Autumn Statement Resolutions

Ranil Jayawardena Excerpts

Monday 27th November 2023 Commons Chamber

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

The House, on both sides, wants to get Britain growing, and that is a great statement of intent. I am delighted that the Opposition parties agree with the Government and the Conservative party on that. I hope they will also agree that it is important that people keep more of what they earn, because they have earned it, they deserve it and that is how we will create the right work incentives to grow the economy in the years ahead. I want to put on record my support for the changes to national insurance, which will be a really important step in delivering exactly that. The fact that 27 million people will be getting a tax cut and that someone employed on a wage of £35,000 will be £450 better off is an excellent step in the right direction, and I hope there will be more to come.

I also welcome the changes for the self-employed, because it is crucial that we focus not only on those employed in large businesses but on those who work for themselves. They are the strivers who get up every morning looking for new opportunities, not only for themselves but for their families and for our wider economy. It is also important for both groups, whether they are employed or self-employed, that there is fairness in the system, and that is why it is right that welfare is looked at again. It is important that this country has a safety net. Across the House, everyone agrees with that simple premise. Those who fall on hard times, those who find themselves in difficulties and those who have particular needs that mean they cannot work at a point in their life deserve our support, and I know that the country is with us on that. But those who do not seek work are the people that the Government are rightly looking at again. I know that the people out there who we work for, the people who pay taxes, are on the Government’s side as we ensure that those who do not seek work are not provided with the support of generous taxpayers across this country.

I also give credit to the Government for the abolition of the lifetime allowance, which was announced earlier than the autumn statement. Again, this is an important statement of intent because it creates the right incentives for people to be able to work in this country. That includes people who want to work longer, given that our health is consistently better and that we can work well into what was traditionally seen as retirement. By seeking to reverse the change, the Labour party is wrong. It would price out—tax out—doctors, policemen and teachers from public service at their peak. Labour’s plan to restore the lifetime allowance would cripple those who want to continue working and contributing to our economy and society, which is something that we should be welcoming; I certainly do.

I said that I hope this is a starting point and that the Government will go further—I believe it is crucial that they do. Although childcare is an important issue for many people in this country, family-friendly taxation is arguably more important. Many people choose to use informal forms of childcare, and many people want to spend more time with their children during their early years. Indeed, 74% of women polled say that they want to spend more time with their children, particularly before they start school, and two thirds want to spend all their time with their children before they start school, but they cannot because the support is not there in the tax system. That makes us an outlier—families are taxed about 26% more in this country than in our OECD counterparts. It is a question of fairness. Individuals pay less tax than the OECD average, but families pay more. I hope the Government will look at that in the months ahead. Indeed, I hope they will look at the excellent report from the Centre for Policy Studies, to which I happened to contribute, outlining some of the options.

The SNP spokesman, the hon. Member for Gordon (Richard Thomson), talked about the squeezed middle. It is crucial that tax thresholds—particularly the 40p threshold—are reviewed. It is wrong of the SNP to say that it is here in defence of the squeezed middle, when the squeezed middle are the ones being taxed the hardest north of the border.

We must go further, too, to prove that we are different from the SNP, and that we recognise that people who strive to progress in their career, who strive to earn more money, should be rewarded. I am led to believe that, had the 40p threshold remained index-linked from the time of Nigel Lawson, it would now be in the order of £80,000, so there is much further to go to make sure the threshold does not affect police sergeants, teachers with 10 years’ experience and the like. That was not its intended purpose. Again, if we are keen to make work pay, and if we are keen to create the right incentives in our economy for people to try to secure more hours, to secure a promotion or to set up their own business, we need to make sure the tax system reflects that.

In addition, those who have done the right thing all their lives by saving hard and putting their hard-earned money into their family home should not be penalised. It is crucial that the Government look again at lifting the inheritance tax threshold from £325,000 to perhaps £1 million, as was proposed by the former Chancellor, George Osborne, in 2007. This would simply do what the Conservative party says it has always wanted to do, and I hope the Front Bench will look at that in the months ahead.

