Budget Resolutions and Economic Situation
Baroness Laing of Elderslie Excerpts(9 years, 2 months ago)
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Madam Deputy Speaker (Mrs Eleanor Laing)
I have to inform the House that Mr Speaker has selected the amendment in the name of the hon. Member for Dundee East (Stewart Hosie).
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before the hon. Gentleman gives way any more times, I should draw his attention and that of the House to the fact that a very large number of colleagues wish to speak in this important debate. The hon. Gentleman has taken well over half an hour of the time so far, in contrast to the Secretary of State—[Interruption.] Order. I hope that the hon. Gentleman will bear that in mind before considering taking further interventions.
Mr Umunna
I think my generosity in taking interventions perhaps got the better of me, Madam Deputy Speaker.
Let me finish by dealing with trade. In 2010, we were promised that an export boom would fuel the recovery. The Government set a target of tripling exports to £1 trillion by 2020 and getting 100,000 more small businesses exporting. What has happened since? The current account deficit widened to 5.9% of GDP last year —the largest peacetime deficit since at least 1830 according to the OBR. Frankly, I am not surprised given the degree to which we have seen various initiatives fail. Ministers have to sort out what is happening at UK Trade & Investment. UKTI’s own surveys show that more than a quarter of businesses that use its services saw no business benefit in doing so, and it is little wonder when we consider the range of different schemes and the failure to command the attention of Ministers. Records are not even kept of the trade missions that Ministers go on.
We are a great country. We have a great history and great people. We have a tradition not only of ensuring that those who can get on are able to realise their ambitions and aspirations, but of looking after those who cannot. That is one of the big problems with the Budget: it is unfair and regressive. Ultimately, if we really want to get the economy powering on all levels, we have to ensure that our people have the wherewithal and the tools to do that, particularly the skills and business investment needed, but they come up short as well. This Budget is unfair and not equal to the challenges we face as a country, and that is why I ask all hon. Members to support us in opposing the Budget today.
Mhairi Black (Paisley and Renfrewshire South) (SNP)
Thank you, Madam Deputy Speaker, for calling me to make my maiden speech in such an important debate. I want first to pay tribute to my predecessor, Douglas Alexander, who served the constituency for many years—I was only three when he was elected. It is for that reason that I want to thank him for all he did for the constituency. I especially commend him for the dignified way he handled himself on what must have been a very difficult election night for him. He did himself proud, and he did his party proud. I wish him the best for the future.
When I discovered that it is traditional for a new Member to speak about the history and legacy of their constituency in their maiden speech, I decided to do some research, despite the fact that I have lived in mine all my life. I am at the tail end of Scottish National party colleagues making their maiden speeches, and I have noticed that they tend to mention Rabbie Burns a lot. In particular, they have tried in their maiden speeches to own him for themselves by claiming some intrinsic connection between him and their constituencies. I feel no need to do that, because during my research I discovered a fact that trumps them all: William Wallace was born in my constituency, in Elderslie, which you will be familiar with, Madam Deputy Speaker.
Beyond the Hollywood film and the historic name, my constituency has a fascinating history, from the mills of Paisley to the industries of Johnstone and the weavers of Kilbarchan. It has a wonderful population with a cracking sense of humour and much to offer, both to tourists and to residents. But the truth is that things are not all fantastic in my constituency. We have watched our town centres deteriorate and our communities decline. Our unemployment level is higher than the UK average. One in five children in my constituency go to bed hungry. Paisley’s jobcentre has the third highest number of sanctions in the whole of Scotland.
Before being elected, I volunteered for a charitable organisation. There was a gentleman there who I grew very fond of. He was one of those guys who have been battered by life in every way imaginable—you name it, he has been through it. He used to come in to get food, and it was the only food he had access to and the only meal he would get. I remember sitting with him while he told me about his fear of going to the jobcentre. He said, “I’ve heard the stories, Mhairi. They try to trick you out and tell you you’re a liar. I’m not a liar, Mhairi.” I said, “It’s okay. Calm down. Go and be honest and you’ll be fine.”
