Welfare Reform and Work Bill

Debate between David Anderson and Debbie Abrahams

Tuesday 27th October 2015 Commons Chamber

[Debbie Abrahams]

My hon. Friend makes some excellent points. The Equality and Human Rights Commission is able to undertake that analysis. Other bodies and organisations are doing it, so why are the Government not able to do it? Surely this is what we should expect from the Government in their implementation of policy. There are real concerns from disabled charities, disabled groups and Lord Holmes, the chair of the EHRC’s disability committee, about the extent to which the assessment of the impact on disabled people is understood.

On incentivising work, on Second Reading the Secretary of State for Work and Pensions stated:

“the current system discourages claimants from making the transition into work.”—[Official Report, 20 July 2015; Vol. 598, c. 1259.]

What about people with progressive conditions, such as Parkinson’s, multiple sclerosis and motor neurone disease, who have no prospect of recovery but have undergone a work capability assessment? They have been found not fit for work and placed in the WRAG group. Are the Government seriously saying that the measure will incentivise this group of disabled people into work? They have already been found not able to work through the Government’s own assessment process. Their progressive conditions are not going to change. This is a real concern.

[Mr Anderson]

I welcome my hon. Friend to her position on the Front Bench. As chairman of the all-party group on muscular dystrophy, I would like to tell her that information shared with me suggests that people across the whole field of disability believe that this measure will actually have the opposite effect from the one intended. Rather than providing an incentive for people to go to work, it will mean that they will struggle to continue to have the independence they need. This £30 deduction will make a big difference: people will wonder whether they can afford to maintain their mobility, which will have a detrimental effect, making it less likely that they will find work than if they are left where they are now.

[Debbie Abrahams]

My hon. Friend makes an entirely valid point. Disabled people will find it more and more difficult to live fulfilling lives that enable them to make contact and fulfil their potential, which everyone should have the right to do, so it will be a disincentive.

Welfare Reform (People with Disabilities)

Debate between David Anderson and Debbie Abrahams

Tuesday 30th June 2015 Westminster Hall

[Debbie Abrahams]

My hon. Friend is absolutely right about the punitive sanctions regime. We have called for an independent inquiry into sanctions, following on from the Oakley review. Oakley himself said that his review was “insufficient,” which the Government still refuse to accept. Will the Minister respond to that?

The Government have spread a culture of pejorative language, such as “shirkers” and “scroungers”. They have intentionally attempted to demonise social security recipients, including disabled people. The innuendo that people with a disability or illness might be faking it or are feckless is, quite frankly, grotesque and belies the epidemiological data.

[Mr David Anderson (Blaydon) (Lab)]

The Chancellor of the Exchequer has said, “When you go to work in the morning and see the curtains of your neighbours pulled tight, you know there is somebody lying in there who can’t be bothered to get out of bed and go to work.” Somebody might actually be lying in there because they cannot get of bed owing to an incurable disease. Is it any wonder that some people tar everyone with the same brush? Was that not a deliberate ploy by the Chancellor?

[Debbie Abrahams]

My hon. Friend is absolutely right. I cannot remember whether it was during the Budget or the autumn statement, but it is absolutely shocking that the Chancellor used that language. Incapacity benefit and ESA are recognised as good population health indicators, so what is implied by words such as “shirkers” and “scroungers” is not supported by the evidence.

Future Government Spending

Debate between David Anderson and Debbie Abrahams

Wednesday 4th March 2015 Commons Chamber

[Mr Anderson]

I rarely disagree with my hon. Friend, but I could never bring myself to watch the Tory party conference. However, I heard what they said, and it is quite clear what they would do: they would have to take £7 billion from somewhere, and it will be the public sector. They are committed to going back to the level that things were at in the 1930s, when people in this country were, quite frankly, living like slaves, working in conditions that were abhorrent and going home to houses that were a disgrace. That is why when my party came into government in 1945 we had a massive house building project. That is why we nationalised the coal industry, the rail industry and the steel industry—the Conservatives had let them run into disrepair for decades and did not care a toss about the people who worked in them and lived in conditions that were worse than we could ever imagine.

