Oral Answers to Questions

Andrew Western Excerpts

Monday 5th February 2024 Commons Chamber

[Mims Davies]

I thank the hon. Lady for making the important point about the numbers. I agree that behind each of those is somebody we should be concerned about, and I am absolutely looking at this point. We are continuing to learn from decisions overturned by appeal, and we will continue to make improvements to our decision-making processes to help people to get the correct decision earlier in their claim journey, and to be able to work and have the support where it is needed. Not everybody on PIP is out of work, so we need to be listening to the needs of the people in those queues. I am conscious that every one of them is not a statistic but a person who needs our support.

[Andrew Western (Stretford and Urmston) (Lab)]

9. What estimate his Department has made of the cost to the public purse of economic inactivity due to ill health.

[Simon Fell (Barrow and Furness) (Con)]

11. What steps his Department is taking to reduce labour inactivity.

[The Secretary of State for Work and Pensions (Mel Stride)]

There are, of course, significant costs related to an increase in long-term sickness and illness rates in work. That is why we have our £2.5 billion back to work plan, to help 600,000 disabled people and people with health conditions start and stay in work. That approach, along with others, has seen economic inactivity reduce by 330,000 since its peak during the pandemic.

[Andrew Western]

NHS waiting lists are currently at 7.8 million, with more than 177,000 people on waiting lists in my own NHS trust area. When it is this difficult to access medical treatment, it is no surprise that we have a record 2.8 million people out of work due to ill health. Does the Minister accept that this Government’s failure on the NHS is stymying economic growth, denying people the dignity of work and costing taxpayers billions of pounds?

[Mel Stride]

On NHS waiting lists, there has been progress, in that the two-year waiting lists have almost been entirely dispensed with and those of 18 months have been very substantially reduced. Our Department recognises that work is part of the solution to improving people’s health, which is why we are putting forward the WorkWell service, bringing together medical input and work coach input; fit note reform to help at an earlier stage of the journey; and the reforms to the work coach assessment. All those things are moving towards getting more people into work, which is good for their health.

Oral Answers to Questions

Andrew Western Excerpts

Monday 18th December 2023 Commons Chamber

[Mims Davies]

I thank the Chair of the Select Committee for his question. In fact, I have an Uber T-shirt from my time as employment Minister, which the company gave me when it brought in the pension. I applaud the work that Uber has done to support its workforce. The right hon. Gentleman makes an important point, which is actually for another Department, but I will take those messages away.

[Andrew Western (Stretford and Urmston) (Lab)]

8. What steps his Department is taking to help reduce the number of children in poverty.

[Janet Daby (Lewisham East) (Lab)]

11. What steps his Department is taking to help reduce the number of children in poverty.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

In 2023-24 we are spending around £124 billion through the welfare system on people of working age and children. Evidence shows the importance of work in reducing the risk of child poverty. With over 900,000 vacancies across the UK, our focus is on supporting parents into, and to progress within, work. Our recent autumn statement announcements, which included the back to work plan, increasing benefits and increasing the national living wage, are all part of our clear approach to ensuring that everybody gets the right support to progress and thrive.

[Andrew Western]

I hear what the Minister says, but a recent report from UNICEF showed that of 39 OECD and EU countries, the UK came last in terms of improvements in child poverty between 2012 and 2021. As a result, one in five children in my constituency of Stretford and Urmston are growing up in poverty. What more can the Minister do to address this truly appalling situation?

[Mims Davies]

I thank the hon. Gentleman for raising that report. I have looked at it, and it is important that we react to it. I point to our record of action. When it comes to further support for households with low incomes, we have heard in the Chamber—indeed, the Secretary of State mentioned this—about raising local housing allowance back to the 30th percentile, which will benefit 1.6 million low-income households by, on average, £800 a year in 2024-25. When that is added to the national living wage, the uprating of benefits and the availability of work, we are determined that those families will progress.

--- Later in debate ---

[Paul Maynard]

That is certainly one reason why we are trying to get people to engage in a more considered way with what they do at the point of the decumulation of their pension funds, but I am more than happy to meet my hon. Friend to discuss his specific concerns about annuities in due course.

[Andrew Western (Stretford and Urmston) (Lab)]

The Trussell Trust has recently reported that in the past year there has been an 80% increase in the number of children in Stretford and Urmston being supported with food parcels. Can the Minister tell me why it believes that is the case?

[Mel Stride]

The record speaks for itself: this Government have been behind £104 billion-worth of support for the most vulnerable over the period 2022 to 2025; poverty in absolute terms, after housing, has fallen by 1.7 million since 2009-10, when the hon. Gentleman’s party was last in office; we have 400,000 fewer children and 200,000 fewer pensioners in absolutely poverty—under the last Labour Government, we had the fourth highest level of pensioner poverty in Europe; and we have put the national living wage up by 9.8% and cut taxes as well.

