Public Sector Pay

Rachael Maskell Excerpts
Monday 4th December 2017

(7 years, 1 month ago)

Westminster Hall
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Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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Thank you, Mr Hanson, for calling me to speak in this important debate.

We have seen the cost of living soar by 22%, with the increase in the cost of utilities, food and travel exceeding that, so at the same time the pay gap is getting bigger and inflation is on the move. At the Budget, this Government were left exposed as not having an answer for all our public sector workers who have endured pension cuts, down-banding and cuts to their allowances. As union head of health, I represented people who had seen their wages decrease by a third. That is the reality of our public sector today, and it is having an impact on recruitment and retention, as we have heard.

In York, house prices are 9.5 times higher, and that is what people need to save for, although totally unaffordable. People are leaving our NHS, which has to go to agencies to put in safe staffing levels. That has pushed our health service into debt and into the process of capping expenditure. The Secretary of State for Health says that hospitals will have to find the money, but where from? We need the Government to wake up to the reality of what is happening to our public services—not just the NHS, but right across the public sector. Our public sector workers are so professional despite the pressure they are under, that they deserve a pay increase. Today we hear from the Joseph Rowntree Foundation that 13.9 million people have been pushed into poverty in the sixth richest nation on this planet—that is a complete disgrace.

I want to highlight one or two of the issues that have not yet been raised in the debate. First, I will talk about inequality in our pay system. We know that there is vertical segregation on the grounds of race and gender. In 2013, during the pay restraint, I was completely shocked that the armed forces had an advance on their pay of 1.5%—I do not begrudge them that, but everyone else received 1%. The police and prison officers, too, have had an advance in their pay that has not been awarded elsewhere. I highlight the fact that those are male-dominated professions, while nurses, teachers and those in other women-dominated professions, as well as those not even covered by pay review bodies and also predominantly women, have had no such increases. That shows an inherent problem of gender discrimination in the Government’s pay policy. I also emphasise that those who receive the lowest pay are the worst off.

With Agenda for Change, the pay scale that covers the vast majority of NHS staff, I want to highlight the disparity of pay. Although a fair system was introduced to address real problems in the pay system, since 2004 someone in band 1, on point 2 of the pay scale, has received an increase of £3,525, while someone on point 54 has received a £21,910 increase. That shows the growing disparity in pay. We need to ensure that we do not just add percentage increases to pay, which benefit people at the top of the scale. That is why the trade unions have come together this year to put forward a pay claim that involves a linear increase to ensure that those worst off in the pay system also get a fair deal. That is such an important issue. We also need to address the growing inequality between the different nations of England, Wales, Scotland and, in particular, Northern Ireland which now has real problems in the pay system as money is not being paid out.

We must also look at redressing the situation so that a percentage increase is seen as separate from the incremental scale—that is one of the points I really want to dispel the myth on. We have heard how pay progression is being mistaken for a pay increase. Agenda for Change is absolutely clear that incremental pay progression for all pay points within each pay band will be conditional on individuals demonstrating that they have the requisite knowledge, skills and competencies for their role. Forty-six per cent. of staff are at the top of the band, which is the rate for the job, but people acquire skills and knowledge as they move to the top of the band, so that is not a pay increase—it is a mistake by the Government even to pretend that it is.

Finally, I want to say: do not mess with the terms and conditions. Those have already been played with so many times, and the kind of things that the Government have asked of staff—such as addressing unsocial hours payments—predominantly impact on women. Do not go there—staff do not want the Government to go there and will not let them take away those crucial elements of pay enhancement for people who work through the night so that they can pay for more expensive childcare. I want to say to the Government: “You have the money and the ability to raise that money—pay it!”

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Andrew Jones Portrait Andrew Jones
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The hon. Gentleman asked whether the Government have done research on the size of the pay bill; I have just detailed the numbers. We are acutely aware of how public spending has an impact across the country. Any expenditure has an impact on the local economy as money recirculates, so of course that point is understood.

Rachael Maskell Portrait Rachael Maskell
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Will the Minister give way?

