The noble Baroness, Lady Grey-Thompson, has made a very powerful case as to why cutting benefits actually makes it harder for people, particularly disabled people, to find work.
That has also come out in other research. For example, Community Links has said that if you push people into survival mode, then they just have to focus on surviving.
I want briefly to respond to the noble Lord, Lord Lansley, who talked about the incentive structure. We have heard a lot about the famous OECD quote, which has been bandied back and forth. I thought it might be worth reading out the paragraph from which that quote came:
“A policy of no welfare would be the best solution to maximise labour supply, if equity issues were not a concern”.
I shall miss out the next sentence, but it does not change the meaning:
“distributional issues are a primary concern when designing policies to help people return to self-sufficiency through work and, in this context, studies show that in-work benefits can maximise social welfare”.
The message coming from the OECD report that has been quoted so often is in fact that the answer lies in improving support for those in work—which, of course, the Government are making worse—rather than cutting benefits for those out of work.
Another OECD report that came out only two years earlier, on incapacity benefits—so I am surprised the Government have not mentioned it—called Transforming Disability into Ability, refers to the benefit traps and incentive problems that the noble Lord talked about. However, it said:
“The evidence concerning such types of benefit traps is inconclusive”.
I suggest that it remains inconclusive, and the evidence prayed in aid by the Government does not support the case for this really quite savage cut in benefits for disabled people.