Tax Credits

Jason McCartney Excerpts

Thursday 29th October 2015 Commons Chamber

[Dr Huq]

I have already given way once, so I will not do so again. Reduced tax credits are being introduced alongside a gamut of other welfare changes, the cumulative effect of which is an assault on the lowest paid in our country.

[Jason McCartney (Colne Valley) (Con)]

Please stick to the motion.

[Dr Huq]

What I am saying is relevant to the motion, because we need some context.

--- Later in debate ---

[Jason McCartney (Colne Valley) (Con)]

I congratulate the right hon. Member for Birkenhead (Frank Field) and thank the Backbench Business Committee for granting us this very timely debate to reconsider the impact on the lowest-paid workers of the proposed changes to tax credits and to call for the Government to bring mitigation proposals to this House. Early next year it is the centenary of the birth of Harold Wilson. That Huddersfield lad coined the phrase, “A week is a long time in politics.” A lot of ermine and a flood of emails have flowed under the bridge since I signed this motion last week.

I want to make it clear from the start that I absolutely support the Chancellor in getting Britain to live within its means. In fact, I often suggest to folk back home in Yorkshire who are talking about austerity that we should replace it with the phrase “living within our means”. That brings a whole new meaning to the campaign slogan “anti-living within your means”.

Since last week, many constituents have echoed my position. To follow the style of the Leader of the Opposition, Martin from Holme Valley says that he agrees with the shift from tax credits to increased pay but shares my concern about the transitional impact of the changes. Bob from Salendine Nook says that he understands the point I make about employers underpaying staff and agrees with me on the need to reconsider the pace of change. Nicola from Oakes says that she agrees that the tax credits system is imperfect, as is the whole benefits system. She says that she would be better off financially reducing her hours, as she works full time, and that a change to the system needs to be implemented. She says that she feels she is currently being punished by the benefits system for trying to bring home more money by working her way up, and that a single person on income support, disability living allowance, housing benefit and other benefits could, in effect, be paid more in benefits than she brings home, including with her tax credits, to support a family. Dorothy from Marsden says that she fully understands the need for reform. As the motion clearly states, this is about the pace and the impact on the lowest-paid workers.

I firmly believe that work should always pay. People should always be better off in a job than on benefits. I say that as someone who did not go to university. When I left school, I did a succession of low-paid, part-time jobs before I joined the Royal Air Force at the age of 19, worked my way up, and travelled the world. I am proud that since 2010 unemployment is down by 51% in my constituency. I am proud that youth unemployment is down by more than half. I am proud that there is a net increase of 170 new businesses and there have been over 4,700 new apprenticeship starts. I am proud to say that I have just taken on my first apprentice and that I am paying him the living wage. On Friday 20 November I will hold my latest jobs fair at Holmfirth civic hall, where over 30 local businesses and organisations will be offering quality jobs and apprenticeships. We must build a low-tax, low-welfare, high-wage economy. As a compassionate Conservative, I want to live in a country where everyone has the opportunity of a decent, well-paid job. So let us crack on with it, and let us stand up for working people.

I welcome the Chancellor’s announcement that he will lessen the impact on families and will set out these plans in the autumn statement. I hope that he and his Treasury boffins will be listening very carefully to the various suggestions, some of them very inventive, for transitional arrangements. Let us show that Britain can live within its means while, most importantly, looking after the most vulnerable and supporting those who go out and work every day.

[Several hon. Members rose—]