A Labour minister last night admitted he could not live on £70 a week in benefits as he attempted to defend the Government’s bid to slash £5billion from the welfare bill.
Torsten Bell, the pensions minister, said he had a ‘mortgage to pay’ as he explained why he thought he could not live on that amount.
He was challenged on BBC Newsnight after Labour’s bid to overhaul the ‘broken’ welfare system, announced yesterday, restricted access to disability benefits.
Those who are out of work, unable to work, or on a low income are able to claim Universal Credit to help with living costs – currently worth around £72 per week for single people under 25.
Under the plans unveiled yesterday, Labour wants to stop those under 22 from being able to access higher rates of Universal Credit for disabilities or health conditions.
At the same time, the Government is tightening the rules on qualifying for Personal Independence Payment (PIP) – the main disability benefit in England and Wales – for which the standard rate is currently £72.65 per week.
Despite admitting he could ‘absolutely not’ live on £70 a week, Mr Bell defended Labour’s plans and insisted ministers did not expect young people to live on a similar amount.
Prior to becoming an MP last July, Mr Bell used to be chief executive of the left-leaning Resolution Foundation – an economic think tank that frequently attacked welfare cuts under his leadership.
Torsten Bell admitted he could not live on £70 a week in benefits as he attempted to defend the Government’s bid to slash £5billion from the welfare bill
He was challenged by BBC Newsnight presenter Victoria Derbyshire after Labour’s bid to overhaul the ‘broken’ welfare system restricted access to disability benefits
In their own assessment of yesterday’s benefits changes, the Resolution Foundation estimated the planned PIP reforms will mean between 800,000 and 1.2 million people will lose support of between £4,200 and £6,300 per year by 2029-30.
They warned that Labour’s reforms ‘risk causing major income losses for those who are too ill to work, or those who no longer qualify for disability benefits’.
During his BBC Newsnight interview, Mr Bell denied the suggestion that some young people would be living on around £70 per week.
‘No, people with significant disabilities will be protected,’ he said.
‘Not only will they be protected within the Universal Credit system, which is the one you are mentioning, but they will also be able to apply for PIP.
‘People with significant disabilities, if they are young, if they’re currently Universal Credit health, they will continue to receive it.
‘And if they have significant disabilities, they will still be able to apply for PIP. But we are not going to write off 21-year-olds as unable to work.’
Asked if he personally could live on £70 per week, Mr Bell replied: ‘Absolutely not.’
Pressed on why the Government expected young people to live on a similar amount, he added: ‘We won’t. We provide housing benefit as well, and we’ll provide PIP for those who need it.
‘That’s how the benefits system works – if people need help with their rent, they receive that as well. If they need support with a disability, PIP is there for that as well.’
Challenged about his admission he couldn’t live on £70 per week, Mr Bell responded: ‘Well no, I have a mortgage to pay because of the current situation.
‘But what I’m saying to you – and the benefits system exists to provide housing benefit support for young people as well – but what I’m saying for you is the current system is a disaster for those young people.
‘And it’s all well and good to say you don’t like every aspect of those changes, but what you are defending is a Tory system.’
He added: ‘There’s not enough focus on the disaster that is happening in our country today.
‘We are seeing much faster growth in claims for disability benefits than we are seeing actual levels of disability – particularly for young people.’
Mr Bell’s interview sparked a backlash among some of his party colleagues with Brian Leishman, Labour MP for Alloa & Grangemouth, branding it ‘abhorrent’.
Other critics labelled the minister a ‘hypocrite’.
