(4 years, 3 months ago)
Commons ChamberAs a Government, we absolutely recognise the support that carers provide. We have made a number of changes during covid-19 to maintain that support, including allowing emotional support and allowing for breaks due to covid. By 2024-25, we expect to be spending £3.6 billion supporting carers, which will be more than double that spent when we first came to office.
I thank my hon. Friend for raising kickstart. This is a huge programme for young people, providing 25 hours a week and an opportunity to get their first foot on the employment ladder. We do not want our young people to be left behind because of the impact of the pandemic—we know that the scarring can affect them most. Kickstart will change that, and I ask all employers to get involved and be part of it.
(12 years, 10 months ago)
Commons ChamberThe approach we are taking across all our reforms is that if somebody in a household is of working age, we expect them to work. All our efforts and the support we are putting in place are designed to ensure that people work and that households benefit from an income from employment rather than otherwise.
As I said, the amendments would cost £100 million. They are not modest amendments, as suggested in the other place. In fact, Lord Best, who proposed them, believed that they might cost even more—£150 million a year. Either way, it would significantly reduce the estimated annual savings of £500 million. We simply do not have a blank cheque that will cover the costs of the amendments.
To give their lordships credit, there was at least some acknowledgement in the other place that £100 million is “serious money.” I am glad we can agree on that point; the amendments are certainly not modest. It is incumbent on us to do what we can to drive down the spiralling cost of housing benefit. Left unchecked, expenditure on housing benefit would reach £26 billion by 2014-15. The shadow Secretary of State is always complaining about the cost of housing benefit, yet he and his party have been consistently hostile to measures that bring the cost under control.
Will my right hon. Friend confirm that foster carers will not be included in the new under-occupation rules because of the specific discretionary housing payment that will be made available to local authorities to compensate foster carers to ensure that they do not end up unable to continue their great work in our community?
I give my hon. Friend that assurance and pay tribute to him. I know that he has a deep knowledge of the sector. It is very important, but the approach that we have sought to take is that there should not be a one-size-fits-all solution. Where we can, we should localise and give discretion. There may be circumstances in which somebody is still a foster carer and has a property that is much too large even for those needs, but we want to make sure that we provide proper protection for those who carry out such a vital role in our society. We are making substantial amounts of money available to local authorities so that they have the discretion to protect the people who are performing that important role.
(13 years, 1 month ago)
Commons ChamberThe hon. Lady is missing something out. One of the most regular refrains from the Opposition over the past few months has been that, as we have had to make necessary changes in the public sector as a result of the financial mess they left behind, the private sector would not be able to take up the slack. The truth is that although we have had a bad quarter for unemployment, we have seen more than 500,000 extra jobs in the private sector since the election and more jobs created in the private sector over the past year than have been lost in the public sector.
Under new housing benefit rules, foster carers who claim housing benefit will be penalised for having bedrooms occupied by foster children because they will be deemed as “under-occupied”. At a time when we need more foster carers, not fewer, what are the Government doing to address that anomaly?
My hon. Friend has a good deal of personal knowledge of this issue. I refer him to the comments made by Lord Freud when it was raised during consideration of the Welfare Reform Bill in the Lords. He observed that this is a serious issue and that he is keen to ensure that we respond appropriately to that important point.
(13 years, 10 months ago)
Commons ChamberThis is a very important debate, and it is a shame to see the Government Benches so empty, not least because the number of unemployment claimants in Stoke-on-Trent Central was more than 250 higher in January 2011 than in December 2010. The good work done by the Labour Government in stopping unemployment, preventing youth unemployment and preventing the worst of the recession is being steadily undone. That was the Labour vision—helping the least well-off through the toughest times. Now we face the morass of a noblesse oblige, laissez-faire big society model that will do little for my constituents.
Part of the Labour approach was the future jobs fund, which secured training and work for young people and slashed long-term ingrained unemployment. Many of my colleagues have spoken very effectively of how well the scheme has worked in their constituencies, and I can say the same of my constituency and the broader north Staffordshire area. The north Staffordshire future jobs fund put hundreds of people into work across Stoke-on-Trent, Newcastle-under-Lyme and Staffordshire Moorlands.
