The Prime Minister (Mr David Cameron)
Let me start—as the right hon. Member for Doncaster North (Edward Miliband) did—by paying tribute to those who have lost their lives in Afghanistan since the House last met. Corporal William Thomas Savage and Fusilier Samuel Flint were both from the Royal Highland Fusiliers, 2nd Battalion the Royal Regiment of Scotland. Private Robert Murray Hetherington was from 51st Highland, 7th Battalion the Royal Regiment of Scotland. These men have made the ultimate sacrifice, their heroism should be an inspiration to all of us and we must honour their memory for ever. Let me also add that what the right hon. Gentleman said—praising our troops and all those who serve our country more broadly—is absolutely right: they should always be at the top of our thoughts.
As a result of the work in the last Session, the Government have now cut the deficit by a third, cut immigration by a third, cut crime by more than 10%, cut taxes for more than 24 million people, capped benefits, capped the increase in rail fares, frozen fuel duty, helped to freeze council tax, cut billions from the bloated cost of government, and, yes, secured a real-terms cut in the European budget as well. In spite of what we just heard from the Opposition, there are over 1.2 million more people now working in the private sector, more than 1 million new apprenticeships and a quarter of a million fewer people on out-of-work benefits than when this Government came to office. In direct contrast to what the right hon. Gentleman said, instead of presiding over a banking bust as he did, we are, for the first time, regulating our banks properly and separating high street banking from investment banking. That is just the start of clearing up the mess we were left. There is only so much we can do in three years to clear up the mess of the past 13 years. The Queen’s Speech sets out the next vital steps forward. This Government have a solid record of being on the side of those who work hard and want to get on.
As the Leader of the Opposition did, let me briefly pay tribute to those from this House who passed away in the last parliamentary Session. The House lost two of its most respected and popular Members. Malcolm Wicks was a real gentleman, a man of enormous integrity and compassion. He served the House with great distinction for 20 years. His expertise on energy earned him great respect on all sides of this House. He was well known for his willingness to work across the political divide, although I gather that even he wondered whether things had gone a bit too far when his grandson was named Cameron. As the Leader of the Opposition said, he showed extraordinary courage in fighting a long illness at a relatively young age. He will be missed by everyone who knew him.
Sir Stuart Bell was another of Parliament’s great characters. He was rightly honoured for his services to this House, and was dedicated to the House of Commons and everything that happens here. He served for a record 13 years as Second Church Estates Commissioner. As the Leader of the Opposition said, his book was called “Tony Really Loves Me”. We do not know whether that was true, but the House really did love him, and he is sorely missed on all sides.
Let me turn to the proposer of the Gracious Speech, my hon. Friend the Member for Mid Worcestershire (Peter Luff). He made a great speech and, rightly, spoke with huge power about the importance of engineering. I have looked long and hard to try to find something about my hon. Friend. He is a clean living man with a relatively spotless record, but I have turned up one dirty secret. As he said, he started his career as an adviser to Peter Walker. My hon. Friend was so keen to succeed him in his Worcestershire constituency that he did everything and anything for his political master: he wrote his speeches, collected his shopping, cooked his dinner and organised his social life—he even babysat for his children. I can now reveal his secret: he even changed the nappies of his predecessor’s son, my hon. Friend the Member for Worcester (Mr Walker), who is now sitting next to him. We will not ask for a demonstration, but that does prove that all great political careers start at the bottom. My hon. Friend the Member for Mid Worcestershire showed today that he is a worthy successor.
My hon. Friend spoke movingly about the support of his wife and family during his parliamentary career, and I am sure that all of us would want to echo that sentiment about the incredible love and support we receive from our own families. There is another lesser known fact about my hon. Friend: he simply will not leave a telephone unanswered. On the campaign trail in the 2005 election, he walked past a call box and found that the phone was ringing, and so picked it up. However, when the double glazing salesman on the other end of the line realised that he was talking to a politician, he promptly hung up.
My hon. Friend has a strong record of achievement: improving defence procurement, chairing the Trade and Industry Committee, helping to create the UK India Business Council and campaigning against the early sexualisation of children. When he leaves at the end of this Parliament, he will be missed by many across the Chamber, and his speech was in the best traditions of this House.
