Oral Answers to Questions

Chuka Umunna Excerpts

Thursday 26th June 2014 Commons Chamber

[The Minister for Skills and Enterprise (Matthew Hancock)]

Absolutely. Through the trailblazer process, we are putting employers in charge of the training involved in apprenticeships, to make sure that, in addition to the big increase in numbers we are seeing, we increase the quality of training so that all young people have the opportunity to use an apprenticeship as an alternative to university in order to reach their potential.

[Mr Chuka Umunna (Streatham) (Lab)]

Does the Secretary of State think it is acceptable for a Government Department to increase reporting requirements twelvefold for businesses?

[Vince Cable]

I am not sure what the hon. Gentleman is referring to, but as the Minister of State, my right hon. Friend the Member for Sevenoaks said a moment ago, we have taken considerable action drastically to reduce the regulatory burden on business.

[Mr Umunna]

I am talking about the disgraceful burden being heaped on the one in five self-employed people in this country who will be in receipt of universal credit. Those businesses are being required to report their income not once a year, but every single month. Their earnings are being computed on a completely different basis from the assessment carried out by Her Majesty’s Revenue and Customs for tax purposes, and the minimum income they will be assumed to have is for 35 hours a week at the minimum wage. That is unjust and unworkable and it does not reflect how those businesses work. Why has this ministerial team sat back and allowed the red tape baron—the Work and Pensions Secretary—to erect this barrier to aspiration?

[Vince Cable]

I would have thought that most reasonable people would welcome the growth of self-employment and entrepreneurship that is happening under this Government. I think they would also probably welcome the fact that the benefits system demands maximum integrity.