PARLIAMENTARY DEBATE
Topical Questions - 1 September 2025 (Commons/Commons Chamber)

Let me start by congratulating all the pupils who have received their exam results over the last few weeks. Having good qualifications is essential in today’s economy, and it is brilliant to see so many young people doing so well. However, the number of young people not in education, employment or training is one of the biggest challenges facing the country, and young people are much more likely to be NEETs if they lack basic skills. That is why I am so proud of the action that the Government are taking to increase the number of youth apprenticeships, overhaul foundation apprenticeships and, above all, introduce a youth guarantee so that every young person is earning or learning.

I hope you had a lovely recess, Mr Speaker.

Harlow is full of fantastic schools, and I see the potential of young people there every single day, but that potential is often overlooked because of economic circumstances. Will the Secretary of State explain how the new crisis and resilience fund will support the poorest children in Harlow?

In the spending review we announced this first ever multi-year settlement for local support, replacing the household support fund. The crisis and resilience fund will provide £1 billion every single year, and will give families emergency help if, for example, their white goods break down or they need food urgently. However, we want to start shifting it increasingly towards tackling the root causes of poverty, helping people to become more financially resilient through the provision of debt advice. We recently held a meeting with more than 600 stakeholders to discuss how we could achieve that shift, because we want to prevent people from falling into poverty and to give them the tools that they need to emerge from poverty themselves.

I call the shadow Secretary of State.

I welcome the right hon. Lady back after the summer. She said recently that it had been “a bumpy…few months”—an understatement, in my view. Last time we stood here, she had just completed a rather humiliating climbdown on her welfare savings plans. She set out to save money, but ended up spending it. You couldn’t make it up, Mr Speaker, but here we are: the number of benefit claimants has hit a record high; the sickness benefit bill is heading up and up; and still the right hon. Lady has Back Benchers and Cabinet colleagues calling for even more spending on welfare. The Chancellor is busy doing her sums in advance of the Budget, so can the right hon. Lady tell us how much lifting the two-child benefits cap will cost?

I am not often called understated, but I thank the hon. Lady for her comments.

Welfare reform is always difficult because it involves real people and real lives, and it is a complicated and personal issue. However, we are investing £3.8 billion in employment support to help sick and disabled people into work, we are introducing the first ever right to try work, and we are dealing fundamentally with the perverse incentive left by the Conservative party which encouraged people to define themselves as incapable of work. We are addressing that by raising the standard allowance of universal credit and halving the health top-up for new claims. There is much more that we need to do, and we will be publishing our strategy to deal with child poverty in the autumn, but I am proud to say that the last Labour Government lifted 600,000 children out of poverty, while the hon. Lady’s party plunged 900,000 children into poverty. We will take action, and, as I said earlier, the hon. Lady should watch this space.

I asked the right hon. Lady a simple question, but I fear that she does not know the answer; she certainly did not reply to it. What is clear is that Labour wants to spend more on welfare. So do the Liberal Democrats, and so does Reform. Only one party here is telling the truth about the welfare bill: the country cannot afford it.

May I urge the right hon. Lady to take up my proposals? Will she stop giving people benefits for common mental health problems such as anxiety and attention deficit hyperactivity disorder, and give them help instead? Will she stop giving personal independence payments to foreign citizens who have not paid into our system and free cars to people who do not need them? Will she stop people scamming the benefits system over the phone and on the internet? Will she keep the two-child benefits cap, and get the benefits bill under control?

Order. Can I just say that we are on topicals? It is your own Members who are not going to get in.

The Conservative party failed on welfare because it failed on work. The reason why we inherited such a dire situation with sickness and disability benefits is that the Conservatives failed to get people into work. We are turning that around, and it is about time the hon. Lady and Opposition Members put forward a proper plan of action that actually gets people into work. We believe in work; it is a pity the Conservative party does not.

Yes, that is exactly how we are working, and I thank my hon. Friend for his question. Our “Get Britain Working” plan identified Cornwall as a rural industrial legacy employment area, and we specifically pointed out the lack of connectivity. That is why, when it comes to our new jobcentres service, we are also trialling jobcentres on wheels: buses that can take support to where people are and which are designed for rural areas. They recently featured on “The One Show”.

We come to the Liberal Democrat spokesperson.

The Government are right to want to see more people with disabilities and long-term sickness get into work. Sadly, this was used to justify the savage cuts to benefits that were proposed earlier this year. My colleagues and I are hearing reports of cuts to current awards through Access to Work, and to new payments, being done by the back door. Can the Minister cast any light on whether guidance has been given to civil servants on such cuts?

There has been no change at all to policy on Access to Work. As the hon. Member knows, we did consult, in the Green Paper earlier in the year, on reform to Access to Work. There has been a big increase in demand for it, and reform is needed. We are looking at the consultation responses at the moment. There may have been instances in the past where the published guidance was not always properly applied. It is being applied now, and that may give rise to some of the issues that have been drawn to his attention, but there has been no change at all in the policy.

We want to give people like Charlie the chances and choices in life that he deserves. Our Connect to Work programme will do everything from helping people access health treatment to providing work placements and building their confidence through training, skills—whatever meets their individual needs. That is the key to this: an end to a one-size-fits-all tick-box approach, and tailored support for him. We are also working closely with employers so that they remove the barriers to work and can employ people with all the skills and talent that people like Charlie have.

