Debbie Abrahams (Oldham East and Saddleworth) (Lab)
1. What discussions he has had with the Chancellor of the Exchequer on the effect on claimants in Scotland of changes in entitlement to working tax credits and child tax credits.
The Financial Secretary to the Treasury (Mr David Gauke)
The Chancellor has regular discussions with Treasury colleagues, as well as with the rest of the Cabinet, on a wide range of topics. The changes to tax credits are at the centre of the Government’s intention to move to a higher wage, lower tax and lower welfare society.
Debbie Abrahams
The independent Institute for Fiscal Studies has shown that the poorest 20% of the population will lose proportionately more than any other income group as a result of the benefit and tax changes. Given that International Monetary Fund analysis has shown that an increase in income to the poorest 20% stimulates growth, what is the Minister’s assessment not just of the increase in poverty in Scotland but of the stifling of growth?
Bob Blackman (Harrow East) (Con)
Does my hon. Friend agree that part and parcel of changing the system is to encourage the Scottish people to live on the wages they earn from the jobs that will be created under the long-term economic plan?
Mr Gauke
The key to prosperity is to ensure that we have a dynamic economy. That is why we are cutting business taxes so we have higher wages and higher productivity; that is why we are improving our skills and investment in the United Kingdom; and that is the way we can ensure we have higher living standards for the people of Scotland and all parts of the United Kingdom.
Angus Robertson (Moray) (SNP)
The UK Government are planning to restrict child benefit to two children for new parents. The Department for Work and Pensions and Her Majesty’s Revenue and Customs have in the Budget been asked to
“develop protections for women who have a third child as a result of rape, or other exceptional circumstances.”
Can the Minister explain how that will work?
Mr Gauke
The point I would make to the hon. Gentleman is that we think it is right that all families face the same situation, having to make choices bearing in mind the financial consequences of the number of children they have. It is right that a regime is put in place for exceptional circumstances. If the hon. Gentleman does not want to restrict tax credits to two children per family in future, he will be able to bring in top-ups paid for by the Scottish taxpayer under the powers provided in the Scotland Bill.
Angus Robertson
Rape is one of the most serious crimes and has one of the poorest clear-up rates. It is thought that 85% of women who are raped do not confirm that they have been raped. May I urge the Secretary of State and his colleagues to look very, very closely at this issue? I have already asked the Minister the question once and he did not give an answer as to how the Government are going to manage this very, very sensitive issue. May I ask him again how the Government plan to make this work?
Mr Gauke
We will set out the details in due course, but it is perfectly reasonable to limit in future—this is prospective; this is for future births—the support that is provided to families to two children under the tax credits system, so that all households face the same consequences of decisions about how many children they have. That is what most families have to live with.
Alison Thewliss (Glasgow Central) (SNP)
2. If he will make an assessment of the effect of benefit sanctions on (a) levels of poverty and (b) social cohesion in Scotland.
The Minister for Employment (Priti Patel)
All evidence shows that work is the best route out of poverty. This Government have taken action to reform the welfare system to support people to come off benefits and get into work.
Alison Thewliss
May I ask the Secretary of State for Scotland for an urgent review, as recommended by Citizens Advice Scotland, of the 323% increase in requests for food parcels in the past four years owing to the main triggers of benefit sanctions and benefit administration?
Priti Patel
I return to the comments I have just made. The best route out of poverty is to increase work incentives and to support employment opportunities—having a job. To do that, we need a Government with a long-term economic plan that secures employment prospects for the country as a whole.
Chris Law (Dundee West) (SNP)
Since the question about having a review will not be answered, is it not time that the powers were transferred to the Scottish Parliament to carry out this pressing and urgent review of the increase in the use of food banks in Scotland?
Priti Patel
Welfare powers will, of course, be devolved to the Scottish Parliament, so it will be up to it to use them effectively as it sees fit.
Ian Murray (Edinburgh South) (Lab)
I agree with the hon. Member for Glasgow Central (Alison Thewliss), because yesterday I also met Citizens Advice Scotland, which told us that more than 200 people a day were being sanctioned by the Department for Work and Pensions and that 100,000 children were being affected. Will the Minister please answer the question? Why will she not instigate a full review of the sanctions regime, as recommended by the Church of Scotland?
Priti Patel
When it comes to sanctions in particular, individuals are asked to meet reasonable requirements to take into account their circumstances, which is right and proper when people are looking for work and employment. [Interruption.] I see SNP colleagues laughing at the prospect, but we are all about supporting individuals into the employment market. As we have seen, 70% of jobseeker’s allowance recipients say that the system of sanctions and conditionality leads them to engage positively with the support on offer to help them into employment.
Robert Flello (Stoke-on-Trent South) (Lab)
3. What recent discussions he has had with the First Minister of Scotland on the Government’s decision to end new subsidies for onshore wind farms by April 2016.
The Secretary of State for Scotland (David Mundell)
I have regular discussions with the Scottish Government on issues affecting the energy sector, including on our manifesto commitment to end new subsidies for onshore wind. I have also listened to organisations and communities across Scotland who support our policy of an affordable energy mix that also protects Scotland’s natural landscapes.
Robert Flello
According to the UK Government’s own report, 5,400 jobs depend on onshore wind. Surely the decision to end the subsidies prematurely puts many of these jobs at risk. Why are the Government so complacent about putting 5,400 jobs at risk?
David Mundell
The Conservative position on this issue was clear heading into the election. Of course the interests of the industry are important, but so are the interests of taxpayers and local communities, and I believe that the policy we have set out gets it right in Scotland and across the United Kingdom.
Callum McCaig (Aberdeen South) (SNP)
13. On “Sunday Politics Scotland”, the Secretary of State, following the early closure of the renewables obligation for onshore wind, stated that projects with the prospect of a grid connection would be eligible under the grace period. Will he stick to that commitment?
