Oral Answers to Questions

Wendy Morton Excerpts

Tuesday 8th April 2025 Commons Chamber

[Rachel Reeves]

Hear, hear. I had better declare an interest as a proud Member of Parliament for Leeds West and Pudsey. West Yorkshire combined authority is receiving £830 million for transport spending through round 1 of the city region sustainable transport settlement. That includes £200 million for the development of a mass transport system. For too long Leeds has lacked this. This Government will put that investment in and get those trams running.

[Wendy Morton (Aldridge-Brownhills) (Con)]

T3. With the jobs tax and the increase in business rates, and as a result of US tariffs, it is vital that we stimulate the UK economy. What is the Chancellor’s plan, and can she expect us to see interest rates fall? Perhaps if she was listening to the question, she would be able to answer.

Spring Statement

Wendy Morton Excerpts

Wednesday 26th March 2025 Commons Chamber

[Rachel Reeves]

My hon. Friend is a proud advocate for her city, and this Government are a proud advocate for the people of Portsmouth. That is why we have put investment in the Portsmouth naval base in today’s statement. As we grow our defence spending to keep our country safe and secure, we want to ensure more good jobs that pay decent wages, to make Britain a defence industrial superpower, and to support those who serve on the frontline.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Today, the Chancellor could have taken action to reverse the damage that she has done to people and businesses in my constituency and beyond, but she failed; she chose not to. What does she say to all the pensioners, farmers, businesses, charities, hospices and hard-working people who face her huge tax rises?

[Rachel Reeves]

When I became Chancellor, I inherited from the Conservative party a £22 billion black hole, which we have taken action to address. I would say to the right hon. Lady’s constituents that they will now see a doctor or nurse more quickly than under the last Government, because NHS waiting lists have fallen for five months in a row.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Wendy Morton Excerpts

Consideration of Lords amendments
Wednesday 19th March 2025 Commons Chamber

[James Murray]

I thank the right hon. Gentleman for mentioning hospices, and perhaps I may set out the Government’s position on hospices and some of today’s amendments. The Government recognise the vital role that hospices play in supporting people at the end of life, and their families, and they also recognise the range of cost pressures that the hospice sector has been facing over a number of years. We are supporting the hospice sector with a £100 million increase for adult and children’s hospices, to ensure that they have the best physical environment for care, and £26 million of revenue to support hospices for children and young people. The £100 million will go towards helping hospices to improve their buildings, equipment and accommodation, to ensure that patients continue to receive the best possible care.

[Wendy Morton (Aldridge-Brownhills) (Con)]

The point that Opposition Members are trying to emphasise is that the Government appear to be giving with one hand, but taking away with the other. The hospice sector is just one example of many sectors that have been adversely affected by the Government’s cruel tax.

[James Murray]

As I said a few moments ago, the way that the Government support central Government, local government and public corporations—that is Departments and other public sector employers—is the same way that the previous Government responded to the health and social care levy. That is a standard way in which the Government offer support for employer national insurance costs.

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[Dame Caroline Dinenage]

I rise to speak in support of the Lords amendments, and I direct the House to my entry in the Register of Members’ Financial Interests.

I want to talk about the services that are so integral to our communities, because they are the ones on which our constituents rely. I am talking about GP surgeries, dental practices and pharmacies. I am also talking about our community hospices; the charity hospices that care for our loved ones through the most difficult and heartbreaking of times; the hospices that our constituents work so hard to raise funds to keep going. including our children’s hospices.

I listened very hard to what the Minister said, and he talked really dispassionately about difficult decisions. Has he no shame? This is a choice, and the Government have chosen to impose this jobs tax on children’s hospices and the services that support families going through the most unimaginably difficult and painful of times.

[Wendy Morton]

My hon. Friend speaks with so much knowledge and passion, and she is a real advocate for her constituents. When we look across the Chamber, we see that the Labour Benches are threadbare. Is that not testament to the fact that Labour is actually trying to defend the indefensible?

[Dame Caroline Dinenage]

That is absolutely right. There are over 400 Labour MPs, but just four of them are sitting there to try to defend this indefensible jobs tax on our most vulnerable. They should be utterly ashamed of themselves. Do they not have children’s hospices in their constituencies? Do they not have hospices and other settings that their constituents work so hard to raise funds for? They should be absolutely ashamed of themselves.

