:00:08. > :00:13.Hello and welcome to BBC Parliament's live coverage from the
:00:14. > :00:17.House of Commons. In an hour the leader of the house Chris Grayling
:00:18. > :00:21.and will announce the forthcoming business in the chamber and take
:00:22. > :00:25.questions from backbenchers. The main business is a backbench
:00:26. > :00:29.business debate on the effects of the government proposed reforms to
:00:30. > :00:34.tax credits. Remember to join me for a round-up of the day in both Houses
:00:35. > :00:39.of Parliament at 11pm this evening. First, we have questions to the
:00:40. > :00:40.Transport Secretary Patrick McLoughlin and his team of
:00:41. > :01:00.ministers. Order. Transport the London bill,
:01:01. > :01:07.Lords revival motion. I beg to move. Motion to be taken what day? Very
:01:08. > :01:12.appropriately Thursday, the 5th of November. Thursday the 5th of
:01:13. > :01:19.November. Order, questions to the Secretary of State the transport.
:01:20. > :01:26.Question number one. The current difference between laboratory
:01:27. > :01:33.testing and real emissions. The agreement we secured in Brussels to
:01:34. > :01:39.introduce real-world testing in 2017 is an important milestone. We will
:01:40. > :01:43.continue to press the EU for a comprehensive approach on emissions
:01:44. > :01:57.testing that restores confidence and the livers climb it -- and delivers
:01:58. > :02:03.climb it objectives -- climate. The UK's managing director said the
:02:04. > :02:10.target of 2016 might not be deliverable. How can he assure the
:02:11. > :02:17.house that this can be achieved by 2016? Volkswagen have acted
:02:18. > :02:22.disgracefully in this whole episode. I will be looking to them
:02:23. > :02:24.to ensure they live up to the expectations they promised
:02:25. > :02:33.originally and will be working to make sure that happens. Does he
:02:34. > :02:37.agree that Volkswagen has shattered trust in motor vehicle testing and
:02:38. > :02:40.we need to move at pace to real-world testing to restore
:02:41. > :02:49.confidence in the public? I do agree. I think both when I appeared
:02:50. > :02:54.before the Select Committee, just a few weeks ago, I made that position
:02:55. > :02:56.abundantly clear. I think progress made yesterday is progress made
:02:57. > :03:04.yesterday is progressing the right direction. The still unfolding
:03:05. > :03:07.scandal of Volkswagen has lifted the lid on the more widespread problem
:03:08. > :03:12.about emissions testing which was known about for a long time. Why
:03:13. > :03:18.didn't the Department act sooner in doing something about it? It has two
:03:19. > :03:23.B said that's the honourable lady says it was known about a long time,
:03:24. > :03:41.but in truth if one looks at the amount of diesel sold in 2001, it
:03:42. > :03:46.was 460,000, 17%. In 2009, -- 815,000, if it was known about for
:03:47. > :04:02.some time it is not this government but the previous that is culpable.
:04:03. > :04:07.The new London taxi is zero. I have travelled in one of those taxes.
:04:08. > :04:16.That is part of the answer we will continue to support our programme of
:04:17. > :04:22.support for some 1.2 million cars have been affected across the UK and
:04:23. > :04:28.it is important to be mindful of drivers, they are facing a higher
:04:29. > :04:34.road tax. Does he agree the financial implications should we
:04:35. > :04:38.give in to Volkswagen and Audi for this disgraceful thing that
:04:39. > :04:46.happened? I do not think there will be an increase in taxes, we have
:04:47. > :04:53.made that clear. But it is something that VW will have to addressing
:04:54. > :04:59.course. Is the reality, though, that Biddestone's statements are leaving
:05:00. > :05:03.motorists concerned about air quality number wise. Can he clear
:05:04. > :05:07.the air on one point and that is what happened at the EU technical
:05:08. > :05:12.committee yesterday. It was not just about setting a timetable for new
:05:13. > :05:18.cars to conform with existing emissions, did it not also involve
:05:19. > :05:22.permission to breach those limits by 50%, that being open ended
:05:23. > :05:27.permission, and isn't that what the UK representative voted for? What
:05:28. > :05:31.was important was because agreement for real-world emissions testing
:05:32. > :05:38.across Europe and this was something... This has been objected
:05:39. > :05:43.to the pass. We pressed for it and I am pleased we achieved it. He said
:05:44. > :05:49.it is not as much or as fast as he would like, but I would say we have
:05:50. > :05:51.made more progress in the six months of this new Conservative government
:05:52. > :06:04.than ever made in the last government. The government remains
:06:05. > :06:07.committed to delivering the vital benefits these projects will provide
:06:08. > :06:13.to passengers as part of the replanning of this programme I
:06:14. > :06:19.expect Sir Peter Hendy to ensure schemes deliver value for money.
