Welfare Reform and Work Bill Debate

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Department: HM Treasury
Tuesday 27th October 2015

(8 years, 8 months ago)

Commons Chamber
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Damian Hinds Portrait Damian Hinds
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If the hon. Gentleman will forgive me, I will not give way.

That is why the Government have proposed changes to child tax credit and to the child element of universal credit, as set out in clauses 11 and 12 respectively. The Government will look at the important issues around exemptions through secondary legislation, which is a better way of dealing with these matters. Indeed, we discussed when that could be done in Committee with proper reflection and working together with stakeholders and experts.

I also wish to make it clear that the changes will not affect families already receiving the child and family elements before 6 April 2017 and who remain on benefit after that date, including such families who subsequently leave universal credit for a period of less than six months, and families who make a new claim to universal credit and who have been in receipt of tax credits for more than two children or qualifying young persons in the past six months. In addition, the Government will continue to support larger families through child benefit, which is paid for all qualifying children in a household, and paid at a higher rate for the first child.

In conclusion, the amendments oppose our clear mandate to find £12 billion of welfare savings and to restore fairness to the system by ensuring that work always pays. In making these changes, we have balanced the vital task of bringing spending under control while ensuring that the support is there for those who need it most. I therefore urge hon. Members to withdraw their new clause.

Question put, That the clause be read a Second time.

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Mark Durkan Portrait Mark Durkan (Foyle) (SDLP)
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Like other Opposition Members, I will oppose the Bill, because it does not meet the claims that the Government are making for it about making work pay. It will penalise people in work. Most of all, it will penalise families. It will penalise not just work but parenthood. The Minister told us that it is about making sure that families have to make the same choices as others. However, the two-child rule will not apply to childcare payments, and that means that up to £2,000 per child will be paid to relatively well-off people in employment, who will continue to get those payments for as many as children as they want. Only poorer families will be penalised by the two-child rule. That is just one of the injustices and inequities for which—