Welfare Benefits Up-rating Bill

Debate between Kwasi Kwarteng and Christopher Pincher

Monday 21st January 2013 Commons Chamber

[Kwasi Kwarteng]

This is anecdotal evidence, but I was reliably informed that a couple of Liberal Democrat Members of Parliament were claiming tax credits on the basis that they were entitled to them. That is the sort of barmy universe that was constructed under the last Administration, and it is something that we have had to redress. When we consider matters such as those that we are considering today, we must always bear in mind that, given a budget deficit of £170 billion—more than 12% of GDP—it is very difficult to curb public spending sufficiently to enable the country to pay its way on a sustainable basis.

[Christopher Pincher]

I am obliged to my hon. Friend for reminding the House that it is the historic mission of the Conservative party to clear up the mess left behind by successive Labour Governments. Does he agree that it is unfair for people earning more than £70,000 a year to be paid tax credits, but very fair that people earning just £10,000 a year—who paid £1,160 in tax and national insurance in 2010—will now pay only £670, and even fairer that next year they will pay only £360? Is that not an example of Conservative fairness?

[Kwasi Kwarteng]

It is not only fair, but common sense. The Labour cash merry-go-round, when Labour was taxing people with very low earnings and then handing back the money in the form of benefits, did not provide a sustainable model. The measures that we have introduced have been far more effective in reducing—[Interruption.] I wish I could share the joke, but I have more important matters with which to deal.

Fuel Poverty and Energy Efficiency

Debate between Kwasi Kwarteng and Christopher Pincher

Wednesday 16th January 2013 Commons Chamber

[Kwasi Kwarteng]

There must be a realisation that we cannot expect to regulate and put more taxes on activities, while at the same time expecting those activities to be cheaper. There must be some give in all of this. The Government have managed a balancing act pretty well in very difficult times. We can look—I intend to do so in the second half of my speech—at the record of the previous Labour Government, certainly between 1997 and 2010. In many ways they were deeply irresponsible on this issue.

Another factor that drives up costs is supply. In this rather lengthy debate on which we have embarked, no one—apart from a few comments from Opposition Members bashing private companies—has mentioned supply, yet that is crucial to cost. The previous Labour Government did nothing to secure this country’s long-term energy future. There was no planning or provision for energy supply.

[Christopher Pincher (Tamworth) (Con)]

My hon. Friend makes a point about supply. Is it not the case that during Labour’s years we started with 15 energy suppliers and ended with six? The Labour party reduced, not increased, the supply.

[Kwasi Kwarteng]

I am grateful to my hon. Friend for that pertinent remark. Not only was there a reduction, but there was no recognition of any long-term strategic need of this country.