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.

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[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.

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[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.

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[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.

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[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.