Welfare Reform

Earl of Listowel Excerpts

Tuesday 5th October 2010 Lords Chamber

[Lord Taylor of Holbeach]

The Government have nothing against children—indeed I think that that must be self-evident. At the moment we tax people on low incomes to pay for the child benefit of people who earn much more. There is fairness and equality involved in this, and I am surprised that the noble Lord cannot perceive that.

[The Earl of Listowel]

My Lords, is the Minister aware that the necessary cuts are already beginning to harm the most vulnerable families and the services that support them? Does he agree that if the £1 billion saving made by ending universal child benefit were targeted towards those most vulnerable families, many people in this country would agree that it is the right thing to do?

[Lord Taylor of Holbeach]

Indeed it is. The strategy, of which this is part, is to reform the welfare system so that it is fairer, and at the same time to raise tax thresholds so that people on lower incomes are likely to be better off rather than worse. At the moment we have a situation where those on middle incomes are paying for benefits to be given to people on higher incomes. That cannot be justified.