Oral Answers to Questions Debate
Full Debate: Read Full DebateRichard Fuller
Main Page: Richard Fuller (Conservative - North Bedfordshire)Department Debates - View all Richard Fuller's debates with the Department for Work and Pensions
(9 years ago)
Commons ChamberWell, she asked the question and if she does not want the answer, that is fine by me. What I am saying to her is that the last Labour Government moved to a clerical system. We have reviewed that approach over the past year and decided that, under the changes we want, going back to an automatic system is much better. The recent statistics released last week show that the rate of appeal was slightly higher among those who did not receive the initial letter appeal than among those who did; we therefore do not think there is a difference. We will be writing to people to remind them that they still have rights to appeal if they wish to do so.
A substantial benefit of the issues relating to tax credits is that more companies are encouraged to pay the national living wage—£9 an hour—now. What conversations has my right hon. Friend had with the Chancellor about incentives that we could provide to companies to pay £9 an hour?
Yes, the No. 1 reality is that companies that believe the economy is well run will invest in their workforce and give them a better salary. The problem was that the last Labour Government set up a system that encouraged companies to pay low wages and leave them static. The change now is this: universal credit is making them move on; higher salaries; a better wage packet. Many companies are already paying the higher level—they have come and said they will.