Let me turn to the seconder of the Gracious Speech, who, I did not know until today, is virtually my twin. As my hon. Friend the Member for Bristol West (Stephen Williams) said, he was born in the valleys in the heart of south Wales. He is the first Liberal Democrat to be elected as a Member of Parliament in Bristol in three-quarters of a century, but needless to say, in true Liberal Democrat style, he billed himself as the local candidate. In his time in the House he has already done admirable work in fighting homophobia, and I thought that what the Leader of the Opposition said about that was absolutely right. He has won an award from Cancer Research UK, and he is an assiduous Member of the House. However, he does not always pick the winner. I have done a little research. He was Chris Huhne’s agent during his leadership campaign against the right hon. and learned Member for North East Fife (Sir Menzies Campbell), but he did then switch to the Deputy Prime Minister during his leadership campaign against Chris Huhne—although I note that he now calls him “Cleggzilla”, which I thought was an interesting career move.
My hon. Friend said that he was looking for a soulmate. I can reveal that he did not find one when he went to the United States on a parliamentary exchange with a member of Congress. He had wanted to shadow someone from the liberal wing of the Democratic party, but ended up with a Tea party Republican from Alabama, which is home, Members will be pleased to know, of the Crimson Tide. So he spent a few days with someone who opposes all regulation of greenhouse gases, opposes all recognition of same-sex marriage, and is backed by the National Rifle Association. I have looked into this deeply. The Congressman in question also wants to establish a human colony on the moon, although history does not relate whether he came to that conclusion before or after meeting my hon. Friend.
I thought that my hon. Friend’s speech today was excellent and courageous, and that both speeches were in the finest traditions of the House.
Let me also take this opportunity to welcome to the House the new hon. Member for South Shields (Emma Lewell-Buck), who is in her place for the first time today. I know that some in the House will be sad that her predecessor has left us. It could be said that he walked out on the organisation that he loved after disagreeing with its choice of a new leader—but today is not the day to talk about Sunderland football club and Paolo Di Canio. It is the day, perhaps, to sing the praises of Sir Alex Ferguson, a remarkable man in British football who has had an extraordinary, successful career. I am sure that all Members, even those on the blue team, will want to pay tribute to this member of the red team. Perhaps he could now provide some consultancy services for Aston Villa.
I began by paying tribute to the British soldiers who had tragically lost their lives in Afghanistan, but let us be clear that this is not a mission without an end. We have promised to draw-down our troops, and I can tell the House that we are on track. The number of UK bases in Helmand is down from a peak of 137 to just 14, and by the end of this month we will have reduced our troop numbers from 9,500 to 7,900. By the end of this year they will be down to just above 5,000, and by the end of next year our troops will no longer be there in a combat role. Almost all of them will have come home.
In Syria, the atrocities continue to mount. In respect of chemical weapons, it is important that we learn the lessons of how information has been presented in the past. I have tasked the chairman of the Joint Intelligence Committee to give the National Security Council constantly updated assessments of the information that we and our allies have. I can tell the House today that there is a growing body of limited but persuasive information showing that the regime has used, and continues to use, chemical weapons including sarin. The room for doubt about that continues to diminish.
We will continue to take action on every front, working with our allies, backing the opposition, and pushing for a political solution. This morning I spoke to US Secretary of State John Kerry on his return from Russia. There is an urgent need to start a proper negotiation, to force a political transition and to bring this conflict to an end. I will be flying to Sochi on Friday to meet President Putin and discuss the issue further.
Just as there are great challenges in our world today, there are also great opportunities. We must link Britain to the fastest-growing parts of the world—from India to Indonesia, from Brazil to China. We must forge new trade deals that will bring new jobs and greater prosperity. We must use our commitment to open economies, open Governments and open societies to support enterprise and growth right across the world. That is exactly the agenda that Britain will be driving at the G8 in Northern Ireland, and I shall be discussing these issues in the coming days when I travel to meet my counterparts in France, America and Russia.
