Oral Answers to Questions

Debate between Debbie Abrahams and Mel Stride

Monday 5th February 2024 Commons Chamber

[Mel Stride]

Cost of living payments can be affected by when people are paid, and therefore by whether they are on universal credit and qualify at precisely that point. I do not have the figure to hand that the hon. Lady requests, but I will of course get back to her with it.

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

This morning’s report by the Academy of Medical Sciences revealed that our appalling child health and infant mortality rates are worse than those of 60% of similar countries and is the key driver of child poverty. What assessment has the Secretary of State undertaken to make on the impact that stopping the household support fund in April will have on relative child poverty and, subsequently, infant mortality?

[Mel Stride]

As the hon. Lady will know, the number of those in child poverty has decreased by 400,000 since 2010. We do not yet have a decision on the household support fund, to which she refers, but I point her to the very significant uplift in the local housing allowance, which will give 1.6 million people £800 a year more on average, thereby taking many of them out of poverty.

Oral Answers to Questions

Debate between Debbie Abrahams and Mel Stride

Monday 18th December 2023 Commons Chamber

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

Twenty months ago, the Equality and Human Rights Commission issued a section 23 agreement request to the Department, following concerns regarding breaches and potential discrimination against disabled people. Why has the Department still not reached an agreement?

[Mel Stride]

As the hon. Lady will know, there are ongoing discussions on these matters. By virtue of the legislation that underpins those interactions, the discussions are necessarily held in private. I am informed that they have resulted in positive engagement, and that the Department and the EHRC will come forward with a response as soon as possible.

Autumn Statement Resolutions

Debate between Debbie Abrahams and Mel Stride

Monday 27th November 2023 Commons Chamber

[Mel Stride]

As usual, my right hon. Friend makes characteristically insightful remarks about the UK economy, not least about unemployment, where he is right: the expectation during covid was that unemployment would rocket up to the kind of levels that we last saw in the 1980s. The fact that no such thing happened is a testament to many of the Ministers, as my right hon. Friend suggests, and not least to our current Prime Minister, who as Chancellor came forward with the furlough scheme and the support for business.

Our commitment to supporting the most vulnerable is clear, including in the substantial the Government have provided to help families with the cost of living. That includes the millions of cost of living payments, landing directly into the bank accounts of those on the lowest incomes, as well as to millions of pensioners and disabled people. Of course, one of the most important actions that we have taken to help families is to deliver on the Prime Minister’s pledge to halve inflation. A compassionate Government recognise that, for the poorest families, cost of living pressures remain, which is why we are increasing universal credit and other benefits by 6.7% from next April in line with September’s inflation figure.

A compassionate Government recognise that rising rents are affecting private renters on the lowest incomes, which is why we are increasing the local housing allowance to the 30th percentile of local market rents from April next year. A compassionate Government back their pensioners, which is why we are honouring the triple lock, with an increase to the full state pension of 8.5 %. That is the second biggest ever increase, following last year’s increase of 10.1%.

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

Will the Secretary of State comment on the number of deaths that are anticipated, as I mentioned last week, due to elements of the policy proposals around forcing people into work, and taking their benefits off them if they are unable to fulfil that?

[Mel Stride]

I will come to benefit reform momentarily, but let me assure the hon. Lady—I know that this is a particular concern of hers, and she is right to be concerned about these matters—that my Department is extremely concerned to ensure that all changes in our benefit reforms are proportionate and are introduced in the most sympathetic and supportive way possible. Underlying those reforms, however, is a simple belief: we believe that where people want to work—where they have the ability to work—work is good for them. We want to open our door to as many people as possible, including many who are currently long-term sick and disabled, to give them exactly that opportunity.

