Welfare Benefits Up-rating Bill

Nigel Evans Excerpts

Tuesday 8th January 2013 Commons Chamber

Second Reading

[Mr Deputy Speaker (Mr Nigel Evans)]

Before I call the Secretary of State to move the Second Reading debate, I inform the House that the amendment has been selected.

--- Later in debate ---

[Mr Burley]

I have been here since the beginning of the debate, waiting patiently to speak.

I move on to my constituency. The House of Commons Library shows that average wages in Cannock Chase rose by 6% between 2007 and 2012. During that same period, benefits went up by 20%. Where is the fairness in benefits going up by 20% when pay has gone up by only 6%? Do not take my word for it. This is what a local police officer e-mailed me last year when we uprated benefits by 5%:

“Why has the Conservative Government given a recent rise in benefits money…to the unemployed when Nurses, Police Officers, Fire and rescue workers and all other public sector workers have not received a pay rise for over two years?”

It is a fair question, and I do not know the answer. What I do know is that if the rate of inflation is not sufficient to warrant an increase in public sector pay beyond 1% in April this year, it cannot be so high as to require an increase in benefits beyond that either.

This is what another constituent who recently contacted me said:

“I have a friend who has a partner, neither she or he work and have not worked for as long as I can remember. They are both fit and healthy and perfectly able to work they just do not want to. They openly admit there is no point in finding work as they would not have enough money to live on. She stated to me that in order to get close in wages to what they receive in benefits that they would both have to get a job.”

This is the perverse reality of where we are now—that it pays people not to work and they are better off at home on benefits even though they could work and in many cases want to. Tellingly, the constituent went on to say:

“Some time ago she”—

her friend—

“let it slip out that she claimed £500 a week in benefits, I was…astounded and furious and pointed out that it was twice my wages. I am…aware that some people are unable to work and in genuine need…but surely people on benefits who are MORE than capable of working should not be living a life of…luxury and be financially better off than those who…earn a living? These people are playing the system…whilst…genuine hard working people struggle to have a life.”

Those are the real words of a real constituent in an area where the average salary is £22,500, and Labour Members ignore those words at their peril. [Interruption.]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order.

[Mr Burley]

The Opposition have argued that this uprating of 1% will impact on working people and not just those on benefits. Given that the previous Government made 90% of workers eligible as welfare recipients, that is inevitable. Unfortunately, Labour Members make the mistake of taking these measures in isolation. If we take the Government’s measures as a whole, including tax allowances, energy tariff changes and cutting petrol duty, low-income working households will be better off. It is time to end the ridiculous money merry-go-round. Let us take people out of tax and off benefits. Labour used to be the party of the working man; it is now the party of the workless and welfare. I look forward to fighting them on the doorsteps as they take that message to the electorate. [Interruption.]

[Several hon. Members]

rose—

[Mr Deputy Speaker]

Order. Before I call the next speaker, let me say that shouting back and forth really does not help the debate, and I am finding it difficult to listen to what the speaker is saying, so please let us have less of it. I call Steve McCabe.

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[Julian Sturdy]

As you rightly said in your speech—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. There are too many uses of the word “you” for my liking. It is not about me.

[Julian Sturdy]

I apologise, Mr Deputy Speaker.

The safety net in the welfare state system is important, but I support the 1% uprating. The point was made earlier that if we are really to focus on the problem, we have to consider inflation as well. If we can keep inflation down through Government measures, as we are at the moment, that is an important part of the system.

An effective and fair welfare system should support those who tragically suffer from difficult medical conditions and those who find themselves in abject poverty. However, benefits that are simply rolled out and increased without question and without any regard for the wider economic situation threaten to give our whole welfare system a bad name. Thus our benefits must always be questioned, our welfare system always honed and the key question of fairness always addressed. The votes in the House later today must be made with fairness in mind—fairness to those who receive benefits and those whose taxes pay for them.

We cannot adequately or logically debate this issue without considering the fiscal implications of increasing benefits and the fairness of those implications. The key fact used by the Secretary of State—that over the past five years some benefits have increased by 20% while workers have experienced an average pay increase of 10% to 12%—is enough to set alarm bells ringing. If we are to ensure that our welfare system is a source of pride and not resentment, we cannot justify such increases when wider taxpayers are suffering in a tough economic climate.

--- Later in debate ---

[Mr Jones]

I thank my hon. Friend for his comment. He is absolutely right that we are in a difficult position that we can no longer sustain.

That brings me on to another point. This afternoon, I have observed a certain mood among the Opposition. Far from being pragmatic, they have been completely ideological. What puzzles me is that before the last general election Labour pledged to cut spending roughly in line with the coalition’s current rate of deficit reduction, but since then they have opposed virtually all the cuts, including £80 billion of savings proposed to welfare. The question for the Opposition, therefore, is: if all those changes are unacceptable, what do you propose to do? Do you want to cut the NHS? Do you want to make more cuts to policing? Do you want to cut local government? Do you want to cut education?

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I do not want to do any of those things. Will the hon. Gentleman please use the third person?

[Mr Jones]

I apologise, Mr Deputy Speaker. I was referring to Opposition Members, whose other options might be to put 13p on a litre of fuel, increase council tax, impose other tax rises or—as has always been the case—give the country more debt.

--- Later in debate ---

[Several hon. Members]

rose—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Will everyone resume their seats? We can see that no Government Members wish to contribute, so if everyone shows the time discipline of remaining within three minutes, all those who wish to speak will be able to contribute to the debate. Let us have some team play.