Sir Malcolm Rifkind (Kensington) (Con)
My right hon. Friend has rightly emphasised the importance of the United Kingdom’s relationship with China, but he will be as aware as all the rest of us that, from time to time, it has been a difficult relationship, particularly given the very difficult problem of Tibet. Is he able to be positive today about what he expects to be the relationship between the United Kingdom and China over the year ahead?
The Prime Minister
I am grateful to my right hon. and learned Friend for what he says. Let us be absolutely clear: this Government have not changed the long-standing British policy towards China, and China and Tibet, and we do want to have a strong and positive relationship with China, which I believe is to our mutual benefit. The Chinese Government are aware of our policy on Tibet. We recognise Tibet as part of China. We do not support Tibetan independence, and we respect China’s sovereignty, and when I spoke to Premier Li recently, we both looked forward to our countries working very closely together in the months and years ahead.
The point about this Queen’s Speech is that Britain will not seize these opportunities unless we are able to take the tough decisions needed here at home. That is what this Queen’s Speech is all about: rising to the challenge of preparing this country for the future. We are in a global race and the way we will win is by backing families who want to work hard and do the right thing. To do that, we must get the deficit down, not build up ever more debts for our children. We must restore our competitiveness so that British businesses can take on the world. We must reform welfare and pensions so it pays to work and pays to save, and we must reform our immigration system so we attract people who will benefit this country, and we clear up the mess we were left by the Labour party.
Toby Perkins (Chesterfield) (Lab)
I would like to thank the Prime Minister very much for coming to Derbyshire twice during the recent elections and invite him to come back in 2015 to see whether he can repeat the magic. He will be aware that there are now 43 Labour councillors. Does he think Labour did so well in those elections in Derbyshire because of the poor record of Derbyshire county council, or was it thanks to the record of his Government?
The Prime Minister
The choice for people in Derbyshire at the next election will be whether they want to keep on the path of getting the deficit down, reforming welfare and controlling immigration, or whether they want to put it all at risk with the Labour party. People in Derbyshire understand that.
Caroline Lucas (Brighton, Pavilion) (Green)
I was listening out in the Gracious Speech for the words “climate change,” and I almost thought I was listening in vain until I heard that the very last two words of the whole speech were “climate change.” Does the Prime Minister accept that if we are to make serious progress on that issue, it needs to be at the top of the agenda, not at the bottom and, if it were, we could also create hundreds of thousands of jobs in this country?
The Prime Minister
I thought the hon. Lady was slightly uncharitable: she was looking for the words “climate change” in the Queen’s Speech and the words “climate change” are in the Queen’s Speech—and it is this Government who have set up a green investment bank that has got £3 billion to spend, and it is this Government who have set a carbon floor, so we are taking action to deal with climate change, and are successfully doing so.
The point is that every one of these issues—immigration, welfare, competitiveness, the deficit—is addressed head-on in the Queen’s Speech, and on every one of these issues the Opposition would take us in the wrong direction: on the deficit, they would increase it; on competitiveness, they would put up taxes, not cut them; and on welfare reform, they have opposed every step we have taken to make our system fair and affordable. These are the arguments that will dominate this Queen’s Speech debate, this Session and the general election. On every one of these issues we are on the right side of the argument and they are on the wrong one.
Sheila Gilmore (Edinburgh East) (Lab)
Perhaps the Prime Minister could explain how the proposals in the Queen’s Speech will help my constituent who is wanting to work but found that 57 of 76 shop assistant jobs advertised throughout the whole of the east of Scotland from Fife to Falkirk were for distributing Kleeneze catalogues. How does that help constituents like mine?
The Prime Minister
First of all, there are 1.25 million extra private sector jobs in our economy, and many of those are in Scotland, but the point in the Queen’s Speech that the hon. Lady should particularly welcome is the move on national insurance contributions, which will take one third of all British businesses out of national insurance altogether. We look forward to the Opposition’s support on that.
Let me take for a moment the central economic argument about borrowing and the deficit. The Leader of the Opposition recently attempted to make his case on “The World at One” and I think it is fair to say that the world was at one in concluding that he made a complete mess of it. He told us that Labour’s much-heralded VAT cut would last for “about a year.” That is what we were told. He was asked 10 times to admit he would put up borrowing, and he refused. He was asked again today. He cannot give a straight answer to this question. Yet the very next day on ITV’s “Daybreak” he admitted borrowing would go up. In this case his policy lasted about 18 hours.