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[Dave Doogan]

It is almost three months to the day since we were here in this Chamber on Third Reading. The SNP and other parties warned at that stage of the very real, dire consequences for organisations, businesses, charities, hospices and so on. It certainly does not give me, or anybody else on the Opposition side of the House, any pleasure that those threats have come to pass. There is no pleasure in that whatsoever.

The British Chambers of Commerce spoke last month of a “powder keg of costs” for businesses, with 82% of firms surveyed saying that they faced the potential of staff lay-offs, wage freezes or cancelled promotions in the workforce, which will be a terrible drag on the economy. Last month saw vacancies in the UK contract at the second-fastest rate in nearly five years, while wage growth has slumped to an almost four-year low. If we want the evidence of what business thinks of this change, it is there in the figures: 300,000 small business owners surveyed last month said they intend to lay off employees in order to cope with Labour’s national insurance increase.

The economic impact is now becoming absolutely clear. Last week’s GDP figures show the UK economy shrinking in January. On Monday this week, the OECD downgraded the UK growth forecast for both this year and the next. The reality under Labour is that economic growth has fallen in four of the past seven months. The national insurance grab represents an extraordinary and unforced error in fiscal policy. If Labour genuinely has confidence in this move, then it should have no issue whatsoever in agreeing to Lords amendment 21 and publishing an impact assessment of its national insurance increase. What the Minister detailed as an impact assessment was in fact an analysis. An impact assessment deals not with the numbers, but with output in the real economy—the effect on business. The Minister knows fine that that is not what he is talking about.

On GPs and Lords amendments 1, 4, 5, 9 and 13, the Scottish Government will be investing—or compensating, rather—£13.6 million in general practice this financial year to support GPs in Scotland alone, obviously, to retain and recruit staff in the face of the change. But Scotland’s GPs, any more than England’s, Wales’s or Northern Ireland’s, should not be paying the price for UK Government decisions. Labour’s decision to increase national insurance contributions is a catastrophe for GP practices and for charities across Scotland—the relevant Lords amendments are 2, 7, 12 and 16.

There are 7,000 charities in Scotland at risk from this Labour Government. Marie Curie faces a £2.9 million inflation to its costs, with £75 million across the charitable sector in Scotland. The Scottish Society for the Prevention of Cruelty to Animals alone is exposed to a £400,000 recurring pressure from this Labour Government. Scotland’s public sector faces a £700 million recurring pressure, which, with the Government’s compensation, still leaves a £200 million shortfall. Scotland is again being punished for choosing to invest more in its public services and paying people who deliver those services better.

The Government regularly attack us by saying, “What would you do?” I will tell them what I would do: £30 billion by rejoining the single market; £16 billion by introducing Scottish income tax rates; and £43 billion from a wealth tax of 1% on assets over £10 million. But this Labour Government will not go after multimillionaires. They would far rather go after the disabled, hospices, family businesses, GPs, farmers, councils and charities. That is what these so-called socialists are intent on doing.

In conclusion, Labour’s fiscal bonfire is what my colleagues in the Scottish Government have had to deal with to try to ameliorate and protect communities from Labour’s economic ineptitude. But even fiscally incompetent Unionists—a cadre in whose number I include the Minister—must realise that the Scottish Parliament cannot exist simply to ameliorate and protect Scottish public services from the United Kingdom’s decisions. Devolution can only ever be a temporary face-lift for the crumbling foundations of Unionism. As the Union crumbles, I shed no tears, but I wish it was not ripping the economic heart out of Scotland on its way down.

[Wendy Morton]

I would like to start with a gentle reminder, if it is needed, that Labour promised in its manifesto not to raise national insurance. Yet we are here today because Labour broke that promise. We are here today because right hon. and hon. Members in the other place tabled some very important amendments to the Bill, which are, rightly, now here for us to consider. Let us also not forget that Labour colleagues voted against protecting small family businesses; against protecting hospices; against protecting GPs; against protecting care providers; against protecting small charities, including air ambulances; against protecting providers of school transport for children with SEND; and against protecting nurseries. Now they all face the jobs tax.

