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Budget: Work Incentives

Volume 777: debated on Tuesday 9 December 2025

4. What assessment she has made of the potential impact of the autumn Budget 2025 on levels of incentives to work. (906787)

The forecasts accompanying the Budget set out that the Office for Budget Responsibility expects employment levels to rise in every year of this Parliament. They also set out that employment is forecast to be higher in every year than previously expected back in March.

Having 1 million young people not in work, education or training and 2.8 million people out of work on long-term sickness benefits is both a financial catastrophe and a moral failure. The Prime Minister has rightly said that it is his moral mission to get young people into work, but how does the Minister square that with two Budgets that have hiked taxes on working people by £66 billion while giving a pay rise to those on benefits?

The hon. Member is right to call those things a moral and economic disgrace. Does he know who created them? It was the Conservative party opposite. Who saw a 50% rise in the number of those not in education, employment or training? The party opposite. Who created the benefits system that is failing today? The party opposite. Who failed to reform the benefits system? The party opposite.