Welfare Benefits Up-rating Bill

Debate between Ian Mearns and Charlie Elphicke

Monday 21st January 2013 Commons Chamber

[Charlie Elphicke]

I will speak briefly. I think that it is important that all of us who represent communities with a lot of deprivation, such as my constituency of Dover and Deal, make sure that the Government, or any Government, have policies that make work pay. About 5 million people in this country could work but do not. We need more of an incentive for people to realise their potential and do well in life. Part of that needs to be an economic incentive. Let me pray in aid the words of the Chancellor of the Exchequer:

“We have to acknowledge that over the last five years, those on out-of-work benefits have seen their incomes rise twice as fast as those in work. With pay restraint in businesses and Government, average earnings have risen by about 10% since 2007. Out-of-work benefits have gone up by about 20%. That is not fair to working people who pay the taxes that fund them.”—[Official Report, 5 December 2012; Vol. 554, c. 879.]

[Ian Mearns (Gateshead) (Lab)]

Will the hon. Gentleman give way?

[Charlie Elphicke]

I will in a moment.

It is also unfair on those people who are not in work, because they have no incentive to go and seek work. We need to provide that incentive, not because we want to attack people who are unemployed but because we want to give them every incentive to get work, realise their potential and take the opportunity to do really well in life and be a great success.

--- Later in debate ---

[Ian Mearns]

rose—

[Charlie Elphicke]

I have been quite generous in giving way, so I would like to make a bit of progress.

Let me turn to the issue of child poverty. We heard a lot of rhetoric on child poverty from the shadow Minister, in addition to the amazing spending commitment that he delivered to the Committee in response to my intervention. Let us look at the child poverty figures, which the Opposition say are a key reason to oppose clause 1. The figures from the last Parliament show that, after housing costs, there were 3.6 million children in poverty in 2004-05. In 2009-10, there were 3.8 million. In other words, it went up 200,000 under the previous Government. The figures for 2010-11, the latest available, went down 200,000 under the present Government. The achievement of the previous Labour Government was therefore to increase child poverty by 200,000—not a great record, to put it mildly—while the present Government have been in office at a time when child poverty has been falling.

Let us also consider the fact that there were 700,000 children in severe poverty in 2004-05. By the end of the Labour Government, that figure was the same. After one year of this Government, however, the figure had gone down to 600,000. Before the Opposition start talking about child poverty, they ought to take a closer look at their record in office. We also need to have a closer look at the policy of universal credit, which, according to Government statistics and the Red Book, will take about 350,000 children out of poverty.

It is important that we look after children and give them the best possible start in life, and this Government are committed to that. The Secretary of State for Work and Pensions is certainly committed to that, as am I. I am committed to the Bill, and the measures in clause 1 are really important because we need to do all we can to ensure that people who are not in work achieve their potential, get into work, do really well and achieve great success in their lives.

[Ian Mearns]

The hon. Member for Dover (Charlie Elphicke) forgot to mention that while those on benefits have had their benefits uprated at twice the rate of those in work in percentage terms over the past five years, the actual increase in financial terms has been on average about £49 for those in work and about £12 for those on benefits. Those figures were put into the public domain by Paul Lewis on “Moneybox” on BBC Radio 4, and I have no reason to disbelieve him. I wonder whether the hon. Gentleman has. It is important to take those figures into consideration. Percentages are meaningless; 50% or 100% of very little is still very little. Making comparisons in the way that he did demeans the debate.

I would like to thank you for calling me to speak, Mr Evans, because this is an important debate on a Bill that, if voted through, will have a detrimental impact on many thousands of my constituents and others across Tyneside and the north-east. I have said this before, but it is important: the way in which this country’s economy works is very different in different parts of the country. It is therefore important to remember that the equation of welfare to work is a two-part equation. Welfare is one part; work is the other. In some parts of the country, there is no work; in others, between a dozen and 20 people—or even more in some places—wait for each vacancy. In such places, where people have no real opportunity to get work anywhere near their own locality, there must be decent welfare so that they can sustain themselves, their families and, most important, their children.

I was fortunate enough to speak in previous debates on this issue earlier this month, so I shall keep this speech as brief as possible, given that many Members will wish to take part in the debate. I shall try not to repeat the points I have already made. Instead, I shall focus on the impact that the Bill will have on families and, particularly, on children. I also do not want to disregard one important set of people—namely, those with mental health difficulties. I believe that the impacts of the Bill on those people has been underplayed to a certain extent.

I visited Tyneside Mind in Gateshead on Friday and spoke to a range of service users there. It is disturbing to see the increased pressure being put on those vulnerable people, who are in a fragile state of mind, to jump through a whole range of hoops, and to see the impact that the new measures are having on them.