Oral Answers to Questions

Keir Starmer Excerpts

Wednesday 15th September 2021 Commons Chamber

[The Prime Minister]

I thank my right hon. Friend for her kind words. On her substantive point, she is entirely right to raise the issues investigated by Baroness Cumberlege. We have given the report full consideration, accept its overarching conclusions and are committed to making rapid progress in addressing all the areas that it mentions, including the one that my right hon. Friend covered today.

[Keir Starmer (Holborn and St Pancras) (Lab)]

I join the Prime Minister in his comments about Emma Raducanu—a tremendous success in the US Open—the Battle of Britain and the G7 Speakers conference. May I also offer my condolences to the Prime Minister on the loss of his mother? As I know at first hand, losing a parent is never easy.

How many extra hours a week would a single parent working full-time on the minimum wage have to work to get back the £20 a week that the Prime Minister plans to take away from them in his universal credit cuts?

[The Prime Minister]

First of all, I thank the right hon. and learned Gentleman for his kind words. On his substantive point about universal credit, it is absurd, because the Labour party—[Interruption.] I will give you a statistic, Mr Speaker: every single recipient of universal credit would lose their benefits under Labour, because it wants to abolish universal credit. I think that this House and this Government should be very proud of what we are doing and continue to do to support the low-paid. It was another Conservative institution, the living wage, that increased the incomes of families on it by £4,000 a head. What the Labour party wants to do is keep this country in lockdown and keep this country in furlough without moving forward at all.

[Keir Starmer]

The Prime Minister did not answer the question. The Secretary of State for Work and Pensions seems to think that it is an extra two hours a week, so let me make it even easier for the Prime Minister: is the correct answer higher or lower than that?

[The Prime Minister]

What I can tell the right hon. and learned Gentleman is that under this Government, for the first time in decades, wages are rising. Wages across the board are rising, and they are 4.1% up on where they were before the pandemic. In fact, I am very pleased to say—[Interruption.] Of course, what the Opposition want to do is continue to take money in taxation and put it into benefits. We do not think that that is the right way. We want to encourage high wages and high skills. That is the difference between this Government and the Labour party. I think it is a good thing, for instance, that Costa Coffee is now paying 5% more than it was before the pandemic—and never forget, Mr Speaker, that if we had listened to Captain Hindsight, Costa Coffee would still be closed.

[Keir Starmer]

It wasn’t a difficult question, Mr Speaker. [Interruption.] It is silly, they say. “How many hours would someone working full time on the minimum wage have to work to make up for the cut?” is apparently a silly question. I will give the Prime Minister the answer to the question. The number is much, much higher. A single parent—who could be a constituent—working on the minimum wage and already working full time would need to work more than nine hours a week on top of that full-time job just to get back the money that the Prime Minister has taken away from them. They are already working full time. They have kids. How on earth does the Prime Minister think they are going to find the time to work an extra nine hours—in truth, an extra day every week?

[The Prime Minister]

I will tell you what we are doing, Mr Speaker, to support people on low incomes. We are supporting them not only with the living wage, but with 30 hours of free childcare, and by freezing petrol duty and extending the heating allowance to 780,000 people across the country—but, even more important than that, for the low-paid we are encouraging measures to see their wages rise. We are investing in their skills. We are investing in work coaches.

There is now a dividing line between this Government and the Opposition. We want a high-wage, high-skills economy with controlled immigration; what they want is low wages, low skills, and uncontrolled immigration. That is what they stand for.

[Keir Starmer]

Let us test that right now. We have had three questions and the Prime Minister has not answered one of them, and it is obvious why.

The truth is that these low-paid workers cannot work longer hours to get back the money that the Prime Minister is cutting from them. He knows it; they know it. Millions of working families will be hit hard—very hard—by the Prime Minister’s universal credit cut, and the reason, I tell the Prime Minister, is this. Why would those people have to work an extra nine hours—a full day every week—to get that £20 back? It is because of his broken tax system. He has just said how good it is, so let us test it. After his national insurance rise, for every extra pound that those workers earn, his Government will take more than 75p from them. That is why they have to work for those nine hours—one whole extra day.

The Prime Minister has just said that he is going to raise wages, and what else he is going to do, but that is the situation. Why is the Prime Minister making a bad situation worse for working people by hammering them with a cut in universal credit and a tax rise?

[The Prime Minister]

Actually, what we have done with our local housing allowance is increase by £600 the amount of money available to exactly the type of person the right hon. and learned Gentleman has mentioned. He has attacked the plan that we announced last week to fix the backlogs in the NHS. I have to say that I thought it utterly incredible that the party of Nye Bevan should have come to the House last Wednesday and voted against measures that would fix the NHS. It is quite clear that ours is now the party of the NHS, and that the Opposition simply do not have a plan. They do not have a plan for universal credit—they want to abolish it—and they do not have a plan to fix the NHS or social care.

[Keir Starmer]

An unfair tax rise which will not fix social care and will not clear the NHS backlog is not a plan. The Prime Minister pretends that there is no alternative but to hammer working people with tax rises and universal credit cuts, but that is not true. His approach means that a working single parent who is a qualified nurse would lose £1,143. A supermarket worker could lose £1,093. A teaching assistant could lose £1,081. At the same time, the Prime Minister has wasted billions on crony contracts, cut taxes for people buying second homes and handed out super tax deductions for the biggest companies. That is not taking difficult decisions; that is making political choices. So why is the Prime Minister choosing to take a tax system that is already loaded against working people and making it even more unfair?

[The Prime Minister]

It is absolutely ridiculous that the right hon. and learned Gentleman should attack the Government over salaries for nurses when we have put them up by 3% on top of the 12.8% rise that we introduced, when we are hiring 50,000 more nurses and when we are putting another £36 billion into the NHS and social care on top of the £33 billion that this Government invested when we came into office. One in 10 of the people in this country are now on an NHS waiting list. Labour Members know that the NHS backlog needs to be fixed, they know that this Government have a plan and they know that Labour has absolutely nothing to say.

[Keir Starmer]

I just wonder what the millions of people on low wages who are facing a £1,000 cut will think of that. This country’s success is built by working people, but the tax system is loaded against them. The Prime Minister may not understand the pressures facing families across the country, but we do. The reality is this. Taxes on working people: up. National insurance—[Hon. Members: “”Up!”] Council tax—[Hon. Members: “Up!”] Energy bills, food prices, burdens on families: up, up, up. The Prime Minister needs to get real and understand the terrible impact of his decisions on working people across this country. This afternoon, he has the chance to change course, to vote with Labour to cancel the cut to universal credit and then to stop clobbering working people with unfair tax rises. Will he do so?

[The Prime Minister]

I can see that the panto season has come early—[Interruption.]