amendment of the law

Richard Fuller Excerpts

Tuesday 25th March 2014 Commons Chamber

[Richard Fuller (Bedford) (Con)]

Budgets aren’t what they used to be. It used to be that there were no surprises in Budgets because the measures were trailed in the media; that is what we got used to under the last Government. Yet one of the most far-reaching and long-term changes came as a surprise in the Budget statement, and I commend the Chancellor for that.

Budgets aren’t what they used to be because they used to be met by a vociferous and articulate Opposition pulling the Budget to pieces and expressing their hostility to measure after measure after measure. That has been replaced by a deathly silence on the Opposition Benches, and here we are with two hours to go still wondering whether the Opposition will decide to oppose anything in the Budget whatsoever. I do not know whether the shadow Chief Secretary to the Treasury has yet worked out with his colleagues whether they are going to be more ambitious and more left wing in their response, or whether they are going to go along with what the Government have provided.

[Lorely Burt]

rose—

[Richard Fuller]

Perhaps my colleague in the coalition will enlighten us on what she understands the Labour party may do.

[Lorely Burt]

As my hon. Friend was speaking, I wondered whether the Opposition have nothing to say because the Budget is so excellent.

[Richard Fuller]

That is a fair comment, but we would hope for critical thought—a thoughtful Opposition going through the Budget and finding good reasons to oppose what is in it. Again, however, we heard nothing from the Opposition. It is all very well trotting the shadow Chief Secretary into the media studios to claim—despite the fact that growth is up, unemployment is down and inflation is down—that everything is going badly, like a latter-day Chemical Ali, but the truth is the Opposition have no coherent response to what will prove to be one of the strongest foundations for long-term stability in our economy.

That foundation is based on the sensible principle that people know best how to spend the money they have earned. This Government recognise that and, more importantly, in this Budget we recognise that people understand that when they have spent a lifetime saving money from their earnings, they are in the best position to decide how best to spend it. They do not want to be artificially constrained by someone else telling them how best way enjoy their retirement. This Budget delivers that freedom to them and should be applauded. It comes after years of socialist trickle-down, taking money from working people to put into Labour’s big bureaucratic plans—out of touch with the realities of people—to find out whether their Highgate polices are somehow going to deliver from the socialist graveyards in Highgate to the people of Bedford and Kempston. We have dismissed all that top-down, trickle-down, socialist rhetoric, in order to give people back the money they earned. This is a Budget for working people, and I am proud to support it.

The Budget also shows that the Government recognise that as we were so highly leveraged—with so much debt—in 2010, it will take a long time to recover. A few years ago, I would have urged the Chancellor to go further and cut expenditure more, but he chose a middle path on reducing public expenditure. We have made progress in bringing the deficit down, and sometimes we are now joined by people who said a few years ago that we were going too far, too fast. The Chancellor has found a middle way with that.

The Opposition’s level of coherence on this Budget is most starkly demonstrated by their position on the benefit cap. May I say to the shadow Chief Secretary—if he has the time—that I understand from the speech of the hon. Member for Leeds West (Rachel Reeves) that the Opposition are going to support the benefit cap? Page 88 of the Red Book contains a helpful listing of the benefits that will be included in the benefit cap, which include housing benefit, other than housing benefit passported from jobseeker’s allowance. I presume that that includes the spare room subsidy. So my question to the shadow Chief Secretary, who, let us face it, ought to have some economic competence, is: if the spare room subsidy is included as a benefit, how can he keep referring to it as a tax? Does he understand the difference between a tax and a benefit? If he does not, and if he is going to vote on this, will he stop—[Interruption.] He is saying from a sedentary position that it is not just him, but he is charged with coming up with economic policies. One core feature of economic policy is understanding the difference between a benefit and a tax.

[Dame Anne Begg]

I just want to make sure that the hon. Gentleman is clear about this. The reference is to housing benefit but not JSA, but most working people who get housing benefit do so as a result of their being on JSA, which does not fall under the cap. Most people on housing benefit in their old age might fall under the cap, but they are not subject to the spare room subsidy—the bedroom tax.

