(6 months, 4 weeks ago)
Commons ChamberIt is a pleasure to speak, Mr Deputy Speaker, but it is not without a sad heart. When I was thinking about what to say, I thought, “Should it be a thank you?” We are sent here by our constituents; in my case, they have sent me three times, for which I am inordinately grateful, but the greater privilege is that they have let me into their lives, to help them. As my right hon. Friend the Member for Maidenhead (Mrs May) said, we should always remember that we come here to serve. We should serve with courtesy and with a smile, and ensure we are always second in the queue to our constituents.
I have had the most enormous amount of fun, whether in my constituency or in this place. I find it very difficult to run through my list of thank yous, but my first thank you is to my team, particularly to Lesley. Lesley started walking the streets with me—no comments, please; I am sorry for the turn of phrase, Lesley—when I was selected as a candidate back in 2014. She is still in my office, running it and being a star. Supporting her now are Wendy, Laura and the wonderful Helyn, who previously worked next door for my right hon. Friend the Member for West Suffolk (Matt Hancock). Lesley has served this place for 42 years. It is people like her, and Carolyn, who came before, and Harry, who I thank. It is them, as staff, who do the lion’s share of caring for our constituents, week to week.
I place on record, as many others have done, my thanks to the Doorkeepers, who are the glue who stick us all together. As they hugged me this morning and yesterday, their gold emblems jangled—[Laughter.] Come on, ladies and gentlemen! They are the Crown jewels.
It’s not going anywhere. They are the glue, as are those in the Tea Room—I will be sad never again to have that special cup of coffee, with the little heart on top, poured by Godfrey; those who ensure our Committees are ready and our Select Committees are doing the important job of holding us to account; and the Clerks, who will answer any question of process. I give my thanks to them. If it were not for them, we could not uphold democracy; we do that and we do it well. We work across the House as people who come here to serve. When we lose the ability to do that courteously and kindly, and to work for the betterment of each and every person in this country, we are all losers, so long may that work continue.
After the glue, I want to thank all those who have served me in my private office or in the civil service. I had the privilege of being asked to go to the Whips Office. There are many former and current Whips in the Chamber. The Comptroller of His Majesty’s Household, my hon. Friend the Member for Castle Point (Rebecca Harris), is in my view a star among us. She makes sure this Chamber runs. She will sit in the early morning and have her breakfast, which is often a piece of brie or gorgonzola that she picked up from Marks & Spencer on her way in. You are never quite sure if it is your feet, or if she is having her breakfast. She is an institution. Long may the people of Castle Point return our special star.
To the Deputy Chief Whip, my right hon. Friend the Member for Nuneaton (Mr Jones), and to others, I say thank you. Thank you for never disclosing that I probably have one of the bawdiest senses of humour in this place. Near or far—if anyone remembers—we serve. Although the Whips Office perhaps is not always spoken about in the best of terms, we care. Those of us there care very deeply about ensuring that our colleagues in this place are looked after. It is not only about the votes; it is about making sure that, in one of the toughest jobs that we are called to do—because others are right that it is a vocation—we are supported. We support those in our “family”, and also look across the House to help others where we can. To the Whips Office, in which I was a retread, I say: thank you very much. It was truly the honour of my life to serve in the Royal Household, to be at the King’s coronation with my hon. Friend the Member for Castle Point and my right hon. Friend the Member for Nuneaton, and to walk in front of the coffin of Her late, beloved Majesty.
I went from the Whips Office to the Department of Health and Social Care, and a pandemic occurred. In many ways, our finest and our best came to the fore. We should never forget that. It took a toll on our country and our finances, but we showed ourselves at our best: agile, committed, caring and inventive, as my right hon. Friend the Member for West Suffolk (Matt Hancock), under whom I served, said. The vaccine, developed by the fine minds that we have running our businesses and employing our people, did us proud. Serving alongside the chief medical officer and the two deputies, the chief dental officer and others was another privilege of being in this place.
Taking the gene editing Bill through Parliament when I was in the Department for Environment, Food and Rural Affairs was a Brexit bonus to me, and hopefully it will serve as a lasting legacy to farming. It was not the way I would have chosen, but it is the way we are walking, and you are better off finding sunshine when you walk than always seeing rain when you look upwards.
I came here as a cancer campaigner, having had it three times. Life is a joy. To represent is a joy. I will leave this place as Employment Minister, doing something that I think is incredibly special and very Conservative: making sure people have jobs. If we are about anything, it is making work for people and giving people dignity. With dignity, people can make choices, and with choices they can thrive.
