Oral Answers to Questions
Debate between Thérèse Coffey and Steve McCabe(3 years, 11 months ago)
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Steve McCabe (Birmingham, Selly Oak) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Last week I announced the outcome of my annual uprating review. It delivers on our manifesto commitment for the pensions triple lock, thus providing financial peace of mind for pensioners across the UK. The basic and new state pension will be increased by 2.5% as that is the highest of the increases—inflation, earnings or 2.5%—and it means that from April 2021 the yearly basic state pension will be worth around £2,050 more in cash terms than in 2010.
Steve McCabe
With Birmingham set for an extended period in tier 3, does the Secretary of State have any plans to revisit the plight of pregnant mothers who are eligible for universal credit but ineligible for statutory maternity pay and therefore at a considerable financial disadvantage?
Dr Coffey
Of course, being in tier 3 has been put forward by the Government, and I am very conscious of the efforts that were being made right across Birmingham and other areas of the west midlands to get out of that tier. As regards matters such as statutory maternity pay, a lot of these things continue to be under consideration, but I will consider the points the hon. Gentleman has made.
Finance (No. 2) Bill
Debate between Thérèse Coffey and Steve McCabe(10 years, 7 months ago)
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Steve McCabe
I am afraid that is true. I know that some people will not be comfortable with having to be reminded of that, but it happens to be the case.
To return to the point that the Government’s position is slightly misleading, we know that the Prime Minister himself has been confused about it. Like his hon. Friends, he thought that he was introducing a policy for all married couples paying the basic rate of tax. I can imagine that, in this day and age, it is pretty hard for the poor Prime Minister to keep up with the all the shifts and machinations in his Government, but surely there is something wrong with a policy that deludes even the Prime Minister into thinking he is giving a tax break to all married couples paying the basic rate, which he is not. Thank goodness we have had the opportunity to set the record straight in this debate; otherwise the poor man might have gone around the country perpetrating that calumny. People might have begun to doubt his work on other things, as well—his whole judgment might have come into question. Thank goodness we have had the chance to challenge that idea.
We certainly need to review the policy, because were it to be extended to the nearly 9 million married couples who pay the basic rate of tax, as the Prime Minister implied, it would cost considerably more than the Chancellor’s projections. For that reason alone our amendment, which asks for a review, is crucial. We need to know exactly what the policy will cost and what it would cost were it to meet the Prime Minister’s aspirations.
As we have heard, the policy will give £200 back to 3.4 million couples, but other Government policies will have made the average family £974 a year worse off by the time of the election. Some 85% of the tax allowance will go to men. Perhaps that harks back to the good old days of Tory marriage—I do not know—but in this day and age I do not think the policy will be broadly accepted by women up and down the country. As we have heard, it will not be available to married couples whose income falls below the personal allowance. [Interruption.] I think the hon. Member for Suffolk Coastal (Dr Coffey) has something stuck in her throat. If she wants to intervene, I—
Dr Coffey
I thank the hon. Gentleman. This point has been made before, but we cannot have such a recognition in the tax system for people who do not pay tax. However, the Government have taken many other measures for them, including ensuring that Labour’s fuel duty escalator did not operate. If it had, fuel would be 90p a gallon more, or £450 a year for the average household.
Steve McCabe
The hon. Lady is right, and Government Members have attempted to make that point before. She is absolutely right that the VAT rise put enormous pressure on both petrol costs and all sorts of other family incomes.
At its best, the Government’s measure will reward about 3.4 million of the country’s couples who are married or in civil partnerships with £4 a week. That is the figure from the Institute for Fiscal Studies, but if the Government have better figures and want to challenge the IFS, that will be welcome. I would be interested to know not only the cost of the tax relief but the administrative costs of a £4 a week benefit for 3.4 million couples. It does not strike me as the best way to reduce the overall costs of tax collection or harmonise the system.
As was acknowledged earlier, the transfer of allowances reintroduces an element of joint taxation, a measure that the Tory party sought to abolish when it moved to individual taxation as long ago as 1990. The hon. Member for Enfield, Southgate (Mr Burrowes) talked about all the countries that recognise marriage, but the move to individual taxation is a much bigger trend in tax systems across the world. It seems to me that it is the Tory party that is moving in the wrong direction, because as we have heard in this debate, Conservative Members want to move to a fully transferrable tax system. They want to go back to the days of old, and that is exactly what they are going to do. [Interruption.] I think the hon. Member for East Worthing and Shoreham has something to say. Would he like me to give way to him?