The Government have not only failed on those levels—they have also failed to collect money because they have made people go out of wealthier jobs into low-paid jobs where they are not paying income tax or national insurance contributions. They have collected £68 billion less in income tax than they projected and lost £27 billion in national insurance contributions. You couldn’t make it up, Mr Deputy Speaker. We can see where they want to be. They want to take us back to the 1930s, when we had a low-paid, low-skill work force who were frightened to stand up to the boss, made to go to work when they did not want to, and made to work for poverty wages. That is exactly what they want to us to go back to—unless, of course, you are one of their friends who happens to be the chairman of a FTSE 100 company, and who last year, on average, had a £4.27 million salary. That is a lot of money, even for the Conservatives. Perhaps it is not as much as some of them earn, but it is a lot of money. The directors in those firms got a 21% pay rise, on average, while at the same time the Government are denying a pay rise of even a meagre 1% to nurses, firefighters and care workers—the people who keep this country running day in, day out, and contribute more in a day than some of these leeches will do in a lifetime.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

My hon. Friend is making a very powerful speech. Is it not also a disgrace that young people are being hammered in so many different directions by this Government and have seen an average 7.8% drop in their income over the past five years?

[Mr Anderson]

It is an absolute disgrace. One of the saddest things of my life is that I might go out of it—I hope a long time from now—and leave behind a generation who are worse off than I was, for the first time ever. We should hang our heads in shame if that is where we end up with the young people of this country, because it is clearly where we are going. During the past week, I have been approached by a young man who was an apprentice, and who became ill and had to come off work. He was not even allowed to get statutory sick pay. That is how disgraceful things are in this day and age.

Energy Price Freeze

Debate between David Anderson and Debbie Abrahams

Wednesday 6th November 2013 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I wish to start by putting the energy bill crisis into the context of the cost of living crisis. As we know, since May 2010 prices have risen faster than pay every month apart from this April. Why was April different? It was different because people on high incomes wanted to take advantage of the tax break that this Government had given them. We also know that one in four children live in poverty—in some wards in my constituency the figure is one in two—with the level set to increase in the next few years. By 2020, because of this Government’s policies, 1.1 million more children will be living in poverty. These are the choices that this Government have made.

Escalating heating bills are a major factor affecting costs to households and to businesses. Last year those costs increased by between 6% and 11%, and since this Government came to power an extra £300 has been added to energy bills. So why is this happening? Until the last few months, this country had a flatlining economy—we have had three years of it. Although the growth over the past few months is welcome, if we had had just 1% growth since 2010 we would have generated £335 billion more in the economy, with all the associated jobs and personal income that that would have brought. If we had had 2% growth, we would have generated £551 billion, and many economists believe that that will just not be recoverable.

Related to that situation has been the fact that pay has either gone down or been frozen. Some 400,000 more people are living below the living wage, bringing the number of those doing so up to 5.2 million. In Oldham, the level of weekly pay has fallen from £432 in 2010 to £426 in 2012, which is well below the regional and national averages. But this is not just about the Government’s mismanagement of the economy; they seem incapable of showing leadership and standing up for ordinary people against powerful vested interests. Too many big businesses have for too long been behaving unethically, whether we are talking about tax evasion or aggressive tax avoidance, cheating the Exchequer of up to £35 billion a year; large companies choosing to pay small businesses in their supply chain late—an estimated £30 billion is owed to small businesses in late payments; or the big six energy suppliers acting as a cartel, claiming that wholesale energy costs have driven up energy bills by 10.4% on average a year, whereas this actually costs them only 1.6% on average.

I tried to intervene on the Secretary of State to make the point that this is happening at a time when these companies are publishing profits of £3.7 billion, which is an increase of 73% since 2010. According to Ofgem’s latest electricity and gas supply market indicators, the typical domestic dual fuel bill now stands at £1,420 a year compared with the £1,105 that it was in May 2010. But what have this Government done, apart from tell us to put jumpers on? Governments set the tone for the culture of a society. They do so not only explicitly through their policies, but by what they imply. It is clear from this Government’s policies and actions exactly where their priorities lie, and it is not with ordinary people and with addressing the inequalities and poverty that exist in this society.

