amendment of the law

Angela Watkinson Excerpts

Tuesday 25th March 2014 Commons Chamber

[Dame Angela Watkinson (Hornchurch and Upminster) (Con)]

I apologise for being absent from the Chamber for a while, Madam Deputy Speaker, but I had to attend a Statutory Instrument Committee.

I want to start by congratulating the Chancellor. We inherited the most monstrous debt in 2010 as a result of Labour’s overspending and over-borrowing and of living beyond our means with no thought for tomorrow, but after the 2010 election, tomorrow came. Drastic action was needed to stop the country spiralling down further into irrecoverable debt, so the Chancellor drew up our long-term economic plan. He has shown courage and determination in sticking to his guns in the face of relentless criticism and opposition to every proposal to control public spending. The reward is an economy that is growing faster than that of any other European Union or G8—or perhaps it is now G7—country. In this Budget, the Chancellor has been able to ease the squeeze to help hard-working people who have been feeling the pinch.

I am particularly pleased with the range of measures to help retired people. When interest rates were higher, pensioners were able to rely on the interest on their savings to help boost their retirement income. Although low interest rates are undoubtedly a boon to all mortgage holders, pensioners’ incomes have suffered. Now, people who have saved for a pension in a defined contribution scheme during their working lives will have the freedom to manage their own retirement income as they choose. I welcome the fact that annuities will no longer be compulsory. Insurance companies and annuity providers, such as those in the constituency of my hon. Friend the Member for Reigate (Crispin Blunt), who is no longer in his place, will have to make their products more competitive, innovative and attractive to those who still choose to buy one. That, plus the removal of all remaining tax restrictions on access to defined contribution pension pots, is excellent news.

New pensioner bonds, effective from next January, will offer a better interest rate than any equivalent product on the market today, including individual savings accounts. They are predicted to be 2.8% on a one-year bond and 4% on a three-year bond, which is another boost to pensioner income. For 1.5 million low-income savers of all ages—not just pensioners—the abolition of tax on savings up to £5,000 is a great incentive for everyone to start putting away something for a rainy day. In Hornchurch and Upminster, the increase in the personal allowance to £10,500 will raise 410 more people out of income tax altogether and reduce income tax bills for 44,055 workers.

The Secretary of State’s welfare reforms are founded on the knowledge that every person returning to or starting work gains security and self-esteem. Every new job is better not just for the employee, but for the taxpayer and for the country. Unemployment fell by 63,000 in the three months to January, and the number of people signing on for jobseeker’s allowance last month fell by 34,600. The number of people in work rose by 105,000 in the last quarter to a new record of 30.19 million—nearly half a million more than a year ago. Moreover, 1.7 million new private sector jobs have been created by businesses up and down the country, showing confidence in the economy.

I want to pay tribute to the schools and colleges in Hornchurch and Upminster, not only for their academic, practical and creative education, but for preparing pupils for the future by developing in them social awareness and an ability to question, think laterally and understand one another and the adult world they are about to enter. The pupils at the schools and colleges in Hornchurch and Upminster know that having an interest in sports and hobbies makes their CV more interesting to a university or prospective employer, and increases their chances of getting that all-important interview. They know that good timekeeping and good manners, looking and sounding interested, and having a pleasant demeanour, as well as their exam results, will help them to compete successfully for apprenticeships, jobs or university places.

Fiscal education now plays an important role in personal financial management and debt avoidance, and helps people to resist the constant temptation of credit card offers that come through the letterbox. That is particularly helpful for students who will be living away from home for the first time and will be faced with paying for food and heating.

I am pleased to report that the number of young people in Hornchurch and Upminster who are claiming jobseeker’s allowance is down from 7.2% in 2010 to 4.5% in 2014. The role of schools and colleges in engendering ambition and aspiration in their pupils is an important contributory factor in that reduction.

An important part of the Secretary of State’s welfare reforms is the Work programme, which is designed to help long-term unemployed people to break the cycle of benefit dependence. To ensure effective jobseeking, the programme is tailored to the individual’s needs. It is a partnership between the DWP and all sectors, and is based on payment by results to ensure value for the taxpayer. So far, almost 500,000 jobs have been started by Work programme participants, including 208,000 people who were very long-term unemployed.

This is a Budget for business, workers, pensioners and savers of all ages. There are forecast to be 1.5 million more jobs over the next five years, and 1.6 million apprenticeships have started since 2010. Every new job means that a family has independence and a more secure future, and is able to contribute to the growth in the economy. All that vindicates the difficult decisions that have been taken since 2010. The fiscal policies are working, the number of new private sector jobs means that more people are working, the Work programme is working, and the long-term economic plan is working. I congratulate the Chancellor.