Andrew Jones Portrait Andrew Jones
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I am being very generous, but I will give way to a fellow north Yorkshire Member.

Rachael Maskell Portrait Rachael Maskell
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I am grateful; I am looking forward to hearing about the Government’s generosity, because I want to know how much the Treasury is expecting public sector workers to receive in the total package, or the total envelope. How much—the figure?

Andrew Jones Portrait Andrew Jones
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I will come on to the process ahead. Despite the difficult economic circumstances from 2010, the Government have continued to invest in our public servants. We are helping them, alongside all others, to keep more of their money by increasing the personal allowance. That is a significant change. In 2010, the personal allowance stood at £6,475, but in the Budget only a few days ago, the Chancellor announced that in April 2018, the allowance will rise to £11,850. That means that public sector workers on a basic rate of tax will be £1,075 a year better off compared with 2010.

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Andrew Jones Portrait Andrew Jones
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I draw the hon. Lady’s attention to the interview given by the shadow Chancellor yesterday in which he said that public sector pay reviews were always subject to negotiation. Perhaps he needs to have a conversation internally first.

Before any decision on pay is made, there is indeed a well-established process for the consideration of pay across the public sector. For local government workers, pay awards are considered by the National Joint Council for Local Government Services. Firefighters have the corresponding National Joint Council for Local Authority Fire and Rescue Services. The vast majority of the remainder are people employed in workforces with an independent pay review body. As part of the process, Departments will shortly submit evidence to the corresponding pay review body for their workforces.

Rachael Maskell Portrait Rachael Maskell
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I must correct the Minister on what he has just said. Pay review bodies make a recommendation to Government, and the Government then do or do not accept it. There is no negotiation process in place.

Andrew Jones Portrait Andrew Jones
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I accept that—I was actually quoting the shadow Chancellor. Let me press on. The pay review bodies will consider evidence from stakeholders, including employers, Governments and unions, and they will make their recommendations in spring and summer next year. Secretaries of State will use the recommendations to inform the final pay awards in the normal way. The PRBs’ recommendations will recognise the wider economic context. The need remains for continued fiscal discipline, and Departments will take that into account when making any decisions.

Many Members have mentioned the NHS, which I want to spend a bit of time discussing. First, the Government are entirely committed to the NHS. Funding for the health service is at record levels. [Interruption.] Opposition Members may mock, but funding is in fact at record levels. They should be doing what we are doing, which is backing the service.

We know that pay restraint has been challenging and we are listening to the concerns of NHS staff and their representatives. We recognise that the NHS now faces greater pressures than at any point in its history, and the reasons for that are an ageing population, which is a significant challenge for western economies, and the greater demand that we are therefore seeing for NHS services.

Budget Resolutions

Rachael Maskell Excerpts
Thursday 23rd November 2017

(7 years, 1 month ago)

Commons Chamber
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Sajid Javid Portrait Sajid Javid
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It really bewilders me that although the Opposition Benches were full yesterday for the Budget, it seems like no one was actually listening. If the hon. Lady had been listening, she would have heard some of the measures that the Chancellor announced, including the change to the delivery test and the new inquiry, which I will come on to.

The Budget provided new money for the home building fund, to get small and medium-sized house builders building again. The Chancellor also promised £630 million for small sites to unlock the delivery of 40,000 homes; £400 million for estate regeneration; a £1.1 billion fund to unlock strategic sites, including new settlements and urban regeneration schemes; and £8 billion of new financial guarantees to support private house building and the purpose-built private rented sector.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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Can the Secretary of State explain why York’s Conservative-led council submitted a local plan that seriously undershot the number of houses he is referring to? Why such a disparity within his own party?

Sajid Javid Portrait Sajid Javid
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The hon. Lady will know that we are currently consulting on how councils across the country, however they are led, should assess housing need. Once the proposals go forward, it will be clear that no council will be able to avoid building the houses it needs to.