That brings me on to the final bit. Our jobs mean that we can look after our families, and for me, my family is everything. I would not be here if my husband had not said to me, “Be happy and work for your constituents; I will support you all the way.” Many have spoken about the toll taken on families; for my family, it has been no different, so I am going to enjoy them—the whole noisy, bawdy bunch of them—because they are the very best thing in my life.
I leave here with a heavy heart because I adore this place. We are lucky. I adore many of you. I think we are a fantastic party. To be one of the blues is to be on the best team, in my view, and I will carry on fighting for the blues, because this country needs compassion, hard work, and people who believe that we are the best to represent them. I have represented the very best of this country in Bury St Edmunds, and I will miss you all. Serve our country well, because it truly is the best. Thank you, Mr Deputy Speaker.
It is nice to see you in the Chair, Mr Speaker. Thank you for all your service, and for the kindness that you have shown me since you have been in the Chair.
When I was in my early teens, I had a day out in London. I sent my parents a postcard of this building and, rather arrogantly and presumptuously, I wrote on the back, “My future office”. I had forgotten all about it, but when my father passed away just a few days after the last general election, I found that postcard in his house. I guess the dream came true, and they kept it for all those years.
I have won four general elections, and I will be the first and last MP for Winchester and Chandler’s Ford, because the boundary changes will break up the constituency. I have said from the very start that nobody owns Winchester. I would like to think that I won the seat because I worked so hard to get it, and I would like to think that I kept it because I did the job to the best of my ability every single day. Equally, nobody owns the keys to No. 10 Downing Street. The future has not been written yet and, contrary to what people may read, this election is not over. Like many colleagues, I wish my Conservative friends standing on 4 July the very best, especially my right hon. Friend the Prime Minister, who is a hard-working, decent man. We are very lucky to have him as our country’s leader.
I will not detain the House, but I want to reflect on two things and to thank people. For me, just being an MP was enough—it was clearly a mission of mine from a very young age. I worked with my right hon. Friend the Member for South West Surrey (Jeremy Hunt) as his PPS in the then Department for Health, and I have been a Government Whip, which is the only team game in this place. I have been a Health Minister, and now I chair the Health and Social Care Committee. It is record of which I am proud. As the Health Minister, I began what would become known as Pharmacy First and I wrote the cancer plan, so it is appropriate that I should follow the hon. Member for Basildon and Billericay (Mr Baron). We urgently need a new cancer plan from the next Government.
I established the HIV Commission alongside the shadow Health Secretary. We worked to produce the road map to get England to zero new transmissions by 2030, and we will do so. I extended the human papillomavirus vaccine to boys, which is not something that my teenage son thanks me for, given that he had to have it the other day. That may seem a small and technical change, but I know that it will save tens of thousands of lives. Sooner rather than later, we will eradicate cervical cancer from our country.
Clearly, there is so much more. Over a good number of years in Government, we do so much and, frankly, I cannot remember the half of it. Working alongside two Secretaries of State—the current Chancellor, whom I have just mentioned, and my right hon. Friend the Member for West Suffolk (Matt Hancock)—I think we did some good things. I am so grateful to my right hon. Friend the Member for Maidenhead (Mrs May), who spoke at the very start of this debate many hours ago, who as Prime Minister asked me to serve in her Government.
Of course, being elected Chair of the Health Committee was a huge honour, and I have worked with some fabulous officials and fabulous Members across party lines—which is the great secret of this place—to produce some really important reports on prevention, assisted dying, dentistry, digital, integrated care systems and pharmacy. I think they will stand the test of time.
I cannot let this moment go without mentioning the armed forces parliamentary scheme, which has just been mentioned. Among all the amazing experiences I have had here, it is one of the best things I have done. I recommend it highly to returning and new Members.
I have a few important thank-yous to my staff of the present—Alice Hammond, Toby Colehan, Alex Pinney and Helen Hill—and of the past, especially Russ Norton and Janette Munro Ford, without whom I would never have won in the first place. Obviously, like everyone, I thank the good people of Winchester and Chandler’s Ford for giving me four in a row. Thank you so much. It has been a great privilege to represent you, and I have always done my best to put the constituency first. Of course, I thank my wife Susie and my children Emily and William, who allowed me to do this in the first place.
Finally, to repeat something I said in the House a few days ago, there is a maxim that I try to live by in my life and that I have certainly tried to live by in the House of Commons, and I hope that those coming after me will too: it is nice to be important, but it is much, much more important to be nice.