David Mundell
I have repeatedly made clear my support for this policy; I believe it is the right thing to do. It is clear in Scotland that the UK Government are on the side of local communities, but the SNP is on the side of developers.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Niall Stuart, the chief executive of Scottish Renewables, says of this decision that it is
“bad for jobs, bad for investment and can only hinder Scotland and the UK’s efforts to meet binding climate change targets”.
Why does the Secretary of State think he knows better than Niall Stuart?
David Mundell
I certainly think I know better than the Liberal Democrats, who have been complicit in covering Scotland with wind farm developments. It is clear that ours is a popular policy among communities right across Scotland who do not want to see our landscape covered with unnecessary wind farm developments. I stand behind our policy.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
4. What recent discussions he has had with Ministers of the Scottish Government on progress on implementing the Scottish rate of income tax.
The Secretary of State for Scotland (David Mundell)
The UK and Scottish Governments continue to work closely with each other on the implementation of the Scottish rate of income tax. The question now is how the Scottish Government will use the new power when it comes into effect in April 2016.
Seema Malhotra
Transferring control of income tax to Scotland requires Her Majesty’s Revenue and Customs to identify who Scottish taxpayers are, but over the last year we have seen an increase in the risk rating by HMRC in terms of its ability to identify those taxpayers. Has that risk increased or decreased recently?
David Mundell
I can tell the House that the UK Government and the Scottish Government work closely together on this issue. Despite the bluster that we often see here, the reality is that the UK and Scottish Governments are working closely on many important issues for the people of Scotland. I am absolutely confident that the Scottish rate of income tax will be capable of being introduced next April. HMRC has done the necessary work; what we need now is to hear from the SNP what it intends to do with those tax powers.
John Mc Nally (Falkirk) (SNP)
In discussions with Scottish Ministers on the implementation of the Scottish rate of income tax, has the Secretary of State considered the benefits of devolving national insurance? Has he ruled out the devolution of additional tax powers or the full devolution of income tax to the Scottish Parliament—despite what was said before the “indyref”?
David Mundell
I would have given the proposal to devolve national insurance contributions a lot more credibility if a single SNP Member had stood up and spoken in favour of it during the Committee stage of the Scotland Bill. Instead, we had the spectacle of putting the issue to a vote without one Member setting out why the measure would benefit the people of Scotland.
Martyn Day (Linlithgow and East Falkirk) (SNP)
5. If he will make it his policy to table substantive Government amendments to the Scotland Bill in the House of Commons rather than in the House of Lords.
The Secretary of State for Scotland (David Mundell)
It is my intention to make substantive amendments in the House of Commons when the Bill comes back on Report.
Martyn Day
The Secretary of State knows that not a single amendment from the Opposition parties—not even amendments backed by 58 out of 59 Scottish MPs—has been accepted by his Government. Does he understand the anger people will feel if changes are brought through in the House of Lords rather than here in the Commons where they can be fully scrutinised by democratically elected Members? Will the Secretary of State make a commitment today to bring forward substantive changes to the Bill on Report to deliver on the Smith commission in full and implement the additional powers people voted for in the election?
David Mundell
What I know angers people in Scotland are stunts, soundbites and press releases aimed solely at taking opportunistic positions on issues. The Scotland Bill is a matter of substance, which will transfer significant powers to the Scottish Parliament, and it should be treated seriously. Some of the amendments, not least those for full fiscal autonomy, have not been serious. I am looking at all the amendments, sorting the wheat from the chaff, and will bring forward Government amendments on Report.
Mr Christopher Chope (Christchurch) (Con)
In welcoming my right hon. Friend’s statement, may I ask him how much notice he is going to ensure will be given of these forthcoming amendments?
David Mundell
I have already said to the Devolution (Further Powers) Committee in the Scottish Parliament that I will share our amendments with it—and I will, of course, share them with Members here and encourage a full debate. However, I want a debate on substance; I do not want stunts, soundbites and press releases. I want the best for the people of Scotland.
Pete Wishart (Perth and North Perthshire) (SNP)
That will not do, Secretary of State. You have been asked a very straight and clear question: will you now rule out bringing significant and substantial changes to the Scotland Bill in the unelected House of Lords? The House of Lords has never been held in such contempt by the Scottish people, who see it as nothing but a repository for the cronies of, and donors, to the UK parties. Will you rule out making significant changes through the House of Lords and do it in front of the elected Members of the House of Commons?
Mr Speaker
Order. I say very gently to the hon. Gentleman that I will rule out nothing, but I will leave it to the Secretary of State to do so. The debate runs through the Chair, and the hon. Gentleman, who is an experienced denizen of this House, should know that.
David Mundell
The hon. Gentleman does not listen. It was made clear repeatedly during the Committee stage of the Bill that amendments would come forward on Report and be debated in this House. The hon. Gentleman has been rumbled. He does not want to participate in a proper debate about the issues of concern to the people of Scotland; he is interested in press releases and stunts.
Ian Murray (Edinburgh South) (Lab)
My party has submitted more than 80 amendments to the Scotland Bill, more than all the other parties in the House combined. The Secretary of State has said today that he will listen, and will return to the House with amendments to the Bill. May I ask which of Labour’s amendments he will be accepting?
David Mundell
I will be reflecting on the amendments that Labour has tabled. Some were tabled in a constructive way, while others were obviously tabled in a partisan way. I will reflect on amendments to the Bill that are in the interests of the people of Scotland.
Ian Murray
New research conducted by the House of Commons Library, which I am releasing today, shows that the average family in Scotland working full time on the so-called national living wage will be more than £1,800 a year worse off after the Budget. The Scottish Federation of Housing Associations has said that the Budget has
“the potential to be just as damaging as the ‘bedroom tax’.”
