Welfare Benefits Up-rating Bill
Lindsay Hoyle Excerpts(11 years, 3 months ago)
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Stephen Timms
We have had an interesting debate. The right hon. Member for Ross, Skye and Lochaber (Mr Kennedy), the former leader of the Minister’s party—the Liberal Democrats—described the Bill as a device dreamed up by the Chancellor, which was recognised on both sides of the Committee during the debate. The Government are bearing down on the incomes of the least well-off people because of the failure of their policies. I urge the Committee to support amendment 12 and to reject clause 1.
Question put, That the amendment be made.
The Committee proceeded to a Division.
The Chairman of Ways and Means (Mr Lindsay Hoyle)
Will the Serjeant at Arms investigate the Aye Lobby? We seem to have a hold-up or a blockage of some kind.
Mr Deputy Speaker (Mr Lindsay Hoyle)
I understand the hon. Lady’s frustration, but the amount of time given was agreed by the House on 8 January, and unfortunately the time allowed today has been squeezed on that basis. We are now eating into Third Reading time, which we would have lost completely had more Divisions been allowed.
Andrew George
Further to the point of order, Mr Deputy Speaker. As the hon. Member for Brighton, Pavilion (Caroline Lucas) has pointed out, there is some disappointment among those who wished to test the temperature of the Committee. We were readily allowed to engage in the two-dimensional tribalism represented by previous Divisions, but we had no opportunity to ensure that the more nuanced and considered debate on other issues was brought to a proper conclusion, because those who wished to express a view had no opportunity to do so in the Lobbies.
Mr Deputy Speaker
That was, in fact, the same point of order. Again, I understand the frustration that is felt, but—quite rightly—it is not for the Chair to decide the amount of time that is allocated for a debate. It is for the House to make that decision, and it did so on 8 January. No doubt the hon. Gentleman will wish to take the matter up with the Whips in future.
Bill reported.
Third Reading
Personal Independence Payments
Lindsay Hoyle Excerpts(11 years, 4 months ago)
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Dame Anne Begg (Aberdeen South) (Lab)
I welcome the Government’s decision to delay the implementation of PIP and hope that they will continue to keep the timetable under review, because I suspect that it might not be as easy as the Minister implies it will be today. I advise her that she worries disabled people very much when she talks about the increase in the costs of DLA. Any increase in DLA, unlike for out-of-work benefits, is not necessarily a bad thing, because if more people are getting more DLA, more people are living independent lives and engaging in society in a way that they were not doing previously. Of course, any money spent on DLA or PIP is often money saved in other budgets, whether in the NHS or in social care. I ask the Minister to be very careful about the language she uses, because many disabled people are very worried about the implementation of PIP and what it will mean for their lives. Any words about saving money makes them think that they will be the victims of some kind of economic drive by the Government to ensure that they are saving on the budget for the very vulnerable. That money is spent very wisely on giving them an independent life.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Just before the Minister answers, I remind Members that we must have much shorter questions, because I want to get everybody in.
Esther McVey
I thank the hon. Lady for her comments. I will of course be very aware of the language I use, and I hear what she says most clearly. I am glad that she is pleased about the slower delivery of PIP and about the independent review that will take place in 2014 so that we can ensure that what is happening is correct and that we are delivering what is intended. We continue to spend over £13 billion, and we will be spending more in every year up to 2015-16 than was spent in 2009-10. I am fully aware of her concerns and we have taken them on board.
Esther McVey
All sides of the House wanted reform. Everybody said that reform was right, but the difference is that this Government are making that reform to ensure we have a benefit that is fair and correct, right for the 21st century, and that has rigour put into it.
Julie Hilling (Bolton West) (Lab)
I, too, am really shocked that the Minister is not going to carry out an impact assessment, and I wonder whether she will answer the question this time. Will blind people get the equivalent of the higher-rate mobility component of DLA?