The effect is, as one would expect, fuel poverty. Its level had fallen in recent years, following the various energy-efficiency measures introduced under the last Labour Government, such as the Warm Front programme. But with rising energy bills swamping all that, even under the Government’s new definition of fuel poverty there are now 2.4 million people who are fuel poor, with the average household fuel poverty gap standing at £494.

The Fuel Poverty Advisory Group warned in 2010 that instead of fuel poverty being eliminated by 2016, more than 7 million households could be fuel poor. In Oldham East and Saddleworth, 16% of households—8,000—are fuel poor. To help them, Oldham council launched a collective energy switching scheme that enrolled 22,000 households. The council admits, however, that that is not enough—and it is not enough.

There are wider effects. Sir John Major has said that the real choice people face is whether to heat or eat. I am particularly concerned about this winter and its effect on the most vulnerable in society—older people and those who are ill or disabled. We know that on average 24,000 people, predominantly older people, will lose their lives every winter. Last year however, there was a 75% increase in the number of expected deaths, partly because of the increase in flu but also, according to statistical analysis, because of the extreme cold. It is inconceivable that heating costs will not play a part in the number of excess winter deaths we face, and it is just not good enough to say “Put a jumper on.” If we consider the issue in the context of the crisis in accident and emergency, we can see that there will be absolute meltdown.

It is not only the elderly and the vulnerable who are affected. A constituent wrote to me who is a teacher with a young son of four and twin girls of 20 weeks. She lives in private rented accommodation with her husband, but the landlord cannot afford to update the boiler. She is not eligible for anything. She said, “Last winter was a nightmare. I have newborn babies; what am I going to do? What will support me? The heating costs are bad enough.” I have also had constituents, similar to those mentioned by my hon. Friend the Member for Rochdale (Simon Danczuk), who have written to me about their constant battles with the energy companies. It is just not good enough.

[Mr Anderson]

My hon. Friend is making a very serious speech. Is it not true that when we talk about professionals such as teachers struggling to find the extra money, they are the same people who have had their pay frozen for almost three years? The Government are now talking about freezing their increments, too. They are losing out twice over: costs are going up and their wages are stagnant. That is a direct result of the Government’s policies.

[Debbie Abrahams]

I could not agree more with my hon. Friend. It is a double whammy and the Government are doing nothing to address it.

When the Minister replies, perhaps he can respond to the questions that my constituent has raised. What is she to do? She is working, so she cannot claim support to renew her boiler. Thousands of families up and down the country face equivalent problems and he must give a response on the difficulties mentioned by other Opposition Members.

I wholeheartedly support the pledges made by my right hon. Friend the Leader of the Opposition and my right hon. Friend the Member for Don Valley (Caroline Flint). We must overhaul the energy market, abolishing Ofgem and creating a tough new energy watchdog. We must require the energy companies to pool the power that they generate and we must require those companies to put all over-75s on the cheapest tariff.

--- Later in debate ---

[Mr Anderson]

The regulator clearly admits not being fit for purpose. My hon. Friend the Member for Liverpool, Wavertree (Luciana Berger) mentioned the report from 2008. Ofgem said then that it had not been transparent. The actual gas wholesalers are not transparent. I do not know whether hon. Members are familiar with the Henry hub, which is a pipeline and hub in Louisiana that distributes the vast majority of natural gas in the United States. It is also used as the name for the pricing point for gas prices on the markets in New York. Those prices are set in dollars per million BTUs—British thermal units. In April 2012, 1 million BTUs cost $1.95. In June 2008, they cost $12.6. So the cost was six times lower in April 2012 than it was in June 2008. Even now, it is only $3.62 per 1 million BTUs, yet we are told it has to go up because the price has gone up. How can we trust people who manipulate the figures?

On 6 September 2013, the US Energy Information Administration stated:

“The 36% decrease in the average natural gas price paid by manufacturers between 2006 and 2010, from $7.59 to $4.83…was large enough”—

but—

“Since that survey was conducted, natural gas prices have fallen further.”