[Richard Fuller]

I am grateful for that clarification. I hope the hon. Lady also understands that when people turn an important issue such as the spare room subsidy into political slogans it makes it much harder to engage on where the policy perhaps is being applied too aggressively or not aggressively enough. I have found that a tremendous barrier to engaging with people about how we can make sure the Government are getting that policy right. I hope we can use language in a way that people can understand.

Youth unemployment has been mentioned by many Opposition Members, including the hon. Member for Darlington (Jenny Chapman). I agree that youth unemployment should be a priority not just for Government but for each of us as Members of Parliament. That is why I am so proud of Government Members and some Opposition Members, who have proactively gone out and encouraged local employers to give young people a start in their careers—whether it is in an apprenticeship, part-time work or work experience. We should not always look to Government to achieve changes in youth unemployment, particularly now with the national insurance changes that are coming in. There has never been a better time than today to get a young person into work.

It is important that we thank the Government for sticking with their long-term economic plan, for finding a course in the division of pain so that all people, regardless of their background, contribute and that those who have the broadest shoulders make the largest contribution of all. Most importantly, I encourage Ministers to recognise that the task is only half done and that many difficult decisions remain ahead. Will they maintain the same steadfastness of approach in the future as they have shown in the past?

Job Insecurity

Richard Fuller Excerpts

Wednesday 5th February 2014 Commons Chamber

[Mr Umunna]

In relation to business reform, if the hon. Gentleman looks at the comments that we made during the passage of the Enterprise and Regulatory Reform Act 2013—[Interruption.] The hon. Gentleman has asked me a question, so he should let me finish the answer. There are elements of the 2013 Act that we thought were commendable, such as instituting the Competition and Markets Authority and setting up the green investment bank, which we started to do in government. However, we did not entertain the proposals to water down people’s rights at work so that they would be scared out of their wits, because that would have an adverse impact not only on them and their families, but on the economy.

The hon. Gentleman also talked about social security. There are two ways in which we can reduce the social security bill. First, we can ensure that more people get back into work. I very much welcome all the examples that have been given of that. Secondly, we can ensure that people earn a wage that they can live off. They will then pay more in national insurance and we will pay out less in tax credits, which is good for the Exchequer.

[Richard Fuller (Bedford) (Con)]

The shadow Secretary of State is making a thoughtful speech. Many Members on this side of the House would like to see him as shadow Chancellor. Unfortunately, it seems that we will have to wait until after the next election to see that.

The motion refers to increasing wages and to the living wage. However, there is a tapering effect that means that if somebody on the minimum wage has a pay increase of 23%—the difference between the minimum wage and the living wage for people living outside London—the increase in the money in their pocket turns out to be only 1% or 2% because of the changes in benefits. If the shadow Secretary of State were in charge, how would the Government address that?

[Mr Umunna]

It is the aim of all Labour Members not to be in the shadows at all. We are happy to give the shadow positions to Government Members.

On the hon. Gentleman’s point about wages, it is important that we incentivise employers to pay a living wage. Imposing a living wage on employers would have an adverse impact. We intend to introduce Make Work Pay contracts, through which we will give employers a tax incentive to pay the living wage. The Exchequer will easily get back the cost of that through national insurance.

[Richard Fuller]

rose—

[Mr Umunna]

I will try to make progress, because I am conscious that I have been going on for some time.

We would clamp down on false self-employment. That is the practice by which employers classify their workers as self-employed in order to pay lower levels of national insurance. Of course, that leaves workers without the protections that are enjoyed by employees, even though most people would regard their relationship as one of employment. That is a particular issue in construction. The last Labour Government proposed that workers should automatically be deemed as employed for tax purposes if they met the criteria that most people would regard as obvious signs of being employees rather than self-employed contractors. That will be the starting point for the next Labour Government.

To conclude, we have a bigger goal. Our ambition must be to transform our labour market from one that has too high a percentage of low-wage and low-skill jobs into a high-wage, high-value and high-skill labour market. Of the 25 economies in the OECD, we rank fifth in the percentage of our labour market that is low-waged and low-skilled, and we must tackle that.