I then did not see him for two or three weeks and became very worried. When he finally came back in, I asked him how he had got on. Without saying a word, he burst into tears—a grown man standing in front of a 20-year-old and crying his eyes out. What had happened was that in order to get to the jobcentre he had needed to use the money that he would normally have paid to travel to the charity in order to get his food. He needed to save the money, so he did not eat or drink for five days. He fainted while on the bus going to the jobcentre due to exhaustion and dehydration. He was 15 minutes late and was sanctioned for 13 weeks.
The Chancellor spoke in his Budget speech about fixing the roof while the sun is shining, but who is the sun shining on? When he spoke about benefits not supporting certain kinds of lifestyles, is that the kind of lifestyle that he was talking about? If we go back even further, when the Minister for Employment was asked to consider if there was a correlation between the number of sanctions and the rise in food bank use, she stated:
“Food banks play an important role in local welfare provision.”—[Official Report, 22 June 2015; Vol. 597, c. 608.]
Renfrewshire has the third highest use of food banks, and food bank use is going up and up. Food banks are not part of the welfare state—they are a symbol that the welfare state is failing.
The Government, quite rightly, pay for me, through taxpayers’ money, to be able to live in London while I serve my constituents. My housing is subsidised by the taxpayer. The Chancellor said in his Budget:
“It is not fair that families earning over £40,000 in London…should have their rents”
paid for
“by other working people.”—[Official Report, 8 July 2015; Vol. 598, c. 335.]
But it is okay so long as you are an MP?
In this Budget the Chancellor also abolished any housing benefit for anyone below the age of 21. So we are now in the ridiculous situation whereby because I am an MP, I am not only the youngest, but I am also the only 20-year-old in the whole of the UK that the Chancellor is prepared to help with housing. We now have one of the most uncaring, uncompromising and out-of-touch Governments that the UK has seen since Thatcher.
I must now turn to those with whom I share these Benches. I have sat in this Chamber for 10 weeks. I have very deliberately stayed quiet and listened intently to everything that has been said. I have heard multiple speeches from Labour Members standing to talk about the worrying rise of nationalism in Scotland. Yet all these speeches serve to do is to demonstrate how deep the lack of understanding about Scotland is within the Labour party. I, like so many SNP Members, come from a traditional socialist Labour family, and I have never been quiet in my assertion that I feel it is the Labour party that left me, not the other way about. The SNP did not triumph on a wave on nationalism; in fact, nationalism has nothing to do with what has happened in Scotland. We triumphed on a wave of hope—hope that there was something different from and better than the Thatcherite, neo-liberal policies that are produced from this Chamber, and hope that these representatives could genuinely give a voice to those who do not have one.
I do not mention this in order to pour salt into wounds that I am sure are very open and very sore for many Labour Members, both politically and personally; colleagues, possibly friends, lost their seats. I mention it in order to hold a mirror to the face of a party that seems to have forgotten the very people it is supposed to represent and the very things it is supposed to fight for. After hearing of Labour leaders’ intentions to support the changes to tax credits that the Chancellor has put forward, I must make this plea through the words of one of their own, and a personal hero of mine. Tony Benn once said that in politics there are weathercocks and signposts. Weathercocks will spin in whatever direction the wind of public opinion may blow them, no matter what principle they have to compromise. And then there are signposts, which stand true and tall and principled. They point in one direction and they say, “This is the way to a better society and it is my job to convince you why.” Tony Benn was right when he said that the only people worth remembering in politics are those who are signposts.
Yes, we will have political differences; and yes, in other Parliaments we may be opposing parties, but within this Chamber we are not. No matter how much I may wish it, the SNP is not the sole opposition to this Government—but neither is the Labour party. It is together with all the parties on these Benches that we must form an Opposition. In order to be effective, we must oppose, not abstain. So I reach out a genuine hand of friendship which I can only hope will be taken. Let us come together; let us be that Opposition; let us be that signpost to a better society. Ultimately people are needing a voice and people are needing help—let us give them it. [Applause.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. The hon. Lady has just made an excellent speech—particularly her reference to William Wallace and Elderslie, where I was also born—but the House will show its appreciation in a way other than clapping. [Hon. Members: “Hear, hear!”] The House—[Hon. Members: “Aye!”] Yes, the House can show its appreciation vociferously—just do not clap.
