Oral Answers to Questions

Gareth Johnson Excerpts

Monday 10th September 2012 Commons Chamber

[Mr Marcus Jones (Nuneaton) (Con)]

11. What recent steps he has taken to prevent benefit tourism.

[Gareth Johnson (Dartford) (Con)]

16. What recent steps he has taken to prevent benefit tourism.

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

The European Commission wants to end the habitual residence test. As a result, we would have to pay benefits to EU migrants as and when they arrive and they would not have to prove that they have been here, are working and have a residence. I believe that that is fundamentally wrong, as do the Government. The habitual residence test is vital to protect our benefits system and to stop such benefit tourism. I also do not believe that the EU has any rights in that area, and we are working with other countries that feel much the same.

--- Later in debate ---

[Mr Duncan Smith]

I actually have not received any representations from the Labour party but, to be fair, I did not ask for any. I always look forward to seeing my opposite number over a drink, although we have not had one recently, and he is more than welcome to make representations. He should know that we have had good representations from other countries that were not part of this, including Portugal, Slovakia and Slovenia. I want to put it on the record that the costs of the proposal could be enormous. If we did not have the British residency test, it is estimated that right now the cost would be something in the order of £155 million, although that could change.

[Gareth Johnson]

I welcome the Secretary of State’s announcement on the habitual residence test. Does he agree that the test is vital in preventing abuse of our welfare state? Perhaps most of all, however, surely we should be deciding on such issues, not the European Union.

[Mr Duncan Smith]

Again, I agree with my hon. Friend. We already have an issue that should be dealt with beyond that, with people who declare themselves as self-employed on arrival here—some coming in as sellers on the street, and so on. There is a way in which they can claim benefits. We do not want to open that up to everybody; we would rather deal with that but not lose the habitual residence test, which is my plan.

--- Later in debate ---

[Mr Duncan Smith]

There is absolutely nothing to hide—[Interruption.] No, no. We are committed to the £2.5 billion all the way through and we will deliver universal credit on time, as it is and on budget. Any time he would like, he is welcome to come into the office and look through some of our business matters, as is his colleague, the right hon. Member for East Ham (Stephen Timms). I will show him how we are on time, on target and on budget.

The right hon. Member for Birmingham, Hodge Hill (Mr Byrne) did rather jump the gun. He referred over the weekend to universal credit as a car crash in the making. I need no advice from the man who produced the biggest car crash in British economic history.

[Gareth Johnson (Dartford) (Con)]

T10. The Secretary of State will be aware that Bluewater shopping centre in my constituency recently announced a further 1,500 jobs to add to the jobs of 7,500 people who are employed there. Will he accept my invitation to visit Bluewater with me to see first hand the job creation that this Government have helped to make possible?

[Mr Duncan Smith]

I look forward to visiting my hon. Friend and shall definitely come. He gives us a great reminder—the Opposition do not like this very much—of the three-quarters improvement in employment, and of falling unemployment and benefit claimant numbers. More importantly, as a direct result of what the Government have done in our welfare reforms, there is a lower number of economically inactive people than at almost any time since those records began.