Oral Answers to Questions

Richard Fuller Excerpts

Monday 13th January 2014 Commons Chamber

[Mike Penning]

While I accept some of the things that the hon. Gentleman says—in particular, I accept that Atos’ contract for the work capability assessment was brought in by the previous Administration—there can be benefits, and savings can be made, if assessments are done correctly. To look after our constituents, we have to make sure that companies do them properly.

[Richard Fuller (Bedford) (Con)]

In the Minister’s reply to my written question of 5 December, we learned that there was a prosecution in fewer than one in four of 45,000 cases of benefit fraud. Only 400 cases resulted in a prison sentence; the vast majority were handled through informal recovery processes. What proportion of the informal repayment arrangements are up to date, and does the Minister believe that increasing the incidence of prosecution would be helpful in reducing the incidence of benefit fraud?

[Mr Duncan Smith]

We have made great progress in pursuing more people than have ever been pursued before. The reality is that the amount got back from those who have been defrauding the state is better than it has been, but in the answer to which my hon. Friend refers, we made it clear that we have much more to do. It is the nature of many benefits that they are open to abuse; changes such as universal credit will simplify the process and give far less opportunity to those who would defraud the system. That is the right way to deal with the issue.

Oral Answers to Questions

Richard Fuller Excerpts

Monday 1st July 2013 Commons Chamber

[Steve Webb]

I think my hon. Friend might be referring to the idea of a total welfare cap, and while the Chancellor of the Exchequer has explicitly ruled out the idea of capping state pensions, I understand there are others in this House who are prepared to cap state pensions.

[Richard Fuller (Bedford) (Con)]

7. What assessment he has made of the performance of the Work programme in helping young people into work.

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

Just under half the young people who had been on the Work programme for a year had work, and over 46,000 had had more than six months of work.

[Richard Fuller]

I do not know whether the Minister is as disappointed as I am at the sniping negativity of Labour MPs towards the Work programme, when what they should be doing is rolling up their sleeves and making it work in their constituencies. In that spirit, will the Minister applaud the 50 small businesses in Bedford which, working in conjunction with the two Work programme providers, will on 11 July be giving 200 young people the equivalent of a day of speed-dating interviews to give them a good restart in their careers?

[Mr Hoban]

That is a fantastic example of how local employers can work with the Work programme to deliver good outcomes for people and get them into work.

Welfare Benefits Up-rating Bill

Richard Fuller Excerpts

Tuesday 8th January 2013 Commons Chamber

[Mr Byrne]

I shall give way a couple more times, but then I want to conclude.

[Richard Fuller (Bedford) (Con)]

The right hon. Gentleman is right to say that the public do not want false distinctions between strivers and shirkers and he is equally right, I think, to believe that people will see through those who pretend to care when they do not have the money to show that they care. In his more lucid moment, he explained that the Government had no more money left, so would he accept that one answer might be to push forward with ideas such as the living wage, and will he advise us, on the basis of his own research on a living wage, what impact it would have on the long-term benefits needs in the country?

[Mr Byrne]

I suspect the hon. Gentleman feels that very keenly, as 7,500 people in his constituency are on tax credits. I think that the best way to bring the welfare bill down is by getting people into work. The tragedy with the Bill is that it fails the Ronseal test set out by the Prime Minister yesterday. It does not do what it says on the tin. We are told that this Bill is all about reducing welfare spending. Actually, if we put tax credits to one side, the welfare bill for the period covered by this Bill will not rise by 1%; it is going to go up by 4%. It will go up by £8 billion because the Secretary of State is doing so little to get people back to work.

The reality of the debate is that there is a Labour way to bring down welfare spending and there is a Tory way. The Tory way, aided and abetted by the Liberal Democrats, is to attack tax credits. The Labour way is to bring down welfare spending by getting people into jobs—jobs in which they will pay tax rather than sitting on the dole taking benefits. That is why we tabled our amendment. We think that it is right to introduce a bank bonus tax to get 100,000 young people back to work, and to reform pension tax relief to create a two-year limit on jobseeker’s allowance. We think that it is right to send the clear signal that anyone who can work must not, and will not, be allowed to languish or to live a life on welfare. That is the kind of tough-minded but fair policy that we now need.