Tax Credits (Working Families)
Baroness Laing of Elderslie Excerpts(9 years, 3 months ago)
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Jo Cox
I thank the Minister for giving way. Does he agree with the Resolution Foundation analysis that for a hard-working single parent with one child in my constituency working 16 hours a week on the national minimum wage, if some of the cuts go through she can expect an annual loss of earnings of £1,500, which will take 12 years of incremental 2% pay increases to recoup? What is his plan to help her to get a faster pay rise?
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. This does not apply only to the hon. Lady: when an intervention is made, it should be short and sharp and address one point. It should not be a written script to be read out in the House. I am not addressing these remarks specifically to the hon. Lady. Everybody has been doing that this afternoon. The Front-Bench speeches have therefore taken a very long time, and there are people who have asked to speak this afternoon who will be here all day and will have only two minutes at the end of the debate, whereas people are making interventions and will then leave the Chamber and not take part in the rest of the debate. That is not fair play in this Chamber and we expect better.
Mr Gauke
Thank you, Madam Deputy Speaker. I will try to make a little progress. In response to that intervention, I will not speculate about announcements that might or might not be made tomorrow, but I will say that universal credit is a sensible reform that comes alongside a whole raft of other measures by which the Government are helping hard-working people.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the next colleague to speak, let me say that it is obvious that there are far more people who wish to speak than there is time available. If I were to put a time limit on now, it would be some four minutes. I consider that that is unfair to people who are making their maiden speeches. I trust that everyone else in the Chamber will wish to give a decent amount of time to people who are making their maiden speeches, as they themselves have had. I therefore ask other Members to limit their speeches to some five minutes or less in order to show courtesy to the other Members of this House who wish to speak, and especially those who are making their maiden speeches. That stricture does not apply to the Front-Bench spokesman for the Scottish National party, Mr Ian Blackford.
Productivity
Baroness Laing of Elderslie Excerpts(9 years, 3 months ago)
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Chris Leslie
I am delighted to hear it. I only wish that the Chancellor would come and talk to the rest of us about productivity.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. For the record and for the avoidance of doubt, it is not normal practice, although I will forgive the hon. Member for Nottingham East (Chris Leslie) on this one occasion, for the performer at the Dispatch Box to ask questions of the other side’s Back Benchers. In case anyone who is new to the House thinks that this is how we do things, I should say that it is not. However, on this occasion, I will allow some leniency.
Chris Leslie
Thank you for that sage advice, Madam Deputy Speaker. I suspect that the Chancellor will be forced to address the question of productivity in the forthcoming emergency Budget on 8 July. Let us dwell for a moment on why productivity matters.
Ian Blackford
What the Chief Secretary is saying does not meet the reality of what has been happening for the past seven years. Productivity in the UK has fallen and the Government have failed to deliver prosperity. The root of that has been the failure of macroeconomic policy. Your big idea was quantitative easing, with £375 billion of new assets being created, but none of that has fed through to bank lending. That is why we have not seen the underlying investment in our economy that is required. You need to address that and make sure that we see investment in infrastructure, industrial investment and a plan for growth, not some meaningless productivity, which is just hot air and words, but no reality.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Several people this afternoon, not just the hon. Gentleman who has just spoken, have used the word “you”. When one uses the word “you” in this Chamber, it refers to the Chair. I have not done any of the things I have been accused of this afternoon. I do not want to pick on individual Members at this early stage of the Parliament, but please let us use the correct language.
Greg Hands
I dispute the premise of the hon. Gentleman’s question. Productivity in this country is rising, albeit at a relatively low level. We would like it to be higher. It has risen by 0.9% this year. The OBR’s projection is that productivity will increase by between 2.1% and 2.5% per annum in the coming years. We need it to increase by even more than that, but it is certainly not the case that productivity has collapsed over the past couple of years.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the next speaker, may I say that it will be obvious to the House that a great many people wish to speak, including some who will make maiden speeches this afternoon, and I have therefore to impose a time limit of six minutes?
