Benefits Uprating (2013-14)

Debate between Dennis Skinner and Steve Webb

Thursday 6th December 2012 Commons Chamber

[Steve Webb]

My hon. Friend is right that we have substantially increased out-of-work benefits. He will recall the 5.2% increase last year in line with inflation. We judged that that was the right thing to do when inflation was running very high. This year, my right hon. Friend the Chancellor has had regard to inflation and the wider economic situation, which have informed his judgments.

[Mr Dennis Skinner (Bolsover) (Lab)]

BBC television this morning went to a clothing factory in Derbyshire.

[Mr Skinner]

Yes, in Alfreton. The BBC interviewed people—strivers—who work for a living at the factory about the effect of the Budget. Surprisingly, all three of those interviewed understood that the cut would affect them and not just people out of work. What answer has the Minister got for those people about how the Budget was presented? The Government tried to pull the wool over their eyes, but they were smart enough to spot that they would be the casualties.

[Steve Webb]

Those who travel to work using their cars will have been delighted by the cancellation of the 3p increase in petrol tax. By the time the rates are reviewed next autumn, petrol duties will have been frozen for two and a half years, and petrol prices will be lower by 10p a litre. The hon. Gentleman may wave his hands, but that is what matters to people who work. On the low paid, is he aware that those on the minimum wage have had their tax bill halved as a result of the increases to personal tax allowances? That is welcomed by strivers.