(2 years, 2 months ago)
Commons ChamberWe know that the Bill is straightforward in what it seeks to achieve: as clause 1 sets out, it simply repeals the Health and Social Care Levy Act 2021. Ministers are asking us today to overturn a piece of legislation that they and their colleagues strained to defend and voted in favour of a little over a year ago.
As I set out on Second Reading, we welcome Ministers scrapping the tax rise on working people introduced by last year’s Act, but while the levy was not due to come in until April 2023, and the Bill means that the levy will never be charged, the Act also raised national insurance contributions for the current financial year 2022-23 as a transitional measure. As clause 2 confirms, the Bill keeps national insurance contributions at that higher level for the first seven months of this year, before letting them return to their previous levels from November. The decision by Ministers to scrap the national insurance rise is, of course, better to have come late than never, but this in-year change means that yet another cost will be paid for through working people’s taxes, as public money pays to undo the mess created by the Tories having made the wrong call last year. The explanatory notes to the Bill confirm that there will be a cost of an in-year change. Under “Financial implications of the Bill”, they state:
“HMRC anticipates increased call volumes and customer contact as a result of the in-year reduction of NICs rates. There will be delivery costs in implementing this policy. IT changes will be required to be delivered at additional cost to HMRC, to support safe delivery of this policy.”
All this could have been avoided if Ministers had simply listened to people across the country, to the Opposition, to Members on their own side, to the Federation of Small Businesses, the British Chambers of Commerce, the CBI, the TUC and so many others. If Ministers had listened, they would have realised that it was wrong to go ahead with this tax rise on working people in the first place. While we know that the U-turn before us will cost more than if Ministers had made the right call last year, we do not have a figure from the explanatory notes for exactly how much this will cost. On that point, the Bill’s notes simply say that
“Costings will be set out in due course.”
In other times, I might have read that statement and concluded that Ministers genuinely do not know the costings, but if their behaviour over the OBR report is anything to go by, it could be that they are simply refusing to publish those costings for political reasons.
It is because of this Government’s lack of willingness to subject themselves to transparent scrutiny that we have tabled new clause 1. New clause 1 would require the Chancellor to publish a report on the financial implications of the Act on the day that it comes into force. That report must make an assessment of the Treasury’s plans to raise an amount of revenue equivalent to the proceeds of the levy in the context of its approach to general taxation and borrowing.
As I mentioned on Second Reading, the Economic Secretary to the Treasury confirmed in a letter sent to the shadow Chancellor and the shadow Secretary of State for Health and Social Care on 22 September that:
“The additional funding used to replace the expected revenue from the Levy will come from general taxation and may require further borrowing in the short-term.”
We already know that borrowing is set to soar thanks to the Government’s disastrous and discredited approach to the economy. We know that their approach has inflicted huge harm on our economy, damaged our international standing and pushed up mortgage payments for households across the country. We know in particular that the Government’s failure to publish the OBR report showing the detail behind their approach has aggravated the spooking effect on markets. Through our new clause, we would require the Government to explain how they will maintain the funding equivalent to the levy, given their wider reckless decisions on borrowing and the economy.
New clause 1 refers to general taxation. As Members may recall, when they announced the health and social care levy last year, the former Prime Minister and Chancellor explained that, alongside the national insurance increase, the Government would also increase taxes on income from dividends at the same time. On 7 September last year, the previous Prime Minister, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), said:
“because we are also increasing dividends tax rates, we will be asking better-off business owners and investors to make a fair contribution too.”—[Official Report, 7 September 2021; Vol. 700, c. 154.]
The question arises of why the current Prime Minister and Chancellor have decided to cut this tax rate from April 2023. They do not need to scrap the dividends tax rise as part of the repeal of the Health and Social Care Levy Act—the dividend rate does not appear in that Act—but they have none the less committed to doing so. I would be grateful if the Minister could set out whether he agrees with the former Prime Minister’s argument that having a higher tax rate on dividends means asking better-off people to make a fair contribution. If so, can he confirm why the Government have decided that it is the right time to cut taxes for those who are better off, even if that means greater borrowing funded by all taxpayers?
As I have made clear throughout, we are glad that the Government are using the Bill to finally scrap this tax rise on working people, but it is clear that taxpayers will pay yet again to fix the mess the Tories have created, that Ministers are planning to again cut taxes for those they have described as the better-off and that this Government are desperate to avoid scrutiny of their plans. It is with that final point in mind that we ask Conservative Members who are uncomfortable with their Government’s approach to join us in supporting new clause 1.
