It is a pleasure to conclude this extensive debate on the Welfare Reform and Work Bill, and I thank all hon. Members who have contributed. Two weeks ago the Chancellor’s Budget was a key moment in the Government’s plan for a one nation Government. It was a Budget underpinned by the Government’s approach to rewarding work and supporting aspiration. It was a Budget that supported working people through the introduction of the new national living wage, providing greater financial security to working families, which the Labour party has not supported, just as it failed to support our reform measures last time around.
The Bill, alongside other measures, will ensure that the welfare system is fair to taxpayers while supporting the most vulnerable, and, as all hon. Members on the Government Benches have said, ensuring that work always pays more than a life on benefits. It will ensure that the economy is based on higher pay, lower taxes and lower welfare.
The Bill will continue to tackle the unsustainable and unfair system we inherited from Labour. When Labour was in government, welfare spending went up by 60% and the benefits system cost every household £3,000 a year. Under Labour, a life on benefits paid more than having a job. That is the system that this Conservative Government are now reforming.
After opposing every welfare reform in the previous Parliament, and voting against the benefit cap, Labour’s acting leader appeared at some stage to acknowledge where her party failed in its approach when she said that it would no longer pursue blanket opposition but would instead respond to what the public were saying. The Opposition have since retreated and gone back to a belief in an unaffordable welfare state that is far removed from the original principles outlined by Beveridge.
That is in stark contrast to our reforms. Our policies and our approach have led to the creation of record numbers of jobs, and the number of children being brought up in workless families is now at a record low. From Birkenhead to Amber Valley, and from Islington South to Weaver Vale, we have seen the claimant count fall from the record highs under Labour, with reductions ranging from 36% to 62% since 2010. Those jobs are the result of policies that support working people, create financial security and bring fairness back into the system.
Let me address the points raised in the debate. My hon. Friends the Members for Enfield, Southgate (Mr Burrowes) and for Weaver Vale (Graham Evans) spoke about encouraging and rewarding work being a guiding principle of the Bill, and they were quite right. The Bill focuses on achieving full employment. My hon. Friends the Members for Erewash (Maggie Throup), for Cannock Chase (Amanda Milling) and for Horsham (Jeremy Quin), along with many others, spoke about the value of apprenticeships.
Colleagues also spoke about reforming employment and support allowance and how we will continue to halve the disability gap and transform people’s lives by empowering them to make choices in the same way as those in work do, which failed to happen under the previous Labour Government.
We know that 61% of those in the work-related activity group want to work, but only 1% of people in that group actually leave the benefit each month. The system has failed them, with financial disincentives leaving them trapped on welfare. We will ensure that that changes. We will provide new financial support to get them into employment, increasing that to £100 million by 2020-21.
Many Members spoke about child poverty. I thank my hon. Friends the Members for Hertsmere (Oliver Dowden), for Norwich North (Chloe Smith), for Mid Dorset and North Poole (Michael Tomlinson) and for Cheltenham (Alex Chalk) for their thoughtful contributions.
It is right that we identify and tackle the root causes of poverty, rather than focusing on the symptoms. The Bill will amend the Child Poverty Act 2010 and focus on the root causes and, importantly, life chances, which will drive action and changes in the lives of children.
As colleagues on the Opposition Benches have failed to acknowledge, work is the best route out of poverty. Some 74% of poor workless families who have found work have escaped poverty. Of course income is important, but we know that tackling the symptoms and the causes is crucial. Rather than the arbitrary targets that everyone on the Opposition Benches seems to want to produce, we will continue to publish the households below average income statistics alongside the new statutory measures for a wider suite of life chances measures, including family breakdown, debt and addiction, as outlined earlier by the Secretary of State. Together, this will present fuller data on poverty and life chances, which can be used to hold the Government to account as we address the root causes of poverty, rather than the symptoms.
On the changes to tax credits, it is right that families on benefits should have to make the same financial decisions as families supporting themselves solely through work. I emphasise that child benefit will continue to provide additional support for the first child. There are no cash losers, contrary to what Opposition Members have been saying.
We have been bringing welfare spending under control to a sustainable level. That is at the heart of the Bill. It will correct the disproportionate, unfair and unaffordable rises in benefits compared with earnings by freezing working age benefits. The Bill will rightly protect taxpayers—the very taxpayers whom the Labour party chose to ignore during the general election campaign and towards whom Opposition Members have shown contempt—from the costs of subsidising rising social housing rents through housing benefit.
The Bill will restore fairness to the system and fairness to working families, as outlined by my hon. Friends the Members for South Suffolk (James Cartlidge) and for Faversham and Mid Kent (Helen Whately). It is not fair for someone on benefits to be receiving—[Interruption.]