I am conscious of time, so I will move on to spending reductions and capital receipts. When the Government cancelled High Speed 2, I wonder whether they considered privatising the operation, rather than selling off the land piecemeal. There is an opportunity here to build infrastructure for the future, but for the private sector to do it and for the Government to get a capital receipt now. I hope the Government would welcome that, because it is wrong to stymie infrastructure for the future, but it is right that taxpayers’ money is best spent on road projects across this country.

There is a huge amount of spending across Government. One example is in the Department for Transport, where a huge amount of money is being spent on so-called active travel. This is the left getting what it wants, which is everyone moving from their own private transport into Government-controlled transport, or being forced to walk or cycle in 15-minute neighbourhoods. That is not what the people of this country want. They do not want blanket 20 mph speed limits, so those are the sorts of cuts we should seek.

[Mr Speaker]

We now come to a maiden speech. I call Sarah Edwards.

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[Stephen Crabb]

The hon. Member makes a strong point on behalf of his party. Lots of people claim credit for the triple lock. Again, all of us who defend the triple lock need to bear in mind the long-term costs and be ready to speak to how the country will afford them. The answer that successive Governments have found of just pushing the state pension further out of reach by increasing the state pension age is not a long-term sustainable plan.

On benefit reform, I strongly support what the Government are trying to do in linking together more closely the work of local jobcentres with that of health authorities, health boards and the Department of Health and Social Care overall. Successive Ministers have found huge institutional resistance to the NHS and the DWP working together—two massive spending Departments that have levers to do something really positive in getting people with long-term sickness and disabilities back into work. It is really encouraging to see much greater levels of co-operation than at any time in the past 20 or 30 years.

The point that has been made several times this afternoon about obligations is really important. There was speculation that the Chancellor would not uprate working-age benefits by the higher level of autumn inflation rates, but he did so. That was entirely consistent with what the Conservative Government have done consistently through the pandemic and the cost of living challenges, which is to help people on the lowest incomes. The Government doing the right thing and choosing to be consistent in that underlines the point about obligations, and the social compact that needs to be at the heart of our welfare system. Government Members have talked about that, as have those on the Labour Front Bench. An adequate benefits system supports people on the lowest incomes and provides a strong and secure safety net. There needs to be a sense of obligation around that as well.

As I said, there were Labour welfare Ministers who struggled with how to engage people who had been long-term sick and had long-term health needs to get more meaningful interaction, so that they could perhaps begin a journey back to work if that was appropriate. It is one of the biggest public policy challenges that we as a Government have faced. If the Labour party forms the next Government, it will wrestle with that, too. Governments of countries around the world that share a similar demographic to ours, with an ageing population and increasing numbers of elderly and sick people, are wrestling with these challenges. There are no easy solutions.

[Mr Jayawardena]

Does my right hon. Friend agree that fundamentally this is just a question of fairness? It is about supporting those who genuinely need our help, but when people choose welfare because they choose not to look for work, hard-working taxpayers should not pay the bill.

[Stephen Crabb]

I agree with my right hon. Friend to a point. There is always an issue of fairness, and perceived fairness, when it comes to the distribution of taxpayers’ money to people.

I question whether there are large numbers of people out there who want to live their lives not working or contributing to our society. If I really press them, the people I meet in my constituency who are struggling with long-term illnesses and have been out of work for a long time, say they would love to be working. They would love to visualise themselves in a job and playing a full part in the economy. The truth is that many of them need support. Some of them need a bit more than just warm words of encouragement, and that is why I have always defended the appropriate use of sanctions and conditionality in our benefits system.

This time of assistive technology, flexible working and homeworking should be a new golden age for people who sadly live with long-term health conditions to be able to get back into the workplace. I am really pleased that Government Ministers are grappling with that and thinking about the long-term steps that could be taken to help people back into work. As I say, that is one of the great public policy challenges of our time.

