Welfare Reform Bill

David Nuttall Excerpts

Wednesday 1st February 2012 Commons Chamber

[Stephen Timms]

The hon. Gentleman is absolutely right: 12 months is simply not long enough for a very large number of cancer patients—or other patients, in fact—to get back to work.

Lords amendment 18 was moved in the other place by Lord Patel, the Cross-Bench peer who was formerly president of the Royal College of Obstetricians and Gynaecologists. He quoted a man with renal cancer who had had a kidney removed and who started claiming ESA in March last year. His partner earns £160 per week, but if the Government win, that man will lose all his contributory benefit in April. He says:

“We have used up virtually all our savings already. I have worked all my life and paid into the system but this doesn't seem to mean anything”.

Is that really how the Government want their system to work? Of course, it is not just cancer patients who will be affected.

[Mr David Nuttall (Bury North) (Con)]

Does the shadow Minister agree that it is completely illogical to single out cancer as a separate disease when, in fact, there are many illnesses and conditions that may result in someone being unfit for work and when, under these provisions, they would be provided for by being put in the support group?

[Stephen Timms]

The hon. Gentleman is absolutely right—indeed, I am just going on to make that very point. It is not just cancer patients who will be affected; there are many other people in exactly the same position. That is why we have argued for a two-year limit instead of a one-year limit, because with a two-year limit there is a chance for people to get back into work. The National Aids Trust makes the point:

“Many people living with HIV who are found eligible will face significant barriers to work that cannot be overcome within 12 months.”

--- Later in debate ---

[Stephen Timms]

The Minister talks about people getting £1 million, but people who have £16,000 will get absolutely nothing. That is the system that he is putting in place, and I am not surprised that he is ashamed of it.

[Mr Nuttall]

As a matter of general principle, does the shadow Minister agree that there has to be a rule about the amount of capital that people hold? Should not a cut-off apply? It was the Labour Government’s rule: there has to be a cut-off.

[Stephen Timms]

We are being taken into a slightly broader argument, but I will answer the point directly. The capital limit has always been a feature of means-tested out-of-work benefits. It was never a feature of the tax credit system because the previous Government wanted to encourage people in work to save. That incentive to save is being destroyed by the application of this capital limit—exactly the same capital limit—in future to people in work as well as out of work. That is another terrible feature of this Bill.

--- Later in debate ---

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Quite a few Members wish to speak, so may I ask for short speeches? That will mean that we can get everybody in and all the views will be on the record.

[Mr Nuttall]

It is always a great pleasure to follow the hon. Member for Walsall North (Mr Winnick), although I do not agree with him on many occasions. I do not agree with him today either, except on one thing—the Government will get this measure through today, and that is because they are doing absolutely the right thing. One thing that I heard time and again from my constituents in the last election campaign was that they were sick and tired of the number of people taking a lifestyle choice to live a life on benefits, as my hon. Friend the Member for Shipley (Philip Davies) has mentioned.

[Philip Davies]

Does my hon. Friend share my surprise that the Labour party, which now has this synthetic anger about the proposals for means-testing, was the party that when in government—the hon. Member for Walsall North himself said that he supported them more often than not—extended means-testing more than any other Government in history?

[Mr Nuttall]

Absolutely. We have heard a lot about this means-testing this afternoon. We have heard that the system is insurance-based, which it is, but with any insurance policy there are terms and conditions. In this case, the means test is just shorthand for the terms and conditions of the policy.

[Sheila Gilmore]

What I find so hard to understand in the argument the hon. Gentleman is presenting is that the very people he might be condemning—people who have not worked and have not had savings—will continue to get benefit. The people who are being damaged by this policy are those who have saved, who are working and who have tried hard.

[Mr Nuttall]

We must have rules of policy in an insurance system. The Labour party accepted that when it was in government and the hard-working families in my constituency, many of whom have no savings at all, or less than £1,000 in savings, will ask why their taxes should go towards paying benefits to people who have far more in savings than they have. That is a perfectly logical and sensible view.

