Oral Answers to Questions

Jeremy Corbyn Excerpts

Wednesday 22nd January 2020 Commons Chamber

[Jeremy Corbyn (Islington North) (Lab)]

Next Monday, we will be commemorating Holocaust Memorial Day. It is a time for us all to reflect on the horrors of the past and to remind ourselves of the evils of Nazism, genocide, antisemitism and, indeed, all forms of racism, which we must always be implacably determined to root out wherever it appears.

This Saturday, hundreds of millions of people will be celebrating Chinese new year around the world, and I am sure that the Prime Minister will join me in welcoming the year of the rat and inviting all Chinese people to have a great time.

If a worker earning just over £12,500 a year receives a £300 bonus, how much of that bonus does the Prime Minister think that worker should be allowed to keep?

[The Prime Minister]

Let me join the right hon. Gentleman in what he has said about the importance of Holocaust Memorial Day and of stamping out the resurgence of antisemitism in our country. On his point about the low-paid, I think perhaps the best answer I can give him is to remind him that just this week this Government increased the living wage by the biggest-ever amount so that people on the living wage will be receiving an extra £1,000 a year. If he wants further elucidation on his point, perhaps he could ask a better question.

[Jeremy Corbyn]

Greggs is currently giving 25,000 workers a £300 bonus, but some of those workers who are on universal credit will be allowed to keep only £75 of that £300. If the Prime Minister can answer my question and show me that that is just and fair, I will buy him a vegan roll from Greggs myself. The first aim of universal credit, which is set to affect 6 million people, was to make work pay, but when low-paid workers cannot even keep their own bonuses, it is clear that the Government are punishing, not supporting, people. Will the Prime Minister do something to ensure that workers at companies such as Greggs who are on low pay will be allowed to keep their bonuses?

[The Prime Minister]

Under this Government, people on low pay will be able to keep more of the money that they earn. It is this Government who are cutting national insurance contributions for everybody in the country, and it is this Government who were increasing the living wage. It was the right hon. Gentleman who voted against tax cuts for the low-paid to the tune of £7,800.

[Jeremy Corbyn]

The Prime Minister himself fought with unbelievable levels of energy to protect the bankers’ bonus. Why can he not do something about the low-paid on very low wages who need to be allowed to keep their bonuses? The Resolution Foundation report published yesterday highlighted the serious distress caused by the dysfunctional nature of the universal credit system. One claimant says, “Sometimes you are starving”, another said, “It was…horrendous”, and another said:

“It was very hard for me because I’m not very good at computers.”

Does the Prime Minister think that universal credit is meeting its second aim of making the social security system simpler?

[The Prime Minister]

Yes, indeed; we are making the social security system simpler because we have massively reduced unemployment. On the right hon. Gentleman’s specific point about Greggs, as far as I can understand the situation, Greggs is producing record figures—£7 million extra. One person, I believe, has complained about the bonus system that the right hon. Gentleman remarks upon, but that is in the context of unparalleled growth in employment, with 359,000 more jobs in this country this year than last year and the International Monetary Fund now confirming that the UK economy will grow faster than the eurozone. When is he going to stop talking Britain down and start recognising the extraordinary achievements of the UK economy?

[Jeremy Corbyn]

The real issue is that many people in work are also in poverty and have to access universal credit, with almost 1 million on zero-hours contracts and more people rough sleeping than ever before. Those are the issues that ought to be concerning the Prime Minister. The third aim of universal credit, it was claimed, was to reduce poverty, but we know that it is having the opposite effect. Under this Government, 65 million meals were handed out by the Trussell Trust food banks over the past five years. The five-week delay for new claimants is leaving people without enough money to cover basic needs. Why is the Prime Minister not taking action to end this punitive and vicious five-week wait for benefits?

[The Prime Minister]

Universal credit has in fact succeeded in getting 200,000 people into jobs. Contrary to what the right hon. Gentleman says, the number of people in poverty has diminished by 400,000 under this Government and wages have been increasing solidly for the last 22 months. Labour is supposed to have had a period of reflection since the last election—it is supposed to have been reflecting on the result of the general election. Labour has decided, as far as I understand it, that what it wants is even more Corbynism—a four-day week, increases in taxes on working people and uncontrolled immigration from everywhere. I refer the right hon. Gentleman to the answer that the British people gave to him four weeks ago.

[Jeremy Corbyn]

Wouldn’t it be truly wonderful if the Prime Minister answered a question about universal credit? He has dodged every question on it. The reality is that about half the people going on to universal credit are worse off as a result. The same is true of the very cruel and callous two-child limit under universal credit, which caps benefits for larger families. There are half a million more children living in poverty than there were in 2010 and the number of children in deprivation has soared in the last few years. Why does the Prime Minister just not have the guts to admit that there is a link between poverty and the two-child limit?

[The Prime Minister]

The right hon. Gentleman cannot accuse me of failing to answer the question when I have answered it very clearly a couple of times. There are 400,000 fewer people in poverty and there has been a substantial reduction in child poverty. He does not like the answers. The reality is that there is a massive increase in employment and growth in this economy. I really think it is time that the Labour party changed its tune, although I have some good news for the leader of the Labour party. He was voted by Labour members as the most popular Labour leader since records began. I want him to know that those sentiments are warmly shared by many on this side of the House.

[Jeremy Corbyn]

The Labour party will never abandon the poor of this country. The levels of child poverty are a national scandal. The Prime Minister seems unable, incapable or unwilling to answer that question.

Universal credit had three aims. It was meant to make work pay, but low-paid workers are not even allowed to keep their bonuses. It was meant to be simple, but it has created mind-numbing complexity. It was meant to reduce poverty, but it is driving people to food banks. As we have seen today, the Prime Minister is not able to answer questions on it. The fact is that this Government have baked in austerity for tens of millions of people. When will he finally accept that the universal credit system is broken, damaging and dangerous to people’s living standards, and that it should go?

[The Prime Minister]

The right hon. Gentleman wants to do nothing else except keep people in the welfare trap and stop helping people out of welfare and into work. I think he should pay tribute to all the people who, by their own hard work, have found fantastic jobs over the last year. He should pay tribute to the growth in employment in the UK economy.

Quite frankly, it is this Government who are getting on with delivering on the priorities of the British people: 40 new hospitals, 50,000 more nurses and 20,000 more police officers. The Labour party is still split from top to toe about whether to stay in the EU or to remain run by the EU. It still cannot make up its mind, and he still cannot make up his mind. We deliver on the people’s priorities.