Oral Answers to Questions

Debate between Andrew Gwynne and Iain Duncan Smith

Monday 14th March 2016 Commons Chamber

[Mr Duncan Smith]

Yes, and it is also worth noting that income inequality is now lower than it was in 2009-10. It is worth reminding ourselves that, for all the complaining from the Opposition, income inequality rose under Labour to the highest levels it had ever been.

[Andrew Gwynne (Denton and Reddish) (Lab)]

But the Secretary of State will know that research analysis from the House of Commons Library shows that three in four people who are currently receiving tax credits will see that in-work support reduced when they are naturally migrated over to universal credit. What does he have to say to those millions of workers whose in-work support will be revised downwards?

[Mr Duncan Smith]

As we have made clear on a number of occasions, anybody migrating across from tax credits will see no change to their income—the Institute for Fiscal Studies has made that clear publicly and we also make it clear. It is also worth reminding the hon. Gentleman, because his party seems to have opposed the advent of universal credit, that in the latest IFS-supported research universal credit claimants are seen to be much more likely to go into work than they would be under jobseeker’s allowance, they move into work faster, they stay in work longer and they earn more money. Those are major positives for people who are trying hard and working, whereas the last Labour Government penalised anybody who wanted to go to work.

State Pension Age

Debate between Andrew Gwynne and Iain Duncan Smith

Wednesday 2nd March 2016 Commons Chamber

[Mr Duncan Smith]

My right hon. and learned Friend is correct. I thought that the position of successive Governments was to take that as a non-party political point and agree on the need to make those changes, the pace of which should be decided independently. We have done that. It was brave of the Government of whom he was a part to start the process of change, but it was always going to be necessary to review the matter in line with demographics. Recent demographic shifts have been rapid, so we are carrying out such a review now. I regret the fact that the Opposition have chosen to play political games rather than supporting this necessary change.

[Andrew Gwynne (Denton and Reddish) (Lab)]

Does the Secretary of State accept that millions of people, having seen what the Government did in respect of the equalisation of the state pension age for women born in the 1950s, will look at the proposal and be worried that they are about to repeat those mistakes? Will he set out what transitional arrangements he expects for the changes, and whether that opens up the opportunity to look again at the injustice that has been done to those represented by the Women Against State Pension Inequality campaign?

[Mr Duncan Smith]

It is a legitimate concern to ensure that we give people plenty of notice, and Sir John Cridland will be looking at that carefully. If the hon. Gentleman wants to make a submission to the review about transitional arrangements, it is absolutely possible for him to do so, and I encourage him to do just that. This Government did not introduce those changes, but we introduced a transitional change for those who were affected to improve the lot of a large majority of those who would otherwise have been adversely affected.

Oral Answers to Questions

Debate between Andrew Gwynne and Iain Duncan Smith

Monday 7th December 2015 Commons Chamber

[Andrew Gwynne (Denton and Reddish) (Lab)]

The Government’s forced U-turn on tax credits is very welcome to the families in my constituency who were set to be affected by the cut, but many people are being moved on to the universal credit system and will be similarly impacted. Young people will not qualify for the Government’s so-called national living wage. How do the Government reconcile that with the aim of making work pay?

[Mr Duncan Smith]

The key thing is that, as the Institute for Fiscal Studies has said, there is nothing new in the spending review when compared with the Budget. It said that

“the long term generosity of the welfare system will be cut just as much as was ever intended”.

In other words, the £12 billion of savings is pretty much exactly as was announced in the Budget. I say to the hon. Gentleman that universal credit has a huge effect. We published figures this week to show that universal credit means that more people go into work faster, stay in work longer and are likely to earn more money. That is a huge change and it will affect young people dramatically, as much as it will anybody else.