Our new clause would simply require the Treasury to be transparent about how it will replace the money for health and social care that will no longer accrue from the health and social care levy, in the context of its wider approach to taxation, borrowing and the economy. As we have heard throughout the day in Parliament, there is widespread concern that the Government’s plans do not add up and that their lack of transparency is making matters worse. Our new clause makes clear to Ministers that this must change.
I was not planning on speaking, but there are a couple of points that I would like to put on record, as a former Health Minister. I will not revisit the debate on the leadership campaign in the summer, or support new clause 1. I listened carefully to the hon. Member for Ealing North (James Murray) setting out his argument, and I have some sympathy with some of it, as he probably gathered from some of my interventions earlier.
I was happy to support the Second Reading of this repeal Bill—not that we had a Division on it. The Bill was well trailed throughout the ridiculously long leadership campaign in the summer; I do not think that that was the issue that spooked the markets at the time of the fiscal event a couple of weeks ago.
As my hon. Friend the Member for South Suffolk (James Cartlidge) said so eloquently on Second Reading, this is probably the most important debate that we could be having; I am miffed that the House of Commons is so quiet. It is about funding the British public’s No. 1 priority: the national health service. It was about that when we passed legislation on the levy, and it is about it now that we are repealing it. The issues have not gone away. I will listen carefully when the case for new clause 2 is outlined, but new clause 1 looks down the wrong end of the telescope. My hon. Friend cited the Office for Budget Responsibility’s projection that NHS funding will, in coming years, go from about 10.3% to 17.5% of GDP. Those are eye-watering figures. I have to say, as a former Minister for public health, primary care and prevention, that we cannot simply carry on that curve.
I want to put on record my points on three or four of the big challenges that the health service faces. If the Government let ideology get in the way of facing down those challenges, future generations—and Governments, whether Conservative or Labour—will pay the price. Take obesity. UK-wide, the NHS costs attributed to being overweight and obesity are projected to reach £9.7 billion by 2050. When I was in the Department of Health, we wrote the child obesity strategy. It is fair to say that the former Prime Minister, my right hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson), did not like a lot of it when he was running for the leadership of our party. In fact, I think he referred to the sugar tax as a sin tax, but—let the sinner repent—he came round to it. Now I hear rumours that it is for the bin.
I hear rumours that many other measures, including those around price promotion—"buy one, get one free”, as it is colloquially known—are also potentially for the bin, because we do not want to be seen as a nanny state. This from the state that recently passed a law making it illegal to leave the house without good reason. Sometimes, the state does things in the interests of the population that it serves, and there is no shame in that. If we do not tackle the obesity challenge, it will have not only a big financial impact on the NHS, which we are talking about how to fund, but a big social impact.
That takes me to my second point, which is on cancer. Around four in 10 cancers today are preventable. Smoking causes at least 15 different types of cancer. It is the biggest cause of cancer in the world today. Earlier, the hon. Member for Stockton North (Alex Cunningham) mentioned the smoking cessation plan, which I published when I was in office, and subsequently updated. We are still waiting for its revision. Press reports say that it is to be dropped as well. I gently suggest that that would be a massive own goal for our Government, and for the NHS, which we argue about how to fund.
Without question. We had some success with our tobacco control plan, but progress has stalled. We cannot ignore the pandemic, as the Opposition Front Benchers sometimes try to, and I understand that it disrupted the smoke-free England plans, but we need to get back to it, for social reasons, and for economic reasons relating to the health service that we seek to fund.
I am sure that right hon. and hon. Members from across the House have heard of the “Be Clear on Cancer” campaign, and of the “Touch, Look, Check” message encouraging women to check their breasts. I lost my mother to breast cancer; it destroyed much of my family. I brought a ten-minute rule Bill on the subject to the House earlier this year. Breast Cancer Now tells me that it thinks that there are 12,000 undiagnosed breast cancers in this country today. One does not need to be a genius, a former Health Minister or a breast surgeon to understand what that could mean: undiagnosed breast cancers move beyond stage 1, into 2 and 3, when they are untreatable. That is what happened to my mother, and I do not want it to happen to others. If the nanny state means implementing “Be Clear on Cancer” campaigns to help people avoid cancer, I am a nanny state-ist.
My hon. Friend makes an important point about raising awareness, particularly on public health, and I support the points that he makes, but does he agree that, at this time of real challenge, it is also important to drive public awareness of how to use energy more efficiently, in order to help people with their fuel bills?
