Business of the House

Harriett Baldwin Excerpts

Thursday 13th June 2013 Commons Chamber

[Mr Lansley]

No, I do not think the hon. Gentleman is right about that at all. The evidence is to the contrary. The Government are serious about this. That is why we announced in March a strong action plan with immediate and longer-term measures relating to evidence of abuse of payday loans, which is not to say that such short-term loans are wrong, but they must not be abusive or harm consumers. One of the things that we therefore wait to find out is whether the Office of Fair Trading intends to refer the matter to the Competition Commission.

[Harriett Baldwin (West Worcestershire) (Con)]

Is it possible to have a debate on capping welfare spending? I personally believe that the best way to do it is to cap benefits at the level of the average wage in this country, but it appears that others in the House believe that pensioners should be the ones who are capped. Pensioners in my constituency are very concerned to hear that.

[Mr Lansley]

My hon. Friend makes an important point. We must take measures to ensure that we are fair. We have seen in the latest data that people in work, including and perhaps specifically in the private sector, have had very limited increases in their pay. Working-age benefits should therefore reflect such constraint. The Labour party, however, appears determined to allow welfare payments to balloon. The Opposition did not support us on that cap on welfare benefits, and their view appears to be that all the constraint on spending should be borne by pensioners. If they were to abandon the triple lock and do it that way, it would mean a £234 cut in the basic state pension. There are 11.5 million pensioners in this country who will be aghast at the thought that that is the proper policy to pursue.