Business of the House

Tom Blenkinsop Excerpts

Thursday 13th June 2013 Commons Chamber

[Mr Lansley]

My hon. Friend makes an important point. We must take measures to ensure that we are fair. We have seen in the latest data that people in work, including and perhaps specifically in the private sector, have had very limited increases in their pay. Working-age benefits should therefore reflect such constraint. The Labour party, however, appears determined to allow welfare payments to balloon. The Opposition did not support us on that cap on welfare benefits, and their view appears to be that all the constraint on spending should be borne by pensioners. If they were to abandon the triple lock and do it that way, it would mean a £234 cut in the basic state pension. There are 11.5 million pensioners in this country who will be aghast at the thought that that is the proper policy to pursue.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

On fairness and wages, the Institute for Fiscal Studies confirmed yesterday that post-2010 a significant fall in average real hourly wages has occurred, so may we have a statement from the Chancellor on why he thinks that since April 2013 average earnings, including bonuses, have shot up by 5.8% in the financial sector? Maybe the Chancellor could tell us whether this has anything to do with the top rate of tax being cut from 50p to 45p in April.

[Mr Lansley]

The hon. Gentleman should know that the broadest shoulders are bearing the greatest burden and that in every year of this Parliament the richest people in this country have been paying an increasing proportion of the overall tax burden. He should also know—the Chancellor will, I know, take every opportunity to make this clear—that we are therefore focusing the help that we can give on those with lower incomes, which is why 24 million basic rate taxpayers will be £700 better off next year than they were under Labour, specifically as a result of the measures to increase the personal tax allowance.