In the areas where supply and demand are most badly mismatched, where most homes are unaffordable to most people, we will increase local authority housing revenue account borrowing caps by a total of £1 billion. That will allow ambitious councils to invest in new homes where they are most needed. We will bring together public and private capital to support the delivery of five new locally led garden towns in areas of high demand. We are committed to building up to 1 million new homes in the Oxford-Milton Keynes-Cambridge corridor by 2050, and we have agreed one of our first ambitious housing deals, with Oxfordshire, to deliver 100,000 homes by 2031.

Oral Answers to Questions

Rachael Maskell Excerpts
Tuesday 24th October 2017

(7 years, 2 months ago)

Commons Chamber
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Steve Barclay Portrait Stephen Barclay
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My hon. Friend is right. The UK financial services industry pays more than £71 billion to the Exchequer in tax and employs more than 1 million people directly and 2.2 million through the sector as a whole, two thirds of whom are outside London. Because of his work as chair of the all-party parliamentary group for Gibraltar, my hon. Friend will be aware of the importance not just of financial services in the UK, but of our links with industries in territories including Gibraltar.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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Teachers have travelled from all over the country today to lobby Parliament about severe real-terms cuts in their pay. The Chief Secretary has said that she has lifted the pay cap owing to the pressure that Labour has placed on her, but will she confirm that her Department will fund the recommendations of the pay review body rather than cash-strapped local authorities?

Elizabeth Truss Portrait Elizabeth Truss
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The fact is that teachers received, on average, a 4.6% pay rise last year, including promotions and responsibility allowances. Pay in schools involves a great deal of flexibility, and headteachers can decide how they pay teachers. However, it will be up to the Department for Education to look at the specific circumstances in schools and make those determinations.

Oral Answers to Questions

Rachael Maskell Excerpts
Tuesday 18th July 2017

(7 years, 5 months ago)

Commons Chamber
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Andrew Jones Portrait The Exchequer Secretary to the Treasury (Andrew Jones)
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The South Tees Site Company is currently undertaking ground investigations to assess the levels of any contamination on the SSI site. The mayoral development corporation is leading on the development of plans for the future of the site. I look forward to working with my hon. Friend, the Mayor of the Tees Valley and others to promote the economy of the area.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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In the Budget, the Chancellor promised a consultation on business rates, but we have not yet seen that. Businesses in York are really struggling and some are leaving the city because of the astronomical business rates. When will we have that consultation—what is the date?

Lord Hammond of Runnymede Portrait Mr Philip Hammond
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We have to deal with two issues. One is the process by which we uprate business rates, and we all saw earlier this year that long periods followed by dramatic revision are not good for anyone. They cause disruption to business, so we are looking at how we can smooth the process. Secondly, we need to look more broadly at the way in which we address the perceived unfairness that companies that operate in bricks and mortar are effectively treated differently from companies that do not. That is not an easy challenge, because many of the digital companies operate internationally and it requires international co-operation.

The consultation that the hon. Lady asks for will be issued by the Department for Communities and Local Government and I will pass on to the Secretary of State her concerns about the date.

Public Sector Pay Cap

Rachael Maskell Excerpts
Wednesday 5th July 2017

(7 years, 6 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

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Elizabeth Truss Portrait Elizabeth Truss
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My hon. Friend makes an excellent point. We need to ensure that our public finances are properly sustainable, so that we can fund those public services in future, and so that we do not burden the next generation.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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Will the Chief Secretary write to the chairs of all the pay review bodies—those serving on them are incredibly frustrated—and ask them to set out the true cost of a nurse, a teacher and a soldier, and to report back to Parliament, so we can assess the independence of their research?

Elizabeth Truss Portrait Elizabeth Truss
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I am sure the hon. Lady is aware that all documentation from this year’s pay process will be published. She will be able to see the research the bodies have looked at and the people they have interviewed in coming to their determination. In due course, I will be writing to the pay review bodies for their remit for the following year.