A good example was to be found at Epic Housing, a housing association in Bentilee in my constituency, a tough part of Stoke-on-Trent with ingrained problems of worklessness. Epic looks after 900 homes in the Bentilee area and put 26 people through the scheme, 10 of whom now have permanent jobs—six with Bentilee Environmental Services and Training and four with the parent firm, Epic. Malcolm Burdon, the social enterprise team leader—something that I believe the Government are in favour of—said:
“In six months, the lads go from sitting at home watching Jeremy Kyle to getting up in the morning and coming into work. It makes them disciplined.”
I have nothing against Jeremy Kyle personally, but I am in favour of work and the discipline and pride that come with it, which I used to think the Conservative party believed in.
The future jobs fund has worked not just in Bentilee but in Abbey Green, and it has attacked a culture of worklessness in some tough communities in the city. It is important for my city because Stoke-on-Trent is now on an economic journey, which the Labour Government were helping. It lost its traditional industries, the pits and the pots. Mrs Thatcher did for the mining industry, globalisation did for the steel industry and mechanisation put tens of thousands out of work in the ceramics trade. We are now on a journey of retraining, reskilling, education and attacking worklessness. The collapse of those industries ingrained a culture of worklessness in many communities. People still had the idea that they could go to work in those traditional sectors without needing education and training, and when those jobs went, so too did a culture of workfulness. That filtered down the generations and there was a problem with getting people to work.
The current generation cannot go into the jobs of their fathers and forefathers. As the hon. Member for East Hampshire (Damian Hinds) said, we cannot make T-shirts cheaper than China, nor can we make ceramics cheaper than China in many instances, or steel. We therefore need to train people and give them skills, but we also need to get them back into a culture of work, and that was partly what the future jobs fund was about. My hon. Friend the Member for North Ayrshire and Arran (Katy Clark) explained very well how the fund got into communities and got people back into the culture that they needed.
The real problem with the attack on the future jobs fund is that it forms part of a triple whammy attack by the Government on young people. We had the withdrawal of the education maintenance allowance, which had allowed many people to make the transition to education and learning, which is very important in a city such as mine. We then had the rank stupidity of the teaching budget for universities being slashed by 80%, thereby imposing a £9,000 charge on tuition fees. We should not think for a minute that not all the good universities in the UK will seek to charge £9,000. That leaves many of us wondering what on earth the Government have against young people.
When those moves are combined with an economic policy of cutting too far and too fast, we see that the Government do not have a policy for growth. They have a policy that looks after the banks and supermarkets but slashes business investment.
I would be delighted to give way to a fellow north Staffordshire Member.
Cheshire, actually, but I know we are fairly close to each other. You’ll get to know the geography fairly soon.
Will the hon. Gentleman take this opportunity to enlighten us on his party’s policy for growth?
(14 years, 5 months ago)
Commons ChamberSuch decisions should be based on the economic return, as I have said. That is how we should consider spending our money. The problem with the previous Government is that the money has gone on politically motivated white elephants, to gain good results in Government elections or to placate interest groups. We have not seen value for money.
Is one of the other areas on which the previous Government wasted a huge amount of public money the most convoluted procurement processes for the spending of taxpayers’ money? That money should have been spent on the infrastructure that my hon. Friend has spoken about so well.
My hon. Friend is absolutely right. Not only was the analysis of where the money was spent incorrect, but the processes by which it was spent were cumbersome. I believe that the Building Schools for the Future process had nine stages. That has taken a lot of money that could have been used to create real jobs in our economy, by improving our infrastructure and education. I completely agree.
We have heard a lot of arguments from Opposition Members about how people would support a particular fund or a particular level of spending, but we have not seen a cost-benefit analysis. We have limited funds. We need to prove that those funds are better used on one project, such as the future jobs fund, or another project, whether that is the A14 or the A11. We have not seen such analysis. What we have heard from Opposition Members is a number of anecdotes. I do not think that anecdote is a good way to conduct government. We need to conduct government on the basis of evidence.
I thank the hon. Gentleman for his intervention. He is absolutely correct that those two regions were identified by the Prime Minister as specific targets for cuts. Recent announcements have made it clear that the future is particularly distressing for regions such as mine and that of the hon. Gentleman.