So we have an Opposition who say that borrowing is too high but they are going to put it up. That is their official policy. You couldn’t make it up, Mr Speaker, unless, of course, you are the shadow Business Secretary. He has been famously comparing himself to Barack Obama. As he would put it, “Can we change our Wikipedia entry? Yes we can.”
Gloria De Piero (Ashfield) (Lab)
If it is all going so well, why are more people on the dole in Ashfield than when the Prime Minister took office? Why are more people out of work in my constituency now?
The Prime Minister
Across the country, more people—1.25 million more—are in work, and 270,000 fewer are on out-of-work benefits. That is what is happening under this Government, and that is what we will continue to make progress on. There is a very serious point here. If we borrow more, spend more, and fail to get a grip on the deficit, we will say goodbye to the low interest rates that this Government have earned. Let us be clear about what that would mean: mortgage rates going up; business failures going up; repossessions going up. That is the price that every family in Britain would pay for Labour’s irresponsibility. Those are the consequences of having a Leader of the Opposition who is too weak to stand up to his shadow Chancellor. He has a long history of such weakness: too weak to stand up to his party on welfare; too weak to stand up to the unions on strikes; too weak ever to stand up to Gordon Brown when in government; too weak to apologise for the mess Gordon Brown made in government. He is the living embodiment of a new dictum: the weak are a long time in politics.
Pete Wishart (Perth and North Perthshire) (SNP)
The Prime Minister knows, and I know, that this parliamentary Session is all about the rise of UKIP. He called them loonies and closet racists. Does he have to be more loony to see them off?
The Prime Minister
The simple truth, at the next election, is if you want an in/out referendum on Europe, the only way to get it will be by supporting the Conservative party. That is clear. There are two major parties in the House that oppose a referendum, and there is one that will stand for a referendum. We will put that to the people at the next election.
The Queen’s Speech does not duck the tough challenges. We need to get the deficit down, so we will complete a spending review by the end of June. We will legislate to abolish needless bureaucracy such as the Audit Commission. We will pass laws to raise revenue by stopping tax abuse. We need to restore our competitiveness, so the Queen’s Speech includes a deregulation Bill to cut business costs, and a national insurance Bill to cut taxes for small businesses. We will press ahead with our high-speed rail Bill so that we get the infrastructure we need. Our intellectual property Bill will give us an up-to-date system of patents, including a key part of the European patent court right here in London.
Jim Shannon (Strangford) (DUP)
The Prime Minister has given an extensive shopping list of the things he will introduce this Session, but he has not spoken about plain packaging for tobacco and the introduction of minimum alcohol pricing. In the light of the health issues in relation to alcohol abuse and for those dying from cancer, will he even now give us a commitment to introduce both plain packaging for tobacco and a minimum price for alcohol?
The Prime Minister
On the issue of plain packaging for cigarettes, the consultation is still under way, and we are looking at the issue carefully. On minimum pricing for alcohol, it is important that we take action to deal with deeply discounted alcohol, with cans of lager sometimes selling for as little as 25p in supermarkets. We will be bringing forward a package of measures, and it is important that we get this right.
Fiona O'Donnell (East Lothian) (Lab)
The Prime Minister spoke about how all of us in the House cherish and love our children and families, so where is the protection for children when it comes to plain packaging for cigarettes? For the record, the consultation is closed.
The Prime Minister
The hon. Lady’s party had 13 years in office to take such measures and did precisely nothing.
At the heart of the Queen’s Speech is a commitment to get behind the aspiration of people who work hard, save hard and do the right thing. The pensions Bill, which, by the way, is the biggest reform of the state pension for 50 years, did not merit a single mention from the Leader of the Opposition. The Bill marks a major shift towards encouraging saving in our country. Under the current system, many people are discouraged from saving during their working life. Why? It is because the more they save, the less pension credit they will get. A single-tier pension, at about £144 a week, changes that. It will take hundreds of thousands of people in our country out of the means test, and it will give people the certainty of knowing that the savings they make when they work will benefit them when they retire.
