Tax Credits (Working Families)

Lord Field of Birkenhead Excerpts

Tuesday 7th July 2015 Commons Chamber

[Shabana Mahmood]

My hon. Friend is absolutely right. The national minimum wage would have to rise by 25% overnight tonight if the Government make these changes tomorrow. I shall come later to the difficulties and to the changes we need to make to the national minimum wage.

[Frank Field (Birkenhead) (Lab)]

To help reinforce that point and in response to the hon. and learned Member for South East Cambridgeshire (Lucy Frazer), was not mark 1 of welfare reform—moving large numbers of people from benefits into work—one of the successes of the last Labour Government and the coalition Government—and is not mark 2 of welfare reform how we now help those individuals to so increase productivity that they can be paid a fair or living wage? Should we not have been relaxed about this, given that we have five years to make these changes and make mark 2 a success? Instead of punishing people in work—the strivers—should we not be encouraging them up the career ladder?

[Shabana Mahmood]

My right hon. Friend is absolutely right, and this is where I disagree with the tenor of the comments from Government Members in the debates on the economy thus far in this Parliament. For them, a job is a job is a job, whereas we have a better, bolder vision for people moving into work, not just for their first job, which could be any job, but for progressing. We do not do that by punishing people and taking away the support they rely on when stuck in low-paid work. We have to chart a course towards a higher skilled, higher wage economy, but that is not going to happen before tomorrow’s Budget. The support for those on tax credits should not be removed before we have that high-wage economy.