The hon. Lady suggests that the cuts announced in the Budget are ideologically driven, but does she accept that she stood on a manifesto promise at the last election to implement a 20% cut in departmental spending and a 50% cut in capital spending?
I thank the hon. Gentleman for highlighting the fact that the Labour Government stood on a manifesto accepting that cuts were necessary to reduce the deficit. That seems to be forgotten on many occasions when I and my hon. Friends are accused of not having announced any cuts.
(14 years, 5 months ago)
Commons ChamberMy hon. Friend is right that the Government’s proposals do not even include the consequences of the spending review and the proposed additional £17 billion of cuts in public services.
We think that it is better for people to be in work than on the dole, and that is why we funded the future jobs fund and additional support and jobs. They were often in the community and run by the voluntary sector, and they helped young people to obtain the skills that they needed and to stay off the dole. Yet, shockingly, the Government have cut 90,000 jobs through the future jobs fund, putting all those people—additionally—back on to the dole and pushing up unemployment bills. As a result, even on the OBR’s calculations, those measures will cost the Government £2 billion more over the next four years. They will have to pay additional benefits for the unemployed, and the financial, economic and social price of higher long-term unemployment will cost us more for years.
I want to make some progress before I do.
The Secretary of State also said that he wants to make work pay. Yesterday he told Sky that there are marginal tax rates of 90p in the pound for some young people, that that was regressive and that he wanted, first, to change the system so that they are able to keep more of their own money. But, page 69 of the Red Book shows that as a result of the Budget an extra 20,000 people will lose more than 90p in the pound.
We agree that housing benefit needs reform, and we brought forward some measures in the March Budget and introduced a consultation paper last December to set out our proposals. We agree also that we have to stop some of the most excessive rents being paid, and that we should exclude some of the highest rents in every area. However, we should also consider how we provide more security and payments for people moving into work, so that work incentives are improved. There is a strong case for linking housing benefit to tax credits in the longer term, but the Government’s proposals do not set out any reforms; they set out only cuts, and destructive ones at that. Their plans cut almost £1.7 billion a year from housing benefit, and there is no analysis of how many people that measure will push into poverty or homelessness.
In the limited time available to me, I want to concentrate on some specific areas of the Budget that affect either my constituency or subjects about which I feel passionately, but first let me say that there was one subject the hon. Member for Barnsley Central (Mr Illsley) did not speak about: bingo. It is a passion that we share, and it is important to mention it as I do not think it has been referred to so far in the Budget debate. Through campaigning, we recently managed to secure a reduction in the tax on bingo from 22% to 20%, and I am sure he would want to join me in campaigning to ensure that that reduction continues until we have got it back to the 15% level and that we get a commitment from the Government that they will look to reduce that tax as soon as the financial circumstances of the country allow.
The right hon. and learned Lady the Leader of the Opposition said in her response to the Chancellor’s statement that the Budget would “hit” constituents in Cheshire the least. I am unsure whether she said that out of concern for the poorest and most vulnerable people in my constituency or out of political mischief aimed in the direction of the Chancellor, my right hon. Friend the Member for Tatton (Mr Osborne)—although I think I know which is the more likely—but I am nevertheless glad that she raised the matter. Crewe and Nantwich is home to some of the most poverty-stricken areas in Cheshire, and it is the people in those areas who deserve to be—to quote the right hon. and learned Lady again—“hit” the least.
In 2008, the year in which I was first elected to the House, Labour hit the lowest paid with the 10p tax fiasco. While this is a difficult Budget, I am proud of the fact that the coalition is doing the opposite by lifting 880,000 of the lowest paid out of tax altogether. I am also proud that we are introducing the earnings link for pensions, something Labour did not do for 13 years, instead, unforgettably, increasing the pension by 75p.
It is not just these headline measures that affect my constituency, however. The Government have announced that they will reduce regulatory costs by introducing a one in, one out system for new regulations. That was touched on by my hon. Friend the Member for Maidstone and The Weald (Mrs Grant), who made an excellent maiden speech. She made the point that regulation is right at the heart of the issues that small businesses in particular face. At an election hustings event in Crewe and Nantwich organised by the Federation of Small Businesses, local business man after local business man told me about their No. 1 concern: stifling regulation. At present, a small business spends on average seven hours a week filling in forms. What a waste! Three in four firms say the Budget will make a positive impact on their business, and I have no doubt that to those job and wealth creators the reduction in regulations is one of the most important measures that back business in the Budget. It has inspired a welcome response.