Another problem that can discourage saving is the fact that in so many cases people’s homes are taken away to pay their care bills. The family that has saved is asked to pay for care; the family that has not saved gets all this for free. I do not believe that is fair. This Queen’s Speech makes an historic move to put a cap on individual contributions to pay for social care. Combined with changes in the insurance market, that should mean that no one has to sell their home to pay for care—a major breakthrough in this vital market.
Barbara Keeley (Worsley and Eccles South) (Lab)
I served on the Joint Committee on the draft Care and Support Bill and although it has some good points, it needs a lot of improvement. However, the Prime Minister’s Government are taking £2.6 billion out of adult social care, and setting a cap at £72,000 will not help the majority of my constituents in Salford. He has now abandoned public health.
The Prime Minister
First of all, as the hon. Lady says that the draft Care and Support Bill has some good points, perhaps she could have a word with the leader of her party as he did not even mention it in his entire speech. We are tackling an issue that Labour promised to do something about for 13 years—but it never did anything. Under this Government, people will not have to sell their home to pay for care.
Backing aspiration means sorting out our immigration system. Under the previous Government, it was out of control. Net migration was more than 200,000 a year; that means that more than 2 million extra people came here across a decade. The tiered system that the previous Government established has now been revealed as a complete sham. Tier 1 of the system, they told us, welcomed the best of the best; it now transpires that as many as a third of those people found only low-skilled roles, working in takeaways or as security guards. In the student tier, that Government allowed people who did not speak a word of English to come here and attend colleges that turned out to be entirely bogus. There was even a tier in their system specifically created for those with no skills at all.
We are fixing this mess. We have completely shut down the route that allowed low-skilled people to come here with their dependants, without even a job offer waiting for them; we have capped the number of economic migrants from outside the European economic area; we have stopped almost 600 colleges bringing in thousands of bogus foreign students; and we have revoked the licences of more than 300 of those colleges in the process. There is much more to do, but there has been good progress in clearing up the mess that the previous Government made.
Mr Shailesh Vara (North West Cambridgeshire) (Con)
Given that Labour has now apologised for its immigration policies in government, does the Prime Minister agree that if Labour Members are serious about curbing immigration they should pledge to support our policies when they are debated on the Floor of this House?
The Prime Minister
I hope the test will come when we vote on those measures. In the past, of course, we have heard that the Opposition will support welfare measures, then they do not; we have heard that they will support deficit reduction measures, then they do not. Every time the Opposition are tested, they fail.
The immigration Bill is a centrepiece of the Queen’s Speech. Let me be clear: this is not just—
The Prime Minister
I will give way to both right hon. Gentlemen in a minute. Let me just make one point. The Bill goes across government, because for the first time we will look to ensure that everyone’s immigration status is checked before they get access to a private rented home; for the first time, we will make sure that anyone not eligible for free health care foots the bill, either themselves or through their Government; and for the first time, foreign nationals who commit serious crimes will be deported, wherever possible, and will then have to appeal from their home country. That will be the effect of the Bill.
Mr Blunkett
Perhaps it would be easier for Labour to vote for the Bill if there was a verifiable way of ensuring that it could be implemented. Will the Prime Minister take a suggestion from an old hand that might square the circle between the Home Secretary and the Business Secretary on the immigration proposals and the deregulation Bill? We could go back to the idea of a verifiable identity register, and a little card, such as the one I am holding, to ensure that doctors, landlords and employers can easily and sensibly know whether someone is entitled to be in the country and draw down services.
The Prime Minister
At last we have had a concrete policy from the Labour party, but I am afraid to say that it is one with which I completely disagree. I have great respect for the right hon. Gentleman, but is it not extraordinary that the previous Government spent so much time and effort on a compulsory identity card that no one wanted while overseeing a massive uncontrolled rise in immigration? What we have done is to cut migration by a third and we have not introduced ID cards. That is a far better approach.
