Income Tax (Charge)
Paul Waugh Excerpts(1 day, 23 hours ago)
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Paul Waugh (Rochdale) (Lab/Co-op)
It is clear that a lot of Tories do not like this Budget, but that is not because it raises taxes—because after all, they themselves raised taxes to a post-war high. Why do they not like it? They do not like it because this Budget exposes their model of a low-pay, low-investment economy—a model that has totally failed. It failed to produce anything other than anaemic growth, dire productivity and broken public services. Among the few mea culpas uttered by those on the Opposition Benches in the last few days was the admission that the last Government had indeed “wasted huge amounts of money”, but just as damning are the huge amounts of talent and potential that they wasted. Under this Budget, people who want to work will get the work, the pay and the dignity they deserve.
The Tories let down parents who have been held back by a lack of affordable, costed childcare. They let down young people on the minimum wage—I am delighted that the minimum wage is now rising to £10 an hour for 18 to 20-year-olds. They let down people in work on universal credit, people struggling to feed their families. In Rochdale, the number of children in relative poverty rose from 45% in 2022 to a staggering 49% in 2023. Most damning of all, however, is the spiralling economic inactivity that the Conservatives presided over: a record 2.8 million people locked out of work due to long-term sickness. That is just one reason why the £22 billion this Budget directs to the NHS is desperately needed.
By grinding down our public services, the last Government piled cost upon cost for ordinary people. Think of the number of people forced to spend thousands of pounds going private for a hip or knee op, an operation they should have had for free on the NHS. Think of the thousands of pounds-worth of damage to cars caused by potholes on roads left to rot. Think of those forced to fork out for a taxi to get to work, to the shops or to hospital because their local bus has not turned up or the train has been cancelled. Think of all the experienced talent leaving the NHS, our schools and our police forces because their pay was cut in real terms and they face crippling staff shortages on a daily basis. Those are the people to whom we owe a debt of gratitude and investment.
The new Leader of the Opposition claimed yesterday that partygate had been “overblown”, yet the defining image of partygate was low-paid cleaners and security staff in No. 10 having to clean up the vomit, the broken bottles and the wine stains left behind by an entitled few. This Government now have to clean up the financial mess that the Tories have left behind and fix the public services that they broke.
Social Security
Paul Waugh Excerpts(1 month, 3 weeks ago)
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Liz Kendall
I will come on to extra help for those just above the threshold in a moment, but I want to spell out what we are doing on pension credit.
We have done more to increase pension credit uptake in the last two months than Conservative Members did in 14 years. We have written to all local authorities to ask them to identify eligible pensioners, including by sharing data. We are joining forces with Age UK and Citizens Advice to ensure pensioners check and apply. We launched a major awareness campaign, to continue right up to the deadline to apply on 21 December—and yes, pension credit will be backdated by three months—backed by 450 extra staff to ensure claims are processed as quickly as possible.
The Deputy Prime Minister, my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), is working with housing associations and supported accommodation providers so that their residents know what they are entitled to. I am working with the Secretary of State for Health and Social Care, my right hon. Friend the Member for Ilford North (Wes Streeting), to ensure that frontline NHS staff can signpost older patients who may be housebound because of disabilities and chronic conditions. For the very first time, we are writing to all pensioners on housing benefit who are potentially eligible to encourage them to claim, something the Conservatives never did. In the longer term, because the only way to guarantee uptake is to make the whole process more automated, we will bring forward the merger of housing benefit and pension credit, which Conservative Members never did.
That is the extra help for the poorest that we are determined to deliver, but it is built on a bedrock of support for all pensioners through our commitment to the pension triple lock, which has seen the new state pension increase by £900 this year and £970 the year before. Our continued commitment to the triple lock means that the new state pension is forecast to increase by a further £1,700 over the course of this Parliament, including, if today’s Office for National Statistics figures are confirmed next month, an extra £460 from next April.
Paul Waugh (Rochdale) (Lab/Co-op)
When Gordon Brown introduced pension credit and lifted 1 million pensioners out of poverty, in the teeth of the opposition of the Conservative party—let us remind them Conservative Members opposed pension credit—he also introduced savings credit. Savings credit was specifically targeted at pensioners who saved for old age with a small savings pot and a second pension. What happened in 2016? The Conservative party scrapped it. Does my right hon. Friend not agree with me that we should not listen to the crocodile tears of those in the Conservative party?
Liz Kendall
I could not have put it better myself: there is faux outrage from Conservative Members about those just above the pension credit threshold, when it was their former Tory Chancellor, George Osborne, who took a red pen to it, meaning its value decreased, creating some of the problems we are now having to deal with.
There is much more we are doing to help low-income pensioners, including those just above pension credit: the £150 warm home discount; the household support fund, which we have just extended, with £500 million of additional funding that councils can use to help low-income pensioners; our warm homes plan to tackle the root causes of fuel poverty; and the fact that, because the only way to really control energy bills is through cheap home-grown energy, we have already legislated for Great British Energy. That is the difference a Labour Government make: fixing the foundations, taking the long-term decisions our country needs, prioritising help for those who need it most, helping all pensioners with the pension triple lock, and providing more help for low-income pensioners too.
We will not shy away from our responsibilities, as Members now on the Opposition Benches did. We were elected on a platform to deliver economic stability, rebuild the country and make the changes that our country needs; making it better and giving it its future back. Pensioners deserve better than the faux outrage of Opposition Members.
Question put.