Will the Government therefore accept Labour’s amendment to the Scotland Bill that would give the Scottish Government the power to design a welfare system fit for the Scottish people?
David Mundell
I believe that the substantial welfare powers in the Bill, which constitute responsibilities worth £2.5 billion, will give the Scottish Government and the Scottish Parliament a significant say in welfare arrangements in Scotland. What we need to hear from the SNP is exactly what sort of welfare system it intends to introduce, and, most important, who is going to pay for it.
Graham Jones (Hyndburn) (Lab)
6. What assessment he has made of the potential effects in Scotland of the devolution of decisions on varying the number of applications for new gaming machines where the maximum stake is above £10.
The Secretary of State for Scotland (David Mundell)
The Scotland Bill will give Scottish Ministers the power to vary the number of high-stakes gaming machines for new betting premises in Scotland. It is now for those Minsters to set out their policy intent.
Graham Jones
Fixed odds betting terminals are a plague on poor communities—they are known as the crack cocaine of gambling. Why is it acceptable for the Government to devolve that power to Scotland but not to local authorities like mine, which, along with 93 other authorities, has tabled a request for action from the Department for Communities and Local Government?
David Mundell
I know that the hon. Gentleman feels very strongly abut this issue, and I know that he and, indeed, others tabled amendments relating to it during the Committee stage of the Bill. I am definitely reflecting on it.
Philip Davies (Shipley) (Con)
Horseracing depends on its income from betting shops—that is, the money that they pay for picture rights. Has the Secretary of State made any assessment of the impact that this decision will have on funding for horseracing?
David Mundell
The view of the all-party Smith commission was that the proliferation of betting terminals was not good for Scotland, that it needed to be dealt with, and that the Scottish Government were best placed to deal with it. That is the measure that we are implementing.
Ronnie Cowan (Inverclyde) (SNP)
The draft clause would provide a power to restrict the number of FOBTs only when a new betting premise licence was being sought. The Law Society of Scotland has proposed that the clause should be amended to include existing and new premises. Will the Minister at least concede that to the Scottish Parliament?
David Mundell
I think I said in my earlier answer that we had not reached those amendments on that day of the Committee stage, but I am reflecting seriously on them.
Mr Peter Bone (Wellingborough) (Con)
7. What estimate he has made of the level of public expenditure per person in Scotland in each of the last three years.
The Financial Secretary to the Treasury (Mr David Gauke)
The latest edition of the Country and Regional Analysis calculates that in 2013-14 total identifiable expenditure on services in Scotland was 15% higher than the UK average. Once the Smith agreement has been implemented, changes in Scottish Government funding will increasingly come from changes in Scottish taxes rather than as a result of the Barnett formula.
Mr Bone
If we translate that into English, we find that more than £2,000 less per person is spent on people in the east midlands—including my constituents in Wellingborough—than is spent on people in Scotland, yet my constituents pay exactly the same taxes. Does the Minister think that that is fair and just?
Mr Gauke
There is no consensus on what the solution should be. The Barnett formula has been in place for some time. In future, however, more than 50% of funding will come from Scottish taxes rather than from the block grant, and the Barnett formula will therefore become less important over time.
Tommy Sheppard (Edinburgh East) (SNP)
The Government are very keen to focus on public spending, but not so keen to talk about tax contributions. People in Scotland have paid more, on average, for more than three decades. Will the Secretary of State confirm that the public expenditure cuts in Scotland, on top of the tax credit cuts for working people, will mean that the poorest in those communities will suffer the most? Given that Scotland has rejected the Secretary of State’s austerity programme, when will he give the Scottish Parliament powers to choose a different path?
Mr Gauke
We are giving the Scottish Parliament the powers to follow a different route. Perhaps it is time the SNP explained how it would use those powers, rather than constantly complaining about wanting more powers. On hurting the poorest, full fiscal autonomy, which would cost the Scottish people £10 billion a year, would hurt the poorest in Scotland.
Dr Roberta Blackman-Woods (City of Durham) (Lab)
8. How many young people aged between 16 and 24 in Scotland are not in employment, education or training; and if he will make a statement.
The Minister for Employment (Priti Patel)
Latest figures show that the number of NEETs aged 16 to 19 in Scotland in 2014 is down by over 8,000 to its lowest level since comparable records began in 2004.
Dr Blackman-Woods
Figures from the Scottish Government show that 59,000 young people are unemployed in Scotland, the largest number for any age group, and many are not able to access either a job or training. What is being done to address that?
Priti Patel
The hon. Lady raises a valid point, and the Department for Work and Pensions has helped young people in Scotland through a range of initiatives such as the new enterprise allowance and sector-based work academies as well as the Work programme. I am pleased to take further the Chancellor’s announcement in last week’s Budget that the Government are determined to support young people in Scotland and across the UK by introducing a youth obligation.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
The Minister will be aware of Scottish Government plans to increase the number of modern apprenticeship places in Scotland to 30,000. How will the new apprenticeship levy announced in the Budget operate? Will it deliver additional resources to the Scottish Government to invest in apprenticeships, and does the Minister have an estimate of how much new money will be available?
Priti Patel
The details of the policy will come forward in due course, but it is commendable that across the UK this Government are supporting the creation of 3 million new additional apprenticeships, which just goes to show that we are investing in our young people and supporting them as they get closer to the employment market.
Andrew Bridgen (North West Leicestershire) (Con)
9. What progress has been made on implementation of the recommendations of the Smith commission.
The Secretary of State for Scotland (David Mundell)
We are making good progress in implementing in full the all-party Smith commission agreement. The Scotland Bill, which will deliver significantly increased powers to the Scottish Parliament, was introduced on the first day of this parliamentary Session and has just completed four days of intense scrutiny on the Floor of this House.