Another measure in the Red Book that will benefit business in Crewe and Nantwich is the coalition’s commitment to investigate ways to help with fuel costs in remote rural areas. The coalition is considering the case for introducing a fuel duty discount in those important parts of the country, including a possible pilot scheme in Scotland, but I ask my right hon. and hon. Friends on the Treasury Bench to consider extending the scope of the pilot schemes to include thriving rural economies such as that in Crewe and Nantwich, which is at the very heart of our dairy industry.
I also want to speak about one of my particular passions: adoption and fostering, and looked-after children. As chairman of the all-party groups on both those subjects, and as someone who shared his childhood—and most of his adulthood—with foster children, I can say that foster carers will be very happy that their capital allowance rules will be amended in this Budget to ensure that they operate consistently and as intended for all carers. Foster carers are to be applauded for the sterling work they do in providing for some of the most vulnerable in our society, and none of them should be penalised by the taxation system purely because their business circumstances change.
We know we have to make choices in this Budget about where we make cuts. There are issues of essential spending and issues of discretionary spending, but money spent on looked-after children and the caring and support of vulnerable children by foster carers should never be seen as a luxury, so my plea on behalf of a part of our population that cannot speak for itself in these chastened and difficult times is do not forget about us. If the baby P and Edlington cases taught us anything, it is that when it comes to child protection we cannot afford to cut corners or pass the buck. With 40% of people in prison having been through the care system, we have to recognise that there is still much to do.
I believe that this is a decisive Budget. It deals with the record deficit the Government inherited from Labour and it contains important measures that will benefit some of the poorest and most vulnerable in my constituency, as well as the business and rural communities. It is hard to welcome some of the tougher measures contained in it, but, sadly, they are necessary, albeit painful, decisions. I applaud the overall structure of the Budget, therefore. We on the Government Benches did not build up the record deficit, but we will do all we can to knock it back down and get Britain back in the black.
(14 years, 6 months ago)
Commons ChamberThe hon. Gentleman is quite right to point out that when public finances are tight, all sectors of society risk having services threatened in the way that he describes. One of the incoming Government’s concerns was the huge hole in the public finances, which a Labour Government would also have had to fill. It would be interesting to know which cuts he thinks should be made, because there has been a silence from the Labour party on that very subject.
T1. If he will make a statement on his departmental responsibilities.
Today in Britain, nearly one in five pensioners is living in poverty, and as I said earlier, more than 5 million people are on working-age benefits, and the country has one of the highest proportions of workless households in the European Union. Therefore, the case for radical welfare reform is clear. That is why this Government will establish a new Work programme and simplify our complex benefits system to provide greater support for the poorest.
At the same time, we are rising to the challenge of long-term demographic change in how we support an ageing society. It is more important than ever that we build strong foundations for the future of the basic state pension, which is why, for the first time, as the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Thornbury and Yate (Steve Webb) just said, this Government will introduce the triple guarantee for the basic state pension with immediate effect. That guarantee will restore the earnings link and ensure that any future uprating is set at the highest of earnings, prices or 2.5%. I am enormously proud that this coalition Government are doing that. Those are important first steps towards the reform of the whole system.
Last week, one of my constituents in Crewe told me how exasperated she had become after wading through the application form for her pension credit, because of the complexities within it and the never-ending series of phone calls that seemed to follow. With one in three pensioners who are entitled to claim pension credit still not doing so, in part owing to the major administrative barriers in their way, what does the Secretary of State propose to do to simplify the system, and to make it fairer and more transparent?
First, I say to my hon. Friend that one of the most important steps that we will be taking towards helping those pensioners is re-linking the basic state pension to earnings. That will hugely improve take-up, because that money will go to everybody and people will not be required to claim for it. The other thing that my hon. Friend the Minister will be doing is reviewing the complexity and looking for ways in which we can simplify the process and make it easier, so that the take-up for those who need it—this point is critical—is better. I can assure my hon. Friend that we will do that.