Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 6th March 2013 Commons Chamber

[The Prime Minister]

My hon. Friend raises a point of concern to everyone in this House and everyone in this country, because no one knows when a relative could be afflicted by the condition. Her point is absolutely right: this is a disease and we should be thinking about it as a disease, as we do when we try to crack cancer, or heart disease, or strokes. That is why the Government are increasing the amount of money going into medical research so that we can try to prevent dementia in more cases. But there are many other things we need to do to improve the care in care homes and in hospitals and to ensure that we have more dementia-friendly communities so that we all learn how to deal with people who have dementia and how to help them lead lives that are as productive as possible.

[Edward Miliband (Doncaster North) (Lab)]

I would like to ask the Prime Minister about an individual case that has been raised with me. John works in east London and is worried about what is happening to his living standards. His salary is £1 million and he is worried that under proposed EU regulations, his bonus may be capped at just £2 million. Will the Prime Minister tell us what he is going to do for John?

[The Prime Minister]

What I would say to John and everyone like John is that under this Government, bonuses are one quarter of what they were when the right hon. Gentleman was in the Treasury. I will take lots of lectures from lots of people, but I do not have to listen to the croupier in the casino when it all went bust.

[Edward Miliband]

I know the Prime Minister does not want to deal with the facts, but he sent his Chancellor to Europe yesterday in order to argue against the bonus cap, he says, presumably because he thinks it will be bad for the City of London, but who led the negotiations on the bonus cap? It was a Conservative Member of the European Parliament. What did she say? She said

“we have managed to produce a deal that will strike the right balance for the majority of bankers who take responsible decisions.”

Why are the Prime Minister and the Chancellor the only people who think it is a priority to fight for bigger bonuses for bankers?

[The Prime Minister]

As ever, the right hon. Gentleman is completely wrong. We have some of the toughest rules on bonuses and the toughest rules on transparency of any major financial centre anywhere in the world. When the croupiers were in charge, where was the transparency? There was none. Where were the rules? There were none. We are not going to listen to them, but there is an important issue here. There are some important British national interests. We are responsible for 40% of the EU’s financial services. Those industries are here in our country and we ought to make sure that they go on contributing to our Exchequer. We want to make sure that international banks go on being headquartered here in the UK. We think that matters. The right hon. Gentleman might want to just pose and play politics, but we care about these things. We also want to make sure that we can put in place the very tough ring-fence around our retail banks so that the complete shambles that he presided over can never happen again.

[Edward Miliband]

This is the man who in opposition said:

“There will be a day of reckoning”

for the bankers. Now he sends his Chancellor to fight against the bonus cap in Brussels. What did he say? Was he arguing that there should be more regulation of the banks? No. [Interruption.] Oh, he says he was. Let’s see. What did he say? David Cameron, “A Conservative Economic Strategy”, March 2008. I have it here. He said:

“As a free-marketeer by conviction, it will not surprise you to hear me say”

that the problem of the past decade has been

“too much regulation”.

There we have it. I think John the banker will take heart that the Prime Minister is straining every muscle to help him. Now, let me ask the right hon. Gentleman about the cases of the hundreds of thousands of disabled people who will lose an average of £700 a year because of his bedroom tax. Is he going to fight for them, like he is fighting for John the banker?

[The Prime Minister]

First of all, let us just remember what happened in 2008, when the right hon. Gentleman was sitting in government—the biggest banking bust in our history, the build-up of the biggest deficit in our history. All the mess that we have to deal with now was delivered by him and his henchmen in 2008. Before we go on to the spare room subsidy, let him get to his feet and apologise for the mess that he left in this country. Apologise!

[Edward Miliband]

Mr Speaker—[Interruption.]

[Mr Speaker]

Order. I know that there are people who do not like it if Question Time runs over. Personally, it does not matter to me at all. The more noise and disruption there is, the longer it will take and the longer we will be here. It is very simple.

[Edward Miliband]

I notice that the Prime Minister has a new tactic, which is to ask me questions during our exchanges. All I can say is that it is good to see him preparing for opposition. The Home Secretary shakes her head. I am looking forward to facing her when they are in opposition.

Let me ask the Prime Minister another question, because he did not answer the one about the bedroom tax. He talked earlier about the hardship fund. Let us look at the facts about the fund. Some £25 million of it has been allocated specifically to help disabled people hit by the bedroom tax, but how much do his own figures show he is taking from disabled people? The answer is £306 million. Will he admit that the vast majority of disabled people hit by his bedroom tax will get no help from his hardship fund?

[The Prime Minister]

First, the whole House, and the whole country, will note that there was no apology for the mess left by the Labour party.

Let me tell the right hon. Gentleman that his figures on the spare room subsidy are completely wrong. The last thing he said before sitting down was that we are cutting the money going to disabled people. That is simply not the case. In 2009-10 the money spent on disability living allowance was £12.4 billion. By 2015 it will be £13.3 billion. There is no cut in the money going to the disabled. This Government are protecting that money, in spite of the mess he made. On the spare room subsidy, pensioners are exempt, people with disabled children are exempt and anyone who needs help around the clock is also exempt. As he is fond of reading out letters from constituents, let me read from one I got on this issue from a pensioner:

“We are expected to find up to an extra £60 per month out of our pensions for having extra bedrooms.”

Of course, they are not, because they are pensioners and are therefore exempt, but they have been terrified by the right hon. Gentleman’s completely irresponsible campaign.

[Edward Miliband]

I think what that means is that there was nothing in the briefing on the question I asked. Let me just make it clear, because the Prime Minister obviously does not understand it. His own impact assessment—he might like to read it, by the way—states that 420,000 disabled people will be hit by the bedroom tax by an average of £700 a year. That is £306 million. The money in the hardship fund allocated to disabled people is just £25 million. It is basic arithmetic. Will he admit that the vast majority of disabled people will get no help from the hardship fund and will be hit by his bedroom tax?

[The Prime Minister]

The right hon. Gentleman is completely wrong, because anyone with severely disabled children is exempt from the spare room subsidy—[Interruption.]

[The Prime Minister]

The right hon. Gentleman completely ignores the fact that anyone with severely disabled children and anyone who needs round-the-clock care are exempt from the spare room subsidy. The point he has to address is this: we are spending £23 billion on housing benefit. That is up by 50% over the past decade. That is £1,000 every year for every basic rate taxpayer. We say that it is time to reform housing benefit, and it is only fair that we treat people in social housing in the same way as we treat those in private rented housing. He has no proposals to do anything about welfare, other than to put up borrowing.

[Edward Miliband]

I think that we have established today that the Prime Minister does not understand his own policy. It is shameful to do this and not even understand the impact on the people of this country. He pulls out all the stops to defend the bankers and their bonuses, but he has nothing to say to the disabled people being hit by his bedroom tax. He stands up for the wrong people. It is no wonder his Back Benchers and the country think he is totally out of touch.

[The Prime Minister]

What we have heard today is what we hear every single Wednesday. The Opposition will not support one single change to welfare. They will not support reforms to housing benefit. They did not even support it when we took housing benefit away from people charging £100,000 a year. They would not support changes to child benefit. They will not support any changes to disability living allowance. They will not support changes to council tax benefit. They have opposed £83 billion of welfare saving. That is the point. They have to admit that their policy is to put up borrowing. They have nothing to offer, only debt, debt and more debt.