Andrew Bridgen
Does the Secretary of State agree that the progress of the Smith commission recommendations shows that the three main Unionist parties are fulfilling their commitment to devolve further powers to Scotland, and that it is therefore unacceptable for others to seek baseless grievances to create the impression of some betrayal to further their own narrow political agenda?
David Mundell
I could not agree with my hon. Friend more. This week more than any other the narrow opportunism of the SNP has been exposed. The only issue on which that party is consistent is breaking up the United Kingdom, on which it will say or do anything.
Kirsty Blackman (Aberdeen North) (SNP)
At business questions on 2 July the Leader of the House stated:
“Independent assessments say we are implementing the Smith commission report”—[Official Report, 2 July 2015; Vol. 597, c. 1633.]
To date the Scottish Secretary has been unable to produce these. Will he now name those independent assessments or ask his right hon. Friend the Leader of the House to correct his previous statement?
David Mundell
I am confident in the statements I have made throughout the passage of this Bill. I did not see the hon. Lady contributing in Committee or on Second Reading, but, if she had, she would have heard me say that I am absolutely confident that this Bill will deliver the Smith commission in full.
Chris Stephens (Glasgow South West) (SNP)
10. What discussions he has had with the Scottish Trades Union Congress on trade union reform.
The Minister for Employment (Priti Patel)
As part of the trade union reform process, Department for Business, Innovation and Skills Ministers will invite the Scottish Trades Union Congress to discuss the Bill. This Government are committed to modernising trade union law. The Trade Union Bill to be introduced later today will introduce a balanced package to ensure working people are not disrupted by strikes without sufficient mandates.
Chris Stephens
The Minister confirms that the largest part of Scottish civic society has not yet been consulted on the Bill. Is that perhaps characteristic of a Government with a casual approach to legislation, or is it simply an ideological attack on those who stand up against exploitation?
Priti Patel
In contrast to the bluster, we are all about reforming and modernising trade union rules and, as I have just stated, BIS Ministers will invite the Scottish Trades Union Congress to discuss the Bill further.
Dr Roberta Blackman-Woods (City of Durham) (Lab)
Q1. If he will list his official engagements for Wednesday 15 July.
The Prime Minister (Mr David Cameron)
This morning I had meetings with ministerial colleagues and others and, in addition to my duties in this House, I shall have further such meetings later today.
Dr Blackman-Woods
The “Intergenerational Fairness Index” published this week shows that prospects for young people have deteriorated since the Conservatives came to Government. Will the Prime Minister explain why he is reducing opportunities for young people further by removing the maintenance grant for poorer students, thereby either reducing their opportunities or increasing their indebtedness?
The Prime Minister
We are increasing opportunities for young people by making sure that more of them have a job. Yet again, we have seen today a decrease in youth unemployment, which is down 13,000 on the quarter and 92,000 on the year. We now have record numbers of young people going to university and, because of the action we are taking, we are able to take the cap off university numbers and see many more people going. Replacing grants with loans is the right approach. Interestingly, it was the approach taken in 1997 when the right hon. and learned Member for Camberwell and Peckham (Ms Harman) sat in the Cabinet.
Philip Davies (Shipley) (Con)
Q2. It is bad enough that the latest figures show that there are 363 murderers in open prisons and that 106 murderers have absconded from open prisons in the last 10 years, but the figures also show that there are 179 offenders in open prisons who have previously absconded from an open prison. Will the Prime Minister give a commitment to ensure that nobody who has ever absconded from an open prison will ever be allowed back into an open prison?
The Prime Minister
I know that my hon. Friend takes a keen interest in this matter, and I will examine his proposal. We have already overhauled the process for allowing prisoners out on temporary licence, which has led to a 39% drop in the number breaching their licence conditions. The rate of prisoners escaping from prison has reached a record low. As I understand it, prisoners with a history of escaping or absconding while on temporary release are prevented from transferring to open conditions other than in the most exceptional cases. I will look at those exceptional cases to see whether there is a case for the blanket ban that my hon. Friend has talked about, and I will write to him over the summer.
Ms Harriet Harman (Camberwell and Peckham) (Lab)
May I ask the Prime Minister a question about Greece? It is important that a deal on Greece has now been reached. The economic trauma that the people of Greece are going through is on a scale unprecedented in Europe since the end of the second world war, and the agreement should be implemented in a way that is fair to the people of Greece as well as being acceptable to the creditors. It is being reported this morning that the International Monetary Fund is concerned about whether the deal is sustainable. Will the Prime Minister tell the House whether the Chancellor has had discussions with Christine Lagarde about how those concerns can be addressed?
The Prime Minister
The right hon. and learned Lady is absolutely right to raise this. We all feel for the Greek people, who have had a very difficult time, and there are no early signs of relief on the way. We talk regularly to the IMF, and the point that it is making that there needs to be debt relief for Greece must be right. The problem is that there is an argument at the heart of the eurozone about whether it is a single currency in which member states have to look after each other’s debts and have a fiscal union, a banking union and a social union—that is one view—or whether the single currency should have very strict rules and cannot deal with these things. Frankly, it is in our interests for the eurozone to resolve these issues. We are not involved in the debate directly because we are not in the euro—[Hon. Members: “Hear, hear!”] And we are not going to join the euro. But the eurozone needs to resolve these issues and it needs to resolve them quite fast.
Ms Harman
It is important that the deal is sustainable, and it is interesting to hear the Prime Minister’s view about a measure of debt relief being necessary. Does he agree, however, that with President Putin waiting in the wings, this is about more than just economics—it has wider geopolitical significance? What is his view about that?
The Prime Minister
The right hon. and learned Lady is absolutely right. Greece is a member of the European Union, as well as of the euro. It is a friend and ally of Britain—we are NATO members and trading partners. It is not for Britain to bail out eurozone countries, and we would not do that, but, as a member of the European Union, if Greece were to leave the euro and it wanted humanitarian assistance, I am sure this House and the British public would take a more generous view. Sorting out the problems of the eurozone—we have always warned about the dangers of it—is a matter for eurozone countries, but she is right about the dangers of Russian involvement.
