Benefits Uprating (2013-14)

William Bain Excerpts

Thursday 6th December 2012 Commons Chamber

[Steve Webb]

We inherited a situation in which approximately £80 billion a year of spending reductions and tax increases were needed simply to balance the books. I have not heard anything this morning from the Opposition—not a single word—on where, now there is no money left, that should come from. If the hon. Gentleman voted against our proposals he would have some credibility, but of course when the crunch comes he will not—he will sit on the fence. He wants his constituents to think he cares, but when it comes to casting his vote in this place he will be somewhere else.

[Mr William Bain (Glasgow North East) (Lab)]

The Treasury’s own analysis shows that the measures announced yesterday and today are regressive towards people in the seven lowest income deciles. Given that three-quarters of the cuts in tax credits will affect people in work and that the Government have made no steps to deal with the looming work disincentives that will be faced by second earners in couple households with children, are the Government not making a mockery of their pledge to make work pay for everyone?

[Steve Webb]

If the hon. Gentleman looks at the distribution impact that was published yesterday, he will realise that he has mysteriously forgotten about the large amounts of additional tax that will be paid by the top decile through the restriction of pension tax relief, who will, by far, lose out the most, and that seems a very progressive thing to do.