Oral Answers to Questions

Chloe Smith Excerpts

Tuesday 26th June 2012 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

4. What progress he has made on his consultation on regional pay for public sector workers; and if he will make a statement.

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

The independent pay review bodies are considering how public sector pay can be made more responsive to local labour markets, and will report from July. Nothing has been decided, and no changes will be made unless there is strong supporting evidence and a rational case for proceeding.

[Jessica Morden]

The Tory finance spokesperson in the Welsh Assembly said that introducing regional pay could disadvantage thousands of public sector workers, and that

“we are making it absolutely clear that we are against”

it. Does the Minister agree?

[Miss Smith]

As I have just set out, this is a question at present for the independent pay review bodies, which will report back in July. There is an argument that more local, market-facing pay in the public sector has the potential to support more for the same investment, and to help local businesses become more competitive.

[Michael Fallon (Sevenoaks) (Con)]

23. How can it be fair for small businesses outside London and the south-east to have to compete for staff paid on national rates working in public offices? Given that the last Government committed us to local pay nearly 10 years ago, and that it already operates in the Courts Service, what is the problem with encouraging other departments to follow suit?

[Miss Smith]

My hon. Friend makes a valuable point that I am sure the independent pay review bodies will consider. If I were to put a number on the average premium for working in the public sector, I could name 18% in Wales.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

Last week, it was left to the Minister for the Cabinet Office and Paymaster General to come to the Chamber to explain the Treasury’s position on regional pay. Was that because the Chief Secretary does not support the policy and the part-time Chancellor does not want to make another U-turn?

[Miss Smith]

We had an extensive and rather premature debate on this last week in the Chamber, and I shall say again what I said then: the independent pay review bodies are producing a report, and it would be premature to review that without the evidence, which they are considering.

[Sarah Newton (Truro and Falmouth) (Con)]

5. What recent steps he has taken to reduce the cost of living.

--- Later in debate ---

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

12. What assessment he has made of the effect of the Government's fiscal policies on the level of child poverty.

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

The Social Mobility and Child Poverty Commission is being set up and will provide an assessment of child poverty using a wide range of measures, including income.

[Mr Brown]

Before the 2010 election, the Prime Minister said:

“Poverty is relative—and those who pretend otherwise are wrong.”

Why are the Government now planning to abolish that measure of child poverty?

[Miss Smith]

The Government have confirmed their commitment to child poverty targets and we are going further by consulting on better measures of child poverty in the autumn. We seek a range of views on that.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does the Minister agree that the real failing of the previous Government was their narrow focus on income transfers instead of addressing the real root causes of welfare dependency such as low aspirations and worklessness?

[Miss Smith]

I certainly do. The important point is how we help people to get out of poverty and stay out. I note that there are problems with the current measure of poverty. Because median incomes fall, children are considered to have moved out of poverty when there will have been no real change to their lives. That cannot be a fully accurate measure.

[Kate Green (Stretford and Urmston) (Lab)]

What will the Government do to address the still very high levels of in-work poverty, and how can freezing working tax credit and reducing help with child care costs possibly help?

[Miss Smith]

Let me name a number of things the Government are doing to support families and let me note our plans to move toward universal credit, which will help with work incentives. Let me note our plans to have doubled the number of disadvantaged two-year-olds receiving free hours of child care each week. On tax credits, let me note that we have had to fix the previous Government’s unsustainable budgeting in that area and that six out of 10 families with children are still eligible.

[Charlie Elphicke (Dover) (Con)]

Is it not especially important that we take action on child poverty, given the quite sharp increase in the previous Parliament? The targets were missed by about 600,000, I think, and when the previous Government left office, 4 million children were in poverty.

[Miss Smith]

My hon. Friend is correct: child poverty is a real problem. This Government are committed to eradicating it and to increasing social mobility. We are taking the measures to assist children that I listed in response to the previous question. I should also point out that the average household gains about £5.50 a week from the tax and benefit changes made in April this year. We are making progress and acting where we can. It is important to keep up the pressure on child poverty.

[Mr Philip Hollobone (Kettering) (Con)]

13. What assessment he has made of the effect on economic growth of increases to fuel duty.

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

The effects on the economy of fuel prices, including oil prices, refinery margins and tax, are assessed by the Office for Budget Responsibility as part of its economic and fiscal forecasts.

[Mr Hollobone]

Motorists in the Kettering constituency and local hauliers will warmly welcome today’s announcement by the Chancellor. Has my hon. Friend undertaken any analysis of the negative impact on national economic growth that would have occurred had the present Government increased fuel duty by as much as the previous Government intended?

[Miss Smith]

I can confirm that, through the actions of this Government, pump prices are 10p a litre lower than they would have been under the previous Government, who had scheduled in 12 fuel duty rises while they were in office and six more for afterwards.

[Chris Evans (Islwyn) (Lab/Co-op)]

14. What the average waiting time for calls to Her Majesty’s Revenue and Customs helplines was in (a) the last 12 months and (b) the previous 12 months.

--- Later in debate ---

[Kevin Brennan (Cardiff West) (Lab)]

16. What recent estimate he has made of the effects of his fiscal policies on the rate of growth in output.

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

Tackling the deficit is necessary for supporting sustainable economic growth. The Government’s credible consolidation plan, which includes important measures to support investment and output, has restored confidence in the UK’s fiscal position, helped avoid a rise in market interest rates and allowed a more activist monetary policy.

[Kevin Brennan]

Given that the lead-in time for fiscal policy is about 18 months, how can the Minister explain the fact that the UK economy is now in recession, following the full impact of her Government’s fiscal policies?

[Miss Smith]

It is essential to return the public finances to a sustainable path. It is this Government who are doing that, it is this Government who are keeping interest rates low, it is this Government who are taking action on fuel duty, and it is the Opposition who have no answers at all.

[David Morris (Morecambe and Lunesdale) (Con)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Sheila Gilmore (Edinburgh East) (Lab)]

One of my constituents was told by her department store employer that she either had to accept a 12-hour contract, which amounts to fewer hours than she works at the moment, or go fully flexible, which does not fit with her child care. Is it not time that the Chancellor decided to do another U-turn and to restore tax credits to those working couples who do not work up to 24 hours a week?

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

We on the Treasury Bench have argued many times in the House that it is fair to ask couples to work under similar requirements as lone parents, and I urge the hon. Lady to consider that in this case.

[Mr John Redwood (Wokingham) (Con)]

When will the House be given the details of the three very large schemes for monetary easing announced at the Mansion House, and when will we be given a chance to debate them?

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

The counter-party proposal and the levy control mechanism fall within the ambit of the Treasury. Within the past hour the Energy Secretary has told the Energy and Climate Change Committee, which is undertaking pre-legislative scrutiny of the Energy Bill, that he would welcome a Treasury Minister going before it to explain those proposals. Why is the Economic Secretary refusing to do so?

[Miss Chloe Smith]

In correspondence with the Chairman of the relevant Select Committee, I have articulated that there is no precedent in the records that we can find for a Minister from one Department to assist in the scrutiny of another Department’s legislation.

[Mr Speaker]

Last but not least, the House—and the nation—can hear from Mr Simon Hughes.