I'm a Labour MP who rebelled over benefit cuts. Here's why I've changed my mind – Elaine Stewart

The welfare state must offer people a future, not just benefits

Employers are to receive support to hire young people who have been out of work, with additional incentives for small businesses to take on apprentices (Picture: Christopher Furlong)placeholder image
Employers are to receive support to hire young people who have been out of work, with additional incentives for small businesses to take on apprentices (Picture: Christopher Furlong) | Getty Images

The debate around welfare reform has changed significantly over the past year and so have my views on the UK government’s direction of travel. Last year, I was one of the Labour MPs who signed an amendment in parliament seeking to stop the government's welfare reform legislation.

That was not a decision I took lightly. I believed then, as I do now, that any reform of our welfare system must be judged against a simple test: does it expand opportunity for those who need it most, particularly young people?

At the time, I was not convinced the proposals met that test. Like many colleagues, I was concerned that they focused too heavily on the mechanics of the welfare system and not enough on the life chances of the people within it. Young people facing barriers to work need more than financial support alone. They need access to education, meaningful training, employment and the confidence that comes from knowing a better future is within reach.

Long-term sickness among young people

Last week, I attended a major speech by the Work and Pensions Secretary, Pat McFadden, at the Good Growth Foundation. He argued that the central question facing government should no longer be, “what benefit are you entitled to?” but rather, "how do we help you live the fullest life?" That is more than a change in language; it is a change in purpose.

At the heart of this new approach is an uncomfortable reality. Too many young people are becoming trapped on long-term sickness benefits and, in doing so, are losing their connection to education, employment and opportunity.

The figures are stark. A 20-year-old who starts claiming long-term sickness benefits today is reportedly more likely still to be claiming at 30 than to have experienced sustained employment during that decade. People under 25 receiving these benefits are now less likely to move into work than claimants over 55.

This did not happen overnight. In the three years before Labour entered government, the number of young people not in education, employment or training increased by 250,000. Behind every statistic is a young person whose ambitions are being limited and whose potential risks being left unrealised.

A better future means having the opportunity to stand on your own feet, not spending a lifetime on benefits. Today, there is a growing recognition in parliament that welfare reform cannot simply be about benefits. Too often, the debate is framed as a choice between cuts and spending. But reform is neither. Real reform means redirecting resources away from lifelong dependency and towards creating the opportunity for that better future.

A welcome change of emphasis

The Department for Work and Pensions, under Pat McFadden's leadership, has firmly placed opportunity, participation and independence at the centre of its thinking. That shift in emphasis is significant, and it is one I welcome.

The purpose of support must be to remove barriers, build confidence and help people participate in society. No young person should feel that the system expects less of them than they can achieve. That principle runs through the recent Milburn Review, which argues that government must respond to the reality of young people's lives rather than through the narrow lens of departmental boundaries. The challenge is complex, and the response must be equally joined up.

While the problem is national, many of the solutions are local. Businesses across Ayrshire regularly tell me they want to recruit more young people but often need support to take that first step. Better employer incentives, more flexible apprenticeships and stronger links between education and industry can help connect talented young people with the opportunities that already exist in our communities.

The government's Youth Guarantee represents a £2.5 billion investment in that approach. Employers will receive support to hire young people who have been out of work, while additional incentives will help small businesses take on apprentices. Just as importantly, new youth hubs, around 30 across Scotland, will bring employment advice, careers guidance and wider support together in one place.

Cutting the welfare bill

The role of the welfare state is not simply to provide financial assistance. It is to create opportunity, independence and hope. A compassionate society should always protect those who need support, but true compassion also means empowering people to fulfil their potential and participate fully in society.

That is why my position on this debate has evolved. We should not be afraid to reduce young people's reliance on welfare, and in doing so, ultimately reduce the welfare bill.

Far from it, we should have the confidence to instead invest more effectively in their future. This is not about removing the safety net that protects the most vulnerable, but about creating a springboard to help build young people’s skills, confidence and opportunities to support themselves where possible. The focus is no longer solely on what support someone receives when they are out of work.

The goal should be a system that empowers young people to get on in life through opportunity, aspiration and work. For too long, the welfare debate has been framed around entitlement and dependency. The more important question to address is around opportunity.

How do we ensure that every young person, regardless of their background or circumstances, can succeed? This is the debate the government is now beginning to lead. And it is why, despite my reservations in the past, I believe that this is the right track.

We should not simply aim to provide an income. We should aim to provide a future.

Elaine Stewart is the Labour MP for Ayr, Carrick and Cumnock

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