Debates between Oliver Dowden and Anne McLaughlin during the 2015-2017 Parliament

Welfare Reform and Work Bill

Debate between Oliver Dowden and Anne McLaughlin
Monday 20th July 2015

(9 years, 6 months ago)

Commons Chamber
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Oliver Dowden Portrait Oliver Dowden
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I do not accept that. I hope that Members will forgive my slip of the tongue. The increase in the current minimum wage, which is less than £7 an hour, to a minimum wage of well over £9 an hour by the end of this Parliament is huge. It is not in line with the standard increase in the minimum wage. This is a step change that reflects the introduction of a national—

Anne McLaughlin Portrait Anne McLaughlin
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Will the hon. Gentleman give way?

Oliver Dowden Portrait Oliver Dowden
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I will give way once more, but I am subject to the time limit.

Anne McLaughlin Portrait Anne McLaughlin
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I assume the hon. Gentleman knows that the Institute for Fiscal Studies has noted that it is “arithmetically impossible” for the increase in the minimum wage to

“provide full compensation for the majority of losses experienced by tax credit”

—and universal credit—

“recipients.”

Is it the members of the IFS who need to go back to school, or is it the hon. Gentleman?

Oliver Dowden Portrait Oliver Dowden
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I invite the hon. Lady to note the analysis showing that the income of a typical renting household receiving tax credits, consisting of two people working full time with two children, will increase by 12%. That is exactly what we are seeking to achieve.

The third element comes into play once we have ensured that wages are higher—and I should point out that we are able to do that only because our welfare reform programme has been so successful that it has brought about a massive cut in unemployment. Because 1 million fewer people are receiving unemployment benefit and 2 million more people are employed, the labour market can withstand a significant increase in wages. Had it not been for those developments, the whole package would have fallen apart. Our measures reflect a more coherent vision.

Once those first two elements are in place, it is only right for us to consider reducing welfare benefits. There is a clear principle behind this. People in my constituency, and in many other constituencies, face tough choices, and those choices should also be faced by those people who are receiving welfare benefits. For example, one of my constituents will have to decide whether he or she can afford to have another child; we are saying that, similarly, child tax credits should, in due course, reflect what is appropriate for a family with two children.