Work Capability Assessment Consultation

Debate between Debbie Abrahams and Mel Stride

Tuesday 5th September 2023 Commons Chamber

[Mel Stride]

I dealt in my statement with my hon. Friend’s question about why we are doing this, given that we will be getting rid of the WCA in due course: I said that there is no reason why we cannot bring forward these benefits earlier, even though we are going to be removing the WCA altogether. As for the numbers impacted, we know that about one in five people on those benefits do want to work, given the right support. Until the consultation is concluded and we know the exact nature of the policy changes that we may or may not be making at that point, we will not be able to assess the numbers exactly.

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

This will lead to a lot of fear among disabled people. I appreciate the tone that the Secretary of State has taken, but the record of the past 13 years has been one of excluding the most vulnerable disabled people from more support than they need. We know that disabled people are a group who are living in huge poverty. We also know that some of them have died, not just through suicide, but because of the lack of safeguarding in the Department and how it operates. So I urge him to ensure that the safeguarding system within the Department ensures that people are protected. I agree with the SNP spokesperson about Access to Work; we are talking about 4 million disabled people able to work and 35,000 being provided with it through Access to Work.

[Mel Stride]

I listen to the hon. Lady’s remarks with great respect; having appeared before her at the Select Committee, I know how serious she is about the issues she raises and how strongly she promotes her ideas and concerns. She mentioned the lack of support available for the people in the situation we are describing, which is precisely why I want to start providing more support to them by making these reforms. Let me make an important point in an area where I am in agreement with her: we need to do this in the right way. We need to listen carefully to those who will be affected by any changes we may bring forward, which is why we have a full eight-week consultations. My Ministers and I will be engaging closely with the various stakeholders, disabled people and so on. We will of course welcome her comments as part of that process.

Social Security (Additional Payments) (No. 2) Bill

Debate between Debbie Abrahams and Mel Stride

2nd reading
Tuesday 21st February 2023 Commons Chamber

[Mel Stride]

My hon. Friend is entirely right, and I am pleased to hear his personal experience of the measure. He is right to point out that there is great flexibility in how it can be administered by local authorities. We place a particular emphasis on making sure that that assistance goes to those who may not have benefited from the measures I am outlining, but who are still in need.

In addition to the taper, we recognise that pensioners need additional support where it is appropriate. My Department has thrown itself into promoting the uptake of pension credit. The Minister for Employment, my hon. Friend the Member for Hexham (Guy Opperman), did such sterling work as the Pensions Minister and, more recently, the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Sevenoaks (Laura Trott), has promoted pension credit with such vigour on social media and radio that there has been a 73% increase in applications for pension credit compared with this time last year.

My Department has an excellent record on unemployment. Disabled employment is up by 1.3 million since 2017. We have arrived at our target for the employment of disabled people a full five years earlier than originally planned.

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

I just wonder whether the Secretary of State would like to comment on the disability employment gap.

[Mel Stride]

As the hon. Lady will know, the disability employment gap is a key measure on which we are focused. It has more recently increased a little, which I think is the point that she is alluding to, but generally, prior to that it was on a downward trend. The Department is very focused on making sure that we get it as low as we possibly can.

In the last year we also had the energy price guarantee, which ensured that average energy bills came in at £2,500 on average, and £400 off energy bills directly paid to bill payers. In England, we had the council tax discounts for bands A to D. We had two further extensions to the household support fund, as was just referred to by my hon. Friend the Member for Bosworth (Dr Evans). For the devolved Administrations, there have been Barnett consequentials of £1.5 billion since October 2021. I am very proud of our record and the wide package that has already been deployed, which is valued at £37 billion.

That brings me to this year, when we intend to go still further. As the Prime Minister has stated, one of our key aims as a Government is to reduce inflation by 50% by the end of this year. I am confident that we will achieve that, but we recognise that, despite the relief that that will provide to millions up and down the country, we need to provide further support payments. There will be three payments totalling £900 for around 8 million low-income households. Like last year, there will be a £300 payment alongside the winter fuel payment of £300 to pensioners, and a £150 payment to disabled people. The delivery of the support for pensioners will be via regulation and is not the subject of the Bill, but the other payments will be delivered through this legislation.