Ms Harman
But of course what happens in the eurozone affects this country, and therefore it is important that we are fully engaged.
Turning to the Budget, we are all concerned to see today’s rise in overall unemployment. For those in work, the Chancellor said that his changes on pay and tax credits will make working families better off, but they will not. The Institute for Fiscal Studies has now made it absolutely clear that the idea that a higher minimum wage will compensate for the loss of tax credits is “arithmetically impossible”. Will the Prime Minister now admit that as a direct result of his cuts to tax credits millions of working families on low incomes will be worse off?
The Prime Minister
First, let me comment on the unemployment figures. The right hon. and learned Lady is right in that there are mixed messages in the figures. It is disappointing that the claimant count has gone up, having fallen for so many months in a row—it is still at the lowest level since 1975—but long-term unemployment is down, youth unemployment is down and the rate of employment for women is at a new record high. Interestingly, when you look across the last year, you can actually see that all of the rise in employment in the last year has been among people working full time. Interestingly, in the light of the debates we had in the last Parliament, wages are up by 3.2% in these figures, which compares with yesterday’s inflation figures of zero. On the Budget, I remember her asking me from that Dispatch Box and making the point that reforming welfare would not work unless we increased minimum wages by a quarter. I can tell her that we are not going to—we are increasing them by a third, through the national living wage.
Ms Harman
So the Prime Minister is refusing to accept the fact that has been clearly established by the Institute for Fiscal Studies: that the minimum wage increase will not compensate for his cuts in tax credits. That takes me to another claim he made about the Budget. He said that he would protect the most vulnerable. You are obviously vulnerable if you have a condition such as Parkinson’s or you are being treated for cancer, but the Budget changes mean that the support people like that will get will be cut from £100 a week to £70 a week. We agree that the deficit needs to come down, but what kind of Government is it that think the way to do that is to hit people who, through no fault of their own, are suffering from life-limiting illnesses? That is what his Budget is doing.
The Prime Minister
First, let us deal with the effects of this Budget and let me give the right hon. and learned Lady the figures. A family with two children where both parents work full time on the minimum wage will be better off by 2020 by a full £5,500. I do not think the Labour party has fully grasped the importance of this national living wage. Labour fought an election on it being £8 by the next election, but it is going to be over £9 by the next election because of the action of this Government.
The right hon. and learned Lady wants to ask questions about welfare, and I welcome what she has said. She said this week:
“we won’t oppose the Welfare Bill, we won’t oppose the household benefit cap”—
and Labour would not oppose—
“restricting benefits and tax credits for people with three or more children”.
I welcome that. What a pity the rest of her party does not agree with her. She asked specifically about employment and support allowance, and it is really important that we get this right. There are two groups of people on ESA, with the first being the support group, who will continue to get extra money—more than on jobseeker’s allowance—for as long as they need it. In terms of future claimants in the work-related activity group, existing claimants keep the existing amount of money but it is right that new claimants should get the same amount as jobseeker’s allowance and then get all the help that we give to jobseekers to help them into work. [Hon. Members: “Why?”] Members ask why. I will tell them why: we want to get people into work. We want to give people a chance. We want to give people a life. That is what this Budget was all about.
Ms Harman
The Prime Minister talks about new claimants, but he does not really understand the reality of the situation. A lot of these people are in and out of work—they want to work but can do so only intermittently. Every time they go back into work and then come out of work, they are treated as a new claimant. I do not need to be patronised by the Prime Minister about not understanding the minimum wage—we introduced it. The Institute for Fiscal Studies says that 3 million families will be at least £1,000 a year worse off.
The Minister for Skills, the hon. Member for Grantham and Stamford (Nick Boles), was on the radio this morning talking about party funding. He said that the Government’s curbs on trade union donations were not an attack on working people and the Labour party. Well, it does not look that way. There is an issue about big money in politics, but it must be dealt with fairly. Will the Prime Minister commit not to go ahead with these changes unless it is on a cross-party basis? Will he include the issue of individual donation caps? It is not acceptable for him to be curbing funds from hard-working people to the Labour party while turning a blind eye to donations from hedge funds to the Tories.
The Prime Minister
Finally, we see where all those questions were going. The Labour party can go round and round and round, but it always comes back to the trade unions, which call the tune. Let me answer all the questions that the right hon. and learned Lady asked. First, if the Labour party is so keen on the national living wage, why did it vote against it in the Budget last night? Secondly, on the employment and support allowance, the number of people coming off jobseeker’s allowance is more than seven times higher than that for those who have come off incapacity benefits since 2010. We want to help these people get back into work. Now she asks about the issue of trade union funding for the Labour party. There is a very simple principle here: giving money to a party should be an act of free will. Money should not be taken out of people’s pay packets without them being told about it properly. If this was not happening in the trade unions, the Labour party would say that this was appalling mis-selling. It would say that it was time for consumer protection. Why is there such a blind spot—even with the right hon. and learned Lady—when it comes to the trade union paymasters?
Ms Harman
There is a simple principle here—it must be fair. What the Prime Minister is doing amounts to one rule for the Labour party but something completely different for the Tories. To be democratic about this, the Prime Minister must not act in the interests of just the Tory party. Instead of helping working people, he spends his time rigging the rules of the game. Now he wants to go even further and attack the rights of working people to have a say about their pay and conditions. That is on top of the Government already having changed the rules to gag charities and trade unions from speaking out. The Prime Minister says he wants to govern for one nation, but instead he is governing in the interests of just the Tory party.