I know why Dame Rosie is smiling: she thinks that I have possibly attempted to fit my Second Reading speech into this response to new clause 1. If I go down the road of energy policy, I may test her patience. All I would say to my hon. Friend is that, if the energy price guarantee was a price cap, and people could not pay more than the amount at which the cap was set, there would be some argument for not having a public campaign advising people on their energy use. It is not a cap; it is an energy price guarantee. If people use more energy, they will pay for more energy. It therefore seems logical to me, on lots of levels, to help people save energy—but what do I know?
I was just coming to diabetes. The NHS spends about £10 billion a year—that was about 10% of its budget, when I was in the Department—on diabetes care. That is a phenomenal amount of money, yet type 2 diabetes is preventable and, as we have heard from Members, people can turn it around. Why would we not want to encourage people to manage their weight better, when weight is one of the big drivers of diabetes?
Finally, stoke is a big killer in this country. It costs the NHS billions. During conference recess, I visited a group in my constituency called Say Aphasia—I figured it was a better use of my time. I met a group of 15 men who had had strokes. One was two years younger than me. They had severe communication difficulties. I see my hon. Friend the Member for Bury St Edmunds (Jo Churchill), a former public health Minister, by the Front Bench. She knows what I am going to say. Why would we not want to help the NHS prevent stroke through a proper salt reduction strategy? Given my surname, when I tried to suggest one to the Department, it caused some amusement among officials, but I think it is the right thing to do. If we cannot prevent stroke, I will meet a lot more people like those I met in the Say Aphasia group last week. Their ongoing cost to the NHS is significant.
In conclusion, the point I am trying to make, and maybe I am not making it very well, is that, if we do not believe in prevention—and in my heart I believe that those on the Front Bench do believe in prevention—the costs of the NHS predicted in the OBR book are going to look quite conservative. I think I am right in saying that those projections include this levy being in place, not repealed—
And corporation tax, as my hon. Friend says from a sedentary position. If we believe in prevention—and, as I say, I believe that those on the Front Bench do—we need to have the courage to act on that. That will mean doing unpopular things, but sometimes we have to do unpopular things to do the right things, and that means preventing some of the major killers and some of the major causes of ill health that I have mentioned. If we do not do that, the NHS will continue to cost unsustainable amounts of money and it will become unsustainable. There endeth the lesson of Dr Brine.
I want to focus my remarks on my new clause 2. I thank the 25 right hon. and hon. Members who added their signature to mine on the amendment paper, and I am pleased that it has support from Plaid Cymru, Alba, Labour, Green, and Social Democratic and Labour party MPs.
The Conservative party was wrong to introduce the health and social care levy, so it is right that it is being scrapped, but it is wrong that the Government are imposing a package of unfunded tax cuts, which have created financial panic and led to interest rates shooting up and millions of people fearing how they will keep their home. The package has created a Tory crisis made in Downing Street, but being paid for by working people.
As I say, I welcome the scrapping of the levy, but of course health and social care still need the extra funding that it would have raised. We only have to look at today’s news about how the number of social care workers has fallen for the first time in a decade to see just how broken our care system is, and rising waiting lists and soaring ambulance waiting times show that the NHS is in dire need of a funding boost. So my new clause 2 would require the Chancellor, in addition to scrapping the levy, to look at different taxes to raise the income that would have been raised by the levy. Specifically, it calls on the Chancellor to look into the iniquity of tax rates on wealth being lower than the taxes paid on income from work.
We are, I am afraid, one of the most unequal countries in Europe when it comes to income distribution, but it is even worse when we look at wealth. The richest 1% hold almost a quarter of UK wealth, so we need a full and wide debate in our country about wealth taxes. I have been calling for a wealth tax—for example, a one-off wealth tax of 10% on wealth over £5 million, which could raise £100 billion and provide an emergency wealth fund to help get us through this crisis—but today, with new clause 2, I want to concentrate not on the taxing of wealth itself, but on taxes on income deriving from wealth.
We have a scandalous situation in our society in which income derived from wealth is taxed below income derived from work. If someone is lucky enough to be able to live off share dividend payouts, they will pay less in tax than someone who earns exactly the same amount by getting up each and every day and going out to work. Likewise, capital gains tax, which is paid on profits when selling assets such as a second home, is paid at rates below income tax rates. How on earth can that ever be justified, and how can it be justified when the Government are plotting—without any democratic mandate, I would add—to cut benefits and public services across society?
In fact, there is huge potential for increasing tax revenues by simply ending the significant tax discounts that go to income from wealth over income from work. How much would be raised by doing this? Ending the lower rates paid on capital gains and share dividends, and removing the related exemptions on those taxes, would raise around £24 billion per year. That is a lot more—nearly double—than the amount from the national insurance tax hike on working people, which would have raised around £12 billion to £13 billion. The funds that my proposal would raise could be a big down payment on the investment that we need to ensure our social care system delivers for everyone, and it could make a big difference in addressing the crisis in our health service.
