Welfare Benefits Up-rating Bill

Lord Bishop of Ripon and Leeds Excerpts

Monday 25th February 2013 Lords Chamber

[Baroness Stowell of Beeston]

I think I am clear that the Bill refers just to the personal allowance for housing benefit. If I am wrong, I will of course correct that.

As I said, if we were to change the personal allowance for housing benefit, we would introduce inconsistency to the way in which this part of in-work benefit is calculated. There would no longer be consistency between the different kinds of personal allowances that apply to different benefits. In addition to increasing the complexity of the system, this would lead to additional costs.

Before I conclude, I will respond to a question from my noble friend Lord Kirkwood, who asked about costing methodology. I confirm that costs have been modelled and presented in a way that is consistent with the Autumn Statement. I will be happy to provide further details to the noble Lord before Report.

The Government are supporting working households. One of the key ways in which we are doing that is by taking tough decisions to reduce public spending, reduce the deficit and restore economic growth. The amendments tabled by the right reverend Prelate the Bishop of Leicester, including Amendment 13, would reduce the savings of the Bill by about 40%—or £800 million—in 2015-16 alone. Not including in-work benefits in the Bill would be simply unaffordable. Therefore, I ask the right reverend Prelate to withdraw his amendment.

[The Lord Bishop of Ripon and Leeds]

Perhaps I might ask the Minister about work allowances, which were referred to by the right reverend Prelate the Bishop of Leicester. The Minister’s response left me unsure whether, as time goes on, they will be increased in line with inflation. They are a major element of support for those who are in work.

[Baroness Stowell of Beeston]

I am sorry, I should have been clearer. Work allowances will be increased by 1% in 2014-15 and in 2015-16. That was announced in the Autumn Statement.