The Prime Minister
The law for company donations was changed years ago, but the law for trade union donations has been left untouched. The principle should be the same: whoever we give our money to, it should be an act of free will. It should be a decision that we have to take. The money should not be taken from people and sequestered away without them being asked. Today we have seen it all. I thought that the right hon. and learned Lady was the moderate one, and the leadership contenders were the ones who were heading off to the left. What have we heard from them? They oppose every single one of our anti-strike laws; every single one of our welfare changes; and some of them even describe terrorist groups such as Hamas as their friends. In the week when we are finding out more about Pluto, it is quite clear that they want to colonise the red planet.
Chloe Smith (Norwich North) (Con)
On Monday two men were tragically killed in an industrial explosion in my constituency. The families are devastated, and the thoughts of everyone in Norwich are with them and with the friends and colleagues of the two workers. The emergency services worked tirelessly and investigations are ongoing, including that of the Health and Safety Executive. Will the Prime Minister join me in expressing our deepest sympathy and ensuring that the relevant parts of Government do all they can to support my constituents at this difficult time?
The Prime Minister
This is a very sad case, and I certainly join my hon. Friend in sending my condolences, and those of all Members of the House, to the family and friends of Barry Joy and Daniel Timbers at what is obviously a very difficult time. No words can do justice to the loss felt by those affected. I understand that the emergency services are continuing to investigate the circumstances surrounding the incident in order to get to the bottom of what happened. There will need to be a proper investigation and proper answers for the families.
Angus Robertson (Moray) (SNP)
Rape is an horrific crime that is abhorred by MPs of all political parties. Under the Prime Minister’s plans to restrict child benefit to two children for new parents, the Government’s Budget asks the Department for Work and Pensions and Her Majesty’s Revenue and Customs to
“develop protections for women who have a third child as the result of rape, or other exceptional circumstances.”
Can he explain how that will work?
The Prime Minister
We are very happy to look very closely at such issues, because there is absolutely no intention to penalise people who have been treated in this way. The principle we are applying is one that I think was set out very clearly by the right hon. and learned Member for Camberwell and Peckham (Ms Harman). I think she put it extremely well when she said:
“When I was going around the country… talking specifically to women, so often they would say, ‘You know, we’ve got one child and we’d really love to have another, but we just can’t afford it’…They’re working hard and they feel that it’s unfair”
when other people can have
“families they would love to have…We have to listen to that.”
I think she was absolutely right, as I think all of us would agree. But, of course, in cases such as the one the hon. Gentleman raises, we will have to look very carefully to ensure that we look after them.
Angus Robertson
Rape is one of the most under-reported serious crimes in the UK. It is believed that 85% of victims do not confirm it to anybody, for a variety of very understandable reasons. Women Against Rape has said:
“Asking women to disclose very difficult information and expecting them to be able to prove it—in what is frankly a very hostile environment when the DWP is trying to take your money away—will have appalling consequences.”
I urge the Prime Minister to look again and think again about what impact his proposals will have on rape victims.
The Prime Minister
I can reassure the hon. Gentleman, because he is reading from the Budget Book, which sets out the issue, that we do need to look very carefully at this, think about it and ensure that we get it right. At the same time, I am sure that he welcomes what was in the Budget about investing in women’s refuges and rape crisis centres to ensure that we look after people who have suffered this appalling crime.
Mr Andrew Mitchell (Sutton Coldfield) (Con)
My right hon. Friend indicated over the weekend that he would like to see greater use made of drones in the fight against terrorism, but is he aware that for every terrorist taken out by a drone between five and 10 innocent civilians, especially women and children, lose their lives? Will he accept that we need to bear that effect in mind as we seek to win hearts and minds in the conflict against the evils of terrorism?
The Prime Minister
Of course we must always think very carefully before we act, but the rules of engagement that both Britain and America follow are there to limit collateral damage to the absolute minimum. But if my right hon. Friend is asking me whether Britain should give up using drones in extremis to take out people who are threatening our country and seeking to bring terrorism to our streets, I would say very firmly no. I will say something that I am sure we both agree with. As Secretary-General Ban Ki-moon said, a missile can kill a terrorist, but it is good governance and strong Governments that can kill terrorism.
Mr Jeffrey M. Donaldson (Lagan Valley) (DUP)
Q3. Enniskillen, Portadown, Lisburn, Belfast, Manchester, Warrington, Canary Wharf and the Grand hotel, Brighton are all places synonymous with the use by the IRA of Semtex explosives supplied by the Libyan Government to maim and murder thousands of innocent people in the United Kingdom. The American Government have secured compensation from the Libyans for the victims of state-sponsored terrorism. In the light of the recent political agreement in Libya, will the Prime Minister now commit to press the case for UK victims of state-sponsored Libyan terrorism to be given compensation as well?
The Prime Minister
Let me commend the right hon. Gentleman for raising this issue time and time again; he is absolutely right to do so. The fact is that it was Libyan Semtex that was used, and frankly could still be being used by dissident IRA groups because so much of it was delivered by Colonel Gaddafi and his hateful regime. Yes, we have raised with the Libyan Government in the past the issue of trying to seek compensation, and when there is a Libyan Government—there is not yet one in place—we will certainly raise it again.
Bob Blackman (Harrow East) (Con)
Q4. Last week thousands of my constituents and millions of Londoners and visitors to London were severely inconvenienced by the pointless tube strike. They will all welcome the Government’s published proposals for changes to trade union laws, but will my right hon. Friend go further and state to this House and the people of this country that strikes in essential services should be absolutely the last resort and not a negotiating tactic?
