Spring Statement

Steve Darling Excerpts

Wednesday 26th March 2025 Commons Chamber

[Rachel Reeves]

To ensure that people are better off, we need to control inflation, which is why stability is so important; bring interest rates down, and the Bank of England has had the confidence to cut interest rates three times since the election; and boost wages, which we are beginning to see, with real wages growing at twice the rate of inflation. That benefits my hon. Friend’s constituents and people up and down the country. That is why we welcome the fact that, today, the OBR has revised up real household disposable income per person by £500.

[Steve Darling (Torbay) (LD)]

Today and last week the Chancellor rushed through severe cuts to the benefits system that will hit some of the most vulnerable in our society. Although we should have considered benefit reform, this is ill conceived. Can the Chancellor explain to the Chamber why she is choosing to balance the books of the nation on the backs of some of the most vulnerable in our society?

[Rachel Reeves]

I have huge respect for the hon. Gentleman, but everybody in this House and across the country can see that the welfare system is just not working. One in eight young people are not in education, employment or training and 1,000 people are going on to personal independence payments every single day, and we cannot carry on like that. The basic principles of this Government are that people who need support should be protected; that those who can work should work and will be supported with personalised, targeted support; and that we need a system that is sustainable. That is what the reforms set out by my right hon. Friend the Work and Pensions Secretary last week deliver. Alongside that, there will be further consultation on the Green Paper to make sure that those with the most severe need get the additional support that they are rightly entitled to.