Jobs and Social Security
Lindsay Hoyle Excerpts(11 years, 5 months ago)
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Mr Duncan Smith
I said that I was going to make a few points and then give way.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The right hon. Member for Tottenham (Mr Lammy)knows that he cannot keep standing. I am sure that the Secretary of State has made a note and is going to give way shortly.
Mr Duncan Smith
I just want to pick up on one point and then I will happily give way to the right hon. Gentleman.
The same scant regard for general facts is apparent throughout the motion. The Opposition claim that long-term unemployment is now soaring, yet long-term unemployment nearly doubled in the two years before Labour left office, going from 396,000 to 783,000 in 2010. By the way, just so that the record is absolutely straight, the right hon. Member for Birmingham, Hodge Hill says that Labour had got spending down, but welfare spending rose by 60% under the previous Government.
Mr Byrne
This is an important point for us to debate. I do not know whether the Secretary of State has seen the analysis that was published yesterday by Inclusion, but it is pretty clear on this question. The proportion of people flowing into sustained jobs from the flexible new deal was 5%, which is much higher than the figures for the Work programme. The flexible new deal was more expensive. Inclusion calculates that the cost per job outcome under the Work programme is £14,000. The flexible new deal was 9.5% more expensive, but the Secretary of State is failing to be level with the House about the fact that doing nothing costs his Department less, but it costs the country more, because the welfare bill goes up. A payment-by-results programme is cheaper if there are no results. That is the problem that we have to fix, and that is why the Chancellor is so cross.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Many Members wish to speak in the debate, so we must have shorter interventions and replies.
Mr Duncan Smith
Guided by you, Mr Deputy Speaker, I shall simply tell the right hon. Member for Birmingham, Hodge Hill that he is wrong. I do not agree with his figures, and anyway, he served in government while the bill for welfare rose by 60% in real terms over the lifetime of that Government. Enough said: we took on a massive problem, and we have to deal with it.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I remind hon. Members that there is a 10-minute time limit on Back-Bench speeches.
Nigel Mills
My hon. Friend reinforces the point that it is utterly unreasonable to say that the scheme is worse than doing nothing.
Providers who cover my constituency have told me that they had only a short time to prepare before they started work. They said they had not worked in the east midlands before, so had not only to find staff, but to build links and form relationships with employers to convince them to take people in more challenging situations. Expecting brilliant results at the start of the programme does not work.
The latest data show that 29% of first referrals from June 2011 have now had a job start, and that 37% of under-25s have had a job start. Those are not terrible results; they are encouraging. In Amber Valley, the results are better than average: 4.2% of those referred have met the target of spending six months in a job. I accept that that is less than the 5.5% target, but it is well ahead of the national average. Amber Valley is generally performing well. Total jobseeker’s allowance claimants are down 21% since the election, and JSA claimants under 25 are down 24%. Claimants per vacancy are down from 6.2 to 1.5. That is not a disastrous situation, but a sign that things are going in the right direction. I sincerely hope it continues—[Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I know a new Member will speak shortly, but could we just have a little quiet so we can hear Mr Mills?
Nigel Mills
Opposition Members clearly do not want to hear the truth of my argument.
The Select Committee on Work and Pensions report from last year, which was produced before I was a member of the Committee, gave the scheme a broad welcome, but one concern was the impact on smaller providers that are subcontractors to the main providers. I wholeheartedly endorse payment by results, but it can make things quite hard for organisations that are not large businesses with strong balance sheets, which can fund the gap. Given the delays in the system, some of the smaller providers have found their cash flow squeezed and are struggling to survive. All hon. Members value their innovative ideas and the extra local knowledge they can add to the scheme, so will the Government, after seeing the results, find a way of reviewing how small providers are funded and ensure they can survive the transition period and continue to provide their valuable work?