[Sir Roger Gale]

My right hon. Friend will recall that the hon. Member for Loughborough (Dr Sandher) referred in his speech to perverse incentives. Is it not perverse that the Government should, while exempting the health service, be taxing doctors, dentists, hospices and children’s hospices, which are, effectively, all part of that same health service?

[Wendy Morton]

My right hon. Friend is absolutely spot on. I find it hard to believe that we are listening to those arguments being made by Labour Members. The unintended consequences of the Labour Government’s choices are not just disappointing but callous. They are so harsh on some of the most vulnerable communities and vulnerable people in society.

[Dame Caroline Dinenage]

My right hon. Friend is making some excellent points. Does she agree that it also shows a deep lack of understanding by the Labour party of the way our communities are constructed and the organisations we rely on so much to keep them going?

[Wendy Morton]

That is exactly the point. What we see instead is Labour Members continuing to blame their economic inheritance. That is simply not correct. The chair of the Office for Budget Responsibility said:

“Nothing in our review was a legitimisation of that £22 billion”.

I wonder what the former Governor of the Bank of England, Mark Carney, makes of all this. In the run-up to the 2024 general election, he endorsed Labour.

What many people now see is a Government who do not really understand the role that so many charities play in supporting the NHS, communities, older people, young people, families, and patients—people who are sick and sometimes terminally ill. For example, why would they protect the public sector and the rest of the NHS from the national insurance tax, but not general practice? Analysis from the Institute of General Practice Management estimates that it will cost each practice an average of £20,000 a year. How many staff hours is that equivalent to? How many hours of a GP’s time or a practice nurse’s time is that?

I have spoken to a number of local charities, and we have heard from others today. Every pound that the Labour Government squeeze out of them through the jobs tax is an extra pound that cannot be spent on frontline services—an extra pound that they have to find just to stand still. I find it so hard to believe that this Labour Government are also taxing those who provide vital hospice care. How can they talk of helping palliative care with one hand, while clobbering hospices and care providers with extra taxes with the other?

I can be cynical at times but I see a complete lack of business expertise, knowledge or experience among those on the Labour Benches. Just visiting businesses is not enough to understand how a business operates. I speak to them in my constituency on a weekly basis. The chair of the CBI has stated that

“business has been milked as the cash cow”.

We simply cannot expect small businesses, or indeed any business, to just be squeezed and squeezed, thinking, “Well, they’ll just increase their costs and pass them on to the end user.” The end user cannot afford them, as we have heard this afternoon. Ultimately, something will have to give: hours, training, development and jobs.

Just yesterday, we were in this Chamber debating the Government’s welfare reform. At the heart of the issue, I really believe people want to get back into work. They need support to do that, but they also need employers and businesses to have vacancies so that they can support them back into work. What I, like others, see in this legislation is the Government taxing businesses out of creating the vital jobs that this country so needs to get the growth that we do not have at the moment.

As I mentioned, attendance on the Government Benches is somewhat threadbare, giving the appearance that the Government do not care. We have heard from Labour Members who do care, just like we on the Opposition Benches care. I draw my remarks to a conclusion by urging Members on the Government Benches and those listening outside to reflect very carefully. We all have the opportunity today to do the right thing—to protect and help charities and hospices and, by virtue of that, to protect and help some of the most vulnerable in our country and society. We have the opportunity to protect jobs and help businesses to create opportunities and, by virtue of that, to help working people who aspire to a better life. I end quite simply by urging those on the Government Benches to think again and to do the right thing.

[James MacCleary (Lewes) (LD)]

I wish to express my deep concerns about the Government’s national insurance changes and the devastating impact they are having on essential services in my constituency. The amendments put forward by the Liberal Democrats in the Lords are crucial to preventing this policy from inflicting serious harm on GP practices, care providers and the wider health system.

Take our GP surgeries, which are vital to healthcare in Lewes and beyond. I have been speaking to local healthcare providers in my community over the past week. Unlike private businesses, GP surgeries cannot pass their costs on to their patients. Every extra pound spent on national insurance is a pound less spent on patient care, staffing and appointments. The Government’s failure to exempt them will mean fewer face-to-face consultations and longer waiting times, contrary to the Government’s claimed objectives. The Liberal Democrats’ Lords amendments 1, 4, 5, 9 and 13 would protect GP surgeries, NHS-commissioned dentists and pharmacists by keeping their national insurance costs at a sustainable level.

