Welfare Benefits Up-rating Bill

Debate between Andrew George and Ian Mearns

Monday 21st January 2013 Commons Chamber

[Andrew George]

I am sure that my right hon. and hon. Friends will make up their own minds on that issue. I do not speak for them, but I have made it clear that I will vote against the Bill as it stands, because I do not think it addresses the fundamental concerns that I have enunciated elsewhere.

To return to congratulating my hon. Friend the Minister on his achievements, my beloved coalition colleagues may not like what I am about to say—[Hon. Members: “Don’t say it!”] Having listened to what has been articulated by those in the Conservative party in recent months, we have to acknowledge what would have happened had my hon. Friend and, indeed, the Liberal Democrats not been in the coalition Government. First, we have to question whether we would have had the increase in the personal tax allowance, on which I congratulate the coalition Government. The Conservatives made it quite clear that they wished not only to freeze benefits altogether but to do so for six years, so we would not even be getting a 1% rise. There would have been a wider impact on pensioners and the disabled, which would have been significant. Child benefit would have been constrained, as well as being cut from families with more than two children.

[Ian Mearns]

The hon. Gentleman is making a powerful contribution. Given what he has said, does he reject the spin of some Government Members who have said that people on benefits have had their income uprated by 20% over a five-year period as opposed to 12.5% for those who work? When we examine the figures in cash terms—the impact on people’s pockets—we see that the uprating has been worth an average of £49 for people in work and only £12 or so for those who rely on benefits.

[Andrew George]

There has been a lot of selective quotation of statistics, with selective beginnings and ends of the time period within which those comparators are applied. I understood that the purpose of the Bill was as the Secretary of State articulated it when he introduced it—to ensure that benefits would never rise faster than average wages. Our amendment would deal with that.