Overall, there are some concerns with how the Work programme has started. We would prefer the numbers to be a lot better, but there are encouraging signs. The programme can be a success and performance is going in the right direction. I hope that, in a year’s time, we are talking about the great successes of getting the most challenged people—those who have been out of work for a long time—back into jobs, which will improve their lives and the situation for the taxpayer.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Before I call the new hon. Member for Manchester Central (Lucy Powell), I remind Members that there will be no interventions because it is a maiden speech.
Paul Flynn (Newport West) (Lab)
The results that we heard about yesterday cannot be compared with anything else that ever happened. It is probably true that if the Government did nothing at all, there would be a better outcome. Can we therefore conclude that the best we can expect from the Government for the next two and a half years of their miserable existence is a long period of inactivity?
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We have a lot of speakers to get in, and we need shorter interventions. Otherwise, Members are going to be disappointed.
Guto Bebb
The hon. Member for Newport West (Paul Flynn) seldom sees the bright side of life. The truth is that I am not willing to see 31,000 job outcomes so far as immaterial. That is something that we should be proud of. To be perfectly frank, if that is failure, give us more.
The Opposition seem unwilling to accept that we should be concerned about value for money for the taxpayer. Obviously, I am not going to mention the comment made by the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) about our financial position, but the Government should be aware of getting value for money for the taxpayer. The figures that I have here show that some of the previous employment support projects have not been particularly successful in that regard. The flexible new deal cost £7,500 per job created, and £770 million was spent. The employment zones cost £993 million, with an average spend of £7,800 per job. The new deal for young people—which was successful, it has to be said—cost £3,300 per job created. At the moment, the Work programme is coming in at about £2,000 per job created. I think that that is a sign of success. Even though it is still premature to look at the outcome figures, we should take a great deal of comfort from the fact that it is giving that level of value for money.
The proof of the pudding is in visiting the Work programme providers in our own constituencies and localities. I have visited the providers operating in the county of Conwy, and I was very encouraged by that visit. I found teams of dedicated members of staff, but an organisation that was taking a huge financial hit because of the performance-related concept that the Department for Work and Pensions insists that the Work programme providers deal with. Interestingly, however, none of the providers that I spoke to suggested that they had any intention of leaving the programme. That was because they could see that they were going to be successful as time moved on. Indeed, separate data published by the Employment Related Services Association, the trade association that speaks for the Work programme providers, show that job starts have increased in the months since yesterday’s figures were collated. That is reinforced by what I have been told in my constituency.
Nothing gives a feeling for the importance of the Work programme better than talking to the participants. They feel that they are finally being taken seriously. They are getting support in areas such as presenting themselves and putting together a CV. Even more impressively, they are getting support with transport to take them to job interviews and training opportunities.
On the visit that I made, I was also impressed by the flexibility of the Work programme to deal with the local issues affecting that particular part of the world. One of the key issues for the Work programme providers in rural north-west Wales is the need to be more flexible in supporting people into self-employment. The original contract that the provider signed included a comparatively low number of members of staff dealing with self-employment. However, it became apparent in no time at all that self-employment was going to be a key deliverer of outcomes in a constituency such as mine, and the contract was flexible enough to allow the provider to up the number of people being supported into self-employment.
A great example of partnership working in that context was the business support structure of the Labour Welsh Government giving its full support to the Work programme providers who were helping unemployed people who wanted to start their own businesses. So the flexibility is there, and the outcomes will potentially be there in due course. What I am seeing is work in progress and a programme that is aimed at ending our long-standing dependency culture. That needs to be targeted and dealt with.
When I visited these Work programme providers, the most impressive thing was that a number of the job outcomes highlighted on the whiteboards were job outcomes in local hotels and local restaurants. That is important in a constituency such as mine, which is heavily dependent on tourism, because previously over the past five or six years—and certainly from 2003-04 onwards—the jobs created in the leisure and hospitality sector in my constituency were being filled by hard-working individuals from eastern Europe. The wonderful thing about the Work programme is that we are seeing evidence that those jobs are now being filled by people living in my constituency and being willing to take the opportunity to work.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We are going to have to reduce the time limit to seven minutes, as I want to allow all Members to participate. It would be helpful if we had fewer interventions.
