UK Parliament / Open data

Welfare Reform and Work Bill

The hon. Lady’s question is rather mixed; I thought that she was asking me to impose an even stricter cap on her constituency, with a lower level. The reality is that none of this is absolutely perfect, but we believe that it will reset the balance, which is better than just leaving a single figure at a lower level and making London suffer more than the rest.

As the Chancellor set out in the Budget, the benefits system has to be put on a more sustainable footing, but in a way that protects the most vulnerable. That brings me to the second principle of the Bill, which is sustainability. In 1980 working-age welfare accounted for 8% of all public spending, but by 2010 it had risen to nearly 13%, which is over £200 billion, or almost £8,000 for every household. Nine in 10 families with children were eligible for tax credits when we came into government. It is clear from what we heard last week that many Opposition Members have still not learnt anything from some of the mistakes made during Labour’s 13 years in government. They have not weaned themselves off the addiction to paying for more and more debt with somebody else’s money. They are still not credible when it comes to managing the public finances.

As a result of our reforms, five in 10 families with children will be eligible for tax credits, bringing greater balance to the welfare budget. However, it is also clear in the Bill that we have been careful to ensure that the changes are fair. We are protecting the most vulnerable in society, including the elderly and disabled. Where possible, we are introducing changes only for new claimants so that those who have planned on the basis of what is currently available are not affected.

Type
Proceeding contribution
Reference
598 cc1261-2 
Session
2015-16
Chamber / Committee
House of Commons chamber
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