Benefits Uprating (2013-14)

Jonathan Ashworth Excerpts

Thursday 6th December 2012 Commons Chamber

[Steve Webb]

All councillors have to have regard to the impact of council tax increases on those, such as pensioners, on a fixed income. It is incumbent on local government as much as it is on central Government to ensure that any unnecessary costs are stripped out so that council tax rises can be kept to a minimum.

[Jonathan Ashworth (Leicester South) (Lab)]

Will the Minister confirm, despite the Chancellor’s rhetoric yesterday about those who go to work and those who stay in bed, that of those affected by the 1% uprating, 60% are in working households? The increase in personal allowance will be outweighed by the losses to their tax credits and benefits. Is that correct? Yes or no.

[Steve Webb]

No, it is not correct. The personal tax allowance will rise by just more than £1,300 in April. At a standard rate of 20%, that is approximately £260 a year, or £5 a week, which is more than the impact for the vast majority of households. The hon. Gentleman makes the mistake of taking measures in isolation. It is crucial to look at our measures as a whole, including tax allowance rises and cuts in petrol duty compared with previous plans, which benefit the working households he is most concerned about.