Keith Vaz
I welcome the abolition of the UK Border Agency. The Prime Minister mentioned foreign national ex-offenders. He will know that the latest figures reveal that 4,000 are living in the community, and 65% have been there for two years. Will he examine whether it is possible to begin deportation proceedings at the time of sentence, rather than waiting halfway through the sentence when it will be too late?
The Prime Minister
The right hon. Gentleman is entirely right, and that is something that we discussed at the National Security Council as recently as last week. The situation with foreign national offenders is still completely unacceptable. There are very large numbers still here, from countries such as Nigeria and Jamaica that we have very good relations with, and we are going to ensure that we deal with the problem a lot faster. We have also looked at the idea that the right hon. Gentleman has come up with. Put simply, our immigration Bill will back aspiration and end the legacy of the previous Government that meant that people could come here and expect something for nothing.
Our determination to end the previous Government’s something-for-nothing culture is also the reason why we continue to pursue our welfare reforms. Every one of them is about making sure that work pays, but that is not the only thing that our welfare reforms have in common. The truth is that whatever welfare reform we have suggested, the Leader of the Opposition and the Labour party have opposed each and every single one. We said families should not be able to receive up to £100,000 in housing benefit. He said they should, and voted accordingly. We said no—[Interruption.] The hon. Lady says “rubbish”, but the Opposition voted against the limits on housing benefit. We said that no out-of-work household should be able to claim more than the average working family earns. The Leader of the Opposition said that they should be able to do that, and they voted against the welfare cap. We said benefits should not go up by more than 1% while workers’ wages are being cut. He said they should—and he wants our children shackled with more debt in order to pay for it.
Rushanara Ali (Bethnal Green and Bow) (Lab)
According to the Institute for Fiscal Studies, after the tax and benefit changes introduced in 2010, by 2020 one in four children will face child poverty, missing the Child Poverty Act goal of one in 10. Why does the Queen’s Speech not contain anything to address that major problem in our country?
The Prime Minister
The IFS also shows that it was this Government who increased child tax credits to help the poorest families, but above all, the IFS shows that we have had to take difficult steps to clear up the complete mess that we were left by the Labour party. Labour has opposed each and every welfare change. The party of labour has become the party of welfare and the whole country can see it. On this side of the House, we are standing up for hard-working people. This is a Queen’s Speech that will back aspiration and those who want to get on. This is a Queen’s Speech that will make our country competitive once again. This is a Queen’s Speech that will cut our deficit, grow our economy, deliver a better future for our children and help us to win the global race, and I commend it to the House.
Dame Anne Begg (Aberdeen South) (Lab)
I am glad to be given the opportunity to speak in this debate.
There have been a few comments, particularly from Opposition Members, suggesting it is a rather thin Queen’s Speech, containing not many Bills, but one of its meatier measures is the pensions Bill, which will set up a single-tier state pension. I hope you do not mind, Mr Speaker, if I spend all my time talking about that Bill, partly because my Select Committee, the Work and Pensions Committee, was asked to carry out the pre-legislative scrutiny. It is the one Bill in the Queen’s Speech that is greatly relevant to my Committee’s work, and I understand it will be published tomorrow, so today is my last chance to record some of the Committee’s observations. I understand that the Government’s response to our report will be published as a Command Paper at the end of the week. I suspect that both the Bill and the Command Paper have already gone to the printer, so what I say this afternoon will probably not change the Government’s intention, but it is worth rehearsing some of the arguments that my Committee found important enough for the Government to take into account during the deliberations on the Bill in both Houses.
Why is the Bill so important? Anybody who is under state pension age as of April 2016 will be affected by it. The only people who will not be affected by the introduction of the single-tier state pension are those who will have already reached their pensionable age. The fact that 2016 is the year in question is a bit of a bone of contention, because when my Committee undertook its scrutiny and asked for evidence from a range of people, including the industry, individuals and anybody who wanted to have a say, we thought that the starting date would be April 2017. When we took oral evidence, including from the Minister of State, Department for Work and Pensions, the hon. Member for Thornbury and Yate (Steve Webb), at the end of our inquiry, we still thought that the implementation date would be April 2017. It came as a bit of a shock, and was a wee bit to our annoyance, that the Chancellor announced in the Budget that the implementation date was to come forward a year to April 2016.
