Pensions and Social Security

Debate between Nick de Bois and Baroness Clark of Kilwinning

Thursday 23rd February 2012 Commons Chamber

[Katy Clark]

I am very grateful for that, Madam Deputy Speaker.

The impact of the changes to benefits and pensions uprating will be similar to the impact on wages that is being seen at the moment, whereby the incomes of the lowest paid are decreasing in real terms; the change from RPI to CPI means, as I have said, that the rate of increase in the incomes of those on the lowest incomes will reduce. I am sure that many of the hon. Lady’s constituents will come to see her to discuss benefit issues over the forthcoming period, and the impact of all this will become clear over a long period of time. It will have an impact on the communities we represent.

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

Has the hon. Lady considered putting this in context? People on low incomes are nevertheless receiving a relatively high increase here, whereas many who are working and are on low incomes are receiving no increases at all. Although I think she is very genuine, her appeals need to be put in context and she needs to consider the situation of those in work.

[Katy Clark]

I am grateful for the hon. Gentleman’s contribution, and I agree fully with what he is saying; we do need to take into account the public sector freezes and the fact that many on modest and low pay in the private sector have had their salaries reduced—they have definitely not received substantial increases. That is exactly the point I am making: measures such as this, which keep down and restrain the incomes of those on modest and low incomes, are not the policies that are needed. Of course, executive pay and the incomes of the highest paid are increasing at the same time, but I shall not dwell on that today because it is not the subject of this debate. However, I hope that we will continue to discuss it in the House and that action will be taken by the Government.

In conclusion, we will be focusing, yet again, on these issues next week, and of course court proceedings are taking place, but I felt that I had to put my deep concern about this change on the record. My concern arises not just because of the annual change this year, which will have a detrimental impact on people’s pockets now, but because of the cumulative effect that this policy will have over many generations. The impact will be an increase in the gap between rich and poor in this country, and I believe that that should not be the policy of this or any Government.