[Sheila Gilmore]

If people thought about this they would realise that if they had been saving and making that effort—and we are not necessarily talking about huge amounts because the measures would start to affect people to some degree at £6,000—they would find the measures unfair.

[Mr Nuttall]

I do not agree. We have to ask why people save. They save for a rainy day. They save in case they lose their job or have an illness. The changes will still mean that the most needy in our society will be looked after. There will still be a safety net that will help those who most need help in our society.

[Dame Anne Begg]

Will the hon. Gentleman be advising his constituents to take out private insurance to protect against unemployment or ill health? After all, he is supporting the limiting of the state’s role in that respect.

[Mr Nuttall]

Some constituents might choose to do that, but that is a matter for them. I am not going to recommend whether that is the right or wrong thing to do because it is a decision they have to take for themselves. It is about personal responsibility. Hon. Members should be in no doubt that at a time when the welfare bill is spiralling out of control and this country has run out of money—we are essentially bankrupt; we are having to borrow money every single day to pay our way—it is essential that we bring the welfare benefits bill under control. It is only by taking tough decisions that that will ever be done.

[John Hemming (Birmingham, Yardley) (LD)]

Like me, my hon. Friend might not be surprised that the Opposition are ignoring the effect of universal credit. Does he accept that many of the families in the margins who are affected badly by means-testing will benefit from universal credit?

[Mr Nuttall]

My hon. Friend is absolutely right. With universal credit, we seek to sweep away some of the complexities of the welfare system that inevitably lead to confusion and the possibility for people to make errors—sometimes deliberately.

I am very conscious that many other speakers want to get in and I am sure that we want to hear the Minister’s reply. Let me say again that I want to speak up for the hard-working families in my constituency and the vast number of my constituents who think the Government are doing absolutely the right thing on welfare. I urge everyone to back these moves today.

--- Later in debate ---

[Mr Lilley]

What I am saying is that in my constituency I encounter people who have no spare room but want one, not people who have a spare room and want to give it up. The situation may be different in the hon. Gentleman’s constituency.

Let me now move on the point that I really want to make, which relates to the Lords amendment dealing with Child Support Agency charges. I am reluctant to discuss the Child Support Agency, as I was the hapless Secretary of State who had to introduce it after it was legislated for by my predecessor. Discretion being the better part of valour, I always delegated the matter to my hon. Friend the Member for North East Bedfordshire (Alistair Burt), whose emollient manner proved the text in Proverbs that a soft answer turneth away wrath. I kept as distant from it as I could.

[Mr Nuttall]

Will my right hon. Friend give way?

[Mr Lilley]

I will not, if my hon. Friend will forgive me.

I am also reluctant to take issue with the Lords unnecessarily. When I was Secretary of State for Social Security, I found that from time to time the Lords would propose amendments to legislation that I had introduced. At first I was shocked that anyone could think that my legislation could be improved in any way, but when I listened to what was said by the Lords in general and the bishops in particular, I usually found that it contained an element of truth. There was something worth listening to, even if I could not take on board everything that they proposed. I welcome the fact that my hon. Friend the Minister has listened to them, has modified the charging structure, and has taken their points on board. However, she is probably right not to adopt the whole principle of what the other place suggests.

I am not entirely persuaded of the Lords’ case, because I think that it is right in principle to charge for a costly service, and it is right that the people who principally benefit from it should pay an element of it in the form of a charge, rather than our leaving the entire cost to the other party or the taxpayer. It is right in principle, too, that wherever possible we encourage voluntary agreements, rather than reliance on state-funded bureaucracy, because voluntary agreements, where possible, are better, and because that reduces the load on an over-extended bureaucracy that has never been able to cope with the load that it has; it is better that it focuses on the most obdurate cases.

It is right in principle to charge both parents, as it is not possible, even though their lordships’ amendment implies that it is, to distinguish who is the goody and who the baddy.