We interrogated the Minister thoroughly about whether even April 2017 was an achievable time scale or would slip, because we thought it was a pretty tight time scale in which to implement the changes. It therefore came as a bit of a shock to discover that the Government hoped to do it a year sooner. We had not been in a position to ask the industry and employers, in particular, whether they would be ready to implement the changes in 2016.
Notwithstanding the fact that we generally welcome the introduction of a single-tier state pension, it is inevitable and obvious that the Government have continued to roll out auto-enrolment, for which they should be commended. Given that more and more people will have their own second-tier occupational pension, some kind of reform of the first-tier basic state pension has become almost imperative. However, it will not be easy to get from the extremely complicated and convoluted pensions landscape of today, which has a second tier through the state earnings-related pension scheme or the state second pension as well as occupational pensions, to something straightforward and simple. That is what the Government are attempting to do in the pensions Bill.
As the Government have brought forward the implementation date by a year, the Committee thinks it is even more important—we thought it was important anyway—that a proper impact assessment of the changes is done sooner rather than later. We hope that when the Government publish their response to our report at the end of this week, there will be a promise to that effect.
Different sectors will be affected differently, and some groups will inevitably lose out. In any major change there are bound to be winners and losers, but it is not yet clear who they will be under these changes. I hope that a further impact assessment will be performed because we need to know how the changes will impact on individuals, the pensions industry, and particularly employers.
The Minister of State, Department for Work and Pensions (Steve Webb)
May I record my appreciation of the work done by the Work and Pensions Committee in scrutinising our Bill on a compressed timetable? We will publish a new impact assessment on Friday alongside the Bill, and a response to the Committee. I assure the hon. Lady that the Bill will be amended in the light of her Committee’s recommendations.
Dame Anne Begg
I am delighted to hear that and perhaps we will come back to the Bill if it is not amended enough.
We welcome the single-tier pension because it will generally mean more state pension for those who have the least. Groups that have lost out in the past with regard to the state pension will benefit—they will generally be women, carers, people with broken work records, and those such as the self-employed who have been unable to build up any kind of second state pension. They will see the immediate benefits of the introduction of this system.
There will, however, be those who lose out, and one main change will affect those who have already made decisions about their retirement. At the moment, someone can qualify for a full state pension after 30 years of national insurance contributions. The Bill increases that to 35 years, but there is already a group of people who have decided to retire although they have not reached pensionable age. They will not necessarily be in a position to build up 35 years of national insurance contributions before they reach the new single-tier pension. The Committee makes recommendations about buying back national insurance years and contributions, but a huge communications job will be necessary to ensure that people are aware that the number of qualifying years has now changed. I will say more about communications in a minute.
It was interesting that the Minister went on the airwaves earlier this week with regard to one group of people who will definitely lose out—women who get only a pension derived from their husband’s contributions. I am not sure why the Minister spoke about that in terms of the wives of expats, but it was possibly because a large number of those who will be affected by this measure live abroad. The measure will, of course, also affect women in this country. That seems to have come as a complete surprise to many and perhaps explains why a lot of people think they will be better off under the new system when in fact they will not because their spouse will not qualify for any of the new derived rights. Basically, what used to be known as the married woman’s allowance is going for everyone.
The Committee has a recommendation for the Government:
“We welcome the Government’s sensible transitional solution to the potential adverse impact on employed women who chose to pay reduced NI contributions under the Reduced Rate Election—”.
That was often called the small stamp or the married woman’s stamp. It was a long-running sore that had never been cured, so good on the Government because it has now been solved. They have come up with a transitional arrangement that will allow women who paid the small stamp to get full credits and qualify for the single-tier extension.
That does not apply, however, to those who will get nothing as a result of the abolition of their derived rights. The Committee report states:
“We believe that it should also be possible to find a solution for another small group of women: those who did not build up their own NI record because they had a legitimate expectation that they would be able to rely on their husband’s contributions to give them entitlement to a Basic State Pension. One option might be that women in this position who are within 15 years of State Pension Age should be able to retain this right. We recommend that the Government assesses and publishes the cost of providing this option for the relatively small number of women affected. We believe that, for those further from retirement, there is sufficient time for them to plan on the basis of the new rules.”
