Welfare Benefits Up-rating Bill

Debate between Charlotte Leslie and Julian Sturdy

Tuesday 8th January 2013 Commons Chamber

[Julian Sturdy]

I apologise, Mr Deputy Speaker.

The safety net in the welfare state system is important, but I support the 1% uprating. The point was made earlier that if we are really to focus on the problem, we have to consider inflation as well. If we can keep inflation down through Government measures, as we are at the moment, that is an important part of the system.

An effective and fair welfare system should support those who tragically suffer from difficult medical conditions and those who find themselves in abject poverty. However, benefits that are simply rolled out and increased without question and without any regard for the wider economic situation threaten to give our whole welfare system a bad name. Thus our benefits must always be questioned, our welfare system always honed and the key question of fairness always addressed. The votes in the House later today must be made with fairness in mind—fairness to those who receive benefits and those whose taxes pay for them.

We cannot adequately or logically debate this issue without considering the fiscal implications of increasing benefits and the fairness of those implications. The key fact used by the Secretary of State—that over the past five years some benefits have increased by 20% while workers have experienced an average pay increase of 10% to 12%—is enough to set alarm bells ringing. If we are to ensure that our welfare system is a source of pride and not resentment, we cannot justify such increases when wider taxpayers are suffering in a tough economic climate.

[Charlotte Leslie (Bristol North West) (Con)]

Does my hon. Friend agree that this debate is essentially about two things—first, whether people on benefits should receive an income that rises faster than those who earn wages, and secondly, for those in work, whether it is better for the Government to take a lot of money and give it back in tax credits, or whether they should take less money in the first place and introduce tax cuts? I, together with most people in the country, believe it is better for the Government to take less money away, and thanks to this Government almost 2,000 people in Bristol North West have been taken out of tax altogether from April, and 40,000 people will get a tax break.