Oral Answers to Questions

Ranil Jayawardena Excerpts

Monday 18th March 2019 Commons Chamber

[Amber Rudd]

I am very mindful of what we are delivering on the ground to individual constituents, families and children. We attempt, we hope, to protect the vulnerable and help people into work, but I know that my Department has a part to play in reducing poverty, and I am focused on that.

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

7. What recent assessment her Department has made of the number of people in work in Hampshire.

[The Minister for Employment (Alok Sharma)]

There are more people in work across our country than ever before, wages are growing at the joint-fastest rate in a decade, and Office for National Statistics data estimates that in the year to September 2018 there were 938,400 people in work in the great county of Hampshire.

[Mr Jayawardena]

I thank my hon. Friend for that answer. That is great news, but what more will the Government do to help people who find themselves out of work into new jobs?

[Alok Sharma]

Under universal credit, as we have noted before, work coaches provide that vital one-to-one support and advice to help people into work. The disincentives of the legacy system are gone, and the reforms are working. In my hon. Friend’s constituency of North East Hampshire, the number of claimants is down by 42% over the past five years.

Universal Credit

Ranil Jayawardena Excerpts

Wednesday 17th October 2018 Commons Chamber

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

It is good to be here again to update the House on universal credit—for the third time this week. I know that many Members want to speak in this debate. I know too, Mr Speaker, that you are always anxious to hear Back Benchers speak, as am I, so I will keep my remarks as brief as possible.

I have been forthright with colleagues across the House—and in my speech at Reform earlier this year—about universal credit’s strong merits and the areas that we need to improve. In fact, in my Reform speech, I said that I would improve universal support, and I delivered on that this month. Since becoming Secretary of State, I have changed the system to provide extra support for those with severe disabilities, vulnerable young 18 to 21-year-olds and kinship carers. I am also working with colleagues to identify areas where we can make more improvements.

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

Will my right hon. Friend confirm that, although the Government will always want to do more, eight out of 10 universal credit claimants are actually satisfied with their experience, and believe that it is good and helping them into work?

[Ms McVey]

My hon. Friend is correct. Those are the figures and that is what people are saying. We know that universal credit is working and getting people into work because our employment figures that came out yesterday show that over 3.3 million more people are in work since 2010. So we know that we are moving forward.

Personal Independence Payment: Regulations

Ranil Jayawardena Excerpts

Wednesday 29th March 2017 Commons Chamber

[Debbie Abrahams]

My hon. Friend makes an excellent point. That is what we have been trying to do since the emergency regulations were laid before Parliament.

Let us remind ourselves how the emergency regulations were introduced and what they have changed. The regulations, which were laid before the House on 23 February and came into force two weeks ago, amended the legislation under which disabled people or people with a chronic condition are assessed for eligibility for personal independence payments. The new regulations followed two upper tribunal rulings. The first judgment on 28 November 2016 held that needing support to take medication and monitor a health condition should be scored in the same way as needing support to manage therapy, such as dialysis, undertaken at home. The second, also on 28 November, ruled that people who find it difficult to leave their house because of severe psychological distress should receive the enhanced rate of support under the mobility component of PIP.

In a letter to me last week, the Secretary of State for Work and Pensions said that he became aware of the rulings on 8 December. Two and a half months later, the Government laid their emergency legislation before Parliament. I am sure that the irony of something taking two and a half months in an “emergency” has not been lost on you, Mr Speaker. During those two and a half months, not only were the Government unable to bring the regulations before the House, but they also bypassed their own Social Security Advisory Committee. They have ignored SSAC’s recommendations on wider engagement, testing or piloting changes, and the analysis of impacts.

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

I note what the hon. Lady says about legal cases, but is not the point that those legal cases broadened the provisions, and that the regulations will simply restore the policy to what it has been and should be, which is one of targeting support at those who need it most?

[Debbie Abrahams]

I will come on to that in a moment, because I think Members have unfortunately been hoodwinked, and I will absolutely expose what the Government have said.

