'There's fraud throughout the benefits system' says Tory leadership hopeful Mel Stride

14 August 2024, 08:53 | Updated: 14 August 2024, 10:21

A Conservative leadership candidate and shadow work and pensions secretary has claimed that there is fraud "throughout" the benefits system, after it was revealed that nearly ten million people in the UK are out of work.

Mel Stride, who previously held the government brief for nearly two years, told LBC's Nick Ferrari that it would be "extraordinarily naive and slightly cowardly" to pretend that "every claim is absolutely legitimate".

He was speaking after it was revealed that the number of people classed as "economically inactive" reached 9.4 million in the three months to June.

The figure represents more than a fifth of the working-age population, including near-record numbers of people being signed off with long-term sickness - which stood at 2.803 million.

Mr Stride, whose Conservative Party was in power from 2010-2024, said that a "fundamental reform" of the system was required, warning that this "takes time".

Read more: PM under mounting pressure to deal with worklessness crisis - as it's revealed nearly 10 million Brits are out of work

Read more: Keir Starmer suspends seven rebel Labour MPs who voted to get rid of two-child benefit cap

Shadow Work and Pensions Secretary Mel Stride joins Nick Ferrari 14/08 | Watch Again

He said: "I think across the benefit system, it's extraordinarily naive and slightly cowardly, actually, for politicians to duck that question and just simply say 'no, of course every claim is absolutely legitimate.'

"Of course every claim is not absolutely legitimate. We know that there's fraud and error in the benefits system throughout it, not just in the area we're discussing, but more generally, across the system. There's far too much of it. But look, we need to be asking these questions.

"We need to be brave enough and bold enough to actually have this grown up conversation about these explosive numbers here [and] what is driving it.

"What matters at the end of the day is that we do the right thing by the people that need support."

Alongside the out of work figures, the number of parents claiming disability benefits for children with conditions such as ADHD and autism has risen by 200,000 since the Covid lockdown.

Mr Stride said that questions needed to be asked about the rate of diagnosis of conditions such as ADHD, which in 2023 was also the fourteenth most common condition for the personal independence payout (PIP) benefit.

The Central Devon MP told Nick that the previous government was "looking at the issue of [ADHD] diagnosis, because, of course, the numbers that are increasing are a result of diagnosis of those conditions."

Discussing mental illness more broadly, Mr Stride said he had asked "difficult questions" about "labelling" conditions that might previously have been the "kind of ups and downs in life that a normal part of human existence".

He said that these are "very uncomfortable when they occur, but once you start to give people a medical label, then that in itself has an impact. It has a psychological impact, so that in and of itself is not a good thing, necessarily, to be doing".

Mr Stride caveated his comments by adding "that is notwithstanding in any way, the fact that there are many people who have very severe conditions that need support, need benefits, and in many cases, actually should be getting more".

Watch again: Work and Pensions Secretary Liz Kendall talks to Nick Ferrari 23/7

Addressing the way in which benefits are delivered, he questioned whether "cash transfer payments are the right thing to do, or would it be better to provide support in a different form".

Mr Stride said that "we need to have an honest conversation about exactly what is going on, and then in most of these areas, the answer is fundamental reform that takes time.

"These are hard yards. It has to be done sensitively".

He added that amid the reforms, "we do need absolutely to look after very, very much those that are in the greatest need and vulnerability".

Chancellor Rachel Reeves said on Tuesday that she would take action on joblessness in her autumn Budget, adding: "If you can work, you should work."

"Today’s figures show there is more to do in supporting people into employment because if you can work, you should work," Ms Reeves said on Tuesday.

"This will be part of my Budget later in the year where I will be making difficult decisions on spending, welfare and tax to fix the foundations of our economy."