:06:20. > :06:25.With the minister agree the tripling of costs to over 2.5 billion pounds
:06:26. > :06:29.is breathtaking and will he take the time to learn lessons from Scotland
:06:30. > :06:35.where major capital projects are coming in on time and budget largely
:06:36. > :06:39.as a result of proper planning and good contract negotiation, so
:06:40. > :06:48.further public money is not thrown away in this cavalier fashion? I am
:06:49. > :06:52.always willing to learn lessons from wherever they are valid, be that
:06:53. > :07:03.Scotland or anywhere else and I will not look for advice on providing
:07:04. > :07:09.tram systems! What I would say is some of these programmes and the
:07:10. > :07:19.honourable lady is a member of the PAC, and therefore was in the
:07:20. > :07:24.position of hearing evidence by Mark Carne and the Permanent Secretary
:07:25. > :07:27.and some have run over budget that they are huge schemes, very
:07:28. > :07:34.important schemes, and making the railway system modern for the 21st
:07:35. > :07:39.century is important. As regards value for money of the great Western
:07:40. > :07:43.mainline, would he agree electrification is one factor that
:07:44. > :07:50.makes the reopening of the station a more valuable project that needs to
:07:51. > :07:54.remain high on the agenda. I am sure it will remain high on the agenda as
:07:55. > :07:59.long as my honourable friend presses for it.
:08:00. > :08:06.I look forward to discussing it with my honourable friend and see if we
:08:07. > :08:10.can help my honourable friend get what she wishes. Electrification of
:08:11. > :08:15.the great Western and Valley lines are two sides of the same coin, with
:08:16. > :08:19.both meaning a great deal to the South Wales economy. What
:08:20. > :08:22.discussions as he had with the Welsh Government counterpart on the
:08:23. > :08:31.delivery date for electrification of the Valley lines? We made money
:08:32. > :08:36.available to the Welsh Assembly, 125 million. I have met with Edwina Hart
:08:37. > :08:40.and discuss the programme and I am in contact with my right honourable
:08:41. > :08:43.friend the Secretary of State for Wales and it is a matter for the
:08:44. > :08:48.assembly to come forward with their plans. I congratulate him for
:08:49. > :08:53.confirmation the Midland Main line will be electrified to Kettering by
:08:54. > :08:56.2019. Can he assure the house the lessons learned from the great
:08:57. > :09:01.Western electrification will be applied to that line so it can be
:09:02. > :09:06.delivered quickly and efficiently? A neat body swerve to ensure his
:09:07. > :09:15.question is in order. The textbook example to colleagues!
:09:16. > :09:22.Was that the answer, Mr Speaker?! I have now forgotten what the
:09:23. > :09:29.question was! Mr Speaker, I certainly agree with
:09:30. > :09:34.my honourable friend. It is very important to re-establish the
:09:35. > :09:42.Midland mainline electrification. It is a line I use regularly. Lessons
:09:43. > :09:49.need to be learned. Work had already started. What was important about
:09:50. > :09:52.the plan that is being developed is that we look at the whole line
:09:53. > :09:55.development because there are certain things on the Midland Main
:09:56. > :10:07.line that can be done to increase speed and that is important as well.
:10:08. > :10:16.One reason for extra cost is compensation. Is it in the public
:10:17. > :10:20.interest to publish those payments, and those spent on infrastructure
:10:21. > :10:24.not those lining the pockets of shareholders? We make the best we
:10:25. > :10:29.can with the huge investment we put into railways and I am proud of the
:10:30. > :10:34.improvements that have taken place on the great Western.
