Oral Answers to Questions

Stephen Crabb Excerpts

Wednesday 9th October 2013 Commons Chamber

[Chris Ruane (Vale of Clwyd) (Lab)]

11. What steps the Government are taking to tackle low pay in Wales.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

Since this Government took office, wages and salaries growth have revived, and nominal growth in 2012 of 2.8% was the strongest since 2007.

[Mr Hanson]

I am sorry to disappoint the Minister, but average wages in Flintshire have fallen since the general election, and more than 300,000 people in Wales are currently earning less than the living wage. I support aspiring to a living wage. Does he?

[Stephen Crabb]

What I support is creating the right conditions for the private sector to create new jobs in Wales. In the right hon. Gentleman’s area in north Wales we anticipate that 40,000 new jobs will be created in the next five years. He should get out and back the support for balanced recovery that will bring benefits to his constituency and across north Wales.

[Chris Ruane]

Real wages have gone down in 38 of the 39 months since this Government came to power. Zero-hours contracts, payday loans and flouting of minimum wage law, on top of rising energy, food, and transport bills, have left my constituents feeling vulnerable. Has the Minister any plans to deal with falling living standards?

[Stephen Crabb]

I am sorry that the hon. Gentleman is another Labour Member who does not welcome the fact that unemployment has fallen in his constituency since the general election. We recognise that wage levels are not where we want them to be, but most of the deterioration in wage levels happened in the last three years of the previous Labour Government. We are helping people in Wales on low incomes by taking 130,000 people out of income tax altogether, and by freezing fuel duty. Because we have taken the responsible decision to cut the deficit, we are able to keep interest rates low, which means that low earners in his constituency, and mine, can hang on to their homes.

[Guto Bebb (Aberconwy) (Con)]

12. Does the Minister agree that the Labour party should be celebrating the fact that unemployment in a constituency such as mine is lower now than it was in 2010, and that we have 69,000 new private sector jobs in Wales, compared with 2010? The Labour party should celebrate success, not play down the economy of Wales.

[Stephen Crabb]

I totally agree with my hon. Friend—Labour Members should celebrate the progress we are making in Wales. There is a lot more work to be done, but unemployment is lower. Rather than criticising the private sector in Wales, which they do time and time again, they should be championing business growth in Wales.

[Jonathan Evans (Cardiff North) (Con)]

Has my hon. Friend, as part of his assessment, carried out a full review of Welsh employment and unemployment since 2010? Perhaps he could share that with the House.

[Stephen Crabb]

We see a lot of positive things happening in the Welsh economy—businesses are growing. I am particularly excited when I go to north Wales and see some of the dynamic things happening in the private sector there, but we believe that this is a recovery for the whole of Wales.

[Albert Owen (Ynys Môn) (Lab)]

15. Wages are down by 10% in my constituency, unemployment is stubbornly high and energy prices are soaring, yet the Government do not have a plan to freeze energy prices. VAT has taken money out of the economy in constituencies such as mine. What plans do the Government have to restore pride and confidence in businesses in Ynys Môn?

[Stephen Crabb]

I am surprised to hear that question from the hon. Gentleman. His constituency is set to benefit from a huge level of private sector investment. We talk about the exciting things happening in north Wales and his constituency is one of the places that will benefit the most. He should back that.

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

5. What recent assessment he has made of the potential costs and benefits of High Speed 2 to Wales.

--- Later in debate ---

[Geraint Davies (Swansea West) (Lab/Co-op)]

9. What recent assessment he has made of the effects in Wales of changes to housing benefit.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

The Government remain committed to reforming housing benefit to create a fairer and more affordable system.

[Mark Tami]

Will the Minister advise me where he thinks Flintshire county council and other local authorities are supposed to find these mythical one and two-bedroom properties? While he is at it, why does he think it is a good idea to force disabled people out of homes that have been adapted by councils at high cost?

[Stephen Crabb]

We are not forcing disabled people out of their homes. On the hon. Gentleman’s question about Flintshire, we are making available to his local authority more than £240,000 this year in discretionary housing benefit. I ask him to ask his local authority why it has more than 275 empty properties in the social rented sector. That is part of the answer to the local housing problems in Flintshire.

