Universal Credit and Working Tax Credits

Claire Coutinho Excerpts

Wednesday 15th September 2021 Commons Chamber

[Claire Coutinho (East Surrey) (Con)]

The right hon. Member for East Ham (Stephen Timms) talked about people finding jobs and finding better jobs, so I thought I would start by talking about what is happening in the jobs market at the moment. We have seen increasing wage growth and vacancies at a 20-year high, with 1 million vacancies in this country. We have also seen almost record low unemployment—lower than in the US, France and Canada. Those are exactly the kind of market conditions that we want to see to help people to find better jobs. They show how that the plan for jobs—that £400 billion of support that we put into the labour market—has worked. It also shows that we have 2 million fewer people in unemployment than expected. Surely that is one of the best ways to reduce poverty in this country.

[David Linden]

I am glad that the hon. Lady is keen to talk about statistics. She will be aware that 2,849 people in her East Surrey constituency are claiming universal credit while in employment. What will she say to them when she marches through the Lobby this afternoon to choose to take £20 a week off their money?

[Claire Coutinho]

I will talk about the things that I already talk about with them: the youth hub and the work coaches that the Department for Work and Pensions has put into my constituency to help people into work, and the jobs that we are creating in the local economy, which are helping people into work.

Secondly, on skills, not only have we introduced the kickstart scheme, which is helping 2,500 young people a week into the quality jobs we want to see them in, but we have introduced a lifetime skills guarantee. We have improved schools during our period in government, going from two thirds of children being in good and outstanding schools to 86% of children. We have increased the number of job coaches and the amount of money going into apprenticeships and traineeships. These will all set people up to have a good job and a good life.

We are also looking at the root causes of poverty. I assume the Labour party would support the national living wage, which is an extra £5,400 going into people’s pockets since 2010. We are doing things like the troubled families programme and the reducing parental conflict programme, about which I am particularly passionate because, unlike some Opposition Members, I think relationships, not just financial benefits, are one of the best ways to help people out of poverty. That is really important.

I also highlight some of the inconsistencies I have heard today, which I find quite troubling. The Labour party would keep the triple lock, with its 8% rise funded by working-age people. [Interruption.] Let me go through what is happening: 2.5% last year, 2.5% or more this year and back to the triple lock next year. The Labour party would keep it at 8%, funded by working-age people—£5 billion out of their pockets.

Let us talk about pay rises for those who helped us during the pandemic, which the Labour party voted against yesterday. Let us talk about taxes.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

National insurance, there’s one.

[Claire Coutinho]

Yes, a tax that the Labour party raised in 2003. [Interruption.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. We cannot have shouting from Members who are sitting down. If the hon. Member for Houghton and Sunderland South (Bridget Phillipson) wishes to intervene, she should stand up and ask to intervene.

[Claire Coutinho]

Let us talk about taxes. The Institute for Fiscal Studies has said that the 2017 manifesto on which many Labour Members stood contained the highest taxes in peacetime—£80 billion-worth of taxes—and that was before the pandemic, so I find it surprising that they are trying to paint themselves as the party of low taxes. I do not think anyone in the country will believe that.

The vision we are trying to present to communities in this country is one of jobs, wages, growth and investment, and those communities are now voting for us because they buy into that vision. Look at people like Ben Houchen, the Teesside Mayor—that is what he is bringing to those communities. That is what people are looking for, and I believe it is the best route out of poverty.