Landfill Tax (No. 2)
Baroness Laing of Elderslie Excerpts(9 years, 3 months ago)
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The Exchequer Secretary to the Treasury (Damian Hinds)
I beg to move,
That the Landfill Tax (Qualifying Fines) (No. 2) Order 2015 (S.I., 2015, No. 1385), dated 12 June 2015, a copy of which was laid before this House on 12 June, be approved.
It—[Interruption]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. We are all very enthusiastic to welcome the Minister to one of his first outings at the Dispatch Box, but I will allow my introduction to take another few seconds and ask Members leaving the Chamber to do so swiftly and silently to allow the Minister to be heard.
Damian Hinds
This statutory instrument implements the loss on ignition testing regime for landfill tax. Landfill tax was introduced in 1996. It has been successful in reducing the amount of waste sent to landfill by more than half, and has encouraged reuse and recycling of waste. However, we want to eliminate tax evasion and ensure a level playing field for all operators. This testing regime assists landfill operators in determining the correct rate of tax when accepting waste that results from mechanical waste treatment processes.
The regime was introduced on 1 April 2015 by way of legislation included in the Finance Act 2015 and an order—statutory instrument 2015 No. 845—was made under it using the affirmative procedure just before Dissolution. Unfortunately it was not possible to secure time for the order to be scrutinised and approved by the new Parliament before it lapsed on 14 June 2015. Therefore, we have made a new order, which came into effect on 15 June, ensuring the provisions introduced on 1 April continue uninterrupted. Today’s debate gives us the opportunity to scrutinise the order and vote on confirming its status in law. [Interruption.]
There are two rates of landfill tax: a lower rate of £2.60 per tonne for the least polluting waste and a standard rate of £82.60 per tonne for other taxable waste. [Interruption.]
Madam Deputy Speaker
Order. I hesitate to interrupt the Minister, but this is not a place for general conversation. The Minister is making an important speech. I am addressing the people behind the Chair.
Damian Hinds
Operators pass on the cost of the tax to those using their site to dispose of their waste. For some types of waste it can be difficult to determine visually which rate of tax should apply. This is particularly true of the so-called waste “fines”, which are the residual materials produced by the mechanical treatment of waste at waste transfer stations and similar facilities. In recent years this type of waste has increased significantly in volume.
Some businesses sending waste to landfill have deliberately mis-described this waste to evade the standard rate of landfill tax. When landfill site operators raised concerns, we responded by working closely with the wider waste industry to devise a testing regime. The testing regime provides an objective way to determine the rate of landfill tax that should be paid on fines from mechanical treatment, while at the same time protecting compliant landfill operators.
The loss on ignition test is a laboratory test that involves heating a sample of material in an oven to see how much the mass reduces. This provides a highly reliable indicator of the percentage of waste that is degradable, with the higher the percentage the more polluting the waste. Each year, the operator has to take a minimum number of samples from each of its customers for testing. The frequency increases if certain risk categories are triggered, such as when a sample from a customer has previously failed a test. An operator can also instigate a test if it suspects that a load is not eligible for the lower rate of tax. Only qualifying fines that produce laboratory tests at or below a 10% rate are eligible for the lower rate. However, to allow for the adaptation of processes, there is a 12-month transitional period—we are now in that period—during which we will allow waste with test results of up to 15% to be subject to the lower rate. The testing regime has been welcomed by landfill operators because it gives them more certainty over the correct rate of tax to pay and to pass on to their customers.
The order does not apply in Scotland, as the tax was devolved to Scotland on 1 April 2015—the same day the new regime came into force. One of my very first visits in this role was to a landfill site—no one can say that life is not glamorous—and I have seen for myself that the test is already working in practice, providing certainty and fairness to all parties. The test will help to address the tax evasion in the waste sector and provide a level playing field across the waste industry. It has been developed with, and supported by, the wider waste industry. I shall be happy to answer any questions that right hon. and hon. Members might have.
