Welfare Benefits Up-rating Bill

Debate between John Leech and Caroline Lucas

Monday 21st January 2013 Commons Chamber

[Caroline Lucas]

I will speak to amendment 7, which stands in my name. It is an attempt, at least, to neuter what I believe is a cruel and callous Bill by restoring the historic link between benefits and tax credits and the retail prices index.

It is a fiction that benefit levels are too high. Someone who relies on benefits is poor and will be struggling to survive from week to week; if any unexpected costs occur, they will probably have to go without or go into debt. The Institute for Fiscal Studies points out that we do not know at least two important things about the Bill: we do not know what the actual effects of breaking the link with prices will be, because that will depend on future price levels, which exposes the poorest in society to serious inflation risk; and secondly, we do not know the Government’s view on how benefits should be indexed in the longer run, and we ought to.

What are we to make of the Government’s long-term policy intentions? Unfortunately, I think they are clear: to chip away at the welfare state and leave people to fend for themselves, with US-style deprivation for the unsuccessful. It is a scandal to expose poor people to such risk and insecurity, especially at the same time as the most wealthy are set to enjoy a significant tax cut. That is why I have tabled my amendments, which represent the very minimum safety net that must be in place.

[Mr John Leech (Manchester, Withington) (LD)]

Will the hon. Lady explain whether she tabled amendment 7 because RPI is normally higher than CPI, or because she believes that it is a better way of working out inflation?

[Caroline Lucas]

I think the answer is probably both of the above. Recently, the RPI has been higher. I would have been happy to look at an amendment—no such amendment exists, unfortunately—that combined the work that the hon. Gentleman’s party has been doing on earnings with my effort to get a link back to the RPI and prices. We should look at whichever is the most generous. I stuck to the RPI link in my amendment because I wanted it to be realistic enough to get more support across the House. I fear that I might have been a little over-ambitious.

It worries me that instead of seeking to restore the link to prices, the official Opposition have not sought to protect people who are seeking work, but appear to have picked out one or two benefits, such as employment and support allowance and maternity benefit, for proper protection. They have ignored, for example, those on jobseeker’s allowance, as long as some sort of workfare system is brought in for people who have been looking for work for two years. Do the Opposition think that it is okay for the link to be broken for JSA recipients in the meantime? The Opposition amendments offer an improvement to a nasty Bill, and for that I support them, but I believe they expose a certain cowardice in not confronting the stereotypes and myths that the Government continue to perpetrate. Why are the Opposition not standing up for unemployed people and restoring the link to RPI? I do not accept that they could not consider that principle today, and it is disappointing that they will not. A link to prices is an absolute minimum, a safety net red line.