Oral Answers to Questions

Elizabeth Truss Excerpts

Tuesday 5th March 2019 Commons Chamber

[David Linden (Glasgow East) (SNP)]

4. Whether his Department has undertaken an economic impact assessment of extending the national living wage to people under the age of 25.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

The Low Pay Commission recommends minimum wages for the under-25s, such that they are as high as possible while maintaining young people’s employment prospects. We have seen a 45% reduction in youth unemployment since 2010 as a result.

[David Linden]

That is lovely, but it is not actually the answer to the question I asked, which was whether an economic impact assessment had been carried out. Clearly, the answer is no. The Government obviously have an ideological problem with a fair day’s pay for a fair day’s work. Given that this is national apprenticeship week, does the right hon. Lady really think that it is acceptable to pay apprentices just £3.70 an hour in this country under UK law? Will she use the spring statement to take action to introduce a fair day’s pay for a fair day’s work? If she will not, will she devolve this to Scotland so that we can do the job for her?

[Elizabeth Truss]

The reality is that we have been so successful in reducing youth unemployment—which in 2010 was almost double what it is now—because we have taken a reasonable strategy with minimum wages. We have also had a welfare to work programme and helped young people to get experience and skills. It would be completely wrong to raise wages to the extent that young people were unemployed and unable to get the experience and skills that they need to succeed in life.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

5. What discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on potential job losses as a result of the UK leaving the EU without a deal.

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[Mike Amesbury (Weaver Vale) (Lab)]

10. Whether he plans to change the level of funding allocated to social care.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

At the autumn Budget 2018, we gave councils an additional £650 million, which could be spent on adult and children’s social care. Since 2017, we have given access to up to £10 billion of dedicated adult social care funding, which has meant above-inflation rises.

[Mike Amesbury]

Eighty-seven people in this country die each day before receiving the care that they need. Does the Minister agree that that figure is shameful and that the Chancellor should use the spring statement to tackle the funding crisis in social care?

[Elizabeth Truss]

As I pointed out, social care funding and access to it is increasing beyond inflation. In fact, we have seen improvements in many figures. For example, since March 2017, the number of patients who have been delayed leaving hospital due to social care has halved.

[Chris Philp (Croydon South) (Con)]

11. What fiscal steps he is taking to increase (a) the number of jobs and (b) economic growth.

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[Mrs Sheryll Murray (South East Cornwall) (Con)]

19. What recent progress he has made on creating jobs and reducing unemployment.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

The economy has grown every year since 2010, and there are now 3.5 million more people in work.

[Mrs Murray]

Can my hon. Friend confirm that under the Conservatives, in addition to a record number of jobs, wages are growing at their fastest rate in over a decade, meaning that more people have the security of a regular wage to provide for their families?

[Elizabeth Truss]

My hon. Friend is right, and this has not happened by accident; it is because of the decisions that this Government have made to cut taxes and to reform employment and welfare, unlike the Opposition’s approach, which is to say that business is the enemy and damage our economy.

[Several hon. Members rose—]

[Jim Shannon (Strangford) (DUP)]

Can the Minister further outline whether there will be tax benefits available for small businesses that may not be able to sustain this level of wage increase? That was one sentence.

[Elizabeth Truss]

We need to ensure that all businesses succeed. In the spending review, we will be ensuring that business support is just as supportive of new entrants and start-ups.

[Mr Speaker]

This one-sentence model could catch on; that would be splendid. I call Stephen Kinnock.

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[Stephen Kinnock (Aberavon) (Lab)]

23. Thank you for setting the stage for me so well, Mr Speaker. I am proud to chair the all-party parliamentary group for post-Brexit funding for nations, regions and local areas. It is vital that we have a fair settlement for the regions that need it most as we transition from EU funding to post-Brexit funding. Will the Chancellor of the Exchequer or the Minister responsible meet the APPG to discuss this vital issue?

[Elizabeth Truss]

I would be delighted to meet the hon. Gentleman and colleagues to discuss this important issue.

[Mr Speaker]

Oh, I see what the hon. Gentleman was driving at in relation to topical questions. Jolly well done; what a prescient fellow. We now come to topical questions. I call Stephen Kinnock.

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[Tim Loughton (East Worthing and Shoreham) (Con)]

T8. In yesterday’s education debate in Westminster Hall, we heard about a national emergency in school funding based on the National Audit Office’s predictions of £3 billion of savings being required in the next year—and I have often gone on about the £2 billion shortfall in children’s social care. Will schools and children’s social care be at the top of the Chancellor’s priority list in the forthcoming comprehensive spending review?