Budget Resolutions and Economic Situation

Andrew Western Excerpts

Thursday 16th March 2023 Commons Chamber

[Andrew Western (Stretford and Urmston) (Lab)]

I congratulate my hon. Friend the Member for West Lancashire (Ashley Dalton) on her outstanding maiden speech. Having known her before her election to this place, I knew she would quickly make an impact and she certainly did that with her contribution today.

In his Budget speech yesterday, the Chancellor said:

“In November we delivered stability; today it is growth.”—[Official Report, 15 March 2023; Vol. 729, c. 847.]

That is a bold statement, and upon closer inspection one may even say a brazen one: brazen not only because that stability was required because of the Conservative Government’s kamikaze Budget and their crashing of the economy, but more pertinently because on this Chancellor’s watch our economy will not grow, but will shrink, by 0.2% this year. In fact, we only avert technical recession this year because the pain is distributed in such a way that it avoids two successive quarters of output decline—not because this Government have averted economic shrinkage, and not because they have delivered the laser-like focus on growth that our economy needs. Far from it, the evidence tells us that this Government have been asleep at the wheel: while we in the UK see economic contraction this year, every other G7 country is forecast growth. While we in the UK see an economy that is still some 0.8% smaller than before the pandemic, every other G7 economy has grown to be larger than it was before the virus intervened.

Conservative Members tell us to look at the longer-term picture: they say that this was always going to be a difficult year and their action has lessened the blow. That is nonsense, because this claim fails to take into consideration that growth projections for years three to five of the forecast period are revised down, and at the same time our underlying debt is set to increase from 92.4% of GDP this year to 93.7% of GDP next year. This is Tory Britain: they crashed our economy last year, and they have no plan to put it right this year.

But let me turn to what this Budget says about the Conservative approach to basic fairness. The uplift in the annual tax-free allowance on pension contributions, from £40,000 to £60,000, benefits only those whose retirement funds constitute the largest 1% of pension pots in the country. Alongside lifting the lifetime allowance, that amounts to a huge tax break for some of the wealthiest people in the land. That this announcement came on the very same day that the OBR informed us we will have the lowest real living standards since records began speaks volumes about the appalling priorities of this Government.

I have said before in this place that politics is ultimately about choices, and this Tory Government have made the wrong choices yet again. Not once in his speech yesterday did the Chancellor mention the words “fair” or “fairness,” and I cannot say I am surprised. They have form on fairness, and time and again they show us whose side they are really on.

I accept that we need to address the shortage of doctors somehow, particularly as the Government continue to reject Labour’s fully costed proposal to scrap non-dom status and fund the largest workforce expansion in NHS history. So while I welcome the pension changes as they pertain to NHS staff, this should have been a bespoke offer available only to them, and in my view it should initially have been a pilot so that we could assess its future impact. Moreover, although the Government claim to want to help over-50s back to work, their unfair tax break for the wealthiest 1% has created a perverse situation whereby some over-50s may well be able to retire sooner, because their pension pots will have grown large enough for them to do so at a younger age than they had planned. Joined-up government? Don’t make me laugh. We have a Government at sixes and sevens, and a Chancellor without the clarity of purpose that is needed to turn our economy around.

How do we know this? Well, let us recap. The Government want to level up, but we have the lowest investment in the G7. The Prime Minister wants debt to go down, but debt as a share of GDP will be up next year. The Chancellor wants to help with living costs, but we have the worst real living standards since records began. The Health Secretary wants to fix the NHS workforce, but the Prime Minister will not scrap non-dom status to fund it. The Work and Pensions Secretary wants to get over-50s back to work, but the Chancellor has just given a huge tax break to the richest, which means that they may well retire earlier than ever. It is preposterous. You could not make it up.

We have had 13 years of this grotesque contradiction between words and action, this lack of vision, this fundamental mismanagement. The Government have no idea, no clue, and no plan for economic growth. They have crashed our economy, they have undermined our standing in the world, and they have decimated our public services. We are seeing sticking-plaster politics time and again, rather than the long-term solutions that our country needs. Because they are unable or unwilling to unleash the ambition of the British people to realise the fastest growth in the G7, we languish at the bottom of the pile.

The Chancellor said yesterday that this Budget showed that his plan was working, but the reality is that this tired, out-of-touch, failing Government have no credible plan at all. It is time for a change. It is time for a Labour Government. For me, the next general election cannot come soon enough, and given this half-hearted attempt at a Budget for growth, it cannot come soon enough for the Conservative party either.