David Miliband's speech against the Welfare Uprating Bill: full text

"It is intolerable then to blame the unemployed for their poverty and our deficit."

David Miliband's speech against the government's Welfare Uprating Bill was the most powerful intervention so far in the debate. Here's the full text.

Mr Speaker, it should be common ground that all Western economies need to reshape their social contract to meet the challenges of economic competition and demographic change.

Expanding childcare versus higher child benefit; Housing Benefit versus housebuilding; long term care versus reliefs and benefits for old age. In each case, we need to choose.

This Bill invites us to make three judgments: about fairness, about affordability, and about politics.

The Chancellor said in the Autumn Statement the Bill was about distinguishing working people from those who are “asleep, living a life on benefits”. Yet most of the people hit by this Bill are working. So that argument is blown out of the water.

And what of the idea that 3120 people in South Shields on Income Support, and 4200 on Job Seekers Allowance, are choosing a Life of Riley.

The PM himself claimed that the reforms of two years ago ended the “option” of life on benefits. The Government’s own figures show the level of fraud to be 0.7 per cent – the figure is lower for immigrants. And DWP’s own figures show over 10 job seekers for every vacancy advertised in the local South Shields Jobcentre. That’s not fair.

What of affordability? The Government says the alternative to this Bill is higher borrowing or higher taxation. But that is not true.

The Government have projected the cost of all benefits, all tax credits and all tax reliefs. I am happy to debate priorities within that envelope. A proper debate – about choices not the total sum.

The measures before us raise £3.7 billion in 2015/16 from poor and lower middle income people.

Meanwhile the Chancellor has cut tax relief for pension contributions – but only by £200m in 2013/14 rising to £600 million in 2015/16. The cumulative saving between now and 2015/16 from the richest is £1.1bn - compared to £5.6bn for those on benefit and/or receiving tax credits.

So this is not equality of sacrifice. The Chancellor reminds me of the man in the 1929 election poster, standing above others on a ladder. Water is up to the neck of the man on the bottom rung, while the man at the top shouts “Equality - let’s all go down one rung”.

The Government have made a great deal of the point that no one should receive more from benefits than the average wage of £26 000. But they offer tax relief of £40 000 – for those with £40 000 to spare. That costs £33bn a year.

If we limited tax relief on pension contributions to £26 000 a year, we would have no need for this Bill.

But this rancid Bill is not about fairness or affordability. It reeks of politics, the politics of dividing lines that the current Government spent so much time denouncing when they were in Opposition in the dog days of the Brown Administration. It says a lot that within two years it has fallen into the same trap.

We all know the style. Invent your own enemy. Spin your campaign to a newspaper editor short on facts – or high on prejudice. “Frame” the debate.

But the enemy within is unemployment not the unemployed. And I don’t want to live in a society where we pretend that we can enjoy the good life while our neighbours lose their life chances.

It is bad enough to have no economic growth or 420 000 young long term unemployed or rising levels of child poverty or declining levels of social mobility.

It is hard to stomach a Government that takes no responsibility for their mistakes.

It is intolerable then to blame the unemployed for their poverty and our deficit.

And that is why I will vote for the amendment and against the Bill tonight.

David Miliband spoke against the government's Welfare Uprating Bill during this afternoon's House of Commons debate. Photograph: Getty Images.

David Miliband is the  President and CEO of the International Rescue Committee
He was foreign secretary from 2007 until 2010 and MP for South Shields from 2001 until this year. 

Photo: Getty
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The Conservative-DUP deal is great news for the DUP, but bad news for Theresa May

The DUP has secured a 10 per cent increase in Northern Ireland's budget in return for propping up the Prime Minister.

Well, that’s that then. Theresa May has reached an accord with the Democratic Unionist Party to keep herself in office. Among the items: the triple lock on pensions will remain in place, and the winter fuel allowance will not be means-tested across the United Kingdom. In addition, the DUP have bagged an extra £1bn of spending for Northern Ireland, which will go on schools, hospitals and roads. That’s more than a five per cent increase in Northern Ireland’s budget, which in 2016-7 was just £9.8bn.

The most politically significant item will be the extension of the military covenant – the government’s agreement to look after veterans of war and their families – to Northern Ireland. Although the price tag is small, extending priority access to healthcare to veterans is particularly contentious in Northern Ireland, where they have served not just overseas but in Northern Ireland itself. Sensitivities about the role of the Armed Forces in the Troubles were why the Labour government of Tony Blair did not include Northern Ireland in the covenant in 2000, when elements of it were first codified.

It gives an opportunity for the SNP…

Gina Miller, whose court judgement successfully forced the government into holding a vote on triggering Article 50, has claimed that an increase in spending in Northern Ireland will automatically entail spending increases in Wales and Scotland thanks to the Barnett formula. This allocates funding for Wales, Scotland and Northern Ireland based on spending in England or on GB-wide schemes.

However, this is incorrect. The Barnett formula has no legal force, and, in any case, is calculated using England as a baseline. However, that won’t stop the SNP MPs making political hay with the issue, particularly as “the Vow” – the last minute promise by the three Unionist party leaders during the 2014 independence referendum – promised to codify the formula. They will argue this breaks the spirit, if not the letter of the vow. 

…and Welsh Labour

However, the SNP will have a direct opponent in Wales. The Welsh Labour party has long argued that the Barnett formula, devised in 1978, gives too little to Wales. They will take the accord with Northern Ireland as an opportunity to argue that the formula should be ripped up and renegotiated.

It risks toxifying the Tories further

The DUP’s socially conservative positions, though they put them on the same side as their voters, are anathema to many voters in England, Scotland and Wales. Although the DUP’s positions on abortion and equal marriage will not be brought to bear on rUK, the association could leave a bad taste in the mouth for voters considering a Conservative vote next time. Added to that, the bumper increase in spending in Northern Ireland will make it even harder to win support for continuing cuts in the rest of the United Kingdom.

All of which is moot if the Conservatives U-Turn on austerity

Of course, all of these problems will fade if the Conservatives further loosen their deficit target, as they did last year. Turning on the spending taps in England, Scotland and Wales is probably their last, best chance of turning around the grim political picture.

It’s a remarkable coup for Arlene Foster

The agreement, which ticks a number of boxes for the DUP, caps off an astonishing reversal of fortunes for the DUP’s leader, Arlene Foster. The significant increase in spending in Northern Ireland – equivalent to the budget of the entirety of the United Kingdom going up by £70bn over two years  – is only the biggest ticket item. The extension of the military covenant to Northern Ireland appeals to two longstanding aims of the DUP. The first is to end “Northern Ireland exceptionalism” wherever possible, and the second is the red meat to their voters in offering better treatment to veterans.

It feels like a lifetime ago when you remember that in March 2017, Foster was a weakened figure having led the DUP into its worst election result since the creation of the devolved assembly at Stormont.

The election result, in which the DUP took the lion’s share of Westminster seats in Northern Ireland, is part of that. But so too are the series of canny moves made by Foster in the aftermath of her March disappointment. By attending Martin McGuinness’s funeral and striking a more consensual note on some issues, she has helped shed some of the blame for the collapse of power-sharing, and proven herself to be a tricky negotiator.

Conservatives are hoping it will be plain sailing for them, and the DUP from now on should take note. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.

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