Politics Home Article | Government Does Not Expect Labour MPs To Rebel On New Welfare Reforms

(alamy)

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Speaking at a press conference in north London on Monday, the Secretary of State for Work and Pensions said he was confident that Labour MPs would support the government on a plan that puts “work and opportunity at its heart”.

McFadden set out proposals to incentivise companies to hire young people as part of the government’s bid to tackle rising rates of youth unemployment. Around one in eight 16 to 24-year-olds are not in employment, education of training. 

Under the plans, businesses will receive £3,000 for every 18-24-year-old hired who has been on Universal Credit or looking for work for six months. Businesses that take part in the scheme will be paid in two instalments, with the first expected to be a substantial amount to make the scheme worthwhile. The jobs given to young people must be at least 25 hours per week and paid minimum wage. 

Additionally, an apprenticeship incentive of £2,000 will be given to SME’s for each new employee aged between 16 and 24, and a scheme subsidising minimum wage work for benefits claimants who have been looking for work for 18 months will be raised to include those aged up to 24 from its current limit of 21.

McFadden defended young people trying to find work and hit back at claims that young people were “shirkers” and “snowflakes”. He said there was a moral case for helping people get into work, describing it as fundamentally “good for pride, purpose and identity”.

The cabinet minister said: “Two years ago, I had the honour of co-ordinating the general election campaign that led to the first Labour victory for 19 years, and only the fourth majority Labour victory from opposition for 100 years. 

“The reason I say this is because, historically speaking, Labour governments don’t come along too often. I want us to use our time in office well, to understand that every day in office is precious. 

“We are not here to keep things ticking over. We have both a responsibility and an opportunity to take on the challenges facing the country, to change things for the better.”

McFadden said he was confident that a new government bid to reduce spending on benefits would be supported by Labour MPs. 

Keir Starmer was forced to abandon planned reforms to Personal Independence Payments last year after more than 120 Labour backbenchers threatened to rebel in a House of Commons vote.

“Welfare reform should be about opportunity and work, and that’s what I mean by a working state. This is an approach that puts work at its heart,” said McFadden.

“I don’t believe that the best way to do reform is to pluck a figure out of air, and retrofit a policy next to it. I think the best way to approach reform is to give people a chance.”

He added: “I see no reason why Labour MPs should not support welfare reform [with] work and opportunity at its heart.”

Earlier this month, the Office for Budget Responsibility estimated that welfare spending will rise by nearly 6 per cent to £330bn this year, driven by health-related benefits as well as pensions. It is expected to hit £407bn in 2030-31.

The Starmer government has previously warned that current levels of welfare spending are not sustainable and must be reduced in the long-term.