[Geraint Davies]

Is the Minister aware that in Swansea two thirds of the thousands of people affected by the bedroom tax are now in arrears and that those arrears have doubled since April? Will he and the Secretary of State have an urgent meeting with the Prime Minister to make the case for Wales, which is the worst affected area in the whole of Britain, with fewer smaller units and the poor being thrust into dire poverty and the arms of loan sharks?

[Stephen Crabb]

I am happy to meet the hon. Gentleman to talk about housing issues in Swansea, but he should be aware that there are about 300 empty properties in the social rented sector in Swansea. That should be part of the answer to the problems he is talking about. I am concerned to hear about the large increase in the number of people he says are suffering from rent arrears. We are making available substantial resource to Swansea borough council, and we should be asking how it is using those discretionary housing payments to assist people through the difficult transition.

[Glyn Davies (Montgomeryshire) (Con)]

One of the best ways to help those affected by changes in housing benefit is through the provision of new single-person housing, but that has not been helped by the reduction in social housing built by the Welsh Government or by the extra Welsh-specific building regulations, which have impacted on the private sector and driven it out of Wales altogether.

[Stephen Crabb]

We have seen the comments by Redrow Homes and Persimmon Homes. These are important Welsh builders who need to be building new homes in Wales, but who are not building as many as they should be. The Welsh Government are responsible for the supply of new housing in Wales, and I think that serious questions need to be put to Welsh Ministers in Cardiff about that.

[Owen Smith (Pontypridd) (Lab)]

It is truly extraordinary that the Minister continues to defend the bedroom tax. Will he confirm for the record whether, according to the Government’s own figures, Wales is hit harder than anywhere else in the UK? As he mentioned the disabled, will he tell us how many disabled households in Wales are hit by the bedroom tax?

[Stephen Crabb]

We have had this question before. Wales is not hit harder—to use the hon. Gentleman’s terminology—than other parts of the United Kingdom. What is remarkable is that he still clings to the mythical economics of plan B. More than anybody else in the Opposition, he argues for more spending, more borrowing and more debt, all of which is a road to poverty for people in Wales.

[Owen Smith]

The Government’s own impact assessment states that 46% of households in social housing in Wales have been hit by the bedroom tax, which is a higher proportion than anywhere else in Britain. Those are the Government’s own numbers. The bedroom tax will also hit 25,000 disabled families. The Minister should confer with his colleague the Chairman of the Welsh Affairs Committee, the hon. Member for Monmouth (David T. C. Davies), who said only yesterday that the bedroom tax was not working in Wales. It is not working for those 25,000 people—25,000 reasons why we need a Labour Government to scrap the bedroom tax and deliver justice for those people in Wales.

[Stephen Crabb]

I did not see the specific remarks of my hon. Friend the Member for Monmouth (David T. C. Davies), but we are making available to Wales more than £7 million in extra money for discretionary housing payments. On top of that, we are making money available for rural borough councils in Wales to assist with the transition. We recognise that it is a challenge and a difficult period for people going through our changes to housing benefit, but we are supporting local authorities in Wales to help Welsh people through that transition.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

7. What recent discussions he has had with the Secretary of State for Transport about capital investment in the Cardiff to Manchester railway line.

--- Later in debate ---

[Jessica Morden (Newport East) (Lab)]

10. What assessment he has made of the effects of the under-occupancy penalty in Wales.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

The removal of the spare room subsidy, which already applies in the private rented sector, has brought fairness back into the system. This Government are prepared to tackle this long-standing inequality and are taking the tough decisions to deliver a recovery that works for all.

[Jessica Morden]

I have contacted many housing associations in Wales in recent weeks, and the information so far points to the fact that—[Interruption.]

--- Later in debate ---

[Jessica Morden]

Thank you, Mr Speaker.

I have contacted many housing associations in Wales in recent weeks, and the information collected so far points to the fact that about 45% of those who were previously able to meet their rent payments are now in arrears. Given that the discretionary housing payments are clearly not enough, what message does the Minister have for those who are falling into arrears?

[Stephen Crabb]

I have not seen the information that the hon. Lady has brought to the House today, but I will gladly sit down and go through it with her. I would be concerned if, as she says, there has been such an increase in the number of people suffering rent arrears. That is not what we are planning for, and we are making available to Welsh local authorities the resources to ease families through this difficult transition.

[Mr Speaker]

An extraordinary thing has happened. The appetite for interrogation of hon. and right hon. Members seems to have dried up. We have completed all the questions and we have had the answers. The principals are here, and we are ready to go.