One reason we chose the period of 15 years from retirement was that it had to be more than 10 years. The Bill says seven or 10 years, but the Committee recommends that it should state anything up to 10 years, because people will probably need to have 10 years’ worth of contributions before they get any state pension—they will get nothing for less than 10 years’ worth of contributions. The Committee believes that people within 15 years of retirement with no national insurance contribution, who would have expected to get their pension through their spouse, should be protected, and that there should be transitional arrangements for them. Anyone further away can make up some of the shortfall—not all of it—in the intervening time.
Chris Bryant
The hon. Gentleman is completely and utterly wrong, and I look forward to the letter of apology that he will doubtless send to me later this afternoon. We introduced good legislation, and then even improved it. It is the current Government who are trying to dismantle it.
To be honest, this Queen’s Speech is not fit for a monarch. It is not fit for a princeling or a hireling; it is fit only for a changeling Government—a Government who are pretending to do politics and are not really interested in what voters in my constituency are interested in. We have an empty speech, a vacuum surrounding a lacuna enveloping a void consisting of nothing but dark matter—that is all this Queen’s Speech is. Why? Because we have a coalition. I am not intrinsically opposed to coalitions. If the voters do not deliver a clear outcome, we sometimes have to have a coalition Government. The truth of the matter, however, is that this coalition has run its course, and Ministers know that it has run its course. They know that the Government are running into the buffers. It is not that one party or the other has run out of ideas; I am sure that they are both crammed full of ideas. The Minister of State, Northern Ireland Office, looks as if he is absolutely packed full of ideas—ideas about Northern Ireland, maybe, but none the less he is clearly packed full of them.
Chris Bryant
No, I will not give way to the hon. Gentleman, because he is the Minister. I am sure that he is packed full of ideas, but the point is that they are not in the Queen’s Speech.
The truth is that what will happen in the coming year is what has happened throughout the last year. The House will not be sitting regularly. We shall have long recesses and long adjournments. The Government will make sure that there is not much legislation on the books, so that they can course their way through.
One Bill that I really wish had been included in the Queen’s Speech is a new fixed-term Parliaments Bill setting a term of four rather than five years. I think that the Government will rue the day on which they introduced a five-year fixed-term Parliament. People in this country will start to say “We are absolutely sick and tired of legislation that does not make sense, and of the Government’s not addressing the issues that we really care about.” There is a verse in the Book of Revelation that I think sums up the Queen’s Speech perfectly: “Would that you were hot or cold, but you are tepid, lukewarm, and I spit you out of my mouth.”
Bill Esterson
I am glad that that the hon. Gentleman is nodding. German contracts are let to German companies—there are ways of writing contracts that favour them, and this country must get better at that in relation to our companies.
I mentioned the construction sector and two projects in my constituency. This country should ensure that the supply chain supports local subcontractors and local labour, and that should be written into contracts far more often.
Bill Esterson
I am glad to see the Minister nod in agreement to that point. This is about supporting the local economy, which can happen only if we prioritise using local subcontractors and their staff. There are always ways of doing that.
I have made the point about the importance of investment in the economy. There was not enough in the measures announced in the Queen’s Speech—frankly, there was precious little—to support the economy and to get the growth we need. Ultimately, to get the deficit down, we must have growth. We must have the investment now; it will not wait. We have had three years of delay. We need immediate investment in construction, in housing and in the kind of projects that we have been discussing in the past hour or so. It is also important that we consider the measures that my right hon. Friend the Leader of the Opposition and the shadow Chancellor, my right hon. Friend the Member for Morley and Outwood (Ed Balls), are proposing on VAT and support for small business.
I will make a final plug for small business. I ran a small business for 15 years and many small businesses in my constituency—not only in construction, but throughout the economy—need growth and the support of Government investment to succeed. Small businesses will create the jobs; they will be the key drivers of the economic recovery that we desperately need. It is no good lending going just to the medium-sized and large companies that are already financially successful and have lots of money in reserve. There must be proper support for the smallest of businesses, and I urge the Government to take that point on board as well as the other points that I have made about investing in the economy.