Oral Answers to Questions

Rachael Maskell Excerpts
Tuesday 18th April 2017

(7 years, 8 months ago)

Commons Chamber
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David Gauke Portrait Mr Gauke
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Not at all. We are protecting the total schools budget in real terms and implementing our manifesto commitment to introduce fairer funding. It is right that we do so.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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The Government are clearly not protecting pupil per capita funding in York, which is currently the seventh-worst funded local authority and will experience a £288 per child cut in funding. How is that protecting the formula?

David Gauke Portrait Mr Gauke
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I would expect the hon. Lady to share my view that it is not right that we fund schools on the basis of what has happened historically. Every pupil in England should be assessed on the same basis. It cannot be right, for example, that pupils in Hackney receive 50% more than pupils in Barnsley. That does not seem to me to be fair and it is right that the Government address that.

Draft Individual Savings Account (Amendment No.2) Regulations 2017

Rachael Maskell Excerpts
Wednesday 15th March 2017

(7 years, 9 months ago)

General Committees
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Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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It is a pleasure to serve under your chairmanship, Mr Evans.

I want to make a number of points, particularly in relation to the age limits in the draft regulations. The Government forever talk about longevity and the fact that people are living longer, so it is clear that people will have longer to save into a lifetime ISA. Putting an upper age limit on those who wish to take up the product will cause difficulties. The explanatory memorandum advises that some will be signposted towards the help to buy ISA, rather than be allowed to take advantage of the lifetime ISA.

I raise that issue because the age at which people are able to access the property market is increasing. People are really struggling and often have to wait until they are in their 40s or 50s before they have that opportunity to enter the market. The lifetime ISA offers a greater bonus up to the age of 50, but it is not possible for anyone over the age of 40 to access the product. The product enables people to save up to £4,000 a year, whereas the figure for the help to buy ISA is £2,400. That means that older people who were not able to save earlier in life will be disadvantaged by not being able to access it.

Although the cap on the lifetime ISA could remain universal, I see no reason why lifetime ISAs could not be open to people from across all age groups. Why discriminate against those aged between 40 and 50 who have worked hard and saved enough to make putting money into a lifetime ISA worthwhile? Why are they being denied that opportunity? I would very much like the Minister to address that issue. Will she review the 40-year age bar for people to access the product?

Oral Answers to Questions

Rachael Maskell Excerpts
Tuesday 28th February 2017

(7 years, 10 months ago)

Commons Chamber
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Lord Hammond of Runnymede Portrait Mr Hammond
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The rating system is what it is; it reflects the rental value of properties. I readily acknowledge that in an economy that is changing shape rapidly, where the digital economy plays a much larger role and where some of the biggest businesses are not based on bricks and mortar, there are some very significant challenges for us, which we need to look at. In the short and medium term, business rates play a vital role in providing revenue to the Exchequer—and from 2020, of course, they will be used wholly to support local authorities.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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16. In York, many businesses are paying inflated rents from overseas and local landlords, pushing up the rateable value, so business rates are sky high. The revaluation has caused some businesses a 600% increase, which is detrimental to the local economy and the high street. Will the Treasury work with the Department for Communities and Local Government to carry out an urgent review on the whole business rate system, because the model is broken?

Lord Hammond of Runnymede Portrait Mr Hammond
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I will say something more about the medium and longer-term challenges to business rates when I deliver my Budget next week. The hon. Lady would not want to alarm anybody in her constituency and she will know that nobody will see their rates bill go up by 600%.

Rachael Maskell Portrait Rachael Maskell
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They have.

Lord Hammond of Runnymede Portrait Mr Hammond
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Nobody will see their rates bill go up by 600%, and the damping mechanisms make that clear. Of course rateable values may go up by very significant amounts. I shall have more to say about this next week.

Commonwealth War Graves Commission

Rachael Maskell Excerpts
Tuesday 10th May 2016

(8 years, 7 months ago)

Westminster Hall
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This information is provided by Parallel Parliament and does not comprise part of the offical record

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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It is a pleasure to serve under your chairmanship this afternoon, Mr Streeter.