The Economy
Baroness Laing of Elderslie Excerpts(9 years, 4 months ago)
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Edward Argar (Charnwood) (Con)
It is a pleasure to deliver my maiden speech following such distinguished contributions, including from the hon. Member for South Down (Ms Ritchie), and to have such an illustrious predecessor in representing my seat, which is such a beautiful part of the country. First elected to represent Loughborough in 1979 and becoming the right hon. Member for Charnwood in 1997, following the seat’s creation, Stephen Dorrell served for an astonishing 36 years in this House. Upon his election, he was the baby of the House, often described as “permanently boyish”—a trait that, as hon. Members will see, eluded my grasp, I fear, many years ago. Stephen served in a string of offices, from the Whips Office to the Cabinet. His commitment to serving his constituents was formidable and the respect in which he is held locally never ceased to be apparent to me as I campaigned.
But the man is so much more than a list of the offices that he held. He was once described in The Guardian as
“exuding sweet reasonableness and being recognisably a member of the human race.”
He combined this with intellectual rigour, diligence and genuine decency. While I may not be able to emulate his length of service or swift progression through ministerial ranks, I will continually strive to emulate his values, humanity and hard work.
Although a relatively new seat, Charnwood is in the ancient heart of our great country, sandwiched between Leicester and Loughborough. It also, in its short history, has a strong tradition of re-electing its Member—something I hope will continue. It is a mixed, beautiful but oddly shaped constituency, curving around Leicester from Glenfield and Leicester Forest East in the west in a large arc to the rural villages of Barkby, Beeby and South Croxton in the east, taking in historic Kirby Muxloe with its castle, through Groby and Anstey—reputedly the furthest point south reached by Bonnie Prince Charlie’s Scottish army before its swift retreat back north—and picture-book rural villages like Woodhouse Eaves, then passing Bradgate park, containing the ruins of Lady Jane Grey’s family estate and the ancient Charnwood forest.
Heading east, we pass through Cropston, Swithland, Rothley and Mountsorrel, with Thurmaston and Birstall to the south, before reaching Syston, the home of Pukka Pies. I fear that my post-election figure suggests that I have taken my support of local industry a little bit too far. Finally we reach Queniborough, East Goscote and the rural idyll typified by villages such as Cossington, Seagrave, Thrussington, Rearsby and Barkby, where, with the summer approaching and the nights getting shorter—not, I hasten to add, a reference to my constituency neighbour, my right hon. Friend the Member for Rutland and Melton (Sir Alan Duncan)—many a sunny evening can be spent at the excellent Barkby United village cricket ground.
In the past five years the Chancellor has already laid the strong economic foundations for creating the one nation we all aspire to. Now, with the proposals in the Gracious Speech, we will make that a reality for everyone in this country. I look forward to being in my place to support him in doing this.
Charnwood is a success story and it has achieved much since 2010. It is a constituency blessed with extremely high ownership rates, low unemployment and successful businesses, although there is always more to do. That success does not just happen—that it happens is down to the hard work of the people of Charnwood, the sort of people who are the backbone of this country, working hard, doing the right thing, and building a better future for themselves and their family. They are exactly the people this Government are pledged to continue to support with our focus on opportunity and aspiration.
I will always fight for my constituents and constituency—for example, in continuing to campaign for fairer funding for my county of Leicestershire and for its schools—but there are a number of broader causes that I will particularly seek to champion in this House. While we have made significant progress in recent years, we still need to go further in vigorously and energetically focusing on improving dementia care and mental health provision; both are causes on which I will be vocal. I will not, I fear, be able to emulate the moving eloquence of my hon. and gallant Friend the Member for Plymouth, Moor View (Johnny Mercer) on this subject, but he will always find me shoulder to shoulder with him in his commitment to improving this country’s mental health care for children and adults and giving a voice to those whose cause is too often not heard.
