REBEL Labour MPs have “no reason” to block a raft of new reforms as the UK’s benefits bill continues to rocket, a Cabinet Minister says.
Welfare Secretary indicated change is on the horizon as he urged colleagues to back an overhaul with “work and opportunity” at its core.
Pat McFadden used a speech today to tell Labour MPs to get behind welfare reformsCredit: PA
A climbdown last year saw the government abandon £5 billion in savings following a rebellion by dozens of Labour MPs.
When asked about convincing them to reduce the overall bill, Mr McFadden said: “I see no reason why Labour MPs should not support welfare reform that has work and opportunity at its heart.”
Both Labour grandee Alan Milburn and Minister Stephen Timms have been tasked with major reviews into the welfare state.
He has told both probes that they have the opportunity to “advocate radical and powerful change”.
He added that the overhaul can help “enable people to change their lives, develop a system for the conditions we see today, not just those of yesteryear”.
McFadden, speaking at a college in east London, said it’s been “too easy” to write off people on sickness and disability benefits.
He said: “The state found it too easy to just sign people off, write them off and leave them to it.
“I think that we owe people coping with long term health conditions more than that. We owe them better than that.”
The independent Budget watchdog, the Office for Budget Responsibility, forecast sickness and disability benefits will hit £110 billion a year by the end of the decade.
His comments came as he launched a major new £1 billion drive to create 200,000 jobs for young people.
There are currently nearly one million youths aged 16-24 who are known as Neets – Not in Education, or Training.
Firms will receive £3,000 for taking on each person aged between 18 to 24 who has been claiming benefits and looking for work for at least six months.
A new apprenticeship scheme will see small and medium-sized firms given £2,000 for each new young worker.
Labour have faced criticism from business for increasing national insurance contributions for firms and for hikes in the minimum wage which have hurt the chances of taking young people on.
Shadow Welfare Secretary Helen Whately said: “The best way to tackle youth unemployment is to back businesses to create jobs, not tax them out of existence to fund benefits and subsidies.
“That’s why Conservatives will cut business rates for thousands of high street businesses and roll back Labour’s Employment Rights Act.
“That’s the way to create real opportunities for young people and get Britain working again.”
Eze Chidiebere Paul
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