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. 

Getty Images.
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Theresa May gambles that the EU will blink first

In her Brexit speech, the Prime Minister raised the stakes by declaring that "no deal for Britain is better than a bad deal for Britain". 

It was at Lancaster House in 1988 that Margaret Thatcher delivered a speech heralding British membership of the single market. Twenty eight years later, at the same venue, Theresa May confirmed the UK’s retreat.

As had been clear ever since her Brexit speech in October, May recognises that her primary objective of controlling immigration is incompatible with continued membership. Inside the single market, she noted, the UK would still have to accept free movement and the rulings of the European Court of Justice (ECJ). “It would to all intents and purposes mean not leaving the EU at all,” May surmised.

The Prime Minister also confirmed, as anticipated, that the UK would no longer remain a full member of the Customs Union. “We want to get out into the wider world, to trade and do business all around the globe,” May declared.

But she also recognises that a substantial proportion of this will continue to be with Europe (the destination for half of current UK exports). Her ambition, she declared, was “a new, comprehensive, bold and ambitious Free Trade Agreement”. May added that she wanted either “a completely new customs agreement” or associate membership of the Customs Union.

Though the Prime Minister has long ruled out free movement and the acceptance of ECJ jurisdiction, she has not pledged to end budget contributions. But in her speech she diminished this potential concession, warning that the days when the UK provided “vast” amounts were over.

Having signalled what she wanted to take from the EU, what did May have to give? She struck a notably more conciliatory tone, emphasising that it was “overwhelmingly and compellingly in Britain’s national interest that the EU should succeed”. The day after Donald Trump gleefully predicted the institution’s demise, her words were in marked contrast to those of the president-elect.

In an age of Isis and Russian revanchism, May also emphasised the UK’s “unique intelligence capabilities” which would help to keep “people in Europe safe from terrorism”. She added: “At a time when there is growing concern about European security, Britain’s servicemen and women, based in European countries including Estonia, Poland and Romania, will continue to do their duty. We are leaving the European Union, but we are not leaving Europe.”

The EU’s defining political objective is to ensure that others do not follow the UK out of the club. The rise of nationalists such as Marine Le Pen, Alternative für Deutschland and the Dutch Partij voor de Vrijheid (Party for Freedom) has made Europe less, rather than more, amenable to British demands. In this hazardous climate, the UK cannot be seen to enjoy a cost-free Brexit.

May’s wager is that the price will not be excessive. She warned that a “punitive deal that punishes Britain” would be “an act of calamitous self-harm”. But as Greece can testify, economic self-interest does not always trump politics.

Unlike David Cameron, however, who merely stated that he “ruled nothing out” during his EU renegotiation, May signalled that she was prepared to walk away. “No deal for Britain is better than a bad deal for Britain,” she declared. Such an outcome would prove economically calamitous for the UK, forcing it to accept punitively high tariffs. But in this face-off, May’s gamble is that Brussels will blink first.

George Eaton is political editor of the New Statesman.