For those on the Conservative Benches who may be appalled by this idea or this moderate proposal, I want to point out that the former Chancellor—not the last one, but the one before, the right hon. Member for Richmond (Yorks) (Rishi Sunak)—commissioned a review of capital gains tax, and that review recommended slashing the annual allowance and aligning capital gains tax rates more closely with income tax, in a move that could raise billions of pounds for the Exchequer. On this, Margaret Thatcher, even, had an interesting view. Under Thatcher’s premiership, the same basic unfairness of lower taxes on capital gains was ended. It was back in 1988 that the then Chancellor, Nigel Lawson, said that
“there is little…difference between income and capital gains, and many people effectively have the option of choosing…which to receive. And…it is by no means clear why one should be taxed more heavily than the other.”—[Official Report, 15 March 1988; Vol. 129, c. 1005.]
Since then, wealthy people living a low-tax lifestyle have been benefiting from even lower capital gains rates than over 30 years ago, so something has gone wrong and it is now time to put that right. We need solutions to deal with this economic crisis in a socially just way, not through austerity, not through benefits cuts and not through public service cuts. Social justice means putting tax justice at the heart of our economy. We should start by ensuring that those who live off their wealth pay at least the same level of tax as those who live off their own work.
(3 years, 11 months ago)
Commons ChamberI agree. Inequality, and the differential impact on people, has been one of the defining features of this crisis. I do not think anyone can avoid that. It is relevant to make that point in this debate.
We have to be honest about the state of our social security system going into the crisis. Since 2010, poverty has increased significantly in the UK. In addition, people who were in poverty in 2010 are now so much deeper in poverty than they were. This is not an argument about definitions. Conservatives themselves were the driving influences behind bodies such as the Social Metrics Commission, which came up with a new definition of poverty that was actually very similar to the one that has traditionally been used. The Government’s own estimate is that 4.2 million British children live in poverty. That is shameful, wrong and unnecessary.
The UK, along with Ireland, is an outlier compared with the rest of Europe when it comes to inequality. That means that the reality for millions of families is that they went into this crisis already under significant pressure. As the Resolution Foundation said in 2019, the 1.7% increase to universal credit that year was the first working-age benefit increase for five years. Last year, the real value of basic out-of-work support was lower than when John Major was Prime Minister, so anyone claiming that the system is too generous, or who is trying to resurrect the stigmatising rhetoric of George Osborne, simply has no case to make.
The hon. Gentleman is a reasonable man—I like him. He is making a sensible speech. While we are being honest about social security systems, is it still the Opposition’s policy to abolish universal credit, as it would have been had they won the general election in December 2019, although it is widely accepted to have been successful in flexing to expand in the current crisis? Is it still Her Majesty’s Opposition’s policy to abolish the entire system, and what do they propose putting in its place?
(4 years, 1 month ago)
Commons ChamberThe universal credit system is designed to ensure that people are better off working than not working, and this Government introduced the national living wage, which has seen a huge uplift for a lot of people. In addition, by raising the personal tax allowance to more than £12,000 we have lifted at least 4 million people out of paying tax altogether. So people’s take-home pay has risen thanks to the actions of this Government, and we will continue to support families. However, under the In-Work Progression Commission, I want to go further, and Baroness Ruby McGregor-Smith is working on that because we want to make sure people can continue up the career ladder as well.
I really welcome this package today, most of all because it is a comprehensive, coherent and funded plan. We are spending our constituents’ money, and this plan has been put together outside a political storm, which has to be the right way to proceed. Will the Secretary of State confirm that support with food costs will not just be confined to families with school-age children, but will extend to all eligible pre-school children? We have to make sure we look after pre-school meals as well as free school meals.
My hon. Friend is absolutely right on that, and I welcome his support for this package. We are taking that comprehensive, holistic approach, trusting our local councils to target the people who need that support. Commendable as people may have thought the motion discussed in the House a few weeks ago was, we wanted to make sure that every child at risk of going hungry this winter would be helped. This is also why we want to continue this approach with councils, whereby with these additions to their welfare funds they can really try to ensure that people have the money, if necessary, to heat their homes and prepare good nutritious meals.