Oral Answers to Questions

Richard Fuller Excerpts

Monday 23rd April 2012 Commons Chamber

[Chris Grayling]

It is under different leadership in Northern Ireland, but let us be absolutely clear that someone who is undergoing treatment for cancer and is having chemotherapy and radiotherapy would, in almost all cases, be in a support group and be receiving long-term care. I do not know enough about the circumstances of the hon. Gentleman’s constituent to be exactly certain where she is in the course of her treatment, but one of the changes that we made on coming to office was to improve support for cancer patients, not to reduce it.

[Richard Fuller (Bedford) (Con)]

A constituent visited me during the weekend to express her concerns about her husband who is blind and who has been informed that he will lose ESA in five months. He is taking a course to enable himself to get back into work, but it will take longer than five months to complete. What additional support may be provided to people in his situation to enable them to get back into work?

Work Capability Assessments

Richard Fuller Excerpts

Wednesday 1st February 2012 Westminster Hall

[Richard Fuller (Bedford) (Con)]

I became a Member of Parliament in 2010 and, right from the start, people expressed concerns to me about the work capability assessment, which was introduced by the previous Government. Can the hon. Gentleman confirm that Atos was hired by that previous Labour Government? Were some of the concerns that he was beginning to talk about exhibited at that stage, or are they only coming to light now?

[Tom Greatrex]

The hon. Gentleman must know the answer to his question, but I have not suggested that the contract was agreed under the current Government.

--- Later in debate ---

[Richard Fuller (Bedford) (Con)]

I am conscious of the time, Mr Williams, so I will be as brief as I can. I congratulate the hon. Member for Rutherglen and Hamilton West (Tom Greatrex) on securing the debate and I encourage him to try to secure another debate later in the year, because the process is ongoing, will involve more people, and more issues such as those we have heard about today will come forward. The opportunity to bring such matters to the Minister’s attention is important. We are dealing with the human consequences of failures in a bureaucratic, state-driven system—in this case, incapacity benefit. Similarly, many hon. Members have seen the failures of the immigration system, and its human consequences for our constituents and for people around the country.

[Jake Berry (Rossendale and Darwen) (Con)]

In my constituency, I have had the experience of the fit for work tests being piloted in the Burnley benefits centre. There has been an extreme improvement through the pilot scheme to where we are now. There is more we can do, but I echo my hon. Friend’s thoughts about waiting for the completion of the process before we pass judgment.

[Richard Fuller]

I appreciate that intervention from my hon. Friend.

I would like to place in context some of the concerns we have heard about; first, about being assessed. It is quite natural to expect people to have concerns, as we are making a significant change to people’s lives. In many comments, the issue has not been a generic concern relating to assessment, but a concern about specific types of conditions and cases. Will the Minister confirm that for every 100 assessments, nine people who are found to be fit for work go on to win their appeal? That means there are 91 people who fit into another category.

One fluctuating condition that has not been mentioned is alcoholism, and people who have chronic, long-term alcoholic conditions. One constituent who came to see me had his papers from assessments in the 1990s. Will the Minister provide confirmation on that?

Although it does not relate directly to the debate, part of work capability assessment is that there is then work. In today’s conditions, what can the Minister say will be on his agenda to try to encourage some of these people into work at the end of their assessments? There is much more I would like to say, but because of the time I have to stop there.

Living Standards

Richard Fuller Excerpts

Wednesday 30th November 2011 Commons Chamber

[Mr Syms]

Yes, partly because of that. Traditionally in Britain it has been about 40%, so that gave the Government some room for manoeuvre. Any Government in office would have had a large increase in its deficit given what hit them in 2007 and 2008. There is no great argument about that and, as someone sitting on the other side of the Chamber, I think that many of the things that the right hon. Member for Edinburgh South West (Mr Darling) did were beneficial in trying to maintain a fragile economic situation.