The people responsible for energy in the US are saying that prices have gone down, but we have been told that bills have had to go up so much because wholesale gas prices have gone up so much. Are we being misled? Is there a cartel? People say that there is not, but have we forgotten about OPEC? Have people forgotten what happened to us in the 1970s, when people literally had us over an oil barrel? Why should we expect more today from the same people?

The Prime Minister’s other deflection was about who created the big six. I will accept some responsibility, because I believe that my party did not do enough in government to control the energy market. Up until 2008, we did not get our act together and the huge price increase seemed to wake people up. The Conservative party, however, cannot get away from its history. It created the big six by its decision, in the 1980s and 1990s, to privatise the utilities industries. The Conservative Government started by dismantling the most technically advanced coal industry in the world, an industry that was leading the world on clean coal technology—could we not use some of that now? They then went and told Sid to buy shares in gas, electricity and water. They were actually using public money to bribe people to get themselves back into power. It worked very well for them, but the chickens are coming home to roost and the people feeling it are sitting at home at night wondering if they dare put the fire on. We have left billions of tonnes of coal under our feet to lie dormant, while we are being held to ransom by gas and oil companies. We have to bring energy into this country from the most unstable places in the world.

There has been a lot of talk in the past few years about carbon capture and storage. I had the pleasure of sitting in a Committee with the Minister and discussing how wonderful the green deal was going to be. That all led to nothing. The price freeze is welcome—it is a step in the right direction and people need it. What is also required is proper regulation by Ofgem, or whatever takes its place.

[Debbie Abrahams]

Does my hon. Friend agree with my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger) that it is scandalous that Ofgem has not delivered on all the criteria it was meant to? That also fits into what my right hon. Friend the Member for Doncaster North (Edward Miliband) has pledged.

[Mr Anderson]

I find it scandalous, but not surprising. Ofgem was never capable of dealing with people who have spent lifetimes manipulating oil and energy markets throughout the world. Why should the world be any different from how it has been for a hundred years? That is one of the reasons why the people who came before us in this House had the sense to nationalise the energy utility sector. It could then be run in the interests of the people of this country, and not for the people who do not live in this country. All they want to do is siphon money off from the purses and wallets of the people we represent to fund their own profits. While I am not surprised, I am concerned.

My party has a problem. I am clear that unless we have control this situation will go on and on. We might have a 20-month window when we freeze prices, which is welcome, but what happens after that? Will companies be able to put prices up? We have been told that the market will be reformed in a way that will stop them doing that. Well, I will believe that when it happens. This probably will not go down well with my hon. Friends on the Front Bench, but anybody who listened to “Question Time” last week—the real question time where sometimes people answer questions, not just deflect them—will know that when it was suggested that we nationalise these industries again there was a huge cheer from the people in the room. They realise that without proper ownership we will never control these people. The people who went before us knew what they were doing.

We are coming up to the 25th anniversary of the privatisation of the utilities, and look what we are left with after 25 years of them having it all their own way. We have no security of supply and instead are relying on some of the most unstable countries in the world for our basic energy needs. We have not followed up on developing new technologies—where we once led the world—not just in coal, but in wind and wave and other things; on those things, we should be much further advanced than we are. We have a national grid that the people running it accept is not fit for purpose, and we have just stood back and let the companies get on with it. They have not upskilled the work force or trained it to meet the challenges of the future, because they have been too busy siphoning the money off into profits, and at the end of the day, the people carrying the can are the customers, our constituents.

At the Labour party conference, our leader said repeatedly that this country deserved better. We do deserve better, and it is clear that only Labour will deliver it. I am probably wasting my time, given that the invisible men of the Liberal Democrats are not even here—and there are only four Members of the major governing party here—but unless we vote for the motion tonight, this will not happen before 2015, and unless the people of this country vote for us in 2015, it will not happen then either. Ours are serious solutions for serious times. So far, all we have heard from the so-called leader of this country have been attempts to deflect responsibility with jibes, cheap jokes and humour. This is no laughing matter. We need to realise that this is a matter of life and death for the people whom we represent. We realise that, and so do the parties on the Government Benches, but they will not face up to it.