Welfare Cap — House of Commons, 2016-12-12
Topic: Macroeconomics
Justin Paul Tomlinson (Conservative, Centre-right): It is a pleasure to contribute to this important debate. I pay tribute to the Minister, who showed that she had a genuinely deep understanding of the issues. She already has a record of being very willing to engage, particularly with charitable groups, which have a wealth of experience. We, as a Government, would do well to listen to them and allow them to help to shape future policies The debate is important because it focuses our minds. We have set a clear marker, and we have to justify any deviation from our original plans. It was interesting to listen to the last speech. The shadow Minister said that the Government have spent something like £130 billion more, but she then criticised us for not spending sufficient money in basically every area. The two things did not quite marry up. It is right to focus our minds, because under the previous Labour Government welfare was simply left to drift. The number of workless households doubled and an extra 470,000 people were abandoned to unemployment. Those are not just statistics; they represent real people who were in desperate need of the right support Through our strong economic growth—I am not sure what the shadow Minister was referring to, because it is still the strongest of any major developed economy—we have seen record employment. That is not just a south-east phenomenon; it has happened in every region of the country. I know that hon. Members are all desperate to know the situation in my constituency: 8,100 more people are in work since the general election, and that is even larger than the number of people who go to the county ground to watch the mighty Swindon Town. Unemployment is at an 11-year low We have introduced the national living wage, directly benefiting 2.75 million of our lowest earners. The income tax threshold rises year on year, taking 3.2 million people out of paying any income tax at all. While wages have grown, on average, about 2% this year, the wages of the lowest earners have risen by an average of 6%. That is in addition to the welcome extension of free childcare, which has created more opportunities for people to work The recent Green Paper announcement gives us a real opportunity to build on the progress that is being made, particularly if we look at the 590,000 more disabled people in work in the last three years. Now, 48% of disabled people are expected to be in work—up from 44% when we first came into office. We still have much further to go, but charitable groups and people who work in this area are encouraged by the fact that we are going in the right direction. The key thing is to deliver tailored individual support, because for those who are still looking for work, there are challenges. It is not as simple as learning how to create a CV and taking part in interview training. We are right to look at delivering more tailored support, to make further progress in delivering more people into work and thus reducing welfare spending We are right to identify that we have to do joined-up work with health. Many people who are now looking for work will also have to navigate health challenges, and they need support from the beginning. We are, rightly, introducing the small employer offer to engage proactively with employers on providing opportunities. People who play by the rules and work with the support on offer need the opportunity to go into work at the end of the process The announcement on disability apprentices and the increase in funding for Access to Work and universal credit, which has universal support across all parts of the House, reinforce the point that work should always pay and recognise a welfare system that is fair to those who receive it and to those who pay for it. Crucially, we are removing the 16-hour cliff-edge rule and providing, on average, 13% more time for the claimant to look. Most importantly, for me, for the first time ever a claimant has a named contact who can help them to navigate the process of not just looking for work, but dealing with all the different forms of benefit and the extra support they will need Crucially, when a claimant goes into work, the named contact will continue to provide support. Until now, we, as a society, would help people to get into work and wish them all the best, and that would be our last contact with them unless they came back to look for work again. Now we realise that those people, many of whom are taking their first step into work, may need support. They may lack confidence. If they attend work regularly and engage in the right way, their named coach can help them to try to increase their hours, increase their responsibility and earn more money in work.