Having said that, we cannot continue to increase debt year on year at the rate we were in 2009, 2010 and 2011 or we will overwhelm the British economy. The worst thing for our constituents is not paying tax; it is paying tax to pay interest on money being borrowed from someone else. The Government had to make a judgment, and their judgment was to set out an economic policy gradually to reduce our debt over five to seven years to a level that, once it tops off in 2016-17, can then start to be brought back to the level of more normal years, which is about 40% of GDP. In an environment in which the world was growing rapidly, that would be easier. In an environment in which the eurozone is blowing up, and there are high fuel and food prices, it becomes much more difficult. That is part of the problem for the Government in the short term. It is events—it is what is happening around the world.

There is nothing surprising about where the Government are. Sticking with the policy is perfectly sensible, but things do not go in a straight line in economics, and there will be OBR forecasts and Budgets where the figures for debt increase, and some where they decrease. It will depend to some extent on world events.

[Richard Fuller (Bedford) (Con)]

My hon. Friend is talking about debt levels. Was not one of the issues under the Labour Government the integrity of the public finances? Their estimates of public sector debt did not include the private finance initiative, which was a grossly exaggerated amount of public benefit, and they did not include the burgeoning increase in public sector pension claims on the economy. Does my hon. Friend agree that another aspect of debt in which the Labour Government’s policies were embedded was increasing the costs that people had to pay for their housing through the ever-increasing impression that housing wealth was real wealth? That has had a real impact on people’s well-being and living standards today.

[Mr Syms]

Clearly, and another problem in the British economy is that there is a lot of private sector borrowing. We have a high level of indebtedness, both of government and of the private sector. In Italy, they save rather more than we do, and as a country we should try to encourage more of our citizens to save and not live on the never-never in the long term.

I support what the Chancellor did in the autumn statement. We are clearly in choppy weather, but that is no reason to change course. We cannot adjust the budget down or raise taxation painlessly. The living standards of most of the population will be squeezed. As the IFS and other organisations have said, living standards have fallen by about 7% over the past two to three years. The good news is that next year the projection is for things to be fairly flat, with some modest recovery after that. It may well be that when we get to 2015—the general election year—we have lower living standards than in 2010 as a consequence of the fact that we have inherited a major deficit, very difficult problems and a pretty rotten international environment. That is no reason for going off course, but it is a reason for sticking to a very sensible policy. Labour Members may think that we cannot do things without breaking eggs, but that is not so. We have to raise the tax burden and reduce spending, and I am afraid that that has consequences.

Youth Unemployment

Richard Fuller Excerpts

Wednesday 9th November 2011 Commons Chamber

[Mr Byrne]

The hon. Lady need only look at the statistics, including those for her area. This year, long-term youth unemployment has risen by one third in Solihull. The future jobs fund was helping to bring youth unemployment down. To return to the point made by the hon. Member for Beverley and Holderness (Mr Stuart), we have to help young people stay close to the labour market because if we let them drift into long-term unemployment, they have a bigger chance of being unemployed in the future, of being low paid and of drifting into ill health. That is why the right decision for her constituents, as well as mine, is not to do nothing, but to act.

[Richard Fuller (Bedford) (Con)]

The right hon. Gentleman did not answer the question from my colleague, the hon. Member for Solihull (Lorely Burt). We are fooling ourselves, if we think that this problem is simply to do with this Government or the previous one. This is a long-term, growing problem of youth unemployment. [Interruption.] The hon. Member for Dudley North (Ian Austin) is looking for the statistics for my constituency. I can tell him: it is up 24%. As we look for solutions and as economies across Europe are being destroyed because of their excessive debt, my question is: what can we do that does not incur additional debt for the Government? Will he support our schools reforms? Will he support our efforts on apprenticeships? Will he support the reductions in taxation and regulation on small businesses indicated by the Government?

Pensions Bill [Lords]

Richard Fuller Excerpts

Monday 20th June 2011 Commons Chamber

[Mr Byrne]

I will in a moment.

