Tax Credits (Income Thresholds and Determination of Rates) (Amendment) Regulations 2016

Lord Purvis of Tweed Excerpts

Monday 7th March 2016 Lords Chamber

With respect to the inequality debate, as I have also said previously in this Chamber, there are notable differences within certain quartiles and quintiles, as the noble Lord, Lord Kirkwood, touched on. But, again, this should be seen in the context that—contrary to a lot of misconceptions—according to the general in-aggregate measured evidence, a narrowing of inequalities is taking place both pre-tax and after tax. That is the case unless one looks at wealth where, because of the consequences of significant house prices, there are, unfortunately, signs of inequalities changing for the worse. It is important that sufficient thought is given to policies which do more to boost the supply of new housing, and then that inequality would not arise at some point in the future. While the technical specifics of this measure may pass a lot of people by, it is important to consider that it will not result in any cash loser and is being introduced as we migrate to a universal credit system, which, in itself, will allow for monthly analysis, response and change. Therefore, it is a relatively straightforward matter.

[Lord Purvis of Tweed (LD)]

I have listened to the whole debate. I hope the Minister will clarify the matter further as he referred to other areas where the £935 million reduction in expenditure could be implemented—the city deals and employability and housing. However, I was under the impression that this measure aimed to achieve deficit reduction savings. Page 3 of the Red Book states that this is part of deficit reduction savings. So will he be clear: is this for hypothecated other expenditure or is it for deficit reduction?