Economic Situation

Debate between Siobhain McDonagh and Chris Philp

Wednesday 12th October 2022 Commons Chamber

[Chris Philp]

I thank my hon. Friend for his question. It obviously depends on the prices at which the Bank and England buys and sells bonds or gilts in the market. It is worth observing that so far it has purchased considerably less by value of gilts than the limits that were set out originally. The volume of gilts that it has on its balance sheet is much less than the limits. On his question about fiscal cost, if there is any fiscal cost, that will depend entirely on market prices.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

Two days before the Budget, a young constituent of mine hoped to buy her home through shared ownership. She was offered a mortgage at 4.28% interest by the Halifax. A day after the statement, the offer was withdrawn and a two-year fixed-rate deal has rocketed to 6.9%—that is £150 a month more overnight because of the Government’s unfunded giveaways to people on over 150 grand a year. What is the Minister’s advice to my constituent? Should she take the deal, or does he agree with the panel of experts at the Treasury Committee this morning that she should not go near it, because house prices are about to plummet?

[Chris Philp]

I am obviously not going to offer individual financial advice to constituents. What I would say is that there are about 2,300 mortgage products currently on the market. We are keen as a Government to help first-time buyers, particularly younger ones in their 20s and 30s, which is why stamp duty is being cut for cheaper purchases. The stamp duty threshold for first-buyers has been raised, from memory, to £425,000, which particularly helps with putting together a deposit, which cannot be mortgage-funded. In addition, we want to help people with the broader cost of living pressures, which makes it easier to find money to fund mortgages. That is what the energy price guarantee is designed to do, and it is what lower tax rates in general are designed to do, including the tax reductions that the Labour party voted for yesterday. It is what the cost of living package is designed to do—the £37 billion. By helping with the cost of living in general, we are obviously making mortgage costs a little easier to meet.

No Recourse to Public Funds

Debate between Siobhain McDonagh and Chris Philp

Thursday 8th October 2020 Westminster Hall

[The Parliamentary Under-Secretary of State for the Home Department (Chris Philp)]

It is a pleasure to serve under your chairmanship, Mr Paisley. I only narrowly avoided serving under the chairmanship of Ms Nokes, one of my predecessors in this role, as several Members have mentioned this afternoon.

I congratulate the right hon. Member for East Ham (Stephen Timms), my hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds) and, of course, the hon. Member for Glasgow South West (Chris Stephens) on securing this afternoon’s important debate. Everybody who has spoken has contributed with great sincerity and passion, and I have been listening carefully to everything Members have said. Where I have, occasionally, been on the phone, I have been texting officials asking various questions in follow up on points that have been raised.

I will start by laying out some of the historical context to the “no recourse to public funds” policy. It has existed since the Immigration Act 1971, and the principle that underpins it is that it would not be reasonable for people who have arrived here very recently or on a temporary basis to be able to access the full range of benefits available to somebody who is settled here or a citizen. If we look at the categories of people to whom the NRPF condition applies, it is people such as visitors, those who are here on a holiday visa, students, people who come here to study, and workers who are here for a short time or, in some cases, a longer time. There would be an inherent unfairness if, having literally just arrived, people were able to fully access public funds.

[Siobhain McDonagh]

Can the Minister add to his list women whose children are born and brought up here and are UK citizens, and are going nowhere?

[Chris Philp]

I was going to come to that point. It is a very reasonable question to raise. Let me just finish my point, and I will come on to address the point that the hon. Lady has raised, entirely understandably and rightly.

It is worth mentioning that, of course, refugees are not subject to the NRPF condition. A couple of hon. Members, including the hon. Member for Birmingham, Selly Oak (Steve McCabe), talked about the time it takes to make decisions. I am not sure if he was referring to asylum decisions or another kind of decision, but I make it clear that anyone claiming asylum or anyone granted asylum is not subject to the NRPF condition, and neither are people who are granted indefinite leave to remain.