Welfare Reform Bill

Nick de Bois Excerpts

Wednesday 1st February 2012 Commons Chamber

[Mr Byrne]

We have indeed had discussions with our colleagues in the Welsh Government, who accept the importance of introducing different arrangements for London and other parts of the country and of a solution that recognises the need to localise the benefits system.

[Nick de Bois (Enfield North) (Con)]

I am still confused about exactly what the right hon. Gentleman’s policy is. He may not know that the average salary in his constituency is less than £18,000 a year. Does he propose to reduce the cap to £18,000 in his constituency, or will his constituents be gutted to learn that he is defending the fact that they can obtain more on benefits than they can on the average salary in his constituency?

[Mr Byrne]

The hon. Gentleman would be wise to look to his own policy. I suspect that some people in his constituency would be better off on benefits than in work on the cap that is being suggested. Is that not true? Yes or no?

[Nick de Bois]

The right hon. Gentleman might like to know that according to the Office for National Statistics, the average annual salary in Enfield North is £25,500, which is close. I can assure him that many of my constituents do not think it fair that while they are earning a gross salary of £25,000, it is possible to receive the equivalent of £35,000 on benefits, which means that work does not pay.

[Mr Byrne]

The hon. Gentleman will accept that there will be people, under the £26,000 cap, who could be better off on benefits than in work in some parts of the country, so surely he too will admit the wisdom of having a different cap in different parts of the country. That is why we suggest that principle, and why we suggest that an independent commission looks at the levels. We have seen the muddle that the Government have got into—a muddle that has cost the Exchequer £80 million this year, and will cost it £50 million in the year after that; that is the cost of sorting out the homelessness that it has, over the past year, been telling the House would not arise. If the Government tried to take politics out of the issue just for a moment, and focused on the good old-fashioned business of getting the policy right, they might be in a better position to put in place a cap that does not backfire.