Sheila Gilmore
I am sure my hon. Friend agrees that this is not an attempt to ensure that housing is distributed more evenly. It even applies to people with disabilities. Couples who have to sleep apart for medical reasons will be suddenly told that they have too big a house. It is a draconian measure.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. There is a danger that those who wish to make a speech later will not be able to do so. I am sure that the hon. Lady understands that if she does not have an opportunity to make a speech herself, it will be her own fault.
Geraint Davies
As has already been said, the tax affects those with particular problems such as disabilities. If one half of a couple is ill with flu and, because the couple are allowed only one bedroom, that person infects the other one, it will not help the other one to work. None of this has been thought through. The idea seems to be that such people live in council houses and receive benefit and that the Government will sort them out by cutting it, but what they are doing is preventing them from working and making their contribution.
The Government also say, “Let’s cut working tax credit.” Working tax credit was an ingenious device. If I were starting a small business—indeed, I have started and run small businesses—I might be able to give someone a job paying £12,000 a year because of the way in which the business worked, but that person might not be able to afford to work for less than £15,000 because of, for instance, child care costs. The Government stepped in and stumped up the difference. What did we end up with? A growing company and a job, instead of a company that was not growing and a person stuck at home. That is the economic logic of working tax credit, but it is being cut, so part-time workers are losing £3,750 a year if they do not work for 18 hours and go down to 16 hours, as there is not enough work to do. We need to evaluate keenly whether some of these nasty cuts deliver economic disincentives to working and are therefore counter-productive in getting the deficit down.
There are ways ahead, including targeted investment involving universities and various job programmes. Other Members have spoken of the effectiveness of the current scheme, but, as I mentioned earlier, the Prime Minister has confirmed the statistic in our motion, namely that only 19,000 people out of 800,000—2%—have gone into full-time work. That is in sharp contrast to what the Secretary of State said earlier, so someone must be wrong. We should refocus, by making sure that the changes do not disrupt job creation and that they are fair and put us back on track for a strong economy and a fair society.
Universal Credit and Welfare Reform
Lindsay Hoyle Excerpts(11 years, 8 months ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Many people want to speak and the debate is important, so I am going to reduce the time limit to seven minutes. If Members try to reduce the number of interventions, that will help everybody to get in.
Welfare Reform Bill
Lindsay Hoyle Excerpts(12 years, 3 months ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The hon. Member for Sittingbourne and Sheppey (Gordon Henderson) has asked a question, Dame Anne Begg wants to answer it, and I am sure that other hon. Members would love to hear the answer as well. They may wish to intervene later.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Quite a few Members wish to speak, so may I ask for short speeches? That will mean that we can get everybody in and all the views will be on the record.
Mr Nuttall
It is always a great pleasure to follow the hon. Member for Walsall North (Mr Winnick), although I do not agree with him on many occasions. I do not agree with him today either, except on one thing—the Government will get this measure through today, and that is because they are doing absolutely the right thing. One thing that I heard time and again from my constituents in the last election campaign was that they were sick and tired of the number of people taking a lifestyle choice to live a life on benefits, as my hon. Friend the Member for Shipley (Philip Davies) has mentioned.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. It is up to the hon. Gentleman whether he wishes to give way. Having three people shouting at once is not the way to get anyone to give way.
Ian Lavery
Thank you, Mr Deputy Speaker.
One in three of us suffers from cancer at any one time. I am very unfortunate, as my parents and my wife’s parents all died at a relatively young age.
Philip Davies
On a point of order, Mr Deputy Speaker. Is it in order for an hon. Gentleman to make an accusation that five national newspapers apologised for making? Is it in order for him to make the same accusation and then not give way to allow me to correct him? Those five newspapers at least had the courtesy to acknowledge that they had made a mistake.
