DWP: Performance

Debate between Rachel Reeves and Robert Halfon

Monday 30th June 2014 Commons Chamber

[Rachel Reeves]

Does the hon. Gentleman feel comfortable that under this Government spending on housing benefit for people who are in work has gone up by more than 60%, reflecting the fact that more people are in low-paid or insecure work and are unable to make ends meet, even though they may be working all the hours God sends?

We have a Government who are totally out of touch with the reality of life for millions of hard-working taxpayers and those in need of help. The Government are careless with the contributions that people make to the system, callous about the consequences of their incompetence for the most vulnerable, and too arrogant to admit mistakes and engage seriously with the task of sorting out their own mess.

[Robert Halfon (Harlow) (Con)]

Does the hon. Lady agree that the whole thrust of the Government’s reforms has been welfare into work? Since 2010, youth unemployment in Harlow has gone down by 30% and unemployment has fallen by a third.

[Rachel Reeves]

Of course I welcome the fact that unemployment, including youth unemployment, is now falling, but we have to face up to the fact that too many people in work are struggling to make ends meet. The hon. Gentleman will know from his constituency that some people who are in work have to rely on housing benefit and tax credits to make ends meet because they are not paid a wage they can afford to live on, they are on zero-hours contracts, or they are among the record numbers of people who are working part time but want to work full time. We need to address those challenges as well.

Taxation Freedom Day Bill

Debate between Rachel Reeves and Robert Halfon

Friday 25th November 2011 Commons Chamber

[Rachel Reeves]

The hon. Gentleman mentioned earlier—or it might have been the hon. Member for Bury North (Mr Nuttall), but I am sure that they agree—that the increase in the income tax threshold means that fewer people are paying income tax. The good thing about reducing VAT is that it has a progressive effect, because people on lower incomes spend a higher proportion of their income on VAT than people on higher incomes. A reduction in VAT would therefore help to get money in the pockets of the people who most need it at the moment in a way that a cut in income tax would not.

[Robert Halfon]

I am grateful to the hon. Lady for being so generous in giving way. She said that one way to reduce petrol and diesel prices would be to cut VAT. Is it not the case that the majority of businesses get their VAT back? What most people want is a fuel duty cut, which is why I welcomed the Government’s cut in fuel duty in the last Budget and hope that they will not increase it next year.

[Rachel Reeves]

The reduction in VAT would put money in the hands of families. Of course, most people who run businesses are also part of a family, so they would benefit from the reduction in VAT. Labour’s five-point plan for jobs and growth also includes a national insurance holiday for small businesses taking on new employees, so that plan would help families and businesses up and down the country.

Youth Unemployment

Debate between Rachel Reeves and Robert Halfon

Wednesday 9th November 2011 Commons Chamber

[Rachel Reeves]

The answer is in a very small minority of constituencies. In the hon. Gentleman’s constituency of Blackpool North and Cleveleys, long-term youth unemployment is up 233%, so enough of the complacency—he should be urging the Government into action rather than going along with their out-of-touch attitude.

Throughout the country, the number of young people looking for work has increased in 196 out of 202 local authorities since September last year—97% of local authorities have rising youth unemployment. Even in the Minister’s constituency of South Holland and the Deepings, 50 more young people have been looking for a job for more than six months, which is a 71% increase since January. I see the impact in my constituency of Leeds West day in, day out: 105 extra young people have been looking for work for more than six months, which is a 66% increase. Those numbers speak of a devastating impact on the lives of individuals and families, and they are the result of this out-of-touch Government’s complacency on youth unemployment.

Rising youth unemployment also shows that the Government’s plan A does not make economic sense. With unemployment at a 17-year high, inflation soaring and growth flatlining, the Government are set to borrow an extra £46 billion in this Parliament—and that is before the Office for Budget Responsibility comes up with its revised forecast on 29 November. We are all paying the price for the Government’s failure to get a grip on unemployment with higher Government borrowing and debt.

[Robert Halfon]

Will the hon. Lady answer the question that the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) did not answer when I asked him? Why did youth unemployment rise by hundreds of thousands on her watch and under her Government despite all the taxpayers’ money that was spent on one scheme or another?

[Rachel Reeves]

With long-term youth unemployment up 140% in nine months, the hon. Gentleman should be asking questions of this Government rather than looking back to the past. The reality is that unemployment was falling when this Government came into power; now it is rising. That is the difference between a Labour Government and a Conservative-led Government.

The Government like to blame anyone but themselves—that seems to go for Government Back Benchers as well. First they blamed the snow, then they blamed the royal wedding, and now they blame the eurozone, but the truth is that the economy was flatlining and unemployment was rising before the eurozone crisis hit. They needed a plan for jobs and growth before the problems in the eurozone erupted, and they need to change course now more than ever. It is time they took responsibility for their actions.

In the wake of this national crisis of youth unemployment, what have the Government done? More than a year ago, their very first act was to abolish the future jobs fund, which was worse than doing nothing. The future jobs fund got 100,000 young people into work. Before the election, the Prime Minister said that that same future jobs fund was a good scheme. Why did he cancel it, and why did he cancel it before he had a replacement? The Work programme—the Government’s replacement—is no substitute for the future jobs fund. It has one third less funding and is making less of a difference to young people’s lives.

We need jobs and growth and young people need hope and opportunity. They deserve a plan that gets the economy moving and improves the prospects of those leaving school, college and university. That is why Labour has set out a five-point plan for jobs and growth. A £2 billion tax on bank bonuses will both support the construction industry and guarantee a job for 100,000 young people. What could be fairer than using some of the record bank bonuses to get young people back to work? Bringing forward long-term investment projects— which my hon. Friend the Member for North West Durham mentioned—utting VAT temporarily to give immediate help to our high streets and struggling families cutting VAT to 5% on home improvements, and a one-year national insurance holiday for every small firm taking on extra workers, will make a huge difference to small businesses and to the 991,000 young people who are out of work today. This is a five-point alternative that offers hope and unlocks opportunity. It is a five-point plan that would get young people back to work, get businesses hiring and get our economy growing. I urge hon. Members to support this action for the sake of the young people up and down this country who have been tossed on the scrap heap by this Government, just as they were in the 1980s and 1990s under Tory Governments of the past.

It is time to learn the lessons. We cannot afford the cost of spiralling unemployment, or of young people leaving school and college without the hope of getting a job. Call it what you will—plan A-plus, plan B or Labour’s five-point plan—but for the sake of 1 million young people waiting for action, I urge hon. Members to support the motion.