Welfare Reform Bill

Simon Danczuk Excerpts

Wednesday 15th June 2011 Commons Chamber

[Jenny Willott]

I think she means “the hon. Lady”, rather than you, Mr Deputy Speaker. This is obviously an issue for the Minister to address later, particularly in regard to the terms of reference. I do not believe that it would have been appropriate for disabled people to take part in the research, because it is my understanding that this is an information-gathering exercise—

[Simon Danczuk (Rochdale) (Lab)]

Shame!

[Jenny Willott]

The hon. Gentleman shouts “Shame”, but this is an information-gathering exercise to obtain evidence on the basis of which a decision can be made. At that point, it will be appropriate for people to be consulted. When we know the evidence base, and what options are open to the Government, it will clearly be appropriate to consult. At the moment, the Government are communicating with local authorities to find out what funding is in place, and disabled people are probably no more aware of that than I am. It would not be appropriate, while gathering that information, to consult. Afterwards, when we have the evidence on which to base a decision, it will become appropriate to consult on the options.

Amendment of the Law

Simon Danczuk Excerpts

Tuesday 29th March 2011 Commons Chamber

[Simon Danczuk (Rochdale) (Lab)]

I listened to the hon. Member for Burton (Andrew Griffiths) with interest. The Budget has not been as well received in my constituency of Rochdale as it clearly was in Burton. I am not sure whether that is to do with the amount of beer that is consumed in Burton compared with the amount that is consumed in Rochdale. However, like him, I will concentrate my comments about the Budget on my constituency.

One of my central concerns since the coalition announced its programme of spending cuts has been that we will end up with a jobless recovery. I suspect that that is exactly where we are going. I understand that the Conservatives are motivated by their ideological belief in small government. They cut Government spending and public sector jobs because they believe that it is the right thing to do. Once upon a time, the Liberal Democrats agreed with Labour. Before the general election, they led voters to believe that they were a party of the centre left. I know that that is hard to believe now. Page 13 of their manifesto stated:

“If spending is cut too soon, it would undermine the much-needed recovery and cost jobs.”

That is what is happening today.

The Budget provided the Chief Secretary to the Treasury and his colleagues with the chance to use their influence in the coalition Government to help constituencies such as Rochdale that suffer from chronic unemployment. Rochdale’s unemployment statistics make worrying reading. Currently, 8.6% of the town’s active population is claiming jobseeker’s allowance, with almost 15 claimants per vacancy at the jobcentre. No doubt the 4,000 unemployed people in my constituency were unimpressed to hear the Chancellor increase his unemployment forecasts. Those forecasts tell them not only that it will be a long time before they will have an opportunity to gain employment, but that more people will be joining them on the dole queue—and all because the Chancellor will not change his course.

Rochdale is heavily dependent on the public sector. We face £64 million of cuts from this Government’s Budget just in local government. That will force even more people in Rochdale on to jobseeker’s allowance. The Government have long argued that they will create the conditions for the private sector to sweep in and create the jobs that are needed. Let us look at the reality in Rochdale. In many respects, the Chancellor has only increased Rochdale’s disadvantages. The enterprise zone at Manchester airport will continue the worrying trend of investment being drawn away from Rochdale to other, often more prosperous, parts of Greater Manchester. The new enterprise zone will create a disadvantage to Kingsway business park in my constituency. What is more, the Centre for Cities report shows that every job created in an enterprise zone costs more than twice as much in real terms as a job created by the future jobs fund, and more than four times as much as a new deal job. The Chancellor has made much of his tax incentives to encourage businesses to create jobs. However, the research and development tax relief for small businesses will help less than 1% of those businesses.

In conclusion, we have learned nothing new about the Conservative party. We have known all along that it would prefer to give tax cuts to bankers than invest in the future jobs fund or in manufacturing. However, the Liberal Democrats once portrayed themselves as the defenders of places such as Rochdale. They should be ashamed of what they are party to. This Budget shows that they are unable to stick up for their ideas and for the people they purport to represent. It is no wonder that this weekend, yet another Liberal Democrat councillor in Rochdale announced that she would not renew her membership of that party.

Oral Answers to Questions

Simon Danczuk Excerpts

Monday 22nd November 2010 Commons Chamber

[Chris Grayling]

I can absolutely give my hon. Friend that assurance. That is a priority for me at the moment. As it becomes clear who is on the framework and who is not, it will become increasingly clear where we might have issues with the transition. In those areas where the flexible new deal will continue to run until the summer, it is not an issue, and in those areas where the flexible new deal does not exist, it is a concern. We will take urgent measures in the next few days, as we have completed work on the framework and identified the gaps, to ensure that we put in place the necessary support, probably through Jobcentre Plus, to ensure that we look after those who are affected.

[Simon Danczuk (Rochdale) (Lab)]

20. What effects he expects the introduction of the proposed universal credit to have on marginal deduction rates experienced by households currently in receipt of tax credits only.

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

I repeat that the universal credit will benefit a large number of people, improving work incentives for some 700,000 people who will see their marginal deduction rates fall from about 96% to 76%. The specific group that the hon. Gentleman is talking about will have their withdrawal rates rise marginally, although that will be met by our guarantee that nobody will be a loser in the course of this.

[Simon Danczuk]

I genuinely welcome the Secretary of State’s attempts to get more people incentivised and back into jobs, but does he accept that his proposals are more likely to fail because the regional development agencies that created many jobs in Rochdale and other parts of the country are to be replaced by what Lord Heseltine has called a “high-risk” regional growth fund?

[Mr Duncan Smith]

I do not accept that point. We recognise that it is critical to create those jobs and we expect them to be created as the economy grows. The big problem with creating jobs under the previous Government was that 70% of all the jobs created in 15 years went to people from overseas and not from the UK. The big issue for us is getting people in the UK ready and able to do that work, which the Minister with responsibility for employment, the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), is busy doing through the Work programme.