The Prime Minister
I think the whole country will agree with my hon. Friend: strikes should only ever be a last resort. Frankly, with regard to the London tube services, the people driving these trains are well paid, and they are getting a pay rise and the chance of a bonus. It is absolutely right that we publish the Trade Union Bill today and we take these important steps—that a strike should not go ahead unless there is a 50% turnout and in essential services there should be an additional threshold of 40% support for the strike. [Interruption.] I know that Labour Members will not like this, and they talk about thresholds, but the fact is that people affected by this—[Interruption.] The hon. Member for Liverpool, Walton (Steve Rotheram) says I would not have been elected on that threshold. The fact is this: people affected by these strikes do not get to vote. That is why it is right to have these thresholds. I think the whole country will see a Labour party utterly in hock to the trade unions and a Conservative Government wanting to sort this out for hard-working families.
Dr Alasdair McDonnell (Belfast South) (SDLP)
The Prime Minister will be aware of the vicious disorder that we saw in Belfast on Monday of this week, when police officers were seriously injured and a 16-year-old girl was left hospitalised as a result of disgraceful violence relating to parading. A car was driven intentionally and malevolently at a protest group. Will he join me in calling for the loyal orders to accept the genuine offer of residents, particularly those in Ardoyne, to engage in direct and meaningful dialogue to reach an honourable solution to the dispute that exists there, and hopefully to other disputes around parading?
The Prime Minister
I absolutely agree with the hon. Gentleman that those sorts of scenes are deeply damaging to Northern Ireland’s reputation and to Northern Ireland’s future. We all want to see these situations sorted out and not occurring in future. Overall, this year’s twelfth of July was overwhelmingly a peaceful celebration in most areas of Northern Ireland, but what happened in the north of Belfast is not acceptable. I agree with him that where it is possible for people to get together and solve these problems, of course that is the best thing that can happen, but in the meantime it is obviously the Parades Commission that runs the adjudication process.
Scott Mann (North Cornwall) (Con)
Q5. May I welcome the recent announcement in the Budget that this Government are pledging an extra £8 billion for the NHS in England? Launceston medical centre in my constituency of North Cornwall has been waiting two years for the green light for its expansion. Can my right hon. Friend provide me with an update regarding the progress of its bid?
The Prime Minister
My hon. Friend is absolutely right that the £8 billion—effectively £10 billion when we think of the £2 billion already put in for this Parliament—is a real vote of confidence from this Government in the NHS, and money that will make a real difference. I know that he has been campaigning to expedite the situation at Launceston medical centre. I am told by NHS England that it is a priority development. I hope that perhaps it can form part of the work we are doing to create a genuine seven-day NHS—seven days for people to access the NHS and always get the same levels of high-quality treatment.
Paul Blomfield (Sheffield Central) (Lab)
Q6. GP practices across Sheffield serving patients with complex and therefore more costly health needs are threatened by the withdrawal of the minimum practice income guarantee and the personal medical services premium. Will the Prime Minister ask NHS England to review the impact of these decisions to ensure that no practice closes, and will he ask Health Ministers to meet me and other Sheffield Members to consider what can be done to support effective practices?
The Prime Minister
I am sure that the Secretary of State for Health and his team will listen carefully to that and see if they can speak to the hon. Gentleman. What is happening in his city is that the number of GPs is actually increasing. This year, NHS Sheffield clinical commissioning group is getting £708 million, which is an almost 2% increase at a time of almost zero inflation. What we need to do is get the negotiations on this contract right. That does mean making some changes over time, but the contract has got to deliver the quality that the patients deserve.
Steve Brine (Winchester) (Con)
I know that the Prime Minister is very aware of the tragic deaths of Corporal James Dunsby, Lance Corporal Craig Roberts and my constituent Lance Corporal Edward Maher on an SAS selection exercise in the Brecon Beacons two years ago this week. Yesterday, the coroner said that their deaths were the result of a series of “gross failures” and a
“catalogue of very serious mistakes”
by those involved in planning and running the exercise. Obviously, nothing can turn the clock back for the families, but will the Prime Minister ensure that the Army service inquiry that will now get under way does everything it can—recognising, of course, that we can continue to train the best armed forces in the world—to bring in whatever changes are needed to prevent this from ever happening again and to see that those responsible are held to account?
The Prime Minister
I am sure I speak for the whole House and indeed for the whole country when I say that our hearts go out to the families of James Dunsby, Craig Roberts and Edward Maher. Having seen at first hand some of the extraordinary things that our special forces do, the bravery of people who volunteer to join and the training that they do, I know how vital this is, but it is an absolutely tragic case. I understand that the Ministry of Defence has accepted the failures identified by the coroner and has apologised for these. I also understand that a number of changes have already been made to this particular exercise. We now need to study the coroner’s conclusions very carefully, and make sure that this cannot possibly happen again. I know the Army will also hold its own service inquiry as soon as all the civil investigations have been completed. It is an absolutely tragic case, and we will learn from it.
Paul Flynn (Newport West) (Lab)
Q7. Cardiff has 600, Newport has 400, Rochdale has 700—yet the constituencies of the Prime Minister, the Chancellor and the Home Secretary have a grand total of only three. Is this a fair and efficient way to locate asylum seekers?
The Prime Minister
I believe we are operating the dispersal system in the same way it was operated for many years under the previous Labour Government, but I will look very carefully at the points the hon. Gentleman makes.
Will Quince (Colchester) (Con)
Q8. Colchester is not only the oldest recorded town in Britain, but the fastest growing. Our claimant count is down 57% since 2010, but we want to go further. Does my right hon. Friend agree that only with much-needed investment in our local road and rail infrastructure can we attract businesses, create jobs and get Colchester moving?
The Prime Minister
Let me welcome my hon. Friend to the House. I remember campaigning with him in Colchester and how much he talked about the importance of these infrastructure schemes. That is why we have asked Network Rail to look at the options for the Anglia franchise, because we want to deliver reduced journey times on the great eastern main line. We have approved a series of major upgrades to the A12 that are absolutely vital. Now that he is speaking up for Colchester, I am sure we will be able to do even more.
