Welfare Reform and Work Bill — House of Commons, 2015-07-20
Topic: Labor
Alexander John Gervase Chalk (Conservative, Centre-right): I am sure that all of us in this House believe in social justice, but I support this Bill because it recognises that the most effective tool to achieve social justice is encouraging work for all. It is work that provides dignity, security and life chances. It is work that improves general wellbeing and sets an example to the next generation. Work is at the centre of the Bill. It is a Bill that pivots our society from high tax to low tax, from low private sector wages to high wages It is worth noting that there are 2 million more people in employment now than in 2010. That means that, as has been said before but bears emphasis, there are now 370,000 more families with positive role models. Previously, one in five households had no one working. There is no social justice in that, as there is no social justice in unemployment. We should go further and I am glad this Bill agrees. Nothing less than achieving full employment should be our goal. That is why the imposition of a duty to report on progress to full employment is right. So it is with apprenticeships. The coalition Government generated 2 million apprenticeships in the last Parliament. Our ambition now is to generate 3 million more. That is bold, but I am pleased that the Bill imposes a duty to report on progress so that this issue gets the attention it deserves. That should go hand in hand with ensuring that opportunities are made available to people, and children in particular, from all backgrounds—hence, the duty to report to Parliament on obligations to address life chances On welfare, it is correct to say that tough decisions have had to be made, but it is worth considering the context. Between 1997 and 2010 welfare spending rose by 60%. Tax credits, a measure originally expected to cost £600 million, which was the only reason Gordon Brown was able to sneak it under the nose of Tony Blair, now cost £30 billion. To place that in context, the defence budget is only about £35 billion. It is not right that this measure should effectively subsidise low wages in the private sector. It is unaffordable. But there is a question of resilience as well. Just before the 2007 financial crash Greece had a debt to GDP ratio of 100%. It meant that the cupboard was bare when the storm hit. Now in the UK we have a debt to GDP ratio of 80%. It means that we are spending £33 billion a year in debt interest It is also right to recognise that the bottom 3 million taxpayers have been taken out of tax altogether, and a further 26 million people have benefited from tax cuts. That is part of the context as well. The richest 1% now contribute 30% of the tax take. That is quite right. The richest 20% contribute 80% of the bill. That is right and it is progressive Finally, this is not just about social justice; it is about generational justice too. We owe it to our children and grandchildren to bequeath to them a country that can pay its way. Just as important, we must leave a country that can care for the next generation of vulnerable people. Thirty years from now, a young man or woman yet to be born will approach the state seeking help, having fallen on hard times. Our generation owes it to him or her not to leave the cupboard bare