Social Security (Additional Payments) Bill

Jonathan Ashworth Excerpts

Committee stage
Wednesday 22nd June 2022 Commons Chamber

[Jonathan Ashworth]

I join the Minister in thanking the Clerks, the Bill team and Members across the House who have spoken, and I thank you, Mr Deputy Speaker, for guiding us to what looks like an early finish with skill, as always. I also thank the Minister for the courtesy with which he has responded to the queries Members have raised; I did not always agree or get the answer I wanted, but I appreciate the way in which he engaged, with great detail and politely endeavouring to answer all points.

As I said on Second Reading, we do not intend to stand in the way of this Bill at all; we totally understand the need for the Secretary of State to make arrangements for these payments to be delivered swiftly, although we believe that the Government should have acted sooner. The result of not acting sooner has been considerable anxiety and hardship for many of our constituents, many of whom have already had to grapple with the £20 cut to universal credit and other measures such as the pernicious two-child policy over many years.

Many Members have raised the various hard edges still in place because of the flat-payment nature of the legislation. One way of dealing with that would have been by bringing forward a benefit uprating, and it is curious that Ministers told us that that was not possible, given that it was done in 1975 by the then Secretary of State for Health and Social Services, Barbara Castle, who said that two upratings in a year would be introduced because of exceptionally high rates of inflation. If they could do it in 1975, it is curious that we cannot do it 40-odd years later. The position of the Conservative party in those days was that uprating should happen twice a year. That was Norman Fowler’s position.

I was grateful to the Secretary of State for what she said in response to my question about the uprating for next year. With respect to the triple lock and the uprating of other pensions, we have heard from the Chancellor that they will be uprated in line with figures in September, but we can see the pressure that is being put on the Government by some voices in the media and so on. The Secretary of State said that those matters would be reviewed, as per the legislation. I hope that does not turn out to be a get-out clause for the Government on the triple lock and benefit uprating later this year. We will be watching these issues like a hawk.

Our big worry, although we will not stand in the way of the Bill, is that the Government still have no serious plan to deal with the ravages of inflation. There has been debate across the Chamber today about the second payment, but with inflation where it is today, that second payment, if paid in November or December, would, by my rough calculation, in real terms lose value from the £324 that the Government are legislating for to about £307 because of the levels of inflation. I fear that, unless the Government get a grip of inflation, they will have to come back to the House with an autumn statement or another emergency Budget, to pursue other measures to help some of the poorest and most vulnerable in our society.

We will not divide the House tonight. We welcome the legislation as far as it goes, but I fear that further help will be needed very soon.