Mr Deputy Speaker
That is not a point of order for the Chair, but you have put the point on the record which I think is what you wished to do.
Ian Lavery
As I was saying, one in three of us—[Hon. Members: “Shame!”] I will start again. One in three of us, sadly, comes into contact with cancer during our lifetime. It is a very difficult situation. I lost both my parents, and my wife lost both of hers, so I understand how sufferers and their relatives and friends are affected. It is not just the disease that has an effect—there is also the mental and physical stress and traumatisation for people who suffer from diseases such as cancer and stroke.
Some of the people who suffer from cancer might not see two years—they might not have a vision of the next two years on this earth—but the Government propose to cut benefits from those people at that time in their lives. It is absolutely dreadful that in 2012 we have a Government who are even considering such heinous acts against the most vulnerable. When the Secretary of State, who has left the Chamber, discusses these issues on television and in the media he seems to relish the fact that benefits will be cut. He seems to have a sense of contentment or self-satisfaction—almost an arrogance beyond belief—when he states clearly that benefits will be cut. To say the very least, it is gut-wrenching.
We as politicians across the board should be looking to defend people whose voices are mostly unheard. They elected us into our positions, and they depend on us. The Government must consider an extension to ESA for two years, and we must exempt those receiving cancer treatments from any time limit whatever. It is breathtaking and incomprehensible that benefits are being cut from people at that critical point in their lives, when some see the possibility that they will not live much longer.
There are regional differences as well, regarding the availability of cancer treatments, for example. The north-east fares very poorly in that. We also have the highest incidence of newly diagnosed cancers, and I am certainly not happy with the cutting of benefits in any way, shape or form to people suffering from cancers, strokes and all those debilitating diseases.
In conclusion, we need to give such people a break—give them a chance and some understanding. You can nod your head all you wish.
Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)
Follow the debate; you should know what you are voting for!
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We do not need Front Benchers to join in as well. We have enough with the Back Benchers.
Ian Lavery
Thank you, Mr Deputy Speaker. I am the sort of person who would not, in any event, agree to cuts for people on benefits who were suffering from debilitating or life-threatening diseases. That is the type of person I am. If you want to vote for that—my apologies. If it is your intention to vote for that, you do it.
Mr Deputy Speaker
Order. We are going to go through the Chair and we cannot use “you”. We know better now. Okay, Mr Ian Lavery.
Unemployment
Lindsay Hoyle Excerpts(12 years, 4 months ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I remind hon. Members that I am imposing a six-minute limit due to the number who wish to speak.
Living Standards
Lindsay Hoyle Excerpts(12 years, 5 months ago)
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Andrew Percy (Brigg and Goole) (Con)
May I take the shadow Secretary of State back to the subject of youth unemployment? Doubtless the previous Government did some very good things in that area—they did some very bad things as well—but does he admit that the present situation was not created overnight? When Labour left office there was an upward trend in unemployment—[Interruption.] For youth unemployment, there was an upward trend from 2004. Does he accept that under Labour the number of children brought up in workless families hit record levels and the gap between the best performing and the worst performing schools widened? What he is saying is political knockabout, but this is a long-term issue, which deserves to be treated seriously.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Interventions are getting longer, and a lot of Members wish to speak. Please let us not use up the time on interventions.
Mr Byrne
I am afraid that the hon. Gentleman is simply wrong. Youth unemployment was coming down before the election; it has now gone through the roof, since his party took office. It is now up through the 1 million mark for the first time. Long-term youth unemployment in this country is up 83% since the start of the year. He would surely admit that that is a badge of shame for this Government, and demands much more urgent action from them.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The hon. Member for Devizes (Claire Perry) is pushing her luck today. She has already intervened, and I do not mind her rising to seek to do so again, but continually to stand up and barrack is not the way forward. She has a great future in this House, and I am sure she wants to protect it.