:10:35. > :10:39.Electrification is part of it. Completion of the station and the
:10:40. > :10:45.flyover that happens so the line is no longer held up by freight trains
:10:46. > :10:53.has been an improvement and serves his those in the south-west
:10:54. > :11:04.incredibly well. Question three, if you please, Mr Speaker. Network Rail
:11:05. > :11:12.assesses risks on crossings. The UK has the best level crossing safety
:11:13. > :11:20.record in the EU. There is work to reduce that risk still further.
:11:21. > :11:25.What a lot of waffle after the Beech Hill tragedy in 2012 Network Rail
:11:26. > :11:31.said it would get rid of all level crossings in Bassetlaw on the East
:11:32. > :11:35.Coast mainline. The public consultation on the schemes in order
:11:36. > :11:40.to ensure it had taken place. And what has happened is the money has
:11:41. > :11:43.been pulled. Will the minister meet Network Rail along with the
:11:44. > :11:48.Chancellor to ensure that money is put back in. It is good for
:11:49. > :11:54.business, the economy and safety and good for the people of Bassetlaw.
:11:55. > :12:01.The honourable gentleman had the tragic accident that resulted in a
:12:02. > :12:04.loss of life. After that the rail accident investigation board made
:12:05. > :12:09.clear recommendations so that accident could not happen again and
:12:10. > :12:14.I am told they have been implemented. He is referring to the
:12:15. > :12:19.plan to close the 73 crossings on the East Coast mainline, and that
:12:20. > :12:23.work has been progress. You cannot just shut off communities who rely
:12:24. > :12:28.on those. He shakes his head. He should be in my job and have people
:12:29. > :12:31.campaigning to keep crossings open. The work will happen and it is right
:12:32. > :12:36.to focus on this and we will continue to fund the work, there is
:12:37. > :12:39.no shortage of money for this and money will be spent on making the
:12:40. > :12:53.crossing safer. We have committed to setting out the
:12:54. > :12:57.government's plan for the HS2 phase to route and update the House before
:12:58. > :13:00.the end of the year. I thank him for that answer and for the times he and
:13:01. > :13:06.his officials have spent with me on the link. The initial justification
:13:07. > :13:09.of the link was the depot in Wigan. That will not now be the. The only
:13:10. > :13:14.justification that remains is a ten minute journey time saving two
:13:15. > :13:19.trains north of Wigan. Will he confirm that if that stand-alone
:13:20. > :13:28.link goes ahead it will be subject to a separate business case? We are
:13:29. > :13:30.considering all of the recommendations made by Sir David
:13:31. > :13:35.Higgins and his report, and he believes that the link to the West
:13:36. > :13:40.Coast Main line is necessary, sooner rather than later. The alternative,
:13:41. > :13:44.which would mean linking into the West Coast mainline, would mean
:13:45. > :13:49.upgrading it to take these additional services, which can be
:13:50. > :13:50.costly and disrupt, and would incur those dreadful words, replacement
:13:51. > :13:58.bus services. Can I beg the team for bus services. Can I beg the team for
:13:59. > :14:05.the moment of sanity in terms of HS2. Isn't it time, where we know
:14:06. > :14:12.the latest evaluation says the cost will rise to ?116 billion, in a
:14:13. > :14:15.country that can't even keep its National Health service running,
:14:16. > :14:22.isn't it about time we look at this in a ruthless way, speak to Lord
:14:23. > :14:29.Adonis, to get his act together. He calls himself the Godfather of HS2.
:14:30. > :14:34.Let's invest in things that really work. That is not what huge was
:14:35. > :14:40.saying when he was Secretary of State. -- what he was saying. I am
:14:41. > :14:46.pleased Lord Adonis is engaging with the government. I think he needs to
:14:47. > :14:52.ask themselves what are the costs of not progressing HS2 because it is
:14:53. > :14:55.about the capacity and the great cities of the North, who are crying
:14:56. > :15:04.out for the additional capacity and the wealth it will bring. HS2 should
:15:05. > :15:12.have started and then or. On phase two, can I also appeal for sanity
:15:13. > :15:18.and ask them to review the hybrid Bill process and the cruel and
:15:19. > :15:24.unfair compensation scheme. The hybrid Bill process for phase one
:15:25. > :15:27.has been convoluted, and painful. Not just for the MPs on the
:15:28. > :15:32.committee but for the people affected by the project. It is
:15:33. > :15:37.ironic we should be using such a snail-like process for something
:15:38. > :15:44.that is supposed to be high-speed. It is not fit for purpose, and we
:15:45. > :15:50.should be modernising it. I would pay tribute to the members who have
:15:51. > :15:56.doggedly sat on the hybrid Bill committee and listened to petitions
:15:57. > :15:59.brought before them in an admirable way. Many petitions did not reach
:16:00. > :16:04.the committee because we reached agreement before it. As far as
:16:05. > :16:10.building it from the North first, it would still end in London, which the
:16:11. > :16:23.end it started the capacity is between Birmingham and London, as a
:16:24. > :16:32.matter of urgency. Can the proposals be discussed to mitigate the impact
:16:33. > :16:40.of HS2 on local residents and businesses in and around Donington?