Social care providers are facing the same predicament. A domiciliary care provider in my constituency is already struggling to recruit and retain staff due to rising costs.

Family Businesses

Wendy Morton Excerpts

Wednesday 26th February 2025 Commons Chamber

[Mel Stride (Central Devon) (Con)]

I beg to move,

That this House regrets the Government’s decision to introduce a cap on Business Property Relief, meaning that some family businesses passed down upon death will face Inheritance Tax for the first time in 50 years; further regrets the Government’s other economic policies that will damage family businesses, namely raising employers’ National Insurance contributions, reductions to business rates relief, making employers potentially liable for third-party harassment, the powers in the Product Regulation and Metrology Bill [Lords] that would allow the Government to ban pubs from selling pints, and the provisions in the Employment Rights Bill for guaranteed hours which will make flexible working harder to achieve; and therefore calls on the Government to support family businesses which provide employment for almost 14 million people, and contribute more than £200 billion in taxes each year, by lifting the cap on Business Property Relief, not implementing the increases to employers’ National Insurance contributions and business rates, and powers to change units of measurement, and to stop the progress of the damaging Employment Rights Bill.

At the last general election, the Labour party—now the Government—told us that it aspired to become the natural party of business, which is an absurd suggestion given what has happened over the past seven short months. It is as absurd perhaps as the Business Secretary claiming to be a qualified lawyer, as absurd perhaps as the Attorney General claiming to be a patriotic lawyer, or as absurd perhaps as the Prime Minister claiming to be anything other than a lawyer. The economy has tanked. Inflation recently spiked at 3%, and it is to go still higher; it was 2% on the day of the general election, a legacy that we bequeathed to the Labour party. Borrowing is up—substantially up—on the forecasts that the Office for Budget Responsibility produced at the last Budget, and growth has been killed stone dead. The Bank of England tells us that the economy will grow at half the rate it had originally suggested.

It is no wonder that all the business confidence surveys show confidence crashing through the floor as a result of what this Government are doing. Businesses are laying off jobs, businesses are putting up prices, businesses are reducing investment, and businesses are sometimes having to put themselves up for sale or, even worse, are going under.

[Wendy Morton (Aldridge-Brownhills) (Con)]

On that specific point, a local businessman wrote to me:

“I have spent over 50 years building my engineering business from the ground up, only to now face the possibility that my life’s work could be dismantled due to an unfair tax burden.”

Why on earth would anybody want to start a business in the current climate, which has been created by the Government?

--- Later in debate ---

[James Murray]

It is important to emphasise that the correct data to work out the impact of these changes is the claims data. That is what is available to HMRC, and it is the basis on which we have established how many farm estates are likely to be affected by the changes.

[Wendy Morton]

The point that we are trying to make is that the Minister is looking only at one dataset, not the big picture. We have spoken a lot about farmers, but the business property relief is about the whole of the business community. Will he not go away and have another look at this, taking account of all the evidence that, hopefully, he has been listening to since the announcement of this reckless policy?

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. Before the Minister continues, let me remind Members who have not understood the etiquette that they cannot just wander into a debate when someone is on their feet and try to intervene. They need to take part in the whole debate.

Public Finances: Borrowing Costs

Wendy Morton Excerpts

Thursday 9th January 2025 Commons Chamber

[Darren Jones]

Yes.

[Wendy Morton (Aldridge-Brownhills) (Con)]

It is deeply disappointing that the Chancellor is not here to answer questions in the House on such an important topic, so I shall have to ask my question to the Chief Secretary to the Treasury instead. It is quite a simple one. Will he stand by the Chancellor’s comment that she will not come back with more tax increases?

[Darren Jones]

I am sorry to disappoint the right hon. Member, but I will answer the question none the less. She asked me whether I stand by the Chancellor’s statements, and the answer is yes.

Employer National Insurance Contributions

Wendy Morton Excerpts

Wednesday 4th December 2024 Commons Chamber

[Darren Jones]

I agree with my hon. Friend, and I encourage Opposition Members to put forward proposals. I am all ears. I am willing to listen to them, but so far all we have is opposition and no policies. Maybe that will change in the future.

