Oral Answers to Questions

Ed Miliband Excerpts

Wednesday 27th October 2010 Commons Chamber

[The Prime Minister]

My hon. Friend is entirely right. The growth figures yesterday were twice as good as market expectation. Of course, Opposition Members do not like good news, but they should celebrate it when it comes. This was strong growth, largely driven by the private sector, and it was accompanied by the Standard & Poor’s agency saying that we should no longer be in the danger zone for our credit rating, which is welcome news. Opposition Members who are waiting for a double dip have had a bit of double depression, but I am sure that we will get lots of questions about the economy this morning.

[Edward Miliband (Doncaster North) (Lab)]

May I start by joining the Prime Minister in paying tribute to Corporal David Barnsdale from 33 Engineer Regiment (Explosive Ordnance Disposal)? He died serving his country; we honour his memory and send the deepest of condolences to his family.

There are reports this morning that the Government are reconsidering aspects of their housing benefit reforms. Are they?

[The Prime Minister]

No, we are bringing forward our plans for housing benefit reform. Let me tell the right hon. Gentleman why we are doing that. Housing benefit for working-age people over the last five years has gone up by 50%. This is a budget that is completely out of control. The proposals we are bringing forward are difficult, but they need to be done, not least because we want to make sure that we protect the schools budget. We want to make sure that we protect the NHS budget. That is why we are taking difficult decisions about welfare and I hope that he will be able to tell us this morning whether he is going to support them.

[Edward Miliband]

I thank the Prime Minister for that answer. Let me get complete clarity from him. The Secretary of State for Work and Pensions is reported as saying that the Government are “open to suggestions” on the issue of housing benefit. Is the Prime Minister saying that all the aspects of housing benefit reform are fixed and are not going to change?

[The Prime Minister]

We are going forward with all the proposals that we put in the spending review and in the Budget. I am sure that we would all love some suggestions from the right hon. Gentleman.

[Edward Miliband]

This is Prime Minister’s questions—the clue is in the title. He is supposed to answer the questions. I have a specific question for him on one aspect of the housing benefit changes. The plan is to cut by 10% the housing benefit—the help with rent—that someone receives after they have been out of work for a year, even as they have been searching for work. Does the Prime Minister think that that is fair?

[The Prime Minister]

These are difficult changes, but I think that they are right. Everyone on jobseeker’s allowance is expected to work, and everyone knows that there is a problem when people claim jobseeker’s allowance and maximum housing benefit for long periods of time, which creates a serious disincentive to work. That is why we are making this change, and that is why it is right.

The key change that we are looking at is the £20,000 cap on maximum housing benefit claims. Is the right hon. Gentleman really saying—[Interruption.] I am answering the question. I know that Labour Members do not like the answer that we are sticking to our plans, but we are sticking to our plans. The point that everyone in this House must consider is whether we are happy to go on paying housing benefit of £30,000, £40,000 or £50,000. Our constituents are working hard to give benefits to other people to live in homes that they themselves cannot dream of, and I do not think that is fair.

[Edward Miliband]

The whole House has heard that the Prime Minister has dug himself in on the proposal to cut by 10% the help that people receive with rent after they have been out of work for a year. I ask him, because he will have obviously thought about this, what advice he would give to a family who are seeing 10% of their income from housing benefit being taken away. What advice would he give them, when they are seeing such a large cut in their income, on how they should make ends meet?

[The Prime Minister]

In the Work programme, we will have the best and biggest programme to help those people back into work. It will not just be the state doing it; we are going to get training companies and voluntary bodies to help those people into work. I know that the right hon. Gentleman likes figures, so let me give him the figures for London. There are 37,390 people who have been on jobseeker’s allowance for more than a year, and those people would be affected by this change—I accept that; it is difficult. Every month, there are 30,000 new vacancies in London, which makes 400,000 vacancies a year. We want to get those people back into work. What does he want to do?

[Edward Miliband]

The Prime Minister is about to make 500,000 people redundant as a result of the cuts announced by the Chancellor of the Exchequer. It is clear that his policy on housing benefit is a complete shambles. He has talked about London, but in London alone councils are saying that 82,000 people will lose their homes—they are already booking the bed-and-breakfast accommodation. How many people does he think will lose their homes as a result of that policy?

[The Prime Minister]

If we are prepared to pay—as we are—£20,000 in housing benefit, there is no reason why anyone should be left without a home. The Leader of the Opposition has talked about economic policy and cuts, and we now know from the Labour party’s own memorandum what its cuts would be. This is not the Institute for Fiscal Studies, the Government or the Conservative party; this is a Labour memorandum. It said that the cuts—[Interruption.]

[The Prime Minister]

The people responsible for making the mess should be quiet when they are told how it will be cleared up. The Labour memorandum states that the cuts implied by its spending plans would have been £44 billion in 2014-15. Those are the Labour party’s cuts, which we are having to implement. I was always told that if you have got nothing to say, it is better not to say it.

[Edward Miliband]

We can see the faces on the Liberal Democrat Benches. The hon. Member for Bermondsey and Old Southwark (Simon Hughes) has described that policy as “harsh and draconian”. No wonder he looks glum. Then we have glummer, the Deputy Prime Minister—it is no wonder that he is back on the fags. Is not the truth that the Prime Minister just does not get it? He is out of touch. Other people will pay the price for his cuts. Is it not time that he thought again on housing benefit?

[The Prime Minister]

We all had the chance to read about it in The Times this morning—the advice to the Leader of the Opposition:

“It’s important to have a cheer line that goes down well in the chamber.”

You have to have something that

“can be clipped easily by the broadcasters”,

and:

“It is important to get to your feet looking as if you are seizing on something new.”

The right hon. Gentleman has a plan for Prime Minister’s questions, but he has no plan for the economy, no plan for the debt and no plan for the mess Labour made—absolutely nothing worth while to say. That is it.