(11 years, 2 months ago)
Commons ChamberCan we please return to reality? [Interruption.] I love the fact that my new shadow, the hon. Member for Leeds West (Rachel Reeves)—whom I welcome to her position—was out over the weekend saying “We are going to get really tough on benefits”, and at the first opportunity Labour Members are carping about the cap and the spare room subsidy. The truth is that the cap applies to people with average earnings. May I ask the hon. Gentleman what he might like to say to those who are trying and working hard, and who wonder why people on benefits are earning more than they are?
8. How many individual cases were raised with the Child Support Agency by hon. Members in 2012.
(11 years, 6 months ago)
Commons ChamberOn the implementation of the cap, people have had over a year to work on this, and I know that local authorities are working with them; we keep in constant contact with them. We will have given local authorities more than £380 million in discretionary moneys. It is very clear that if the issue is only the cap, there is no requirement for people to be evicted. This is a reality, and authorities must work with them. The hon. Gentleman needs to talk to his party, because it wants to make the cap worse by regionalising it.
15. What steps he is taking to support credit unions.
I congratulate my hon. Friend, as I always make a point of doing, on his persistence in supporting credit unions. I know that he is a member of his local one, which has about 300 members. I hope that he will welcome the award of a contract for £38 million to the Association of British Credit Unions Limited, which will help 1 million people, and will act as an alternative to loan sharks and payday loans.
I thank my right hon. Friend for that helpful answer. I know that he would like to praise the volunteers at Colchester credit union for all they do. Will he discuss with his ministerial colleagues in the Department for Communities and Local Government and the Department for Education the importance of encouraging all of us, particularly children, to undertake regular saving?
My hon. Friend is right and his campaigns have helped us shape some of our thinking on that. It is worth noting that for the first time financial education will be on the national curriculum, which is extremely important. Through universal credit we are making available a series of financial planning devices and special bank accounts, so we hope this will drive people in the right direction. The crackdown on payday lenders who abuse their position has already started and is yielding real results.
(12 years, 1 month ago)
Commons ChamberI do not agree, because that would mean a huge increase even on the numbers with which the previous Government left us. If we did that, it would include an extra 2.5 million children and an estimated cost of up to £1 billion. I wonder whether the hon. Lady has talked to her hon. Friends on the Front Bench about whether that is another spending commitment they would like to make.
The previous Labour Government left some 3.9 million children living below the official poverty line, about half of whom did not qualify for free school meals. Is it not time that the children who are most in need got the free school meals that they did not get under the Labour Government?
The introduction of universal credit will hugely help families with the lowest incomes. Something like 80% of the money is transferred to the bottom 40% on the income scale, so that helps hugely straight away. Secondly, it is very important that we have an opportunity for Departments—they will do this in discussion with us—to consider how best they can ensure that those most in need get the money and support they require.
(13 years, 1 month ago)
Commons ChamberThe position of the Housing Minister is correct, and I make it a principle to support him.
T4. Further to the Atos question asked earlier by my hon. Friend the Member for Cardiff Central (Jenny Willott), does the Secretary of State agree that the company is not fit for purpose, that it treats many claimants in an unacceptable way, and that, frankly, it is time that its contract was terminated?
(14 years, 1 month ago)
Commons ChamberActually, we are not cutting the access to work grants—[Interruption.] No, they are being refocused on larger employers. More people will get back to work as a result of what we are doing, so it will be of more benefit than the previous system.
Let us be clear. I do not want a higher welfare bill, and I do not support those who cheat the benefit system, but I do encourage the Government to take equal measures against those who cheat on their tax. The statement of about 1,200 words mentioned children only twice, in acknowledging that more than 3.5 million children will still be left living below the official poverty line. Where does the statement:
“We are developing…sanctions for those who refuse to play by the rules”
place households with babies, infants and children of school age?
A variety of programmes affect some of those groups, and the hon. Gentleman will know that extra money has been refocused on early years. The hon. Member for Nottingham North (Mr Allen) and the right hon. Member for Birkenhead (Mr Field) are producing reports on this. We are looking at dealing with those areas separately. If the take-up improves, which it will because it will be automatic, it will directly affect a significant number of people. We genuinely believe that even in a static state about 350,000 children will be lifted out of poverty. That has to be a pretty good start compared with what happened before.
(14 years, 1 month ago)
Commons ChamberI give way to the hon. Member for Colchester (Bob Russell).
Will my right hon. Friend clarify a point? Is he saying that rents are too high in the private sector? If that is the case—I am sure that is what he said—should there not be, in the interests of fairness, other measures to deal with landlords whose rents are too high?
(14 years, 5 months ago)
Commons ChamberIt is not just the Government who are listening to them; it seems that the rest of the world is as well. I must remind the hon. Lady that if we are not careful—[Interruption.] Whatever she says, if the credit rating agencies downgrade our rating, we would, like Spain and Greece, be paying far more to borrow the money that we are borrowing as a result of the previous Government’s position. Whether or not we agree that the credit rating agencies got it right on the banks is irrelevant, therefore. In this particular case, the question is whether or not we would end up paying more as a result of their bad rating, and that is something we were not prepared to risk. This is a Budget to get the economy back on track. It is a Budget to support the recovery and drive down the deficit, and, most importantly, to get Britain back to work.
Despite facing the tough and unavoidable choices forced on us by the fiscal position left by Labour, we are increasing the threshold for paying the basic rate of income tax, and increasing the child element of the child tax credit by £150 above indexation next year. We are making sure that the most vulnerable do not pay disproportionately.
On that point, will my right hon. Friend advise me whether the current level of 3.9 million children living below the poverty line—inherited after 13 years of failure by a Labour Government—will be increased or decreased by the end of this Parliament?
Directly in terms of this Budget, there will be no increase at all; that figure is approved by the OBR, and it is our determination to drive the figure down. Let me say to my hon. Friend that he is right: we have inherited from Labour one of the worst records of household unemployment in western Europe and, worse than that, we have the highest number of children living in workless households in the whole of western Europe. That is a shameful record of the previous Labour Government, and although Labour Members go on about it, it is we who have to deal with it, and I promise my hon. Friend that we will deal with it.