Benefits Uprating (2013-14)

Lord Evans of Rainow Excerpts

Thursday 6th December 2012 Commons Chamber

[Steve Webb]

It is not often that Shakespeare springs to mind when I respond to these statements, but the phrase

“full of sound and fury, signifying nothing”

springs to mind—I missed out the earlier bit of the quote about a tale told by an idiot, out of respect for the right hon. Gentleman. We get a lot of fury and sound, but when it comes to the crunch, he abstains. He described the measures as a disaster, but it was not clear whether that means he will vote against them—answer came there none. If the measures are a disaster, surely he can say he will vote against them, but of course he does not. He sounds sympathetic and angry, but when it comes to the crunch and there is a vote, he disappears and is not to be seen.

The right hon. Gentleman asked about the crucial issue of employment, but he does not seem to realise that the number of people in work is at a record level and will rise every year of this Parliament. That is the record of the coalition. He asked about strivers and somehow wanted to waft away the large increase in personal tax allowances. I am afraid, however, that I will not let him waft away a large commitment to Britain’s strivers. This April, the personal tax alliance will rise by a record amount—£1,300. That is worth £5 a week to the hard-working families he claims to support—far more than any indexation impact.

The right hon. Gentleman referred to universal credit and used the phrase “if it happens”. He may not have noticed that yesterday we published the rates of disregard for universal credit, and on Monday my right hon. Friend the Work and Pensions Secretary will publish further details. This bold welfare reform is on track, on time and under budget, and it will be delivered as we have promised.

The right hon. Gentleman asked about three specific areas. When the welfare uprating Bill is published it will be accompanied by a full impact assessment that will deal with the figures he has requested. On child poverty, the Government remain committed to our statutory obligations, and when taken as a whole, our policies will deliver real reductions in child poverty. He will have seen the chart published yesterday on the impact of universal credit, which shows overwhelmingly that those in the poorest deciles benefit most. Universal credit will help us to eat into child poverty. He did not mention the Chancellor’s announcement yesterday of a multi-billion pound tax relief for investment by British business which will create jobs and reduce child poverty.

Finally, the right hon. Gentleman mentioned taxes on the highest paid. I seem to remember that he was a Treasury Minister. In 13 years of the Labour Government —if I remember rightly—the top rate of income tax was never above 40%. He seems to be objecting to the fact that we have a 45% top rate of income tax. If 45% is too low, why was he satisfied with 40% for 13 years?

[Graham Evans (Weaver Vale) (Con)]

Will the Minister confirm that the Government have protected the basic state pension? Will he also confirm that, as a result of the triple lock, pensioners in Weaver Vale can look forward to £15,000 over the course of their retirement? Does he agree that the Conservative party is the party that makes work pay and that makes it pay to save?

[Steve Webb]

My hon. Friend is right that the coalition is making it pay to work. We are paying an increase in the state pension that is above inflation and above earnings growth. The figure he gives is right: someone retiring this year on a full state pension will get around £15,000 more over their retirement than they would get under the policies adopted by the previous Government.