It is vital that we remember, and that is what today’s debate is all about; indeed, it is what the Commonwealth War Graves Commission is all about. I thank the right hon. Member for Broadland (Mr Simpson) for securing this debate. This has been a very informative debate, with contributions from across the House about the importance of the commission’s work. That work is not only about maintaining the graves that we have heard so much about today, but about the way that the commission is taking history into the 21st century, by using web technology to help us look through our past and consider our own history, and of course so that we can take that knowledge and pass it on to the next generation. It is vital that we remember, and in particular that we remember the lives that were given for our freedom.

Of course, the Commonwealth War Graves Commission does phenomenal work. This year, we are remembering the losses in Jutland and, as we have already heard, the losses in the battle of the Somme in July 1916. The commission’s work continues day in and day out, and we must acknowledge it.

I am very grateful for the opportunity to contribute to this debate and, of course, very grateful for the work of the commissioners, including that of my hon. Friend the Member for North Durham (Mr Jones). The contributions this afternoon have really reflected the importance of the commission’s work.

Maintaining and upgrading 23,000 cemeteries and memorials across 154 countries is no mean feat. That work includes replacing around 20,000 graves a year. Of course, there is also the important work of building on 100 years of record-keeping. It is important that we recognise the outstanding work that the commission does, and of course quality is at the forefront of all that work.

That work can only be achieved because of the total dedication of the 1,300 people who work across the world for the commission. Many of them work here in the UK but others are employed to provide vital skills and services right across the globe. Of course, the commission’s work is dedicated to the memory of the 1,700,000 men and—as we have heard today—women from across the Commonwealth who were killed. The commission’s staff work so hard to maintain the highest standards, but above that to maintain the memory and dignity of each young life that was lost—and it was predominantly young lives that were lost. The staff keep alive the memory of those who were lost, gathering more information and historical knowledge over time, to share that collective memory and collective story that speak of a Europe that was once divided against itself. They ensure that that is never forgotten.

Although we often recall less peaceful times at formal ceremonies at the memorials and cemeteries, it is the individual care that the staff show to the families and friends of the lost that causes them to stand out. They enable people to move on but also to cherish their memories. When people walk into one of the commission’s many cemeteries—as I have on a number of occasions—scan the thousands of pristine graves and start to read the names, ages and ranks of those who fell, they are taken on a journey of sacrifice: the sacrifice of parents and families, of their children and of the many young who gave their lives. It is a reminder to us, and to all who hold power—not least in this place—that our responsibility to their legacy is to find political solutions, no matter how difficult that is, to the challenges we face in our globe today.

The commission does not just keep history alive, it presents the past in such a way that we will never forget. As the commission reaches 100 years next year, we must mark its excellent work, as the right hon. Member for Broadland reminded us. But the commission is not just an organisation; it is the sum of its many parts. By that I mean the dedicated staff, many of whom have spent all their working lives there—indeed, for some of those I met, generations of their families had worked in the organisation—and make the commission what it is. Nevertheless, they look to us to provide them with the support they need when their terms and conditions and pay need to be addressed, and it would be remiss of me not to raise that today.

I have met the trade unions—the Public and Commercial Services Union, Unite and Prospect—and I must declare an interest as secretary of the Unite group here in Parliament and as a former national official of that union. I have also met the commission’s staff and have listened closely to the issues they have raised, and I know that they want their voice to be heard in this place this afternoon.

We believe that deals can be brokered, to give the workforce greater morale. We know that there have been difficult discussions about pensions and that pension schemes have been challenged, but the staff have outstanding questions about what happened and it is only right that we look to find solutions to the challenges that they have identified.

Lord Beamish Portrait Mr Kevan Jones
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May I make the offer to my hon. Friend that I have already made to the hon. Member for Glasgow South West (Chris Stephens), that if she wants to meet the commission’s management to talk about personnel, I can certainly facilitate that?

Rachael Maskell Portrait Rachael Maskell
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I thank my hon. Friend for that offer and I will certainly follow it up with him.