[The Chief Secretary to the Treasury (Elizabeth Truss)]

We were able to increase the education budget by £1.3 billion last year, which means there have been real-terms funding increases per pupil. We are already the top spenders in the G7 as a proportion of GDP, according to the OECD. But I do recognise that we need to make sure that, going into the future, our education system is properly supported. I would be delighted to meet my hon. Friend and colleagues to discuss this further.

[John McDonnell (Hayes and Harlington) (Lab)]

When the Conservatives lost their majority at the last election, the Chancellor conjured up a £1 billion bung to the Democratic Unionist party to buy the Tories back into office. Yesterday, with the announcement of the towns fund, we reached a new low in politics in this country, with the attempt by the Government to purchase the votes of Labour MPs to vote for the Brexit deal. Pork barrel politics has become the new norm under this Government. Can I ask the Chancellor: if the price of a DUP vote has been £100 million each, how much has he calculated a Labour MP’s vote will cost?

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[Bambos Charalambous (Enfield, Southgate) (Lab)]

T3. Schools in my constituency face severe budget pressures running into millions. By 2021, some schools will not be able to afford any teaching assistants, learning support assistants, office staff or site staff. Does the Chancellor realise the perilous state of schools’ finances, and will he announce adequate funding for schools in his spring statement next week?

[Elizabeth Truss]

As the Chancellor said, the spring statement is not a fiscal event. We are increasing school funding in real terms per pupil, but of course we need to ensure that we are investing properly in our education system. We are looking at human capital and what will be the most important investments, and we will report on that at the spending review.

[Peter Aldous (Waveney) (Con)]

T5. Given the vital work done by East Coast College and Lowestoft Sixth Form College in promoting social mobility and improving the UK’s productivity, will my right hon. Friend take full account of the letter sent on behalf of 164 Members from across the House and increase further education funding, ideally at next week’s spring statement, but if not, at the forthcoming spending review?

[Elizabeth Truss]

FE spending is a priority, and we have protected the base rate of funding between 2015 and 2020. I was grateful to receive that letter from colleagues and have organised a meeting on 19 March. I am not sure whether we will be able to fit 164 people in a room, but I hope my hon. Friend will be able to attend.

[Tom Brake (Carshalton and Wallington) (LD)]

T4. Does the Chancellor agree that the £1.6 billion set aside for towns is a pale imitation of the regional growth fund set up under the coalition? Will he look at establishing a Brexit redundancy fund of up to £7.5 billion, to help the 750,000 people who are estimated to lose their jobs in a no-deal scenario?

[Nigel Huddleston (Mid Worcestershire) (Con)]

T6. I am sure that all those on the Treasury Bench agree that it is a really important responsibility of the Government to ensure that our children and young people can achieve their full potential. With that in mind, can my right hon. Friend assure me that skills and education funding will receive the priority attention it deserves in the upcoming spending round?

[Elizabeth Truss]

My hon. Friend is right. We also need to ensure that we are spending money on the right things. For example, the changes this Government have made to phonics have seen our children go from some of the poorest readers in Europe to some of the best. It is about money, but it is also about what we do with that money.

[[R] Dan Jarvis (Barnsley Central) (Lab)]

T9. Given the urgent need for clarity on post-Brexit regional funding, when do the Government intend to launch the consultation on the UK shared prosperity fund?

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[Laura Smith (Crewe and Nantwich) (Lab)]

What is the Chancellor doing to make sure local authorities have sufficient funding to allow care providers to pay sleep-in shifts at a national living wage rate?

[Elizabeth Truss]

We are currently working on this with the Department of Health and Social Care.

[Nicky Morgan (Loughborough) (Con)]

The Treasury Committee will today publish the Economic Secretary’s letter to me of 30 January on the current solution to problems faced by mortgage prisoners. This solution requires the private sector to be receptive to providing new mortgages to mortgage prisoners currently trapped with inactive lenders. What update can Ministers provide on the promised Treasury officials’ work with those lenders?

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[Elizabeth Truss]

In response to my right hon. Friend, I can say that one of the things we have done is to introduce a national funding formula to make sure schools funding is more fair across the country, and it is getting fairer every year. I would be delighted to meet her and other colleagues.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The Chancellor has claimed that the best way to protect the public finances from a decline in the motor industry post-Brexit is to back the PM’s deal. The Society of Motor Manufacturers and Traders says the best way is for the Prime Minister to abandon her red lines and be part of a customs union. Who is right?