Households Below Average Income Statistics

Rachel Maclean Excerpts

Thursday 28th March 2019 Commons Chamber

[Amber Rudd]

The right hon. Gentleman is more aware than many people that the Chancellor has put a lot more money into the welfare system. When it is fully rolled out, the system will be £2 billion more generous than it was previously. The right hon. Gentleman knows more than anybody else that, important though welfare contributions are and as committed as I am to ensuring that universal credit works for everyone, the causes of poverty are not allayed by benefits alone. That is why we have made such a commitment to invest in the poorest children through the pupil premium and to invest an additional £33 billion a year into the health service by 2023. All these additional investments will help people on the lowest incomes to have a better quality of life.

[Rachel Maclean (Redditch) (Con)]

Does the Secretary of State agree that it is right that we look at the pressures on people’s incomes in the round? That means that we should look at the cost of childcare, which the Government are addressing, and at taking people out of tax, which the Government are addressing. We should also look at putting up wages for the poorest people on the lowest wages, so will my right hon. Friend confirm that the national living wage is rising, which will benefit a lot of people on low incomes?

[Amber Rudd]

My hon. Friend is right. Next week the national minimum wage will go up to £8.21, which is the highest it has ever been. Furthermore, the level at which people start to pay tax is rising to £12,500. It was not very long ago that people on very low incomes—as low as £6,500—could be paying tax, and that has changed under this and the previous Government.