This move undermines and subverts not just our democracy, but independent tribunal judgments. It is unprecedented, and we should be concerned about future actions that the Government may take in relation to court cases that they lose. It is also highly unusual for such a fundamental change to be introduced by a statutory instrument under the negative procedure, bypassing debate and scrutiny in this House.

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[Debbie Abrahams]

My hon. Friend is absolutely right. The situation makes an absolute mockery of the claim that there is parity of esteem. She rightly mentions what the NHS is trying to do, but sadly there are still issues with treatment for mental health conditions.

[Mr Jayawardena]

rose—

[Debbie Abrahams]

I will make some progress, and then I will come back to the hon. Gentleman.

The Government’s response to the PIP consultation reiterated that psychological distress would be included in the PIP assessment, as did the Government’s argument in the 2015 upper tribunal case of HL v. the Secretary of State for Work and Pensions. Ministers have also said that people with mental health disorders who suffer psychological distress would not lose out on PIP. However, the new guidelines for PIP assessors, issued on 16 March, state:

“Descriptors c, d and f under new mobility activity 1 are amended”,

and the

“effects of psychological distress are not relevant”.

The assessment cannot take into account the psychological distress that someone experiences. They cannot score the 12 points needed to get the enhanced PIP mobility rate, so instead of £57 a week, they will be able to get only £22 a week.

--- Later in debate ---

[Debbie Abrahams]

No, I certainly do not agree with that at all. I will come on to this in a moment, but the mental health charity Mind has produced data, based on the Government’s own statistics, that show that 55% of DLA claimants with a mental health condition will receive either nothing or a reduced amount when they transfer to PIP. I am afraid this is another fallacy from the Government.

[Mr Jayawardena]

The hon. Lady might have suggested that Government Members are being hoodwinked, but I am sure that she was not suggesting that the Minister plays with anything other than a straight bat. The fact is that over a quarter of those on PIP receive the highest level of support, which is much more than the 15% of DLA working-age claimants who did so. Are the regulations not doing exactly what was originally intended: targeting resources at those who need them most?

[Debbie Abrahams]

I am sorry, but I do not see the hon. Gentleman’s logic. [Interruption.] Well, it does not make sense. I will come on to that in a bit more detail, because we must dispel the fallacies that the Government have come out with in the past few weeks.

Oral Answers to Questions

Ranil Jayawardena Excerpts

Monday 21st November 2016 Commons Chamber

[Richard Harrington]

The vast majority of small employers are meeting their automatic enrolment duties on time and without the need for any enforcement action. My hon. Friend is absolutely right to say that the regulator has issued more fixed penalty notices this quarter, but this is proportionate to the number of employers now implementing automatic enrolment.

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Work and Pensions (Damian Green)]

Since my appointment as Secretary of State, I have been determined to look at the benefits processes to ensure that they are working in a fair and proper way. As part of that ongoing work, I have announced an extension to the groups that can access hardship payments immediately following a sanction. Those groups now include people with a mental health condition and homeless people. This change will help to ensure that sanctions do not discourage those vulnerable groups from engaging fully with the welfare system, and that we have a system that is fair, that protects the most vulnerable and that supports people into work.

[Mr Jayawardena]

I welcome what my right hon. Friend has said to the House. The new figures from the Office for National Statistics show an increase of 590,000 disabled people in employment over the past three years, and I am particularly pleased that the employment rates for disabled people in my local authority areas of Hart and of Basingstoke and Deane are 16.3% and 14% above the national average. Will my right hon. Friend join me in welcoming those figures? Can he also assure me that this Government will commit to building on this success by continuing to reduce the disability employment gap?

[Damian Green]

I am delighted to hear about the figures in my hon. Friend’s area, which reflect the national move that has narrowed the disability employment gap by 2.3% over the past year. There is an enormous amount still to do, which is why we produced the joint Green Paper with the Department of Health. It is a central task for this Department over the next three years, and we will pursue it with as much vigour as we can.