Judith Cummins (Bradford South) (Lab)
Q9. The Secretary of State for Transport has refused to say when he first told the Prime Minister that the electrification of the trans-Pennine line could not go ahead. There is huge concern about this in my constituency and across the north. Was the Prime Minister told about this before the general election—yes or no?
The Prime Minister
No, I was told about this after the election, as we have set out before. The point now is that we need to do everything we can to get to the bottom of the overspending and the engineering difficulties. Frankly, we have committed vast sums of money—a £38 billion programme—to rail, and instead of griping and raising these grievances, the whole House should get behind this programme and make sure we get on with it.
Mims Davies (Eastleigh) (Con)
With the threat level at an unprecedented high, will my right hon. Friend support 2% of GDP for the defence budget and prioritise no further cuts to front-line forces, as the constituents of Eastleigh have asked me to ask him?
The Prime Minister
My hon. Friend is absolutely right. We made the pledge in our manifesto that there would be no further reductions in regular armed services numbers, which was absolutely right. With the 2% and the extra commitment that we are making throughout this Parliament, we can have a strategic defence and security review that looks at options to make this country even safer. The Chancellor and the Defence Secretary have made sure that we look at options for counter-terrorism and intelligence and security, as well as defence assets, to ensure that we do everything we can at this time of heightened security to keep Britain safe.
Andrew Gwynne (Denton and Reddish) (Lab)
Q10. A combination of changes that were made to the state pension in 1995 and 2011 means that many women who were born in the 1950s will not have the kind of retirement that they had hoped for. Given that senior civil servants, judges and even Members of Parliament have their pensions protected within 10 years of their normal retirement age, is it not time for the Prime Minister to look again at ensuring that this group of women have fairness in the system?
The Prime Minister
I will look carefully at the hon. Gentleman’s question, but it was absolutely right to raise the pension age. That has been one of the most important long-term changes that have enabled us to go on paying very generous pensions. It has enabled us to have the triple lock, which means that the pension will always go up by earnings, prices or 2.5%—whichever is the highest. If we went down the path that he is suggesting of not changing the pension age, pretty soon we would find that we could not pay proper pensions. That is always the Labour way—you take the easy way, you duck the difficult decisions and then you can’t pay.
Mr Andrew Turner (Isle of Wight) (Con)
Is my right hon. Friend aware that 120,000 Europeans and 140,000 non-Europeans settled in this country in 2013? Does he agree that the UK Government have to control the number of migrants?
The Prime Minister
Yes, I do. That is why we took so much action in the last Parliament to cut net migration from outside the European Union. Obviously, inside the European Union there is the freedom to go and work in another European country. One reason we are focusing so much on the welfare issue is that of the people who come from Europe to the United Kingdom, 60% are jobseekers, not people who already have a job. Our proposals that people will not get benefits for the first six months of being here, that if they do not have a job after six months they will have to go home, and that they will have to pay into the system before they get anything out of the system will make a real difference.
Mrs Emma Lewell-Buck (South Shields) (Lab)
Q11. My constituent, Kylie Strasenburgh, is a home carer who is on call six days a week. She works every hour God sends, but needs working tax credits to help make ends meet. Will the Prime Minister be honest with Kylie and admit that even with a higher minimum wage, the cuts to tax credits will make her worse off?
The Prime Minister
Careworkers up and down the country who are currently on the minimum wage and who get no more than that will benefit, not least from the 50p increase from the national minimum wage to the national living wage, which will happen straight away next year. We are only able to do that because we are cutting taxes for working people, cutting taxes for business, making welfare affordable and introducing the national living wage. Let the whole House focus on this: last night the Labour party voted against the national living wage. Put that on your leaflets!
Mr Robin Walker (Worcester) (Con)
Q12. Youth unemployment in Worcester has halved over the past two years. As of today’s figures, it is down two thirds from its peak under Labour. With this one nation Government investing in increasing the number of apprenticeships by half, will the Prime Minister back my long-term plan to have 15,000 apprenticeships a year in Worcestershire by 2020?
The Prime Minister
I thank my hon. Friend for all that he does to support apprenticeships in his constituency. Some 4,490 have been created since 2010. He is right that the challenge for the future is to have the right number of apprentices and quality of apprenticeships. That is why it is right to introduce a levy on larger firms, whereby they get the money back if they invest in apprenticeships, but have to pay if they do not. That will be one of the key ways in which we achieve our goal of 3 million apprentices in this Parliament.
Mr Michael Meacher (Oldham West and Royton) (Lab)
Q13. If this is such a great economic recovery, why are wages still 6% below the pre-crisis level of seven years ago? Why was the growth rate in the last quarter a mere 0.4%? Why has productivity been flat for five years? Why is UK investment as a proportion of GDP one of the lowest in the world? And why is the balance of payments in traded goods now in deficit by £100 billion a year?
The Prime Minister
If the right hon. Gentleman wants to know why, there are two words: ask Gordon. But if he wants to know what is actually happening in our economy, let me tell him. The deficit has been halved from its peak—[Interruption.]
Mr Speaker
Order. Andy McDonald, calm yourself, man. Take some sort of soothing medicament. You will find it beneficial.
The Prime Minister
If the right hon. Gentleman wants to know what is happening in our economy, the deficit is down by half, we have seen the fastest growth of any major advanced economy in 2014, we grew by 3% last year, the economy is 10% bigger than when I became Prime Minister, there are 2.2 million more people in work, and just today we can see inflation at zero, wages growing by over 3%, and a 5% cut in gas prices for 7 million customers. I would call that a long-term economic plan that is working. Added to that, just this week we have introduced a national living wage, we are building a welfare system that rewards work, and we are cutting taxes for working people. That is a Conservative party standing up for working people and delivering on the one nation agenda.