Housing Benefit (Abolition of Social Sector Size Criteria)

Part of Opposition Day — [11th Allotted Day] – in the House of Commons at 3:15 pm on 17 December 2014.

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Photo of Alec Shelbrooke Alec Shelbrooke Conservative, Elmet and Rothwell 3:15, 17 December 2014

What is depressing about this debate, which we have time and again, is that it calls for a policy that was invented by the Labour party to be reversed and does not offer any solutions for moving forward with the welfare state. We should take such opportunities to get out of the soundbite bingo and to get on with making policies that might help to tackle the long-term problems.

Out-of-control welfare spending leads to the situation that we find in countries not too far away—in Ireland, perhaps. In real terms, public pay, pensions and benefits had to be cut significantly to regain control of the public finances. There is nothing just about running an economy in that way, because when eventually people need to rely on the welfare state—which we, as the sixth richest nation in the world, should be proud of—they cannot, because the governing body of the day has destroyed the economy and left no money.

In these times, we lose sight of the original five evils laid down in the Beveridge report: squalor, disease, want, ignorance and idleness. We have tackled many of those, and we must ensure that we do not go backwards, but we are in danger of placing an increasing burden on the modern welfare state while still operating a system invented a long time ago. We need new thinking about how best to deliver efficiently and about ensuring that the resources we have are used in the best way to tackle poverty.

On 18 December 2012, I introduced a ten-minute rule Bill on the subject of a welfare cash card to pay benefits to all recipients of benefits in this country, in work or out of work, through electronic means. I have spent the two years since then researching some of the criticisms made at the time, the practicalities and how the idea could move forward. I thank the Joseph Rowntree Foundation, Oxfam, the Trussell Trust and the Money Advice Service for the discussions they have had with me.

A key point about electronic payment is the speed at which it can focus resources where they need to be and deal with one of the key problems that emerges in our discussions about housing benefit. The Trussell Trust highlighted the problem of people having to choose whether to eat and the problems caused by delays in benefit payments, which can sometimes lead to people having to go to a food bank. Electronic payment would allow immediate upload; there would be no delay.

It is sad that a dogmatic approach, saying that we absolutely cannot have such cards because they are equivalent to food vouchers, stops new thinking about efficient ways of using the state. If we do not move to a modern system, and if we do not move away from a system of barter like that in the Bible, quite frankly, we run the risk of making the system completely unworkable. We must therefore use debates such as today’s sensibly to consider how the welfare state can move forward to deliver the needs that people have when they hit hard times. That is what this debate is about. It is about how the Government can support people. Simply saying that we need to pour in more money and to reverse policies will leave us with a situation in which the welfare state will be inoperable because the country has gone bankrupt. We see this all around Europe, where people in the greatest need do not get the support they need.