Tax Credits (Income Thresholds and Determination of Rates) (Amendment) Regulations 2015

Debate between Earl Howe and Lord Purvis of Tweed

Monday 26th October 2015 Lords Chamber

[Earl Howe]

Let me address that. It has been said by some noble Lords, and the noble Baroness’s question implies it, that the brunt of these savings will be borne by those on tax credits who are relatively worse off. That is not the case. The 10% of tax credit claimants on the highest incomes—incidentally, those on £42,000 on average—contribute nearly four times as much to the savings that we are proposing as the poorest claimants. That is an important point to factor in. The problem with talking about those at the lower end of the scale is that everyone’s circumstances are different. Some people have children and some do not. Some have a disability and some do not. Some work shorter hours, some work longer hours. It is very difficult to particularise.

I can say that the cut in public spending that we propose through this regulation is one that will take us back not to some far-distant point in the past, but to the levels of spending seen in 2007-08 before the financial crash. I am talking of course about the spending position in its totality. One cannot particularise, as I said, to an individual case because people’s circumstances will be different.

[Lord Purvis of Tweed]

The Deputy Leader is giving a defence of the Government’s position that does not give much of an indication that the Government are prepared to think again, as some Members on the opposite Benches have indicated. Before he came to the House today, I wonder if he had spoken to the leader of his party in Scotland, Ruth Davidson. She said over the weekend:

“If we’re not the party of getting people into work and making it easier for them to get up the tree, then what are we there for? It’s not acceptable. The aim is sound, but we can’t have people suffering on the way. The idea that there’s a cliff edge in April before the uptake in wages comes in is a real practical human problem and the Government needs to look again at it”.

Will they?

[Earl Howe]

The trouble with comments like that is that they fail to take account, very often, of the things that I mentioned such as the national living wage.

[Lord Purvis of Tweed]

Maybe I was not entirely clear. That was the leader of the noble Earl’s party in Scotland.