(4 years, 2 months ago)
Commons ChamberMy hon. Friend has one of the constituencies with the highest number of pensioners in the country, but for his future pensioners this is an important Bill. It will bring transparency for the first time about what is happening with individual investments. This Government are not in favour of trying to force divestment of different elements of fossil fuels and similar—I am conscious that he has Bacton in his constituency. But the Bill is about making sure that the trustees—effectively, the way in which pension funds will be used—are clear about how they can contribute to ensuring that we tackle climate change and how their investments can play a part in making that happen.
This unprecedented period that we have been experiencing has shown more than ever the need for financial resilience but also the need to focus on future resilience. Helping workers to achieve greater financial resilience for themselves for the long term is a crucial part of our economic recovery. Improving the financial resilience of the public is a personal priority for me and I am proud that the Bill is designed to help pension savers across the country. The Government have already taken action to ensure that there is support for pension contributions under automatic enrolment in the coronavirus job retention scheme. How important that policy is to us is demonstrated by the fact that we will be paying for pension contributions for kickstarters.
There are five parts to the Bill. Parts 1 and 2 set out the regulatory framework for new collective money purchase schemes, also known as collective defined contributions or CDCs. Interest in the CDC schemes is growing, as both members and employers look for options beyond the more traditional choices currently available to them to build long-term resilience. The schemes will provide employers with a new way of providing a pension where employers and employees can work together to deliver mutually beneficial outcomes.
The schemes will enable contributions to be pooled and invested, to give members a target benefit level. Investment risk is borne across the membership, rather than by individual members, delivering a good income in retirement without the cost of guarantees and without placing future liabilities on the employer. The Bill will ensure that the schemes are well run and we will require good member communications, so that members understand how their scheme works, including the risk-sharing features of CDC schemes, and that benefit levels may fluctuate.
Part 3 strengthens the powers of the Pensions Regulator. That fulfils our manifesto commitment to tackle those who think they can plunder the savings of hard-working employees. No more. The Bill introduces criminal sentences, so that the worst offenders could end up in jail for seven years, ensuring that those who play fast and loose with hard-working people’s pensions face justice. These important measures introduce the power to issue civil penalties of up to £1 million, as well as creating three new criminal offences for individuals found to be acting wilfully or recklessly.
Some concern has been expressed in the other place that the scope of the powers is too wide and might deter people from becoming trustees. Let me reassure hon. and right hon. Members in this House and the other place that our objective is not to stop or interfere with routine business activity, or to deter people from becoming trustees. We have been clear that businesses must be allowed to make the right decisions to allow them to develop and grow. These new laws underline the importance of being trusted with the stewardship of members’ retirement savings and ensure that people’s hard-earned financial resilience is protected.
Our objective is to provide a sufficient deterrent to make individuals think twice before acting in a way that puts members’ savings at risk. The key point is that the Bill makes it crystal clear that an offence is committed only if the person did not have a reasonable excuse for their behaviour or for engaging in that particular course of conduct. It will be for the regulator to prove that the act was not reasonable. The Pensions Regulator will publish specific guidance on these powers after consulting with the industry.
Part 4 of the Bill delivers on our manifesto commitment to legislate for pensions dashboards. The world of work is changing, and people now have an average of 11 jobs in their lifetime. Pension savings built up during this time are often with different providers, and many people struggle to keep track of their pensions and find it difficult to make informed decisions about their retirement. The provisions in the Bill will bring pensions into the digital age and help individuals to make informed decisions about their financial futures. Pensions dashboards will provide an online service, helping people to reconnect with their pension pots, enabling them to find lost pensions and allowing them to view all their pension information, including the state pension, in a single place.
I welcome the Bill, and part 4 in particular, including the bit that my right hon. Friend has just outlined about pension dashboards. It is such a minefield for our constituents to find all this information in one place, although people can do so very easily, for instance, via the HMRC dashboard in respect of tax. The Bill talks about compelling schemes to participate and to provide good quality data in a timely manner. Could she just expand on that compulsion? What exactly does that mean in legal terms?
The Bill will require the pension schemes to provide all the data that they have available, so that it can be brought together to provide that information. I am conscious that this is further data, which may take a little time to come together, but this has been worked on for some time and we have made careful progress with the industry to get to this point. If my hon. Friend has any more detailed questions, my excellent Pensions Minister, the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman), will be able to pursue this either in later interventions or in Committee.
(9 years, 9 months ago)
Commons ChamberThe jobless count among 18 to 24-year-olds in my constituency is down 79% since 2010. Does the Employment Minister agree that a degree from a good university is one route into work—and someone who goes to the university of Winchester will be among the 92% who are in employment or further education six months after graduating—but just one route, because one of this Government’s great achievements has been to give young people hope that there are other routes?