Mr Byrne
Finally, I want to talk about the impact on women of these Budget changes. The shadow Home Secretary, my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper), will say more on this in her winding-up speech. She has already set out with clarity and force how the Budget changes made by this Government have, overwhelmingly, hit women harder than men. I would just highlight to Members, and especially those on the Treasury Bench, the comment made yesterday by the hon. Member for Calder Valley (Craig Whittaker). He put it very simply when he said that of course women are paying the price most. At least someone on the Government Benches has the honesty to tell it straight. He was right: women are being hit hardest by these Budget changes, not least through the changes to child care. Some 30,000 women in this country have had to give up work in the last year because they can no longer afford the child care. That is £50 million in lost tax to the Exchequer. What a shambles.
The tragedy in this debate is that there is a different way. We have set out a different way of jump-starting growth and getting people back into work. Yes, it does start with a tax—a fair and sensible tax—on bankers’ bonuses to help get 100,000 young people back to work. What have this Government proposed instead? They have proposed a fund of about one third of the size, paid for not by those with blessings to share, but by children and families who are already feeling the squeeze. That decision alone tells us everything we need to know about who this Government stand for. That decision alone tells us how out of touch this Government have now become, and it is for that decision if no other that I say this House should support our motion.
Pensioners and Winter Fuel Payments
Lindsay Hoyle Excerpts(12 years, 5 months ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I just say to hon. Members that we have four more Back Benchers to get in, and we are up against time—we have just under an hour left.
Pensions Bill [Lords]
Lindsay Hoyle Excerpts(12 years, 6 months ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
With this it will be convenient to discuss the following:
New clause 1—Obligation to inform scheme members about provider and product options—
‘Providers of Qualifying Schemes under section 16 of the Pensions Act 2008 (c.30) must, when informing members of their own range of annuity and similar products, explain clearly that alternative and more suitable options from other providers may be available.’.
New clause 9—Duty to establish a review into transfers into the National Employment Savings Trust (NEST)—
‘Within two years of the passing of this Act the Secretary of State shall establish a review into allowing transfers into the National Employment Savings Trust (NEST).’.
New clause 10—Duty to review any order on contribution limits in the National Employment Savings Trust—
‘In section 70 of the 2008 Act (Contribution Limits) at the end of subsection (1) insert—
‘(1A) Any order under this section shall be reviewed by the Secretary of State within two years of the Pension Scheme being opened to members.’.
Amendment 18, in clause 6, page 6, line 37, leave out ‘three’ and insert ‘one’.
Amendment 19, in clause 8, page 8, line 1, at beginning insert ‘Subject to subsection (2A),’.
Amendment 20, page 8, line 4, at end insert—
‘(2A) An order made under subsection (2) must not increase the amount in section 3(1)(c) by more than—
(a) the general level of earning; or
(b) in percentage terms by more than the percentage increase in the Lower Earnings Limit for national insurance purposes.’.
Government amendments 15 and 16.
Steve Webb
This is a broad group of proposals relating to private pensions. I shall speak in support of Government new clause 2 and Government amendments 15 and 16. As we have a relatively short time to discuss these issues I will also deal with the other amendments in the group, and do not anticipate making a further contribution to the debate.
Government new clause 2 deals with charges. Obviously, charges are important, as I am sure the whole House will agree, because money that goes on charges does not turn into pensions. The Government are therefore keen to ensure that charges are at a reasonable level and are transparent. For example, following on from the policies of the previous Government, we have gone ahead with the introduction of the National Employment Savings Trust, which will be a low-cost provider designed to ensure that charges across the market are brought down. There is evidence that new entrants to the market and existing providers are already looking at charges significantly lower than many people have experienced on their pensions in the past.