I am here to represent the whole community in my constituency but particularly those on the fringes of our society who may not have the voice or ability to speak up for themselves. Every day I will strive to help build the one nation the Prime Minister has spoken about and in which I passionately believe, and every day I will humbly endeavour to repay the honour and trust that the people of Charnwood have placed in me.
Madam Deputy Speaker (Mrs Eleanor Laing)
I am sorry that it has not been possible to find time today for every new colleague who sought to make their maiden speech. I hope you will all be reassured by the thought that if you have sat here all day partaking in this excellent and important debate, should you seek to catch Mr Speaker’s eye again in the near future you will be looked on favourably.
Stephen Timms (East Ham) (Lab)
Thank you and congratulations, Madam Deputy Speaker. As you have said, we have had a good debate, which has demonstrated the seriousness and commitment with which we are ready to take up our duties as Opposition Members.
It has been widely acknowledged in this debate that my right hon. Friend the Member for Doncaster North (Edward Miliband), the former leader of our party, made a fine and powerful contribution. It was especially welcome for being so soon after our bruising election defeat. He addressed the topic of one nation, which was the theme of his leadership as well, drawing attention to the problem of rising inequality across western democracies. He spoke of the rungs of the ladder getting further apart and reminded the Prime Minister of his 2006 commitment to address relative poverty. I think the whole House will look forward to my right hon. Friend developing those ideas in the months ahead.
We have had valuable contributions from both sides of the House. I particularly congratulate everyone who has made their maiden speech today, including the hon. Member for Bexhill and Battle (Huw Merriman), the hon. and learned Member for South East Cambridgeshire (Lucy Frazer), the hon. Members for Glasgow South West (Chris Stephens), for Horsham (Jeremy Quin) and for Cannock Chase (Amanda Milling), my hon. Friends the Members for Greenwich and Woolwich (Matthew Pennycook) and for Cardiff Central (Jo Stevens), the hon. Members for Mid Worcestershire (Nigel Huddleston), for Kirkcaldy and Cowdenbeath (Roger Mullin) and for Thirsk and Malton (Kevin Hollinrake), my hon. Friend the Member for Sheffield, Heeley (Louise Haigh) and the hon. Members for North Dorset (Simon Hoare) and for Charnwood (Edward Argar). I congratulate each of them and wish them well for their membership of this House. The whole House will look forward to hearing more from each of them in the years ahead.
At the heart of this debate is the security of working families. Many families feel deeply insecure at the moment, in ways spelled out in a fine maiden speech by my hon. Friend the Member for Greenwich and Woolwich. How is the programme that has been announced going to affect them? We have yet to hear clear answers from the Government on how they plan to strengthen the foundations of our economy so that we can deal with the deficit, control social security costs and secure better living standards and a better future for the working people of Britain.
My hon. Friend the Member for Nottingham East (Chris Leslie) began by highlighting the fragility of our economic recovery. Productivity continues to stagnate, leaving output per worker far behind that of comparable advanced economies—a point that was highlighted by the hon. Member for Dundee East (Stewart Hosie).
The right hon. and learned Member for Rushcliffe (Mr Clarke) was right to point out that employers are struggling to find people with the right skills for their jobs. Many employees have roles that do not make full use of their talents and potential, and we have heard a great deal in the debate about the grave challenges relating to infrastructure and the need for more progress. Those underlying weaknesses will make it harder to get the public finances in order and to get social security spending under control.
Fragility in the economy translates into insecurity for working families, who have seen their living standards go backwards over recent years and still worry about whether they will be able to keep on top of their bills. Working families are struggling to balance the demands of work with the rising cost of childcare. They wonder whether the NHS will still be there for them when they need it in future and want their children to have a decent career and a realistic prospect of getting on the housing ladder. Too many at the moment are stuck in low-paid, insecure work and a growing number are depending on housing benefit to make ends meet. Those families all want to know what difference the measures in this Queen’s Speech will make to them.
There are welcome commitments in some areas, but questions remain about how some of them will be paid for. It is, however, what has been left out that gives the greatest cause for concern—actions not taken, details not provided—and makes many families less secure and fear for the future.