The motion claims that the Government have not set out any impact assessment of the policy change, but the Government published a tax information and impact note on 13 November that explained the Government’s assessment of the policy, including its impact on businesses and the economy more widely. This was a difficult choice, and it is not one that we have taken lightly, but it is the right choice given the dire economic inheritance that the Government faced upon taking office, and the need to fix our broken public services. As the Chancellor set out in the Budget, healthy businesses depend on a healthy NHS, and a strong economy depends on strong public finances.

[Wendy Morton (Aldridge-Brownhills) (Con)]

On the NHS and choices, does the right hon. Gentleman not accept that the Government have chosen to clobber organisations and charities such as air ambulances and the hospice movement—the very organisations whose help the Government will need to improve services for the general public? As we asked yesterday, will he consider an exemption?

[Darren Jones]

As my right hon. Friend the Health Secretary has made very clear, when the Labour party came into government the NHS was broken. Why? Because of actions taken by the Conservative party over the last 14 years. That is why the Government have to take decisions to get a grip of the public finances and our public services. The changes are necessary in order to draw a line under instability, so that businesses can plan for the future, and to ensure that the NHS will receive an extra £22.6 billion to deliver 40,000 extra elective appointments a week. That vital new funding will create an NHS that is there when we need it, and the Government will achieve that within our tough fiscal rules—rules that will bring an end to borrowing for day-to-day spending, which was completely out of control when the Conservative party was in government.

Madam Deputy Speaker, you might think that, having called for higher NHS spending over the weekend, the Opposition would recognise the need to take tough but necessary decisions on the public finances in order to pay for it, but it seemed from the speech of the shadow Chancellor that that is not the case. Perhaps the Opposition might take the opportunity today to explain how they will raise the £25 billion that the changes provide for, but which they will not support. How else do they intend to pay for the new appointments and better services that the funding offers? What tough decisions would they make to repair the public finances and put our economy on a sustainable footing?

The Opposition’s double standards on this issue only go to show why they are not trusted on the economy: they have given up any pretence of fiscal responsibility. We recognise that the decision to increase employer national insurance will have impacts. Although the changes to employment allowance will help to protect small businesses and charities, other measures mean that larger businesses and organisations will have to make difficult decisions. However, as the Chancellor set out, this was a once-in-a-generation Budget. The difficult decisions we took meant that we were able to wipe the slate clean from the previous Government’s economic and fiscal mismanagement. Public services will now need to live within their means on the budgets we have set for them for the rest of this Parliament.

The Budget delivered economic stability and fiscal responsibility so that we can take the steps necessary to boost investment, fix our public services and grow the economy. That fiscal responsibility is only possible when Governments are willing to take tough decisions. This Government will not shy away from those tough decisions and will do what is right to fix the foundations of our economy, despite the dire inheritance left by the Conservatives. The shadow Chancellor said we were hiding in the past and not facing the future. I say to him: we are running to the future, dealing with the challenges and delivering for the British people.

--- Later in debate ---

[Louise Jones]

I am sure that the health team will listen to all and any contributions, and will make a decision.

The Labour Government refuse to balance the books on the backs of the poor, workers or people striving for a better life.

[Wendy Morton]

Will the hon. Member give way?

[Louise Jones]

I am going to make progress, as I know other Back Benchers would like to speak.

Instead of austerity mark II, we choose to invest in our services, our children and the people who fight every day to keep us safe. These increases will strengthen our public services, promote economic stability and invest in the future of our workforce. They are an investment in our long-term prosperity, and I fully support them.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Wendy Morton Excerpts

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[Wendy Morton (Aldridge-Brownhills) (Con)]

Does the hon. Gentleman not accept that in the UK, the definition of a small business is one that employs fewer than 50 employees and has an annual turnover of less than £10 million? Thanks to his changes and political choices, thousands of small businesses across the country will face the decision of whether to keep staff on or lay them off.

[James Murray]

We know that the tough decision that we have had to take will have impacts—we have been up front with people about that—but we also know that over half of all employers will pay no more or less national insurance than they did before. We acknowledge that this decision will have an impact, but we believe that it is the right decision. I will explain why that is.