The hon. Lady only had to wait till next week’s Treasury questions, when she could have asked her question, but she has the same answer. What we should do is look at the record of parties and what they have done. When I look back over the last 14 years of Tory Budgets, I see a party—[Interruption.] And the Lib Dems; thank you for pointing that out. I have seen parties chopping and changing pension tax relief left, right and centre, because they had no plan. Those were the same Budgets that drove child poverty up and wages down.

I congratulate my hon. Friend on the recent addition to his family. I hope he had a restful summer, although I doubt he did considering the likely lack of sleep. He is right to raise this issue. It is now past the date for the call for evidence, but if he wants to write to me directly about that issue, I will ensure it is fed in.

I thank the hon. Member for his question. We discussed this issue at some length in the statement before the recess. He knows that the priority for the Labour party has been to raise the state pension by committing to the triple lock throughout this Parliament at a cost of £31 billion a year. For the new state pension, that will mean an increase of £1,900 a year by the end of this Parliament.

On winter fuel payments specifically—and I thought this was the Conservative party’s position—most people think that we should not be paying hundreds of pounds to the very richest pensioners. We have listened to concerns and raised the threshold, but it is important to maintain that principle. If the Conservatives’ position is now that they want a return to universal winter fuel payments, they need to have a word with the Leader of the Opposition, who has not supported universal winter fuel payments or, indeed, a universal state pension.

I thank my hon. Friend for his question. I am glad he is visiting Rugby jobcentre, and I encourage all Members across the House to go to their local jobcentres, because their work coaches have the most experience and knowledge about what we need to do to get people into work. We are creating “jobcentre in your pocket”, so that everyone can have access to help 24 hours a day. Letting technology take the strain will mean that our work coaches can do more of what they do best, which is giving people—person to person—the confidence to take up life’s chances.

We have set up a panel of experts to advise us on how best to improve employment prospects for people with autism and neurodivergence. As the right hon. Member knows, we will be undertaking a review of the PIP assessment, co-producing it with disabled people, so that we have a clear way forward for who should and who should not be entitled to the personal independence payment.

I thank my hon. Friend for his crucial question. That is exactly why we have revived the landmark pensions commission. We have to confront the reality that we are on track for tomorrow’s pensioners to be poorer than today’s. Auto-enrolment has been a huge success, with 88% of eligible employees now saving, but 45% of working-age adults, including 3 million self-employed and one in four low earners, are currently saving nothing. The commission will ensure that we build a pension system that is strong, fair and sustainable.

The carer’s allowance overpayments review was due to report in early summer. It is now 1 September. In recent weeks, I have become aware of a case where the DWP has informed somebody that they now owe it £18,000. That is a scandal. When will the review report back?

We have received the report from Liz Sayce, and I want to thank her very much for her review of earnings-related overpayments of carer’s allowance. We are currently considering the findings. We are, as the hon. Lady knows, making a number of changes. We have increased the earnings threshold for carer’s allowance in a way that I think will help avoid these problems in the future. We are looking at the possibility of a taper on carer’s allowance. We will come forward, before very long at all, with both the report and the Government’s response to it.

As someone who proudly served the trade union movement for two decades before entering this place, I warmly welcome the Government’s improvement to workers’ rights. Will the Minister set out what steps are being taken to ensure that no one is left behind in the vital reforms to statutory sick pay?

I know that so many of my hon. Friends will, like her, welcome the changes we are making to statutory sick pay, which will improve eligibility for 1.3 million of the lowest-paid employees and remove the waiting period. Many of those who will benefit are low-paid women. The removal of the waiting period will mean that all employees receive at least £60 more at the start of their sickness absence compared to the current system, but we will continue to evaluate the measures as they are implemented.

Scotland is the only part of these islands where child poverty is falling, as a result of the Scottish child payment and the mitigation of the bedroom cap. When will the Labour Government move from empty words to actual action to take children out of poverty?

We are already extending free school meals to all families on universal credit. We have extended the holiday activities and food programme, so that we feed poor kids not just during school but in the holidays, too. We have introduced a new fair repayment rate in universal credit. We have made the first ever multi-year settlement for the crisis and resilience fund to help struggling families. We are introducing and rolling out breakfast clubs. Our child poverty strategy will be published in the autumn. We are already taking action to tackle poverty and we will do more. I say to the hon. Lady that the Scottish Government need to look at how they are spending the biggest ever funding settlement, given in the spending review, including on employment support, because helping parents into good quality jobs is the long-term key to tackling poverty and inequality.

I call the Chair of the Select Committee.

I was delighted to see the establishment of the disability advisory panel a week or so ago. [Interruption.] I am so sorry, Mr Speaker; I have a cold. How will the advisory panel link with the co-production in the Timms review?

I am grateful to my hon. Friend. We have announced that Zara Todd will be the chair of the Department’s disability advisory panel. The panel was announced in the “Get Britain Working” White Paper last year. Separately, we will set up a group to work with me on the review of the PIP assessment. I will, of course, talk to the disability advisory panel about the arrangements, but they will be separate structures.

Despite his new role in riding to the rescue of the Treasury, is the Pensions Minister still available to fulfil in principle the undertaking he gave me before the recess to have a meeting about the plight of ExxonMobil pensioners and the difficulties in them getting the discretionary surplus benefits to which I think they should be entitled?

Absolutely.