Welfare Reform and Work Bill

Drew Hendry Excerpts

Monday 20th July 2015 Commons Chamber

[Oliver Dowden]

I am afraid that I cannot, because I am subject to the time limit.

We concluded that it should not be possible to earn more on welfare than a person who had gone out and worked every single day could earn after tax. We also concluded that it should not be possible to leave school and immediately start claiming benefits. I think that those are fair principles, and I think that principles are better than mere salami slicing.

All this has given rise to a need to change the measure of child poverty. It was absurd when Gordon Brown spent huge amounts of time and money showing people one side or the other of an arbitrary line. We are looking at more fundamental principles and measures of what drives poverty. Living in a workless household is one of the biggest drivers of poverty, and I think it right to take account of the massive reduction in workless households that has taken place under our Government. Lack of educational attainment is another huge driver of poverty. I know that such opportunity-based measures are dismissed by Opposition Members—including, as was clear from his speech,. the right hon. Member for East Ham (Stephen Timms)—but I think that they are vital if we are to establish whether we are merely putting a sticking plaster over poverty, or addressing the fundamental causes.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Will the hon. Gentleman give way?

[Oliver Dowden]

I have some time left, so I will.

[Drew Hendry]

That is very gracious of the hon. Gentleman.

In my constituency, 3,900 working families will have lower incomes as a result of the Government’s changes, and 7,100 children will be pushed into poverty. Can the hon. Gentleman tell me how that encourages people to think that working is a good idea?

[Oliver Dowden]

First and foremost, we are introducing a national living wage, which will deal with the current problem and give people a massive pay rise. Ultimately, however, there is a wider point to be made. Opposition Members are decrying every single measure in the Bill, but if they oppose our welfare reform measures, they must be able to tell the House and their constituents what measures they themselves plan to introduce. Which other welfare costs do they intend to cut, and which other taxes do they intend to increase—or do they intend to continue to borrow, thus forcing our level of national debt ever higher?

That is the contrast between Labour and the Conservatives, who are willing to make difficult decisions. None of us enjoys making those decisions, but we make them in a principled fashion that sets the economy and the country on the right track.

Scotland Bill

Drew Hendry Excerpts

Tuesday 30th June 2015 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

On whether or not people should suffer a further sanction, I want to ask the hon. Gentleman about circumstances encountered by one of my constituents. He was sanctioned for not turning up to an appointment with the Department for Work and Pensions, but his letter had been sent to the wrong street, albeit the same number, and he was not aware of the appointment. Does the hon. Gentleman agree that it is wrong to further impose a sanction after that?

[Mr Allen]

The whole sanction regime needs a proper and thorough review, and it should be based on evidence of the sort the hon. Gentleman brings, as I can, rather than on prejudice and electoral gain. Although it may, sadly, go down well in certain leafy suburbs, those of us who have relatives who are pensioners or people with a disability, and those of us who represent people who are suffering because of the bedroom tax, have a slightly different perspective. I am trying to share it with some Government Members, but, sadly, this is with a mixed degree of success.

On amendment 132, exception 6 uses the example of non-compliance, but if someone’s claim had been wrongly suspended—the point the hon. Gentleman makes and I fully support—they would be put in a worse position as they would also lose discretionary housing payments. If the rhetoric about trying to get people back into work and about making work pay is meant, making people suffer a double disbenefit flies in the face of trying to help individuals back into work. It is a catch-all and a broad brush, and it is insensitive.

One of the best ways to tackle those problems, which we all encounter in government, is to make government as close to people as is humanly possible. My suggestion in this case is that that should be within the province of the Scottish Parliament, but in other cases we may even be talking about a lower tier of government. I wish briefly to deal with the question of double devolution, which was raised from the Front Bench by my hon. Friend the Member for Edinburgh South (Ian Murray), but just to finish on amendment 132 let me say that it would remove the provisions and the possibility I have described altogether. In summary, it would give the Scottish Parliament the ability to pay the discretionary benefit when a person cannot be paid a reserved benefit such as housing benefit. That is relatively straightforward and I hope I have put it as succinctly as possible.

--- Later in debate ---

[John Redwood]

I do not think that it would be necessary to go that far. At present, there is clearly a disproportion between the size of Scotland and that of the rest of the United Kingdom, and, as the hon. Gentleman’s budget figures show, a lot more money is collected elsewhere than in Scotland. That, however, is not the point at issue. [Interruption.] I am not asserting anything; I am just asking a question. We are engaging in a crucial debate on how much welfare power should go to Scotland. I am one of those who agree that some welfare power should go to Scotland in accordance with Smith, but we have to ask how far it goes, and what the consequences might be.

If countries have a common work area and a free movement area, and if they share a language, a labour market and a currency, that arrangement can bring benefits when it has settled down, because it is backed by political union. When we start to unpick the political union, we must ask ourselves at what point that unpicking of that union, or the welfare transfer union, will become damaging. A point will be reached when it does become damaging, because one part of the country will be too attractive, or too unattractive, compared with another part. A single currency area as big as the United Kingdom can work only if there are fair systems for raising money from the rich, wherever they may be in that big area, and giving enough to the poor, wherever they may be.

[Drew Hendry]

Is the right hon. Gentleman aware that parts of the United Kingdom are already more unattractive because of decisions on welfare spending? The bedroom tax is one example. In the highlands, there are some 70 communities with no one or two-bedroom properties on the social register for people to move to. How can it possibly be fair for that principle to apply across the UK, when the people who live there are unable to cope with that heinous tax?

[John Redwood]

I fully understand the arguments against the spare room subsidy, or the bedroom tax. I understand the politics of it only too well. I do not want to go into my private views now, but it is a matter to be settled within the Union Parliament, and by the Government of the Union, under current powers. It does not make good law to say that if there is a particular benefit that people in Scotland do not like very much, that is the one that we should be able to fix. We need to come up with a settlement for a longer-term period which takes account of the principles.

It is for that reason that I am presuming to spend just a few minutes reminding colleagues that very big principles are involved in this instance. We need to secure the right balance, one that enables Scotland to feel that it can make enough of its own decisions to meet the mood of the majority, but falls short of giving it so much power that the Union’s mechanisms for switching money around do not work. I find it very difficult to make decisions on this Bill without knowing what the financial settlement will be, because it will not work unless there is enough money to make it work, or if England does not think that it is fair to them. Scotland may well find that the financial settlement is not fair to them—I am sure our SNP colleagues will not be shy if that is the case—but England has delivered big majorities for me and many of my colleagues, so we have a mandate and a voice and we need to make sure that the financial settlement that emerges is fair to us. The range of powers that Scotland has will have a bearing on that settlement.