The Bill sets out the basis of qualification for the payments and who makes the payments, whether that is me and the DWP or His Majesty’s Revenue and Customs in the case of, for example, tax credits. It makes provision as to how the timing of the payments will be set out and it exempts the payments from charges to taxation. It sets out the arrangements that will ensure that data can be transferred and shared between my Department and HMRC, so that all the payments run smoothly and we avoid duplication and minimise fraud.

Leaving the EU: Economic Impact of Proposed Deal

Debate between Debbie Abrahams and Mel Stride

Wednesday 20th February 2019 Commons Chamber

[Mel Stride]

I will not be drawn into the Scottish National party again, but I thank my hon. Friend for his question. He is absolutely right—fundamentally, the way in which we manage the economy is one of the most important things that we do as a Government, which is why we have record levels of employment and the lowest level of unemployment since 1975. It is why we have halved youth unemployment since 2010, reduced the debt and have reduced the deficit by 80%, and it is why the economy is moving in the right direction.

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

As many of my hon. Friends have said, all credible economic analysis shows that a no-deal Brexit would be disastrous for the economy. The draft withdrawal agreement would be only slightly less disastrous for the economy. Given that the report published by the Resolution Foundation today predicts an increase in child poverty of 6% by 2023—that is equivalent to an additional 1 million children living in poverty since 2016—what are the Minister’s estimates of the additional effect on child poverty of no deal or the draft withdrawal agreement?

[Mel Stride]

Absolute poverty is at a record low. The Government have an enviable record of helping those who require work to get into work, and I have outlined at length our success in that area. We have made sure that work pays with the benefit system and our roll-out of universal credit. Underpinning the hon. Lady’s question is a denial of the result of the 2016 referendum. The country made a decision to leave, and on that basis the decision has to be whether we have a sensible deal, as we have negotiated, or whether perhaps we end up with no deal, which I think the vast majority of Members in the House would not want to happen.

Oral Answers to Questions

Debate between Debbie Abrahams and Mel Stride

Tuesday 29th January 2019 Commons Chamber

[Mel Stride]

This country will achieve a range of additional flexibilities when we are outside the European Union. We will, of course, assess them all in due course, taking into account the fiscal costs of some of the measures that my hon. Friend has raised.

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

20.   The CBI and many others have warned that leaving the EU with no deal will exacerbate existing regional economic inequalities. The north-west alone is predicted to lose £20 billion a year in a no-deal scenario. That will, of course, impact jobs, not least the 350,000 that are linked to EU exports, 14,000 of which are in my constituency of Oldham East and Saddleworth. So will the Chancellor and the Government as a whole once and for all rule out a no-deal Brexit scenario, which would harm the country as a whole and particularly my constituents and the north?

[Mel Stride]

The simple reality of the situation that Parliament finds itself in is that, in the event that we do not conclude a deal successfully with the European Union, this country may well leave without a deal. I urge the hon. Lady, in order to address the concerns that she has rightly raised in this House, to get behind the deal.

Finance (No. 3) Bill

Debate between Debbie Abrahams and Mel Stride

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 8th January 2019 Commons Chamber

[Debbie Abrahams]

I do not know whether the Minister is aware of this, but the European Commission does this sort of analysis every year on its programme of policies, so it is not that this cannot be done. Its work covers not just quantitative but qualitative data, which relates to the points my hon. Friend the Member for Gedling (Vernon Coaker) made. There needs to be more than what the Government are doing—they do not know what the impacts of their policies will be.

[Mel Stride]

I think I have been misunderstood, and I apologise to the hon. Lady if I was not clear enough. I am certainly not saying that data does not matter—quite the opposite. What I am saying is that we need to have the right kind of data for the exercise to be meaningful and worth while.