This unfolding chaos has been impressive even for a Government who have presided over U-turns on forests, sentencing reform and the reorganisation of the NHS, because we thought we knew where we were. The coalition Government made a wise move in appointing the Pensions Minister to his brief—he is a man who knows a thing or two about pensions. Indeed, in one of his first major speeches, he told his audience:

“I have become known as something of a bore at pensions conferences.”

We have no problem with that. Then we had the coalition agreement. I do not know whether anyone remembers the coalition agreement—it was important once. Page 26 reads:

“We will phase out the default retirement age and hold a review to set the date at which the state pension age starts to rise to 66, although it will not be sooner than 2016 for men and 2020 for women.”

For good measure, the Pensions Minister got to his feet a month or so later and said that the Government were committed to any change not being sooner than 2020 for women. Then, 118 days later, the Chancellor arrives on the scene. He stands at the Dispatch Box and says that

“the state pension age for men and women will reach 66 by 2020.”—[Official Report, 20 October 2010; Vol. 516, c. 956.]

Yet buried in the fine print, we learnt the truth—not the Pensions Minister, the Secretary of State or the Chancellor could bring themselves to that Dispatch Box and actually tell people straight that that policy set out in the coalition agreement was absolutely worthless. The truth was set out in the depths of the spending review, page 69 of which read:

“The State Pension Age will then increase to 66 for both men and women from December 2018 to April 2020.”

That is a promise well and truly broken. At least when the Lib Dems changed their minds about increasing tuition fees, they could pretend that they were just making things up to get elected, but this was a promise they made and broke in government. Just last summer, the Pensions Minister boasted of reforms in the system that he said included

“those who the system has always missed out such as women and the lower paid.”

In his own Department’s review, he said that he wanted to look at the “particular challenge” for

“women pensioners. A group I have long worked for, and who are so often the poor relations in regard to pensions.”

I will let the House draw its own conclusions. One moment the Pensions Minister is offering to protect women pensioners, the next he is presenting proposals that will punish half a million women with a bill for up to £16,000.

[Richard Fuller (Bedford) (Con)]

rose—

[Mr Byrne]

I will give way, and perhaps the hon. Gentleman can explain the Pension Minister’s change of face.

[Richard Fuller]

The right hon. Gentleman was giving a discourse on integrity in pensions provision under the previous Government, which I think is important, because many of my constituents will be worried about this issue, and will be looking for integrity. He is very good with numbers—it is when he has to add them up that he has trouble—so I am wondering, on the point of integrity, could he answer this question? The Labour party has recommendations for how best to treat the women he is highlighting who are being impacted by the Bill, and those recommendations are costed at £10 billion. In the interest of integrity, will he please advise me and other Members where he would find the money?

[Mr Byrne]

Can the hon. Gentleman confirm that he has seen the costings given in the parliamentary answer provided by the Pensions Minister on 9 March 2011?

[Richard Fuller]

I have not seen those costings, so the right hon. Gentleman can enlighten me further.

[Mr Byrne]

The Minister gave an interesting answer, because those costings say that if, for example, we increased the retirement age to 67 by 2035—that is, if we accelerated the reform by one year—that would save £6.9 billion. However, if the retirement age was increased to 67 by 2034, by accelerating the increase by two years, that would save £13.7 billion. Therefore, the question for us this afternoon is: how much will be saved by accelerating the reform for those women who are now having to retire later, and who therefore confront trying to find all that money magically, in the space of just four or five years? Has that been traded off against other options, such as introducing advances in the retirement age later on? That is the question that we have to get to the bottom of in this Second Reading debate.

[Ben Gummer]

rose—

[Richard Fuller]

rose—

[Mr Byrne]

I will give way in a moment.

Let us hear what the impact of the Government’s proposals will be, because the Secretary of State rather glided over this point. Some half a million women will receive their state pension at least 12 months later than they had previously been advised, with 300,000 women—those born between December 1953 and October 1954—experiencing a delay of one and a half years. For 33,000 women—those born between 6 March and 5 April 1954—that period increases to two years. For them, the loss in state pension will be around £10,000. For those on full pension credit, the loss will be closer to £15,000. Those women, with five years’ notice of the timetable change, have almost no time to prepare for their income loss.