We all support any cut in taxes for low-paid workers, but we also need a serious plan to tackle low pay and boost wages for the majority by raising investment, as my hon. Friend the Member for Cardiff Central pointed out in her excellent speech. The hon. Member for Thirsk and Malton also rightly called for the adoption of a living wage in the UK. We need to raise the levels of skills and productivity across the economy, securing sustainable tax revenues and reducing the reliance on in-work benefits.
It was disappointing to have sprung on the House this afternoon, without any proper detail or explanation, a series of spending cuts in the Chancellor’s speech. There is a press release that outlines what they are, but there is no proper information. We should have had a statement so that the House could scrutinise the cuts. They include a significant cut to the skills budget.
We will welcome any help for working parents with childcare, but families can be forgiven for believing it when they see it, after five years in which it has become harder, not easier, to afford the childcare they need. There is a worry that the proposals in the Queen’s Speech are likely to result in fewer affordable homes and bigger housing benefit bills for taxpayers.
Britain succeeds only when working people succeed. Hard work should be rewarded, prosperity should be shared and we should protect the most vulnerable. Those elements, which are vital for our society, need to be underpinned by a strong social security net. The Opposition support the work that local authorities are doing under the Government’s troubled families programme, but we are aware that a majority of the families involved still have nobody in work and that the Work programme is not doing enough to help them. We will be glad to see additional money for apprenticeships.
We have made clear our support for the principle of a benefit cap to ensure that people are better off in work and for reforms to ensure that young people are earning or learning, and do not become caught in a benefits system that at the moment does too little to improve their skills and prospects. We will scrutinise—[Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. I hesitate to interrupt the right hon. Gentleman. There is no heckling or bad behaviour going on, but there are an awful lot of private conversations. He has a difficult job to do and he should be given peace in which to do it.
Stephen Timms
We will scrutinise those proposals with great care. The well-meaning rhetoric on apprenticeships needs to be matched by action on the quality, as well as the quantity, of the apprenticeships that are being created. When the rules are changed on benefits for 18 to 21-year-olds, we will look carefully at the safeguards for the vulnerable young people who will be included. We need to ensure that reducing the benefit cap does not end up costing more than it saves.
Those measures amount to only a fraction of the £12 billion reduction in social security spending that the Government promised. We want to see savings where they can sensibly be made. We have argued consistently for keeping the system affordable. We have said that that requires a readiness to take tough decisions on low-priority spending, alongside action to tackle the underlying drivers of rising benefit bills, such as low pay and high housing costs. The unwillingness or inability of Ministers to explain to this House or the public how they intend to make the reductions that they have set out is adding to the insecurity that is felt by many working families today.
There will be widespread relief that the Prime Minister has, reportedly, overruled the Secretary of State on child benefit. However, working families need to know whether the tax credits and other in-work benefits that they depend on will be taken away. The Prime Minister yesterday declined my invitation to reaffirm his election campaign commitment that benefits for disabled people are safe. The Institute for Fiscal Studies says that it will be virtually impossible to achieve a £12 billion saving without hitting low-income working families hard.
When he gets to his feet, the Secretary of State needs to assure those who are clearly not well enough to work that support for disabled people and their carers will be protected. Government failures in that area—the failure of the rushed and ill-prepared incapacity benefit reassessment exercise and the failures of the Work programme for people in receipt of employment and support allowance—mean that the Government are spending nearly £5 billion more this year on employment and support allowance than they forecast five years ago. That is a serious failure.
We heard a Queen’s Speech five years ago that promised
“to simplify the benefits system in order to improve work incentives”.
That was a worthy aim, but there has been very little progress since then. My hon. Friend the Member for Bishop Auckland (Helen Goodman) touched on the problems with the IT for universal credit. In 2011, the Secretary of State told us that universal credit would be complete in six years; now he is telling us that it will be complete in another six years. In four years, completion has slipped by four years.
The Opposition will continue to stand up and speak for the working people of this country, who have endured years of falling living standards and economic uncertainty. They now need assurances and action from the Government to promote their security and to secure their finances and the public services that they rely on, and on which all our futures will depend.