Oral Answers to Questions

Rachel Reeves Excerpts

Monday 3rd November 2014 Commons Chamber

[Mr Duncan Smith]

This Government have dealt with huge problems that were left to us. First, we had a collapsed economy. We are now putting that right, and we are also getting more people back to work. The best way to get people out of poverty is to get their families into work. Under this Government, there is now the lowest number of households in poverty.

[Rachel Reeves (Leeds West) (Lab)]

As others have remarked, this week is living wage week, when we celebrate the success of employers and campaigners in moving towards getting more workers paid a wage that they can afford to live on. Under this Government, the number of people paid less than a living wage has risen from 3.6 million to 4.9 million—more than one in five people. Does the Secretary of State agree that this Government’s failure to tackle low pay means that more people in work are living in poverty, which is a key reason why the Government are spending £400 million more on housing benefit for people in work than when they came into office?

[Mr Duncan Smith]

It is good to see the hon. Lady; I know that she did not turn up and vote for her party’s own motion last week, and did not even sign it, but now we have her here. I answer her question by simply saying this: the reality is that we have seen the minimum wage rise faster under this Government than under the previous Government, with an increase of nearly 10% since the election. My right hon. Friend the Business Secretary is doing everything he can to pursue companies that do not pay the minimum wage, and we are prosecuting them.

[Rachel Reeves]

First, I would like the Secretary of State to withdraw what he said about my not being here last week. He does not know the reasons why I was not here, and I expect him to withdraw those comments.

The truth is that the in-work benefits bill is rising in real terms because of this Government’s failure to build a recovery that benefits everyone, not just a few at the top. We have seen a historic squeeze on wages for the majority and the minimum wage falling behind the increase in inflation, with an increase of just 70p in five years. The reality is that taxpayers are footing the bill for the spread of low pay and insecurity under this Government. Is it not time that the Secretary of State adopted Labour’s plans to raise the minimum wage, to get more workers paid a living wage, to ban exploitative zero-hours contracts, and to build an economy that works for all working people?

[Mr Duncan Smith]

I remind the hon. Lady that it was under her Government that the minimum wage stalled. Under this Government, it has risen by nearly 10% to £6.50 from October 2014. As for those who are supposed to be worse off, it is calculated using real earnings. Labour Members use a very simplistic calculation, and it does not give the full picture. The reality is that this Government categorically have done more for low-paid people than the previous Government did in their whole time in office.

[Rachel Reeves]

On a point of order, Mr Speaker.

[Mr Speaker]

A point of order will come after questions. If it relates to these matters—[Interruption.] No, there is discretion. Exceptionally, I can take it after Question Time if it relates to these matters.

[Rachel Reeves]

It relates to the Secretary of State’s answer.

[Mr Speaker]

That is fine: I can take it after this questions session, most certainly.

--- Later in debate ---

[Mr Speaker]

As I indicated earlier, I will take the point of order because it relates to these matters.

[Rachel Reeves]

On a point of order, Mr Speaker. The Secretary of State criticised me for not turning up to vote on an Opposition day motion last week. He knows nothing of why I was not able to attend last week. I kindly ask him to withdraw his criticism and apologise for the aspersion that I could not be bothered to turn up to vote in the House of Commons.

[Mr Duncan Smith]

I simply made the point that it was good to see the hon. Lady here because she did not turn up to vote in the last debate. I understand that she retweeted that she was in Rochester at the time. She was not put down as a signatory to the motion. Those are the points that I made.

[Rachel Reeves]

rose—

[Mr Speaker]

Order. We cannot have a protracted exchange on this one matter. However, if the hon. Lady wishes to add anything further, I am content that she should do so.

[Rachel Reeves]

Thank you, Mr Speaker. I was not in Rochester last week. I will give the Secretary of State one last opportunity to withdraw the aspersion and apologise. He knows nothing of the reason why I was not here last week, so I ask him to withdraw the aspersion and apologise.

[Mr Duncan Smith]

I stand by my assertion that the hon. Lady did not vote and that her name was not on the Order Paper.