Oral Answers to Questions

Ed Miliband Excerpts

Wednesday 15th October 2014 Commons Chamber

[The Prime Minister]

I cannot think who my hon. Friend is referring to, but it is certainly true to say that if we are not satisfied—as I am not satisfied—with the way the EU is working at the moment and if we want change, reform, renegotiation and, crucially, an in/out referendum—not for us to decide, but for the British public to decide—there is only one choice, and that is to vote Conservative.

[Edward Miliband (Doncaster North) (Lab)]

I should say at the outset that I am speaking through a sore throat, but I would not have missed this meeting with the Prime Minister for the world. Today’s fall in unemployment is welcome. Every time someone gets a job, it is good for them and for their family. Will the right hon. Gentleman confirm, however, that the latest figures show that wages are still failing to keep pace with inflation and that he is presiding over the longest fall in living standards for a century?

[The Prime Minister]

Let me say to the right hon. Gentleman that I am sure the whole House will want his sore throat to get better soon. I hope that, if he gets a doctor’s appointment, he will not forget it. He must make sure he turns up on time.

I am glad that he has asked me about unemployment, because the figures out today show that our long-term plan is working. We see unemployment now below 2 million, we see the claimant count below 1 million and we have just seen the biggest annual fall in unemployment since records began. Long-term unemployment, youth unemployment, long-term youth unemployment and women’s unemployment are all down, but there is absolutely no complacency. To answer his question directly: yes of course we have seen slow wage growth, but that is because we are recovering from the longest and deepest recession in this country’s history. Let me remind him what the Institute for Fiscal Studies said:

“We’ve had a great big recession. We had the biggest recession we’ve had in 100 years. It will be astonishing if household incomes haven’t fallen and earnings haven’t fallen”.

Of course that has happened, and we know who is responsible.

[Edward Miliband]

The right hon. Gentleman obviously noticed that I lost a couple of paragraphs in my speech. I have noticed that since we last met he has lost a couple of his Members of Parliament. Let us talk about what he said at conference. Before the last election he lectured the Tory party and said this:

“you can’t talk about tax reduction unless you can show how it is paid for, the public aren’t stupid”.

So when he announced his £7 billion unfunded tax cut he must have had a secret plan to pay for it. What is it: cutting public services or raising VAT?

[The Prime Minister]

People do not have to look in the crystal ball with us; they can read the book. We have cut taxes for 26 million people in our country; we have taken 3 million people out of income tax altogether; and we have raised the personal allowance to £10,000, so that if someone is on the minimum wage, we have cut their income tax bill by two thirds. But we have been able to do that only because we remembered something important: you have got to have a long-term economic plan and you have got to cut the deficit. We do have a plan, the deficit is down by a third, and the International Monetary Fund says that we are the fastest-growing economy in the G7. With a record like that, we can afford tax cuts—that people deserve.

[Edward Miliband]

We can see the record: higher VAT; cuts to tax credits; hitting working families; and the bedroom tax. That is the record of this Prime Minister. He cannot be straight about his tax plans, so perhaps he can be straight about his plans for tax credits. Can he confirm that as a result of his plans a one-earner family with two children on £25,000 a year will lose almost £500 a year?

[The Prime Minister]

The best way to help people is to take them out of income tax altogether. Next year, people will be able to earn £10,500 before they pay any income tax. We think it is better not to take money off people in the first place, but the right hon. Gentleman wants to compare records. After all, this is the Labour party, so let us look at the record on labour. Here it is: women’s unemployment up 26% under Labour, down 11% under this Government; and youth unemployment up 44% under Labour, down 22% under this Government. The fact is that the economy is growing, the deficit is coming down and we are getting Britain back to work. The long-term plan is working, but the one thing that could wreck it is a Labour Government.

[Edward Miliband]

The right hon. Gentleman did not answer the question or confirm the figures. Let me just tell him that they are the Chancellor’s own figures showing that people will be £500 a year worse off, and the Prime Minister cannot even admit that. Let me ask him about a very specific issue about disabled people and the minimum wage, which goes to the issue of living standards. In response to a question at the Conservative party conference, Lord Freud, the welfare reform Minister, said:

“You make a really good point about the disabled…There is a group…where actually as you say they’re not worth the full wage.”

Is that the Prime Minister’s view?

[The Prime Minister]

No, absolutely not. Of course disabled people should be paid the minimum wage, and the minimum wage under this Government is going up, and going up in real terms. It is now at £6.50, and we will be presenting our evidence to the Low Pay Commission calling for another real-terms increase in the minimum wage. The right hon. Gentleman talked about the Chancellor’s figures, so let me give him the Chancellor’s figures: inflation is at 1.2%—a five-year low; we have had the biggest annual fall in unemployment since records began; we have the fastest-growing economy in the G7; and next year pensioners will be getting an extra £150 a year. Those are the Chancellor’s figures, those are the Government’s figures, and we know that we just get mayhem from Labour.

[Edward Miliband]

We need to be clear about what the welfare reform Minister said, because it is very serious. He did not just say that disabled people were “not worth” the minimum wage. He went further and said that he was looking at

“whether there is something we can do…if someone wants to work for £2 an hour.”

Surely someone holding those views cannot possibly stay in the right hon. Gentleman’s Government?

[The Prime Minister]

Those are not the views of the Government. They are not the views of anyone in the Government. The minimum wage is paid to everybody, disabled people included. [Interruption.]

[The Prime Minister]

Let me tell you that I do not need lectures from anyone about looking after disabled people, so I do not want to hear any more of that. We pay the minimum wage, we are reforming disability benefits, we want to help disabled people in our country and we want to help more of them into work. Instead of casting aspersions, why does not the right hon. Gentleman get back to talking about the economy?

[Edward Miliband]

If the Prime Minister wants to protect the rights of disabled people, I suggest that he reads very carefully what his welfare reform Minister has said, because they are not the words of someone who should be in charge of policy relating to disabled people. In the dog days of this Government, the Conservative party is going back to its worst instincts: unfunded tax cuts, hitting the poorest hardest and now undermining the minimum wage. The nasty party is back.