Households Below Average Income Statistics

Kate Green Excerpts

Thursday 28th March 2019 Commons Chamber

[Amber Rudd]

My hon. Friend is right. Next week the national minimum wage will go up to £8.21, which is the highest it has ever been. Furthermore, the level at which people start to pay tax is rising to £12,500. It was not very long ago that people on very low incomes—as low as £6,500—could be paying tax, and that has changed under this and the previous Government.

[Kate Green (Stretford and Urmston) (Lab)]

It is welcome to see the Secretary of State gradually repairing the damage that has been done by her predecessors as a result of caps, cuts and freezes, but she will accept, I am sure, that she has a long way to go to match Labour’s excellent record of taking 1 million children out of relative poverty. Will she pay particular attention to the high risk of poverty among larger families? I welcome the first step she has taken in relation to the two-child policy, but she will know that larger families face a particular risk of poverty, so will she look at removing the two-child limit altogether?

[Amber Rudd]

Since entering government in 2010, we have removed 400,000 people from absolute poverty. I have acknowledged—this is why I am here today—that today’s statistics are disappointing. I am highlighting that there is more to be done both in terms of other services around benefits and in terms of my engagement with the Chancellor. The hon. Lady raises the important point that it is often people with the largest families who have difficulties, and I will be looking at that area ahead of the spending review. However, we will not be changing the two-child policy, which is still an important part of having fairness in the benefits system for the people who pay the tax as well.