New clause 1 would require the Chancellor to report on the impact of changes to the personal allowance and the higher rate threshold on households of different levels of income, on child poverty, on equality and on those individuals with protected characteristics. New clause 5 would require the Chancellor to report on the Bill’s effect on child poverty, life expectancy and public health.

Let me first address the question of the Treasury’s compliance with its public sector equality duty, as referenced in new clause 1(2)(c). Equality and fairness continue to lie right at the heart of the Government’s agenda, and we take our compliance with this duty deeply seriously while deciding policy. That means that Government decisions are explicitly informed by the evidence available of the implications of those decisions for those sharing protected characteristics. I have no hesitation in saying that the Treasury complies with the public sector equality duty.

Further provisions in new clauses 1 and 5 call for the publication of different forms of analysis for clause 5 and for the whole Bill in turn. The Government have been, and continue to be, transparent—more transparent than any other. Changes to the tax system are always accompanied by a tax information and impact note, and each Budget is accompanied by detailed distributional analysis.

TIINs, in particular, are relevant to the questions discussed today. These notes provide Parliament and taxpayers with information on the expected effects of changes to the tax system, and form a vital part of the Government’s commitment to transparency and accountability around tax decisions. In the context of clause 5, for example, the TIIN already sets out the impact on groups of taxpayers according to their age, gender and income tax band, and this data is readily available to HMRC through tax returns.

Finance (No. 3) Bill

Debate between Debbie Abrahams and Mel Stride

Committee: 1st sitting: House of Commons
Monday 19th November 2018 Commons Chamber

[Mel Stride]

My hon. Friend is exactly right. This is why we also have the enterprise investment scheme and the seed enterprise investment scheme, and why we have made this change to entrepreneurs’ relief. An interesting fact is that of those who benefit from the entrepreneurs’ relief, around a third go on to reinvest in further businesses, so those tax savings are being reinvested in further economic activity.

I turn to the comments of the hon. Member for Bootle (Peter Dowd), who made a number of important points—or, should I say, he made a number of points about important matters? That might be slightly more to the point. However, I agree entirely with my hon. Friend the Member for Brentwood and Ongar (Alex Burghart), who is no longer in his place; I have a great affection for the shadow Minister, particularly the Plutarch and Cicero quotes of which he is most fond. In fact, I will share one with him that does not apply to him in any way, of course:

“Any man can make mistakes, but only a fool persists in his error.”

I think that is probably more appropriate to the leader of his party than to the hon. Gentleman himself.

The hon. Gentleman raised the issues of the amount of tax burden shouldered by the wealthiest in the country. I remind him that under this Government the wealthiest 1% pay a full 28% of all income tax; it was about 24% when the Labour party was in power. As my hon. Friend the Member for Gloucester (Richard Graham) pointed out, the lowest 20% of earners have benefited the most since 2010, from the combination of changes to tax, the national living wage and other factors.

The hon. Gentleman mentioned the UN rapporteur and my appearance on Channel 4. I have to point out that the rapporteur produced, I think, a 24-page report based on around two weeks’ fact-finding in this country. The Government’s view is that the conclusions drawn were disproportionate to say the least. The hon. Gentleman suggested that I did not answer the questions put to me on that particular occasion, which I dispute. However, it is indisputable that he failed to answer the question of my hon. Friend the Member for Cheltenham (Alex Chalk) as to exactly what the Opposition would do with the personal allowance, given the exception that they are taking to our tax measures in the Budget.

[Debbie Abrahams]

Can the Minister recollect whether there has been a UN report in the last eight years that this Government have agreed with?

[Mel Stride]

Well, I am not here to debate UN reports of any description and whether the Government agree with them, other than to make the point that this particular report is rather disproportionate, given the remarks that I made earlier about what has happened to absolute poverty and children of workless households and so on.