--- Later in debate ---

[Clive Lewis (Norwich South) (Lab)]

rose—

[Wendy Morton]

rose—

[James Murray]

Members will have to wait a second so that I can answer this question.

We will maintain the charitable reliefs in the system, such as business tax relief and gift aid relief. However, it is important to recognise that the decisions we have taken overall mean that over half of all employers will not pay any more or will pay the same national insurance as they did before. Their national insurance bill will be the same or less than it would have been otherwise.

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[Wendy Morton]

The hon. Gentleman refers to the NHS, and I believe the NHS and hospital trusts will receive an exemption to the increase in national insurance contributions. Given his clear passion for the NHS, will he look again at the impact that his rise in national insurance contributions will have on air ambulances? Under the current proposals air ambulances, like hospices, will face a huge increase in their costs.

[James Murray]

The way that we are approaching the reimbursement of employer national insurance costs for Departments and public sector employees is similar to what the previous Government did with the health and social care levy. It means that money goes to Departments, local governments, and public sector employees directly to help compensate for the increase in employer national insurance. For other people who are paying employer national insurance, if they have a contract with the public sector they are treated as contractors or private organisations. If they have concerns about their cost base they should talk to their sponsoring Department, the NHS, or whoever they have a contract with, so that those considerations can be taken into account in the round. It was the same for adult social care, and it is the same for other organisations that are funded through the public sector.

Finance Bill

Wendy Morton Excerpts

2nd reading
Wednesday 27th November 2024 Commons Chamber

[Mel Stride]

I take it as a familiar mark of respect from the hon. Gentleman.

The fact of the matter is that the ONS’s figures for the third quarter of this year show growth of 0.1%. That is one seventh of what has been achieved in the United States. In September, the third month of the quarter, there was negative growth. The reason for that is very clear. When this Government came to office, the first thing that they did was talk down the economy, and talk about black holes and what a terrible mess everything was in, as cover for what they intended to do all along. That had an impact on purchasing managers’ index surveys. We can see the slump in business confidence in the data, and the Government are now reaping the whirlwind. We have now had a Budget that will do even more damage to growth.

What will happen to inflation? Let us go back to our friends at the OBR. In every single year of its forecast, inflation is higher than in every single year of the forecast based on our last Budget back in the spring—a fiscal splurge up front that will translate into higher prices and higher interest rates for longer, meaning higher mortgage rates. Before Labour Members start jumping up and down at the M-word, the Government now own mortgage interest rates, and they are being affected in the wrong direction as a result of their policies. What about living standards? They are down and flatlining. The Joseph Rowntree Foundation says that by October 2029 the average family will be £770 worse off in real terms than they are today.

[Wendy Morton (Aldridge-Brownhills) (Con)]

On the Government’s watch.

[Mel Stride]

On the Government’s watch. A number of measures in the Bill will further weigh on growth. Capital gains tax will go up, destroying wealth creation. The energy profits levy will destroy jobs, making us less secure when it comes to energy. Stamp duty will go up, and that is one of the worst taxes. The hon. Member for Swansea West (Torsten Bell) will accept that, as he shares that view—I think he makes the point in his recent book. The level of activity in the housing market will be dampened, people will be discouraged from downsizing, which will put pressure on the housing supply, and labour mobility—an important component of growth—will be impacted.

Winter Fuel Payment

Wendy Morton Excerpts

Tuesday 10th September 2024 Commons Chamber

[Wendy Morton (Aldridge-Brownhills) (Con)]

Madam Deputy Speaker,

“The winter fuel payment gave me peace of mind that I would be able to heat my home and stay warm during the winter”—

not my words, but those of a constituent, and they are typical of the many comments I have received in my inbox and those I have heard when I have been out and about across my constituency.

In my constituency, there are just 2,138 recipients of pension credit, yet an estimated 18,300 pensioners will lose out this winter. This political choice, because that is what it is, means that those very same pensioners—those 18,300—will lose up to £300 of winter fuel payment; in addition, the energy price cap rise of 10% puts further financial pressure on them of about £149. It impacts pensioners earning as little as £13,000 a year. Contrast that with the inflation-busting pay rises that the Government have handed out. Contrast that with the billions that the Government are spending on GB Energy, a state-run company that will not produce any energy, nor will it cut their bills. What is more, when the vast majority of my pensioners, who are waiting for their annual increase of £460 next year—thanks to our work when we were in government—deduct £300 for losing the winter fuel payment, they will be left with an increase equivalent to just 44p a day: less than the cost of a pint of milk.

