker. Let me tell the hon. Gentleman one of the things that the Bill does. Part of the problem is that it is very hard to bring up a family on the standard allowance of universal credit. The Tories reduced the headline rate of benefit to the lowest real-terms rate for 40 years. Families have to rely on food banks, and people aim to be classified as sick for the extra benefit. The system should not force people into that position; it needs to be fixed, and the Bill makes very important changes in that direction.