My hon. Friend is quite right. University is one route into work, and if it works for people that is great, but apprenticeships are another route, and this Government have done more than any other to get young people into apprenticeships—there are now more than 2 million apprentices—and into work. I know that my hon. Friend works closely with his university and local businesses to make that happen.
(11 years ago)
Commons ChamberThe Minister gave an important description of all the different measures we have taken to support those who face the greatest challenges with poverty and low incomes. We are not here—I hope that the Opposition are not—to celebrate food banks, which are not the answer. They must be seen not as a solution or as something that we want institutionalised, but as a transitional support mechanism for families in stress at particular moments. Opposition Members sometimes seem to relish the number of food banks. If they would mention some of the key reasons for the perfect storm hitting those on low incomes and benefits in particular, we might start to arrive at solutions.
I agree with my hon. Friend that there is a “relish” about this on the Opposition Benches. Is it not the case that, in her constituency as in mine, food banks did not come into being in May 2010? Next year I shall be reading at the 10-year anniversary service for the Winchester Basics bank. The fact is that food banks have been around for a long time.
My hon. Friend is quite right.
Let us return to some of the reasons that lie behind the present situation, few of which were mentioned by the hon. Member for Garston and Halewood (Maria Eagle). Food prices began to rise in 2008, and since then global commodity prices have risen by 30%. Much of that happened under the last Government. During our first couple of years in office, we linked pensions to inflation and the rise in the cost of living.
We need a solution to the problem of rising global food prices. Why, in 2010, did the proportion of our domestic food production—which would have hedged our exposure to global prices—drop to 48%? This Government are working to increase our food resilience and our long-term food production.
(11 years, 2 months ago)
Commons ChamberMy hon. Friend will be pleased to know that the thinking behind our reforms is to ensure that when families can sort things out for themselves, they do so. That will enable the CSA to pursue the remaining cases involving absent fathers—or mothers—much more vigorously, so that those who are refusing to pay feel the full force of our enforcement action.
9. What steps he is taking to reduce waiting times for work capability assessments.
The work capability process was introduced by the previous Labour Administration in 2008. We are committed to ensuring that work capability assessments are as fair and accurate as possible in determining who is fit to work and when they can return to work. The Department has instructed Atos to introduce a quality improvement plan, as was announced in this House by written statement.
I thank the Minister for that. Can he just confirm that nobody will be worse off as a result of the necessary push on quality that he has just mentioned and the slow-down it may cause for some of our constituents?
No one will be worse off. Quality is very important, so as to ensure that when the assessments are done the first time, they are done accurately and do not have to go back on appeal. If there is an overpayment to someone because they are assessed at a lower rate, they will be able to keep that payment.
(12 years, 5 months ago)
Commons ChamberHaving had a very useful meeting with Winchester Mencap on Friday, may I tell the Minister that it is particularly concerned that some of the flexibility of incapacity benefit should be built into employment and support allowance, as in the experience of many people with a learning disability, any paid work offered often peters out after only a few months?
These are issues that we are very sensitive to. We do everything we can to ensure that the support we provide to people with different forms of challenge and disabilities, through the Work programme and work choice, delivers the best possible and most tailored support. We will always engage with the charities involved and discuss how we can enhance the support we provide.
(13 years, 8 months ago)
Commons ChamberThe hon. Lady needs to understand that this problem has been building steadily for the past decade. It happened in good years under the previous Government. We are dealing with the appalling inheritance of 600,000 young people who left school, college or university and have never worked. We think that our programmes will start to make a difference, that they will be better value for taxpayers’ money, and that they will be more effective than the previous Government’s programmes. Above all, we think that apprenticeships give the foundation for a lifetime of skills and employment. That is why they were such a centrepiece of the Budget.
T9. Severe autism sufferer, Alastair Bolan, and his family came to my surgery in Winchester on Friday afternoon. Like many families living with the condition, they are anxious about the move to personal independence payments. They made the case to me passionately that a one-to-one interview for Alastair would be an absolute disaster, as it would be for many like him who have been granted permanent disability living allowance with good reason. I know that the Minister is good at reaching out to organisations, so will she reassure me that she will continue to engage with the all-party group and autism charities to minimise the uncertainty that some people feel?
I can reassure my hon. Friend that both I and officials have met representatives from the National Autistic Society, which has put forward helpful thoughts on the new assessment. It has asked for the people who carry out the assessments to be trained in autism, for individuals to be able to bring somebody to a face-to-face assessment, and for them to be able to use the best supporting evidence. We agree 100% with its proposals.