Benefit Entitlement (Restriction) Bill

Stephen Timms Excerpts

Friday 17th January 2014 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

The Bill is, of course, directly incompatible with our membership of the European Union. [Hon. Members: “Hear, hear!”] The hon. Member for Christchurch (Mr Chope) proposes that European Union citizens who are working legally in the UK should not be entitled, for example, to help with their housing costs, which UK citizens are entitled to. That direct discrimination against EU citizens is clearly incompatible with our obligations as a member state—I noted the enthusiasm for that proposition on the Conservative Benches.

One puzzling aspect of the Bill is that under its terms, contrary to what the hon. Member for Shipley (Philip Davies) said, people from outside Europe would continue to receive the help that citizens of the European Union would be prevented from receiving. He said that he wanted anyone who is not a UK citizen to be denied access to benefits, and I think he is under the impression that that is what the Bill would do. In fact, it would have that effect only on EU citizens, not on citizens from countries elsewhere in the world.

Two million citizens of other European countries are living in the UK. Many will have lived in the UK for a long time, and some will be in receipt of housing benefit or council tax benefit, alongside other UK residents whose circumstances are similar. Under clause 2 they would suddenly stop receiving that help. Some will be in receipt of other non-contributory benefits such as pension credit, so we are talking about some pensioners being affected, perhaps after a lifetime of working in the UK. Some are in receipt of child benefit, which is not insurance based, or tax credits, but under clause 4 they would suddenly lose them. European Union citizens would suddenly be disadvantaged not only relative to UK citizens, but also relative to citizens of non-European countries. The hon. Gentleman has told the House that that is not his intention, but that is the effect of the Bill he supports.

[Mr Chope]

If, as the right hon. Gentleman suggested, a citizen of another country has been in the United Kingdom for a lifetime of work, they would be able to qualify for British nationality if they have been resident here for more than five years.

[Stephen Timms]

They may be entitled to do that, but many do not. Is it not the case that London has one of the largest French populations in the world? I think only two or three cities in France have more French citizens living in them than London does. The hon. Gentleman may feel that they should all apply for UK citizenship, but that seems to me an unreasonable demand.

[Philip Davies]

The right hon. Gentleman seems already to have started the gymnastics as to why he is against the Bill. Is he saying that if the same restrictions that the Bill places on people from within the EU were imposed on people from outside the EU, he would support it on the basis that it would be consistent? Is that what he is saying, or is he just trying to give a bogus reason for why he is against the Bill?

[Stephen Timms]

I am simply seeking to assist Conservative Members who—clearly, in the hon. Gentleman’s case—do not understand the effect of the Bill. He said that he wanted benefits to be taken away from anyone who is not a UK citizen, but that would not be the effect of the Bill. I am simply seeking to be helpful, as I always am, to him and other hon. Members, and to explain the effects of the Bill they are supporting.

It would be interesting to know whether the hon. Member for Christchurch has made an assessment of the Bill’s impact on the large number of UK citizens living elsewhere in Europe, if such a policy were adopted in other member states. There are 1 million UK citizens living elsewhere in the European Union, and if other countries adopted the policy set out in the Bill, many would find themselves much worse off. Some pensioners in other European countries would find their pensions drastically reduced, and I wonder what the impact on the Exchequer would be if large numbers of retired Britons, who currently depend on health services in other European Union member states, suddenly returned to the UK and became dependent on the national health service.

There are, of course, perfectly justified reasons for concern about how the benefits system works in respect of European countries. We certainly agree that the Government should act now to deal with the exploitation of migrant workers from the EU and provide apprenticeships and training for unemployed young people targeted specifically at sectors recruiting from abroad. It is also perfectly appropriate to make sensible changes to the rules for jobseeker’s allowance, so that it is clear that people should not simply claim benefits on arrival, but contribute first. We also support reforms at EU level so that family benefits, such as child tax credit and child benefit, are not sent abroad.

In our view, there should also be action outside the benefits system. We have argued that fines for breaching the minimum wage regulations should be doubled. Local authorities should be allowed to take enforcement action over the minimum wage. I hope we can debate that in our deliberations on the Employment Opportunities Bill, which appears in the name of the hon. Member for Christchurch further down the Order Paper. The value of the minimum wage has fallen relative to other incomes since the general election, and it is welcome that the Chancellor has indicated his change of heart and is speaking now about significantly raising it. Furthermore, the rules for gangmasters should be strengthened, and the Gangmasters Licensing Authority should have its remit extended to sectors where there is currently abuse. Steps should be taken to stop the exploitation of migrant workers by rogue landlords. It should be illegal to cram migrants into grossly unsuitable accommodation, such as garages, sheds, barns and overcrowded mobile homes.

The benefits system needs to be fair, and to be seen to be fair. Over many decades, people have come from European countries to Britain and made a huge contribution to our economy and our society. There are quite a number of EU citizens working here in the Palace of Westminster, and it would be absolutely wrong suddenly to place them at a drastic disadvantage, relative to other workers, whether UK citizens or citizens of non-European countries, such as China and India, who would not be affected by the Bill. For all those reasons, we firmly oppose the Bill.

--- Later in debate ---

[Mike Penning]

Of course, Madam Deputy Speaker. I shall try to speak up, too, so that Hansard can get every last nuance of what I say.

As I was saying, I was asked the same question when I became a Minister some three and a half months ago. That question is asked. I have officials of different nationalities who worked in Jobcentre Plus, but the difference is that it does not tie up directly with the Home Office systems at the moment. It will, however, when the excellent universal credit system comes into force. [Interruption.] I hear derogatory comments from a sedentary position coming from the Opposition side, so let me ask them whether they are going to scrap universal credit when they come into power—should this country be silly enough to allow a Labour Government back in again.

[Stephen Timms]

rose—

[Madam Deputy Speaker]

Order. However tempted the right hon. Gentleman might be to respond, we are not discussing universal credit today. I am happy for him to speak from the Dispatch Box, but he should not take us off the subject of this Bill. I expect the House to return to it.

[Stephen Timms]

I am grateful to you, Madam Deputy Speaker, but I have to respond to the Minister. We have, of course, always supported the principle of universal credit; it is a shame that the Government have made such a terrible mess of implementing it.

[Madam Deputy Speaker]

Order. That is enough. We are not debating universal credit. I require the Minister to speak only to the Bill and to ensure that the Government’s view of it is clearly heard, before we return to the promoter for his final comments.