Commission staff have outstanding questions about their pensions, but that takes us on to the issues that are pertinent—particularly this week—regarding their pay. Over time, the staff have accepted lower rates of pay and less favourable terms and conditions—that came out in the Towers Watson global grading and pay review—and we have heard about the inconveniences to family life, whether that is taking children out of their schools or spouses not being able to have a career because of moves. The value of the jobs was also recognised in the review—for instance, the learning of a foreign language, not superficially but in a way that means being able to negotiate deals, employ staff and manage contracts. The staff’s dedication, and the quality and standard of their work, means that they should be remunerated at an appropriate rate. That is what the review says. Public sector workers are seeing a 1% increase in their pay but the commission is offering half that to its staff. We should seriously look at what the deals mean for the staff and ensure, as we enter this time when staff are working over and above what is expected of them so that the public can remember and commemorate 100 years since the battles of the first world war, that the staff’s battles today are well recognised and that staff are remunerated appropriately.

Labour wants a clear win-win solution and we believe that one can be found. I therefore urge the commissioners present and the Minister to find such a solution. We must remember that the staff are public servants and want to give the best they can, and the respect we show them will, therefore, be reflected in the excellence of their work.

As we move towards its 100th year next year, it is vital to ensure that the commission’s work and its vision for the future—building on Fabian Ware’s initial vision—is strong, including the commitment not only of its staff but of the public, in the way that it celebrates what has been achieved, and also to ensure that it continues to remember the ultimate price paid by the 1,700,000 people whose graves it cares for day in, day out, around the globe.

Budget Resolutions and Economic Situation

Rachael Maskell Excerpts
Tuesday 22nd March 2016

(8 years, 9 months ago)

Commons Chamber
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Rachel Reeves Portrait Rachel Reeves
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I wonder whether the hon. Gentleman still thinks we should go ahead with the cuts to personal independence payments. It certainly sounds like it from those remarks.

Let me deal with the specific issues surrounding personal independence payments and the impact that this Government have had on disabled people. While the fiasco is unfolding around us, let us remember the broader points. This is a Government—the Chancellor, the Prime Minister, the former Secretary of State for Work and Pensions and the current Secretary of State for Work and Pensions—who forced through the bedroom tax, affecting 500,000 people, the majority of them disabled, by about £700 a year. This is the Government who forced through the closure of the independent living fund. This is the Government who forced through cuts to employment and support allowance only last summer, affecting 500,000 people and worth about £30 a week or £1,500 a year. The U-turn on personal independence payments, although welcome, deals with only a fraction of the damage and the pain that the Government have caused to disabled people in all our constituencies.

Let us be clear what this U-turn means. The new Secretary of State for Work and Pensions came to the Chamber yesterday and said that the Government are not going back to the welfare bill and to disabled people for further cuts. But in the course of yesterday’s statement, that was watered down a little. The Government now have “no plans” to come back to the welfare budget and disability benefits. That is reminiscent of when they had no plans to increase VAT and all the other things they had no plans to do, until they did them and until they hurt the people who least need to be hurt.

When the Chief Secretary winds up the debate this evening, I would like to hear whether there are no plans, or whether the Government can guarantee that there will be no further cuts to the welfare budget or to the benefits of disabled people. We know that there is a black hole of £4.4 billion in the public finances. If it is not the wealthy and not disabled people, who is going to pay the price? Are there going to be further cuts to education, health, defence and our police? Will there be further increases in taxes—on VAT and taxes for ordinary working people? Something has to give and we need some answers about the black hole in the Budget that we are voting on, although we do not know what it means. What does it mean for all those different groups of people?

