Fairness and Inequality

Debate between Debbie Abrahams and Stephen Crabb

Tuesday 11th February 2014 Commons Chamber

[Stephen Crabb]

I applaud the hon. Lady for her attempt to rescue the reputation of the former Chancellor of the Exchequer and Prime Minister. The truth is that the trajectory of public spending was already far too high, even before the banking collapse. There was a structural deficit that placed at risk the stability of the UK finances even before the banking collapse.

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

Does the Minister not accept that official statistics show that the debt-to-GDP ratio was lower in 2008 than when we came into power in 1997? Those are the official figures.

[Stephen Crabb]

I am not sure that I recognise the figures that the hon. Lady gives.

--- Later in debate ---

[Stephen Crabb]

I hear what the hon. Gentleman says, but the reasons that drive people to use food banks are complex and it is a mistake to try to single out any one cause. When I speak with food banks in Wales, they do not tell me that it is the benefit changes that are responsible in most cases. Household debt is a far more important factor.

[Debbie Abrahams]

I thank the Minister for giving way again; he is being very generous with his time. Citizens Advice has analysed why people are going to food banks and found that inappropriate sanctions as a result of welfare reforms and low pay are the key contributors.

[Stephen Crabb]

The hon. Lady talks about inappropriate sanctions on benefits. I recall hearing one of her Front-Bench colleagues say only a few weeks ago that the Labour party would be even tougher on benefits than this Government have been. I think that she needs to get some consistency with her Front Benchers on whether they support sanctions.

The best way to reduce economic inequality is to have a growing economy and to ensure that people are in work. Today, more people in Wales have gone out to work than at any time before, with economic inactivity at its lowest level since records began. However, the tragedy is that there are still 200,000 people in our country who have never worked a day in their lives. I hope that the hon. Member for Carmarthen East and Dinefwr agrees wholeheartedly that that represents an enormous waste of talent, potential and skill and that a small nation such as ours cannot afford to lose that potential. I hope that he shares my ambition for welfare reform to see those people who have been locked in worklessness brought back into the labour market to achieve their full economic and social contribution.