European Union (Notification of Withdrawal) Bill

Debate between Peter Bone and Iain Duncan Smith

Tuesday 31st January 2017 Commons Chamber

[Mr Duncan Smith]

Will the right hon. Gentleman give way?

[Mr Peter Bone (Wellingborough) (Con)]

Will the right hon. Gentleman give way?

Oral Answers to Questions

Debate between Peter Bone and Iain Duncan Smith

Monday 7th December 2015 Commons Chamber

[Mr Duncan Smith]

With respect to the hon. Gentleman, it was made clear at the Budget by the Chancellor that the total package of changes includes changes to the welfare budget of £12 billion, but that other Departments are also involved in the process of getting rid of the deficit. I thought that the Labour party had said it was in favour of getting rid of the deficit, so the question is what it plans to do. I remind him that a huge amount of the savings are being made because more people are going back to work and fewer people are therefore claiming benefits.

[Mr Peter Bone (Wellingborough) (Con)]

Following on from what the Secretary of State has just said, if the British people vote to come out of the EU, we will not be giving £350 million a week or more than £1 billion every three weeks to the EU. Would he welcome some of that money for his Department?

[Mr Duncan Smith]

My hon. Friend must not dare tempt me in that direction. What is really important is that we run our economy here in the UK for the benefit of citizens of the UK. We have made our position clear: we want to ensure that those who have not been here for a certain period of time and have not contributed are not able to draw upon our benefits system.

Oral Answers to Questions

Debate between Peter Bone and Iain Duncan Smith

Monday 2nd November 2015 Commons Chamber

[Mr Peter Bone (Wellingborough) (Con)]

8. What assessment he has made of the potential effect on his Department of restricting benefits for EU nationals.

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

Since the start of last year we have been taking action through a range of measures to restrict access to benefits for EU migrants looking for work in the UK, because the last Labour Government left us an open door. That will ensure that advantage is not taken of our welfare system, and that the system is also fair to those who pay into it. It is estimated that changes made by my Department and Her Majesty’s Revenue and Customs will save more than half a billion pounds over the next few years.

[Mr Bone]

Does the excellent Secretary of State agree that it would be easier and more efficient for us to treat all EU citizens in the same way, and allow into the country only the ones whom we want here? Would not the end of free movement make his life much easier?

[Mr Duncan Smith]

My hon. Friend started so well. However, I will avoid his blandishment to take myself even further than I might have.

I remind my hon. Friend—who is doing much to promote himself to a job in the Government—that no one who is unemployed and not a British citizen will be able to receive universal credit at all, which is a huge step towards the arrangement that he is after.

Budget Resolutions and Economic Situation

Debate between Peter Bone and Iain Duncan Smith

Thursday 9th July 2015 Commons Chamber

[Mr Duncan Smith]

The answer to my hon. Friend’s question, which I wanted to come to, is that that is the perverse nature of tax credits. About 40% of those on tax credits had tax taken off them, which was recycled through the system with some of it being given back to them. That seems to be a rather bizarre and absurd system.

The tax credit system was the brainchild of the previous Prime Minister, Gordon Brown. The original tax credit system, introduced by the Labour Government, cost £1.1 billion in its first year; the tax credit system now costs some £30 billion a year, most of which is spent on child tax credits. This money was pumped into the system in a clear attempt to chase what was then a moving poverty line. In fact, under the previous Government, £258 billion of hard-earned taxpayers’ money was recycled to be spent cumulatively on tax credits—a huge sum.

We saw massive spikes in tax credit spending in the run-up to election years. In the two years before the 2005 election, spending increased by £10 billion—a 70% increase. In the two years before the 2010 election, it increased by some £6 billion, or 25%. It is worth looking again at the in-between years, when it suddenly flattened but rose before an election. There were disproportionate increases in the child element, in an attempt to keep up with that moving median line. The child element was increased by more than earnings in 2004-05 and from 2008-09 to 2010-11, so that by 2010-11 the child element had increased by 25% more than if it had been uprated in line with average earnings since 2003-04.

One of the worst aspects of the system was the way people had to predict their income for a year. If their actual earnings turned out to be different, they were left with large overpayments or underpayments. This caused misery for families and left a gaping hole in the public finances. Although Labour Members have never owned up to it, we lost billions through that process. To try to deal with the situation, a large disregard was introduced. People then did not have to tell the Government if their income changed by up to £25,000 in the course of a year. To have the disregard at that level was completely irresponsible. It was an attempt to use taxpayers’ money to plug holes in a failing system.

[Mr Peter Bone (Wellingborough) (Con)]

Was that not one of the cruellest aspects of Gordon Brown’s system? In my constituency surgery, I saw desperately poor people who were being asked to repay money they could not afford. It was extraordinarily cruel.

[Mr Duncan Smith]

I agree with my hon. Friend.

Child Poverty

Debate between Peter Bone and Iain Duncan Smith

Thursday 25th June 2015 Commons Chamber

[Mr Duncan Smith]

I welcome the right hon. Gentleman to his position. I simply remind him that for five years he was part of what we were doing, so I hope that he would welcome today’s figures. I am sure that he has a new set of policies and I am happy to look at what he has come up with.

[Mr Peter Bone (Wellingborough) (Con)]

Before the Secretary of State was in his post, I encountered a benefit culture in my constituency surgeries; people in families where nobody had ever worked were coming to my surgeries. Gradually, over time, that has shifted, with more and more people getting jobs. Is that not the root success story: if we can get people into work, we break the benefit culture?

[Mr Duncan Smith]

That is exactly the point. It is work that takes people out of poverty. We must support those who are furthest away and have the greatest difficulty, but we want the rest of them to move into work. We want the barriers, the debt problems and all those issues to be removed and we want to get them into work. We want to improve their kids’ education and improve their life chances. My hon. Friend is spot on.