Finance Bill

Debate between Debbie Abrahams and Mel Stride

Tuesday 2nd July 2013 Commons Chamber

[Debbie Abrahams]

On the hon. Gentleman’s final point, there is more to come in my speech: “And there’s more”, I promise—I never did a good impersonation of Frank Carson. On employment, however, the hon. Gentleman is wrong. Employment is lower than in 2008 and I will come on to that—those are official statistics, so he cannot refute them. At the end of 2010, our economy was growing, yet we have been bumbling along the bottom for three years. We had a double-dip recession and barely escaped a triple-dip recession. Growth has been downgraded at every turn.

[Mel Stride]

Will the hon. Lady give way?

[Debbie Abrahams]

No, I will not give way now, as I want to carry on with my argument. There may be an opportunity later.

Amazingly, just a few months after the Chancellor delivered his autumn statement, he had to halve his estimates for growth this year. We will be borrowing £245 billion more than planned since 2010, and as we have heard, the deficit will not be eradicated as the Government promised in 2010. In spite of being told how important austerity was for economic confidence and low interest rates, the triple A rating has been downgraded by not one but two credit rating agencies. The Government tried to blame everybody except themselves and said that austerity was the only way, only to receive an embarrassing rebuke from the chairman of the Office for Budget Responsibility who said that public spending cuts wiped 1.4% off growth last year. The International Monetary Fund followed suit shortly afterwards.

Should anyone wish to know how we relate to the rest of the world, we come 18th in the G20, due to our appalling economic performance. Even after the IMF revised its multiplier, the Chancellor remains steadfast. I could go on—[Interruption.] I am tempted. Our rate of inflation is way above the Bank of England’s 2% target. Employment is lower now than in 2008 and one in 10 people are underemployed. Whatever economic indicator we use, the Government are failing. By all accounts, the public are now starting to see that. Earnings are falling in real terms by 2%, and a recent poll showed that four out of five people feel that austerity is not working. As we have heard, the Chancellor is resolute and sticking fast. The Chancellor and the Prime Minister have also tried to pass this off as everybody else’s fault, but we need to examine the arguments put forward to explain why we are in this mess.

The previous Labour Government have been blamed, but that ignores the fact that this was a global financial crisis. We should remember that at the time the Chancellor and the Prime Minister failed to suggest that our financial institutions required more regulation. The Chancellor has tried to suggest that it is a public spending issue, but public spending as a percentage of GDP was 36.5% in 2007, compared to 42.5% in 1997. In other words, the Labour Government did repair the roof when the sun was shining. We brought down the deficit when we were in power, and it is outrageous to suggest anything else. After injecting funds into our banks, public spending rose to 60% of GDP, but the City’s debt was 245% of GDP. For this Government to pass the crisis off as a sovereign debt problem is absolutely outrageous. This was a problem in our financial institutions that they said nothing about when they were in opposition. They are still failing to grapple with this major issue. They have not managed to improve it.

The Government are trying to distract attention away from our financial institutions and blame what they refer to as shirkers and scroungers. Their attack on the social security budget is outrageous. We must not forget that 43% of social security is paid to older people through old age pensions. This attack is on our pensioners, and that is disgraceful. Growth of just 1% a year since 2010 would have generated £335 billion more. If growth had been 2% a year, that figure would have been £551 billion. Many economists have said that the lack of growth as a result of the failure of economic policy may not be recoverable.

On the areas taking the biggest hits in the spending review—I have just alluded to the Department for Work and Pensions—we must not forget local government. What will the cuts hit? They will hit our social care budget—the budget for the most vulnerable in our society. That is outrageous. Although the NHS budget has been protected, the Institute for Fiscal Studies predicts that job losses are likely to continue. We have already seen 300,000 people lose their jobs in the public sector. It is estimated that another 300,000 will lose their jobs in the next two years. The indirect effect of cuts to work and pensions, local government and the NHS will be to hit our pensioners and increase the number of children growing up in poverty, which will affect the rest of their lives, to more than 1.1 million. We are also seeing, for the first time in decades, life expectancy coming down in certain areas. I could go on, but I will finish there.