Social Security (Additional Payments) Bill

Debate between Jonathan Ashworth and Jonathan Edwards

2nd reading
Wednesday 22nd June 2022 Commons Chamber

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

Let me begin by being clear with the Secretary of State: we do not intend to divide the House. We understand that the Government need to put in place the architecture to make these arrangements swiftly. None the less, we want to put on the record a number of points, on which I hope Ministers will provide some clarity in their response to Second Reading and throughout proceedings today.

Like many Members, the message that I am hearing up and down the country could not be clearer: for many of our constituents, these are the toughest times that anyone can remember. More than a decade of underwhelming economic growth has meant that today the cost of living is skyrocketing and pay packets are failing to keep pace with inflation. By next April, wages will be worth £2,000 less in real terms than in 2020, with real pay in the UK falling at the fastest rate for 20 years, leaving household finances stretched to breaking point. Prices are up in the shops and the cost of petrol is through the roof. Energy bills are sky-high, and the lifting of the price cap later this year means that they will increase further. Families everywhere are saying, “Enough is enough!” It should be no surprise that today’s statistics show a 12% increase in those with council tax arrears.

The Secretary of State took great care to explain why she is taking action to help those in need now, and the measures are welcome as far as they go, but the House has to understand that the future is bleak: energy market expert Cornwall Insight is warning that the energy cap could rise by a further £1,000 in October; inflation is at 9.1% today, with worse on the way; the cost of living will rapidly rise further; pensioners will see the value of their pensions and savings attacked by inflation; and working families will be left desperate to protect the value of their wages from the ravages of inflation—and the edict of Ministers tells them to take a pay cut.

Ministers hope that interest rates and tax increases will dampen demand in the economy, and thereby slow economic output. Pain today and pain tomorrow is their policy to get inflation under control, even though the Office for Budget Responsibility warned, following the spring statement, that we are heading for the biggest fall in living standards since the 1950s, with more children set to be pushed into absolute poverty. Labour was clear that taking no action following the spring statement would have amounted to the wilful impoverishment of many of our constituents—a price that we never believe is worth paying. We therefore proposed a windfall tax on North sea gas and oil producers to help families and pensioners, and we are pleased that after some months the Government finally listened to our representations.

We recognise the extra support that the Government are allocating today, but in reality this legislation—important though it is—is a short-term sticking plaster because of a series of long-term policy failures to grow our economy sufficiently, and to address the longer-term problems and hardship that have been growing over the last 10 years due to attacks on social security and unfair pay settlements.

[Jonathan Edwards]

Does the shadow Secretary of State agree that missing from the Bill is any support for unpaid carers, and does he share my hope that the Government will bring forward proposals in the near future to help that group?

[Jonathan Ashworth]

The hon. Gentleman anticipates a point I am going to make, which is why now is a good moment to turn to the specifics of the Bill. I want to raise a number of points that I hope Treasury Benchers will address throughout proceedings this afternoon, particularly regarding how the Bill impacts on four groups: the self-employed on universal credit; disabled people and carers; pensioners; and larger families.

First, on the self-employed who claim universal credit, the minimum income floor will reduce universal credit payments for some self-employed people to zero. Could the Minister clarify, in responding to the debate, whether self-employed universal credit claimants whose UC payments are zero purely because of the minimum income floor will be entitled to these cost of living payments?

Secondly, on how this impacts on disabled people, the disability charity Sense has warned today of the increasing numbers of disabled people pushed into debt as a result of the rising cost of living. Those on the Treasury Bench must surely understand that many disabled people have needs that make heating and electricity to power equipment particularly central to their wellbeing, so that economising on energy can bring severe hardship.

As my hon. Friend the Member for Battersea (Marsha De Cordova) raised a few moments ago, disabled people on non-means-tested benefits will get £150 as a minimum, and indeed those on means-tested benefits will get the £650. I appreciate that the Secretary of State says this is a responsibility of the Business Secretary, but Ministers did recently change the rules on the warm home discount scheme so that 290,000 people on disability living allowance, PIP and attendance allowance are no longer eligible.

For people on PIP, that means that the Government are giving £150 to them after it was taken off them through the changes to the warm home discount scheme. This is robbing Peter to pay Paul, and it suggests that one hand of Government does not know what the other hand of Government is doing. How can that be justified?

Covid-19

Debate between Jonathan Ashworth and Jonathan Edwards

Monday 2nd November 2020 Commons Chamber

[Jonathan Ashworth]

This is a really important point, which my hon. Friend has raised many times in the House. We know that covid particularly thrives on inequalities in society and is particularly brutal with respect to socioeconomic inequities. We have seen the disproportionate impact on those from BAME backgrounds, particularly those who live in constituencies such as hers and mine, in overcrowded housing or in low-paid, public-facing roles. The Public Health England report and other reports published in recent weeks by think tanks all make welcome and sensible recommendations about targeted testing and particular protections in the workplace. Those need to be implemented because we know that this virus is particularly cruel when it comes to inequalities. That is why I have always made the broader point that getting through this virus in the end not only relies on mass testing—we agree on that—and the wider distribution of a vaccine, but fundamentally relies on a wider health inequalities strategy. We went into this crisis with inequalities getting wider, life expectancy going backwards and child mortality rates worsening. That is the result of 10 years of austerity, as Sir Michael Marmot says. If we want to get on top of this virus, which is now endemic, we are going to need a fully resourced and wider health inequalities strategy.

[Jonathan Edwards]

Will the hon. Gentleman give way?

[Jonathan Ashworth]

I will, but this will be the last time, because I want to finish.

[Jonathan Edwards]

I am grateful to the hon. Gentleman. I invite him to agree that the Treasury needs to up its game on its co-ordination with the devolved Administrations because, when Wales, Scotland and Northern Ireland wanted to go into lockdown there was no extension to the furlough, yet there is when the policy comes to England. The Treasury needs to be working with the devolved Administrations so that they can pursue their chosen public health policy.

[Jonathan Ashworth]

The hon. Gentleman makes a completely valid point, although it is not just about the devolved Administrations; the Chancellor should work more closely with the various civic leaderships across the country. When it was the north being locked down, they simply did not get the economic support for the jobs and livelihoods in their areas. If the Government are moving to a tiered system post this lockdown, whenever it ends, I hope that they will not make that mistake again.

If this pandemic has taught us anything, it is surely that our NHS and social care service, and the staff who care for all of us, need to be fully funded and supported in the months ahead. We will support this lockdown on Wednesday—we will vote for it—but the British people are again being asked to make huge sacrifices, so, in return, Ministers must not waste this lockdown. They must take action to improve the test and tracing system, they should expand the new testing techniques and we must give the NHS and our social care system the support they need to get through the months ahead.