:16:41. > :16:43.We have not finalised that right, so we will be getting the House and up
:16:44. > :16:57.date before the end of the year, when it would be appropriate to meet
:16:58. > :17:02.with a number of communities. I will answer this question together with
:17:03. > :17:06.number 11. We have made significant progress on increasing access. By
:17:07. > :17:14.the end of the year we expect around 75% of rail journeys to start or end
:17:15. > :17:30.at a step three station, and the programme will deliver 100 and 50 --
:17:31. > :17:33.150 step three station 's. I would like to thank the Minister. Every
:17:34. > :17:40.member of the House would want to congratulate the friends of my local
:17:41. > :17:46.station for the massive investment in the station, meaning it will be
:17:47. > :17:50.totally accessible for disabled people from the end of next month.
:17:51. > :18:09.That many of us are concerned about the slashing in funding by 42% of
:18:10. > :18:12.very basic, providing ramps and very basic, providing ramps and
:18:13. > :18:16.this? Why have they not changed this? Why have they not changed
:18:17. > :18:19.their mind? I am aware of the new footbridge at the station that will
:18:20. > :18:46.vastly improve facilities. I do not recognise what she says. The
:18:47. > :18:48.and we are building upon the success and we are building upon the success
:18:49. > :18:49.of it launched by the previous government. 1200 stations
:18:50. > :18:51.benefited from the smaller scale benefited from the smaller
:18:52. > :18:53.improvements, and to build on the improvements, and to build on the
:18:54. > :18:54.success ?160 million of additional success ?160 million of additional
:18:55. > :18:56.will extend the scheme to a further will extend the scheme to a further
:18:57. > :18:57.68 stations. I'm sure you will join 68 stations. I'm sure you will join
:18:58. > :18:58.University on its new Chancellor, University on its new Chancellor,
:18:59. > :19:05.Taney Grey Thompson. She has to get herself up the impossibly deep
:19:06. > :19:14.station, which Network Rail say they cannot do. Is this is what we should
:19:15. > :19:17.expect by slashing the grant by 40%? The University will benefit from her
:19:18. > :19:28.involvement. The bottom line is that the Department for Transport, and I
:19:29. > :19:41.will look into this. The Department for Transport is committed, and we
:19:42. > :19:44.are backing this programme, rolling out more disability access onto the
:19:45. > :19:49.buses. This is a real measure of success on the programme has
:19:50. > :19:53.generated a positive response. If we look at the findings of research at
:19:54. > :20:00.stations which have benefited from the programme, those passengers with
:20:01. > :20:04.physical impairment say they have a better travelling experience as a
:20:05. > :20:14.result, going up considerably for people with wheelchairs. The
:20:15. > :20:19.Minister will know that around 60% of disabled people live in a
:20:20. > :20:25.household without a car, and disabled people use buses 20% more
:20:26. > :20:28.than others. He will also know that 70% of local authorities have cut
:20:29. > :20:33.funding since 2010, and more are on the way. Does he really understand
:20:34. > :20:40.what impact these cuts will have on disabled people, and what proper
:20:41. > :20:49.assessment has he done on the potential impact? May I welcome him
:20:50. > :20:56.to his place. I am acutely aware of how important buses are afforded
:20:57. > :21:02.disabled people and also -- buses are for disabled people, and also
:21:03. > :21:14.others. Of course the implications for all bus users are considered
:21:15. > :21:22.when planning budgets. I will answer this with questions 14 and 16. Since
:21:23. > :21:27.2010 my Department has overseen the successful delivery of 50 miles of
:21:28. > :21:32.electrified track. Construction is under way between Ealing Broadway
:21:33. > :21:36.and Acton Main line, to remove the slow-moving freight trains of the
:21:37. > :21:43.lines to enable high-frequency electric Crossrail trains. From
:21:44. > :21:46.Paddington and through her constituency to Bristol, on the
:21:47. > :21:51.Cardiff, Network Rail have installed a quarter of 14,000 Poles needed to
:21:52. > :22:00.turn the centuries-old great Western line into a railway fit for the 21st
:22:01. > :22:01.century. Can you ensure that the century. Can you ensure that the
:22:02. > :22:08.electrification goes ahead on time, along with other improvements, to
:22:09. > :22:18.deliver benefits quickly, as my constituents cannot wait until 2019
:22:19. > :22:24.and the start of Crossrail. I am sorry they cannot wait, they waited
:22:25. > :22:31.for 13 years between 1997 and 2010, with nothing happening. Teesside has
:22:32. > :22:40.had a hammering in this place over the past several weeks. But we are
:22:41. > :22:45.resilient bunch, illustrated by the victory at Old Trafford last night!