As the Chair of the Office for Budget Responsibility told us at the Treasury Committee meeting this morning, the issue is not just that there is a £4.4 billion black hole in the social security budget, but that the Government have failed to meet their welfare cap. They are going to fail in every year of this Parliament, by a staggering £20 billion—£20 billion more on social security spending in this Parliament than the Government set out, a further black hole in their public finances. Why did they get into this mess in the first place? It is because they wanted to cut taxes for the wealthiest in society. They wanted to cut capital gains tax, increase the threshold before people started paying the 40p rate of tax, and increase the ISA limit from £15,000 to £20,000 so that we can all save the full £20,000 a year tax free. That is great for those who have the money, but most of our constituents are lucky to earn £20,000 a year, let alone put it away in savings. That is why the Government raided the social security budget yet again to give tax cuts to their friends, the wealthiest and the most privileged in our society.

Last week’s Budget could have been different. For example, the Government could have put more money into infrastructure investment. In my constituency, we are paying a heavy price for the floods on 26 December. The Chancellor said earlier that I should have welcomed the money for flood defences, but in 2011 the Government cancelled a flood defence scheme in Leeds worth £135 million. Last week, they announced £35 million for Leeds. Well, I am sorry for not thanking the Chancellor, but an offer of £35 million rather than £135 million is not really worth the thanks, and the businesses in my constituency will pay a heavy price if the rains come again.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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I was with the Environment Agency just last night, and it told me it will not have sufficient funds to put in place measures—particularly catchment management measures —to prevent future flooding.

Rachel Reeves Portrait Rachel Reeves
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Last week, the Government announced £150 million for York, Calder Valley, Leeds and Cumbria. However, as I said, the scheme that was cancelled in Leeds was worth £135 million, and that £150 million is for flood defences, flood resilience and flood maintenance. Yet again, the Government are short-changing people who need them to step up to the mark, as our volunteers in York and Leeds and across the north of England did when the rains fell, the rivers rose and buildings—houses and businesses—were flooded.

Last week’s Budget could have been different. It could have been a different Budget for disabled people. It could have been a Budget that helped ordinary working people and the most vulnerable in our society. It could have been a Budget that put money into the northern powerhouse and the infrastructure that we need. However, it was a different Budget, because this Government have different priorities. That is why we need a Labour Government on the side of ordinary working people and the most vulnerable in our society.

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Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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This was a Budget about words, not wisdom. I want to focus on that because we have now had six years of the Chancellor presiding over a very worrying economic picture while using a narrative to disguise the fragile place into which he has put our economy. It is also a Budget that exposed the worst aspects of the cruel, callous and uncaring Conservatives, crushing disabled people and some of the most vulnerable and economically disadvantaged groups in our society. Those actions over the past six years have worried me as the weaknesses in the structure of the economy have not been addressed and the economy has been used to deliver a political agenda, not productivity and not fiscal security.

This is leading to a risk shift, increasingly away from Government to local communities and individuals—those who cannot weather the storm. Politicians can use any words they want, but what lingers behind those words is what matters. Apprenticeships are not apprenticeships any more, the living wage is not a living wage, and affordable housing is unaffordable. Remember the phrase “long-term economic plan”? I will let hon. Members work that one out for themselves.

I know the impact of all this in my local community and on my local economy. York has a low-wage, insecure and high cost of living economy where housing is now inaccessible. We heard about the next generation being better off. With the debts that young people now carry and the difficulty in accessing housing, I was interested in the lifetime ISA, which will mean that the people who are least worse off will get £1,000, while those struggling with tax credit cuts and increased in-work poverty will feel the pinch.

I hang my head in shame at the way that disabled people are treated in the Budget. No compassion there. That takes me back to the economic picture which I worry so much about. The Chancellor has borrowed more than all Labour Chancellors put together throughout history, and wants to borrow even more now. The question is what he will do with that money. We know from our economic experts how to invest that money to lead not to a growing debt, but to growing productivity. When the Chancellor has had to cut his own growth targets twice in the past six months, from 2.4% to 2.2% and now to 2%, he is admitting that his economic plan is not working. He did not clear the deficit in the previous Parliament, and it seems that with this omnishambles Budget he will not do so in this Parliament either.

I am worried, and I am most worried about the people I represent. In six years of low productivity, their insecurity and risks are rising, the local economy in York is totally inequitable—a two-speed economy, as it is known, speeding up for those who are well off—