Disability Benefits and Social Care

Debate between Liam Byrne and Stephen Hammond

Wednesday 20th June 2012 Commons Chamber

[Mr Byrne]

I am grateful that the Secretary of State decided to temper his language, in contrast to the crass words that he used from a sedentary position.

The truth is that the housing benefit bill is spiralling out of control because this Government have strangled the recovery and put unemployment up to its highest level since 1996. There are now more than 1 million young people out of work, and long-term unemployment is up 10%. A third of the people on the dole have now been out of work for more than a year, because of the catastrophic failure of the Secretary of State’s back-to-work programme. That is why the dole bill and the housing benefit bill are going up. He should be ashamed of the record that he has presided over.

[Stephen Hammond (Wimbledon) (Con)]

And all that from the gentleman who left us the note to say that there was no money left! Would he like to correct a statement he made earlier? This Government have already recognised that some of the eligibility criteria and some of the testing will need to be changed. They have stated that they are open to those changes, so will he correct his statement on the record?

[Mr Byrne]

I will believe it when I see it. As for the fiscal position, the hon. Gentleman will know that the Chancellor had to confess to the House that he was borrowing £150 billion more than would have been needed under Labour’s plans.

The truth is that there is no plan to get disabled people back to work. The reform of ESA is being so botched that 40% of people are winning their appeals, and those appeals are costing us £50 million a year. Charity after charity is saying that the descriptors used in the work capability assessment are failing. This is the point about reform: if we introduce changes, we have to adapt. We have to be flexible, and move as we learn. This Government are not doing anything. The charity Mind has so little confidence in the Government’s ability to get the reforms right that it has resigned from the advisory group. The Royal National Institute for the Blind has told me that someone who is totally blind can be found fit for work and put straight on to jobseeker’s allowance. That is why our motion, which I hope the hon. Member for Wimbledon (Stephen Hammond) will support, calls for the right reform of the work capability assessment.

Comments reported in The Guardian say that the Secretary of State has been warned by his civil servants running job centres that people are being pushed to suicide by the botched reforms of employment and support allowance—a system that costs us £50 million a year and in which 40% of people are winning their appeals. How can that reform be right?

--- Later in debate ---

[Mr Byrne]

That is absolutely true. Disabled people need to be given the choice of work, and they need to be given a real future in Remploy factories when that is their choice.

[Stephen Hammond]

I thank the right hon. Gentleman for giving way again. He is being very generous with his time. I assume that he will accept, in the interests of accuracy, that the level of the overall specialist disability employment budget is to remain at £320 million, and that in the last two years the Government have increased the Access to Work budget. I think that Members in all parts of the House accept Access to Work.

[Mr Byrne]

What concerns me is where the savings from Remploy will go, and the fact that Access to Work is currently underperforming. That is the point that has been made to me by charity after charity.

Finance Bill

Debate between Liam Byrne and Stephen Hammond

Tuesday 6th July 2010 Commons Chamber

[Mr Byrne]

No, I am going to make another important point, on which the hon. Gentleman might want to comment. The question of business investment is vital—it relates to the argument at the heart of the Budget—and I hope that we will have a good debate on it this afternoon. Business investment is the subject of clause 1, which offers, I am afraid to say, no salvation through investment allowances, which drive up investment and which manufacturers say make the world of difference. This is what the senior economist of the Engineering Employers Federation had to say about investment allowances:

“For smaller companies…there will be cashflow consequences …that will hurt their ability to reinvest in their own competitiveness.”

That is because the Government have withdrawn such allowances.

What, then, of corporation tax? We were promised in the Budget a four-year plan to bring down the rate of corporation tax to 24%, but clause 1 offers us just a one-year plan. We do not know whether that is a wheeze to avoid an unhelpful valuation of deferred tax assets—the Chief Secretary to the Treasury was silent on that point—but is it not more likely that the Treasury is simply hedging its bets? The Government promised us certainty on corporation tax, and all we have got is more risk. The truth is that business is not going to bet on a one-year deal when this country’s recovery demands a longer-term planning horizon. The Chancellor might be a gambler, but Britain’s business community is not.

[Stephen Hammond (Wimbledon) (Con)]

The business community are not gamblers. In this Budget, they will see encouragement for the bedrock of our economy—namely, small and medium-sized enterprises. Measures in the Budget such as the small profits rate of taxation will help 800,000 small businesses across London and the south-east, and the small business rate relief will help 48% of the businesses in the region. Is that not the kind of investment that will encourage exports?

[Mr Byrne]

It would be, but it appears to be absent from the Bill.

The economic gamble that the Chancellor has taken in the Budget is quite clear to the business community and, I think, to the House. There is also the question of who pays. The Chancellor is fond of taking the approach that we are all in this together. One writer called that the equivalent of a chorus line from “High School Musical”. However, the Finance Bill disabuses us of any notion that that claim might actually be true. It is now quite clear that the price of this Budget will be paid by people’s jobs, and that the greatest price will be paid by the poorest in this country.

[Mr Byrne]

I look forward to hearing the hon. Gentleman’s contribution to the debate a little later. It was not quite clear whether he was talking about marginal deduction rates or other impacts of the tax system but, like me, he will have noticed table A3 on page 69 of the Red Book, which shows that the marginal deduction rates for people on a 90% deduction rate, for example, have not gone down as a consequence of the Budget; they have gone up.

[Stephen Hammond]

We know from the note that the right hon. Gentleman left for the Chief Secretary that it clearly would not have been he who paid. Will he tell the House exactly where the £50 billion of cuts would have come from under a Labour Government, and how the deficit would have been reduced? Who would have paid in those circumstances?

[Mr Byrne]

Of course—I shall talk about that at length in a moment.