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. 

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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