[Dr Caroline Johnson]

I wonder how many of my right hon. Friend’s constituents who will lose that vital payment earn less than the train drivers who have had all that extra money.

--- Later in debate ---

[Wendy Morton]

My hon. Friend makes an important point. It comes back to how this is about political choice, and I am here to stand up for my pensioners in my constituency.

I also point out that it was the Conservative party in government that drove up pension credit applications by 73% in just 12 months. It is important that we do not forget that. Pension credit take-up is often an entrenched issue. People in my constituency are often too proud to apply. The process is too complicated: 22 pages, 243 questions and, as we have heard, nine weeks to determine the outcome of the application.

Tackling pension credit take-up is important, but it is not the solution to the crisis that pensioners face today. Only weeks ahead of the winter, they need help now. According to Age UK, across the UK, around 2 million pensioners who badly need the money to stay warm this winter will now not receive it. Losing the winter fuel payment will make it significantly harder for them to keep warm, which undermines their health and wellbeing. As we have heard, pensioners often have serious health conditions and disabilities. Often, they live in older properties, and in the north or in my constituency in the west midlands it is often colder than in other parts of the country. Pensioners are all disproportionately affected, yet there is no sign of an impact assessment, just a Chancellor who, seemingly, storms ahead with her political decision.

[Patrick Spencer (Central Suffolk and North Ipswich) (Con)]

Will my right hon. Friend give way?

[Wendy Morton]

I will continue because I am conscious that others want to get the chance to speak.

There is no time for older people on low incomes to set aside money—if they have it—to help them get through the winter. Being at home in the cold increases the risk of raised blood pressure, stroke, heart attacks and hypothermia. I did not vote for this callous cut earlier today. I will not pick the pockets of those who have worked hard all their lives, doing the right thing by their families and this country. I will continue to speak up for my constituents, who deserve better than this. This is so wrong.

--- Later in debate ---

[Emma Reynolds]

No, I will not.

For the very first time, we are writing to all pensioners in receipt of housing benefit who are potentially eligible to encourage them to claim pension credit—again, something that the last Conservative Government never did.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Will the Minister give way?

[Emma Reynolds]

No, I will not.

Over the last five weeks, we have already seen claims for pension credit more than double, and, backed by more than 450 additional staff, we will ensure that claims are processed as quickly as possible.

As my right hon. Friend the Secretary of State for Work and Pensions said in the earlier debate, we will bring forward the merger of housing benefit and pension credit as soon as that is operationally possible, something that the last Government promised but failed to deliver. We are also taking action to ensure that all pensioners get the income that they deserve. Despite being urged by the Institute for Fiscal Studies and others to drop the triple lock during the election campaign, the Government are steadfast in their commitment to it. The triple lock has seen the state pension increase by £2,700 over the last five years, and it was increased by £900 this year and by £970 in the previous year. According to figures released today, which still need to be confirmed, in October we will see the provision of an extra £460 a year from next April.

Oral Answers to Questions

Wendy Morton Excerpts

Tuesday 3rd September 2024 Commons Chamber

[Rachel Reeves]

I thank my hon. Friend for the question and welcome him to his place. As a former local government leader he knows the huge opportunities there are to build the homes our country desperately needs. We have made a commitment to build 1.5 million homes during the duration of this Parliament. That will require making choices to call in planning decisions, as we have already done in our first week in office with regard to four specific housing developments.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Thousands of pensioners in my constituency have worked hard all their lives and are now worried at the prospect of losing their winter fuel payment, upon which they rely. Will the right hon. Lady reconsider and reverse her decision?

[Rachel Reeves]

The increases in the basic state pension mean those constituents are £900 better off than they were a year ago, and of course energy bills are lower this year than they were last year. But it is important that we ensure that the 800,000 people who missed out on pension credit under the previous Conservative Government now get access to that support, because they are the poorest pensioners and at the moment they are living in poverty because the previous Government failed to sign them up to pension credit.