:22:46. > :22:51.We are top of the league on the elect of the nation task force list
:22:52. > :23:00.from Northallerton to Middlesbrough. When might we see progress on this?
:23:01. > :23:05.Can I congratulate him because I am also a football supporter,
:23:06. > :23:13.supporting Derby County, so he has done incredibly well as far as that
:23:14. > :23:16.is concerned. He makes a fair point, there is a huge amount of steel used
:23:17. > :23:20.by Network Rail, and I know that by Network Rail, and I know that
:23:21. > :23:30.helps his own constituency as well. I will look into the point he makes.
:23:31. > :23:37.The Chancellor visited North Wales in July and said, he will look at
:23:38. > :23:48.the case for electrification of the North line from Crewe to Wales. Can
:23:49. > :24:03.fine for me what look at -- can he defined for me what look at means?
:24:04. > :24:10.During 13 years, ten miles was achieved! So we will certainly look
:24:11. > :24:13.at this. It is the way to go forward as far as railways are concerned. I
:24:14. > :24:22.want to look at that along with other plans for CP six. As I
:24:23. > :24:27.witnessed again last Monday, travellers going between Bolton and
:24:28. > :24:32.Manchester at the quickly squashed like sardines. Can the Secretary of
:24:33. > :24:40.State update the House as to how the engineering works on the line are
:24:41. > :24:48.coming along, particularly as far as boring the tunnel? He is right as to
:24:49. > :24:53.what we need to do, and I was going to refer to Farnworth tunnel. It has
:24:54. > :24:57.had problems but has been completed. That will help to increase the
:24:58. > :24:58.capacity on the line, and the changes he is calling for, the
:24:59. > :25:05.increased capacity he is wanting is increased capacity he is wanting is
:25:06. > :25:12.going to take place and I would like to pay tribute to all those people
:25:13. > :25:23.who worked tirelessly to do the tunnel, which is coming in on time.
:25:24. > :25:34.As most of the mainline will go on to the next period, can he make sure
:25:35. > :25:43.the line is extended to improve services? He took evidence a few
:25:44. > :25:47.weeks ago from the chief executive of Network Rail, and the pointy
:25:48. > :25:54.makes about looking at the lines in total is important, and I will be in
:25:55. > :25:59.mind his comments. I very much welcome the news that the
:26:00. > :26:03.electrification of the trans-Pennine route is now full on track. -- a
:26:04. > :26:08.contract. What are the new, improved benefits that it will bring the
:26:09. > :26:23.looking substantial improvements as looking substantial improvements as
:26:24. > :26:55.main cities in the North, main cities in the North,
:26:56. > :27:07.Manchester, Leeds and Sheffield and Newcastle are concerned, and we will
:27:08. > :27:22.bring more seats, more capacity, and it is
:27:23. > :27:29.Is Network Rail to blame for the delay? Is it a symptom of the
:27:30. > :27:34.privatised structure of our railway that causes the kind of
:27:35. > :27:42.fragmentation that makes disasters like this inevitable? Can I stop my
:27:43. > :27:47.welcoming him to his position. When he talks about privatised -- I
:27:48. > :27:50.start. This is an example of where somebody who has not held
:27:51. > :27:55.ministerial office can rightly forget everything that happened in
:27:56. > :28:03.the past. I remember the Labour candidate for the Mayor of London
:28:04. > :28:09.next year is said that one reason, we are able to invest record sums is
:28:10. > :28:13.the revenue rail franchises bring in and premiums they pay. We are seeing
:28:14. > :28:17.record investment in railways because of the way we are currently
:28:18. > :28:22.running it. At the time it was nationalised we saw a declining
:28:23. > :28:26.railway, a useless railway, not fit for purpose, something which the
:28:27. > :28:34.party opposite wants to go back to. Question number seven.