In Committee, concerns were raised about whether the Government should be capping charges. As the right hon. Member for East Ham (Stephen Timms), who is responding for the Opposition, is well aware, the Government do have powers to cap certain pension scheme charges. In considering this issue, we became aware of the anomaly that we do not have that power in relation to people who are no longer active members of pension schemes but who are deferred members, and in particular deferred members of qualifying schemes for auto-enrolment. If we want to cap charges—I will come back to that issue in a second—we do not currently have the power in primary legislation to cap them for deferred members of qualifying schemes for auto-enrolment. The purpose of Government new clause 2 is to give us that power, so that if we want to impose charge caps, we can do so systematically and without unintended omissions.
Our thinking on charge caps is that in general, we do not believe there will be a problem with charges. Particularly in the early years of auto-enrolment, it will be the very largest firms that come into the system. They will have the resources and time to shop around, they will be able to strike good deals, and they will have the National Employment Savings Trust available to them. We expect that for big and medium-sized firms, relatively low charges will be the norm.
Steve Baker
I am grateful for the hon. Lady’s point, because she seems to have pre-empted me—as I rewind on my iPad back to the chart showing taxation. [Interruption.] Between 1940 and 1950 the total level of taxation taken out of the economy rose from about 12% to 40% and it has stayed at about 40% since 1970. The context therefore is very different. The Government can only fund themselves through taxation, borrowing and currency debasement. If I wind forward and have a look at the charts on currency debasement, I can tell her that we have been furiously debasing the currency since 1971, which is the reason for the current mess we are in.
I also point out to the hon. Lady that the Bank for International Settlements has provided a number of charts setting out the debt projections for most of the western world, all of which look catastrophic. For example, in the United Kingdom—[Interruption.] Aren’t iPads useful! The BIS tells us that on the trajectory we inherited from Labour, our national debt would have reached 500% of gross domestic product by 2040. By then our debt interest payments would have been one quarter—
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I am sure that the hon. Gentleman is using his iPad very well, but I hope that he will come to Third Reading, which he should be mentioning.
Steve Baker
The financial context now is quite different from that in previous years. If the Government were not to address the pensions crisis within a realistic financial context, we would have a financial catastrophe. We would find ourselves, by 2040, attempting to spend one quarter of GDP on debt interest. It would be catastrophic—and much as my heart goes out to those ladies who I wish were not being affected by the Bill, because of the financial position in which we find ourselves I shall, of course, support the Government.
Pensions Bill [Lords]
Lindsay Hoyle Excerpts(12 years, 10 months ago)
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Alex Cunningham (Stockton North) (Lab)
You have gone on a lot about ideological things, but is it ideologically bonkers to fight for a fair deal for women who have made the sacrifices that you are talking about? They have sacrificed for their country, for their families—
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Unfortunately, I am not responsible, so it is not “you”. I am sure the hon. Gentleman did not mean that.
Alex Cunningham
I beg your pardon, Mr Deputy Speaker. Is it “ideological” for us to stick up for women who have had a raw deal through life looking after their families and doing a low-paid job, but who now find out they have to work even longer for a pittance of a pension?
Priti Patel
I am going to close my remarks shortly, so I hope that the hon. Lady will forgive me if I do not take her intervention.
I want to touch briefly on auto-enrolment. We know that millions of people are not putting aside anywhere near enough money for their retirement. I was previously an employer, including of young graduates. On starting their working lives, they do not think about retirement, saving for their pensions or anything of that nature. Although auto-enrolment was started by the previous Government, it is a good thing, and we really have to get on with it. This is about a culture change to people’s understanding of the need to save, and of how much they need to save, for their retirement. It is not about one lump sum. It is about what they expect to get out of retirement and their potential quality of life.
To conclude, I think that these reforms are welcome and long overdue. The changes to the state pension age and auto-enrolment will lead almost to a cultural revolution and a transformation of the pensions and savings culture in our society. That is a welcome step forward.
Mr Deputy Speaker (Mr Lindsay Hoyle)
I remind the next speaker that she must finish by 9.30 pm.