Benefits Uprating (2013-14)

Mike Weir Excerpts

Thursday 6th December 2012 Commons Chamber

[Steve Webb]

The focus of the uprating Bill will be on those benefits over which the Secretary of State has discretionary powers, particularly working-age benefits, JSA and ESA. We will also look at tax credits and child benefit. It is our policy to ensure that carer’s allowance is protected against inflation.

[Mr Mike Weir (Angus) (SNP)]

Does the Minister accept that many of those on working-age benefits spend much of their money on food and, in particular, energy, for which the rate of inflation is much higher than CPI? A 1% increase is not the difference between CPI and 1% for these people but is in fact a much greater cut in their living standards.

[Steve Webb]

This issue is raised every year, and every year it is argued that the rate of inflation for people on benefits is always above the prevailing rate of inflation, but in the long term there is no reason to think that that would be the case. We have made provision for the most vulnerable groups to be protected—those receiving disability benefits and pensioners—but unless the hon. Gentleman can suggest serious ways of saving money elsewhere in the Budget, for which the Scottish National party has not been famous, I am not sure that his opposition to our plans is credible.