Autumn Statement Distributional Analysis, Universal Credit and ESA

Lindsay Hoyle Excerpts

Wednesday 16th November 2016 Commons Chamber

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

I inform the House that Mr Speaker has selected the amendment in the name of the Prime Minister.

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[Alison McGovern (Wirral South) (Lab)]

While half of me is loth to continue this debate, I want us to be clear. We have here an economic crisis brought about by political instability caused by the rupturing of unions between countries. So for the hon. Gentleman to argue that Scottish independence would not have had similar disastrous effects for the Scottish economy is, frankly, disingenuous.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

I remind Members to be cautious with the language they use. Also, I do not want this to degenerate into a debate about independence, and I know that the hon. Member for Ross, Skye and Lochaber (Ian Blackford) wants to get back to his brief and not to be tempted by those who want to go out fishing today. To those Members intervening, I say this: when your speaking time is reduced to four minutes, do not blame me.

[Ian Blackford]

I will take your guidance, Mr Deputy Speaker. I only say to the hon. Member for Wirral South (Alison McGovern) that she has demonstrated once again that Better Together is still alive and well—and how did that work out for the Labour party in Scotland?

I will return to the issue we are dealing with. We have inflation created by Brexit and a falling the pound, and the result of this failure will be a fall in living standards for many of our poorest—falling living standards brought to you by this Government. On top of the benefit cuts next year, the Prime Minister is sleepwalking into a perfect storm for low-income families, rather than living up to her promise of delivering for just-managing families. The UK Government must use the autumn statement to end their austerity obsession and instead bring forward an inclusive programme that will truly support low-income families and their children.

The UK Government’s U-turn on tax credits last year was simply a delaying tactic that kicked cuts to universal credit further down the line. The Government should take the opportunity to reverse the cuts to universal credit work allowance in their autumn statement. The original intention of universal credit was to increase work incentives and make sure that, as the Government put it, work paid. On top of damning economic forecasts, however, which will push up the cost of living, the work allowance cut will simply push more working people into poverty. It has slashed the income of working universal credit claimants. The IFS has calculated that in the long term more than 3 million working families will lose an average of more than £1,000 a year as a result of the work allowance cut.

--- Later in debate ---

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Before I call the next speaker, let me clarify that we shall start with a seven-minute limit, but if Members can speak in less time than that, everyone should be able to have approximately equal time.