Tax Credits (Working Families)

Anna Turley Excerpts

Tuesday 7th July 2015 Commons Chamber

[Chris Philp (Croydon South) (Con)]

I warmly congratulate the hon. Member for Blackburn (Kate Hollern) on an excellent maiden speech. It is clear that she is deeply rooted in her community, and I have no doubt whatsoever that, when people talk about Members of Parliament for Blackburn, her name will trip off the tongue very naturally behind those of Barbara Castle and Jack Straw, and that she will be a distinguished successor to them.

This debate has been based on a great deal on speculation about what may be in tomorrow’s Budget. Before turning to the specific topic of tax credits, perhaps I should focus briefly on some facts. I am talking about the performance of the coalition Government over the past five years. If we examine the facts, rather than the speculation, we will see very clearly that the Conservatives in the coalition Government did a good job in standing up for working people and ensuring that work paid.

Let us spend a moment rehearsing those facts. During the previous Parliament, 2 million more jobs were created, of which 75% were full time. More jobs were created in this country than in all of the countries in the European Union put together. Indeed, more jobs were created in the county of Yorkshire, in which the constituency of my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) is located, than in all of France put together. That is a record of which to be proud.

In my own constituency, in the borough of Croydon, the number of jobseeker’s allowance claimants halved over the previous Parliament.

[Anna Turley (Redcar) (Lab/Co-op)]

Can the hon. Gentleman tell me the number of food banks in Yorkshire that have emerged over the past five years? Perhaps that would also give us a helpful factual correction.

[Chris Philp]

Unfortunately, I do not have that figure at my fingertips. What I do know is that, thanks to the tax cut for people on low incomes, £800 a year was put directly into their pockets. One Opposition Member made the point that many people on tax credits do not pay income tax. Well, that is precisely because the coalition Government raised the income tax threshold so high.

We have also heard a great deal about the cost of living, to which the hon. Member for Redcar (Anna Turley) alluded a moment ago. The fact is that wages in this country are now growing at around 3% a year, at a time when inflation is at zero. Yes, it did take time to get there, but that was because it took some time to fix the mess that had been left behind for us. The cost of living problem to which the hon. Lady referred is being alleviated with every month that passes, and that trend will continue.

I also welcome the planned increase in the minimum wage from £6.50 an hour to £6.70. That is the first real-term increase since 2008, and it will help. When we pause and consider the facts rather than the speculation, we will see that the record of the coalition Government was extremely strong in helping people on low incomes. Speaking of poverty, there are now 800,000 fewer people and 300,000 fewer children in relative poverty than there were five years ago, and that is fantastic progress. Those are the facts, so let us now consider the topic before us—[Interruption.] They are the facts.

--- Later in debate ---

[Anna Turley (Redcar) (Lab/Co-op)]

There are 4,200 working families with children who are claiming tax credits in my constituency. That is 4,200 families with parents who are working hard, doing the right thing, trying to stay off welfare, proud to be in work with the dignity that that brings, and trying desperately hard to get through the month, keep afloat and provide for their families. They rely on tax credits to survive. Tax credits are not a luxury.

Tax credits were introduced by the Labour Government because we cared about in-work poverty. We cared about making work pay, particularly for single parents who were struggling in and out of a working life. That is why we introduced the historic minimum wage—despite fierce opposition from those on the Conservative Benches—and why we brought in Sure Start to give kids the best start in life. That is also why we introduced tax credits, which have been a lifeline for so many people and contributed to the huge fall in child poverty on our watch.

Tax credits are vital to help people get through the month. As my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook) said, we have received a lot of correspondence in the past few days about this issue. Let me quote from one of my constituents who wrote to me this week about her fear of losing tax credits. She stated:

“I am literally terrified at the idea of losing my tax credits. I am a 29 year old single mother of an eight-month old baby. I have been in full-time employment since the age of 17 and even worked as a weekend pot washer when I was at school. Both my parents worked and I have been brought up with a good work ethic and to understand the value of money. I am currently on maternity leave but start back at work in a week. However, after 12 years of working full time I am going back part time for two years so I can also focus on the upbringing of my son…I am anything but a ‘scrounger’ and have never had to rely on the benefit system, but for the next couple of years tax credits will be essential to help me survive financially. I do not drive a fancy car, I don’t have Sky\cable TV, I live in a tiny terraced house and I NEVER go on holiday, so I live anything but a luxurious lifestyle that these idiots in power seem to think”—

forgive me, Mr Speaker, those are not my words, however much I may agree with the sentiment.

My constituent continues:

“I could quite easily go on income support and be a stay at home mum, but I choose to work to distil into my son from a young age that it is important to have a good work ethic (as my parents did with me). I am very good with money but have no idea how I will survive if my tax credits are cut. I have worked for 11 years, paid into the system and for the sake of a couple of years getting something back to help me just make ends meet, I don’t think this is me being a drain on society or a lazy scrounger the Tories seem to think anyone who claims a penny is. I lay awake at night worrying about all this, the Tories say ‘they are the party for working people’ but they make me sick. I have never heard such a bunch of”—

I will leave the rest of it there as it is probably not appropriate.

Obviously, my constituent does not agree with the hubris and self-congratulation that I have witnessed from those on the Government Benches who seem so delighted with their long-term economic plan, and I will say more about that in debates over the next few days. I would love to say that I am looking forward to the Budget tomorrow, but I am afraid that I will do so with fear and trepidation on behalf of many of my constituents.