Welfare Benefits Up-rating Bill

Lord Bates Excerpts

Tuesday 19th March 2013 Lords Chamber

[Lord Bach]

My Lords, I very much support what my noble friend has said in moving the amendment. The House seems very quiet this evening, following the shenanigans of this afternoon when it looked very much to some of us as though there was an organised group on the other side—many of whose members are no longer present, of course, it being after dinner time—who found a huge interest in this Bill in order to keep the Report stage going. Be that as it may, those times are obviously past.

If I read correctly, the Minister—to whom I attach no blame at all for what has been going on, of course—said in reply to my noble friend in Committee that the cost in the last of the three years of allowing this amendment would be around £50 million. Let me tell her one way, at least, that that £50 million could be found five times over. The communities department has £250 million to spend, and has done for some time, in order to make rubbish collections weekly rather than fortnightly. No doubt that is a priority for some, and no doubt it has a validity of its own. However, compared to the wrong which is being done by this Bill—and by others too—and in particular the wrong addressed by my noble friend in her amendment, could the Government not get some proper sense of priority as to what does and does not matter, even at this late stage? That is £50 million, compared with £250 million that is sorted away. This was not mentioned, of course, by the noble Lords who were this afternoon defending the Government’s position with such vigour, because it is an inconvenient truth that in government there is spend which could be much better spent on protecting those who are going to be hammered by this legislation. I ask the noble Baroness to answer my question: what is wrong with spending part of that £250 million, and agreeing to my noble friend’s amendment?

[Lord Bates]

My Lords, I was not intending to speak on this amendment, but I rise at the prodding of the noble Lord, Lord Bach, who seemed to suggest that some kind of operation was going on in the conduct of our discussion. If there was any operation, the strangest thing about it was that there was not a single speech from the Back Benches of Her Majesty’s Opposition. It is amazing. We are talking here about what we recognise as being critical issues. On each amendment, there were probably three speeches from the Back Benches here, but not one single speech from the Back Bench of the Official Opposition. If the noble Lord wants to come back on that, I shall be more than happy to give way.

[Baroness Hollis of Heigham]

I overheard one of the government Whips encouraging those who sit on the Privy Council Bench to speak and speak and to string out it out to delay the votes. I heard that myself. Those Members made their own decisions and I do not in any sense criticise the quality of their speeches. I also saw briefing being passed from the Minister and so on. Perhaps the noble Lord could not see from where he was sitting in the same way as we who have a front-stalls view of what is going on might have done, but, certainly, there was active encouragement of three privy counsellors, none of whom has been known to display any interest in social security hitherto—unlike the noble Lord. All credit to the noble Lord: he has stayed with us; he works on these matters; and he tries to take a balanced approach. I make no criticism of him, but, as to today’s proceedings, there was not a shadow of doubt. Perhaps the noble Lord was sitting in the wrong place, in more ways than one.

[Lord Bates]

That is a wonderful way of expressing it. The noble Baroness has been complimentary to me; let me reciprocate by stating a fact. She knows more about this subject than anybody else in this Chamber and everybody would immediately acknowledge that. Our previous discussions in Committee and at Second Reading were enhanced immeasurably by her thought-provoking contributions. Now, what is more unusual: that a few Members on Her Majesty’s Government’s side should rise to speak in support of the amendments or that the noble Baroness did not make one speech during their consideration?

[Baroness Hollis of Heigham]

I am grateful to the noble Lord for letting me come back on this. Today, we started with a key debate on whether it was right to tie future Secretaries of State’s decisions on the rate of uprating of benefits. My noble friend Lord McKenzie moved the relevant amendment and we had an extensive discussion. We then had a hugely important debate on children, a hugely important debate on disabled people and then an important debate led by the noble Lord, Lord Kirkwood. The noble Lord, Lord Bates, will know as well as I do that, as we had only effectively half a day—because people are not here after dinner—to discuss four key issues, either we had to postpone key debates to a period of time when no one would be here, including his Privy Council colleagues, to listen and take part, or we acted in a way that was self-disciplined in order that the arguments at least in their basic form could be heard, so that those who wished to—and there were not very many on his side—could come in and listen to those points being made to see whether they affected their vote. We were trying to act responsibly. Had we had two days on Report, we could have paced it differently and I for one would have been delighted to have spoken at least three times on each amendment and made a dozen speeches.

[Lord Bates]

I take the noble Baroness’s point and shall not pursue it further. I had not intended to make that point, but it is important. Perhaps I may say one other thing. Since I have trodden on a few toes, let me tread on truly sacred ground.

[Lord Bach]

I wonder whether the noble Lord is going to deal with the amendment in what he has to say.

[Lord Bates]

I am going to deal with it. I want to come back to the point that I was going to make previously, because I think it is relevant. For the first six weeks of the 39 weeks of statutory maternity pay, 90% of the benefit that is payable is linked to earnings. The point that I was going to make is that, while benefits have increased in line with inflation by 20% in the past five years, as we have heard many times, average earnings have increased by only 10%. In fact, according to the Centre for Social Justice, that increase for some of the lowest earners, particularly females, has been 7.8%. I wanted to make the point that in terms of helping with maternity pay at that particular point, the best we can do is see a growth in salaries. If salaries grow, it is axiomatic that the statutory maternity benefit in that first six weeks will be enhanced. The problem is that salaries have been suppressed.

The OBR report relating to the Bill that we are debating shows some quite encouraging signs. For the first quarter of 2014, we have a forecast of increases in the order of 4.5% per year, growing to 4.6% during the period of this Bill. Surely increases of that nature, when linked to the statutory maternity pay of which we are talking, must have some effect. In the same way, I inquired of the noble Baroness, Lady Sherlock, who introduced this amendment, whether the stark numbers that she presented to us contained any element that reflected the suppression of wages that we have seen over the past five years. This has been seen particularly in the private sector, although it has been in the public sector as well, where wage increases are subject to a 1% cap. That is the point that I ask the noble Baroness to clarify when she responds.