Tax Credits (Working Families)

Debate between Gerald Kaufman and Suella Braverman

Tuesday 7th July 2015 Commons Chamber

[Sir Gerald Kaufman (Manchester, Gorton) (Lab)]

I thought South Suffolk was part of Britain, but it is perfectly obvious that it is not. The experience the hon. Member for South Suffolk (James Cartlidge) describes bears no relation whatever to reality or to the reality in the constituency I represent.

Tomorrow, we will have a Budget. The Minister said we will hear about the Government’s long-term economic plan. I can tell the House what the Government’s long-term economic plan is: to him that hath shall be given, and from him that hath not even that shall be taken away.

The fact is that the inequality and inequity that have been deliberately created by the Government is an abomination to a country that is supposed to be a democracy. They have forced schools in my constituency to go into an academy system. I will visit one of those schools next week in one of the most deprived areas of my constituency. The Government forced it to go into a group and put in charge a woman called Dana Ross, who was the headteacher of Altrincham Grammar School for Girls. She has formed a group, Bright Futures, to run those schools. She has just increased her own pay from £120,000 a year to £220,000 a year. That is the kind of opportunity that this Government give to people.

I represent a constituency of major deprivation, with some of the highest unemployment in the entire country. When I go back to my constituency and see how people are being victimised and deprived, it horrifies me. Let me give the House some statistics. My constituency—Manchester, Gorton—has the 10th highest level of child poverty in the UK out of 650 constituencies. My city, Manchester, is No. 4 among the top 20 local authorities with the highest level of child poverty in the UK. Forty-two per cent. of children in my constituency live in poverty. That is the direct result of the Government’s deliberate policies. They have created intolerable poverty in my constituency and they crow about it.

The situation in my constituency, with regard to low-paid parents with dependent children who rely on tax credits to make up the difference between what they earn and what they need to get by, is that there are 21,300 children in families who receive tax credits. Cuts will hit working families with those low incomes the hardest, potentially meaning that more children will fall below the poverty line.

Let us look at four statistics relating to tax credits. The number of families with children claiming tax credits in the Gorton constituency: 11,000. The number of working families with children claiming tax credits in the Gorton constituency: 6,800. The number of children in working families receiving tax credits: 14,800. The percentage of families in the Gorton constituency receiving tax credits: 79%. Tomorrow that lot on the Government Benches, who give money to the bankers and the property owners, are planning to victimise the people who live in that kind of poverty.

[Suella Fernandes (Fareham) (Con)]

rose—

[Sir Gerald Kaufman]

No, I am not going to give way to the hon. Lady, unless of course she has an intervention provided for her by her Whips like the rest of her colleagues who have intervened so far.

Let us be clear about this: working-age households with the lowest incomes lost the most, as a proportion of their income, in the previous Parliament. In working-age households, the incomes of those with children have been hit hardest by the Government’s tax and benefit changes. Families with children have been hit the hardest of all. Working families with children lost up to £2,000 a year, which is double the average loss of £1,100. Cuts to tax credits far outweigh the increases in the personal allowance over the period. The Social Mobility and Child Poverty Commission, in its state of the nation report for last year, said:

“We have come to the reluctant conclusion that without radical changes to the tax and benefit system to boost the incomes of poor families, there is no realistic hope of the statutory child poverty targets being met in 2020.”

There will be radical changes tomorrow, but they will not be radical changes to help the people who live in my constituency. They are good, decent and hard-working people when they get the chance of a job, rather than being unemployed. There will be nothing in the Budget for them. The Government do not care, but we shall remember.