:28:35. > :28:37.Mr Speaker, I regularly meet with senior officials of Network Rail to
:28:38. > :28:45.discuss key issues facing the company and recent meetings have
:28:46. > :28:51.focused on this beta Hendy review and finance programme. Will he also
:28:52. > :28:56.reiterate the commitment to the recommendation of the great Eastern
:28:57. > :28:59.mainline task force that rings benefits to all counties and will he
:29:00. > :29:08.ensure Network Rail delivers the necessary improvement? Yes, I am
:29:09. > :29:12.glad to say we have been able to issue the invitation to tender as
:29:13. > :29:16.far as the East Anglia franchise is concerned, something she has been
:29:17. > :29:21.persistently should do. In seeing that we get services to Norwich in
:29:22. > :29:25.90 minutes and Ipswich in 60 and that forms part of that tender. She
:29:26. > :29:30.is right about the other improvements we need to look at and
:29:31. > :29:37.she can take my assurance I will raise those with Sir Peter Hendy.
:29:38. > :29:41.What recent discussions has he had with Network Rail regarding the
:29:42. > :29:47.electrification of the Liverpool and Manchester line passes through
:29:48. > :29:51.witness in Warrington? I think I need more direction as to the
:29:52. > :29:54.question. There has been electrification between Liverpool
:29:55. > :29:57.and Manchester and that is welcome and we have electric trains running
:29:58. > :30:01.on that and soon there will be more running on that line. If he has a
:30:02. > :30:07.more specific point perhaps he would like to write to me. During the
:30:08. > :30:11.great storms in the West Country in 2014 we found our mainline route to
:30:12. > :30:18.Cornwall floating in the sea. Can I ask him whether the peninsula
:30:19. > :30:26.proposals, including the Okehampton link, whether they have come up with
:30:27. > :30:32.any conclusions because it would add benefits to our economic potential
:30:33. > :30:36.in Cornwall. I do remember this and I also remember the valiant way in
:30:37. > :30:42.which Network Rail restored that link. They did an exceptional job in
:30:43. > :30:46.difficult situations. Even at this stage I would like to add my thanks
:30:47. > :30:51.to all who worked on that scheme in restoring that link. He is right
:30:52. > :30:55.about the task force the Peninsula group have brought forward and we
:30:56. > :31:03.are looking at their report and will have more to say on it once the
:31:04. > :31:08.planning of CP five is undertaken. The welcome creation of the national
:31:09. > :31:13.academy for a rail will help plug some of the skills shortage behind
:31:14. > :31:17.many of the delays in electrification. What concerns does
:31:18. > :31:22.he have earned does he share my concern the proposed 40% court to
:31:23. > :31:28.this budget will undermine the ability of the Academy to deliver on
:31:29. > :31:32.skills shortages? He is right about the academy at Northampton. I was
:31:33. > :31:36.there some months ago and the minister from rail I it a few weeks
:31:37. > :31:44.ago and it will play an important role in skills. It is up skilling
:31:45. > :31:49.about what the whole industry has to do and bring it together and that is
:31:50. > :31:55.one reason I asked the chairman of Crossrail to coordinate across the
:31:56. > :32:04.transport sector about apprenticeships. Number eight, Mr
:32:05. > :32:08.Speaker. On the 21st of August my right honourable friend the
:32:09. > :32:12.Secretary of State announced the appointment of Terry Morgan the
:32:13. > :32:16.chair of Crossrail to develop a transport and infrastructure skills
:32:17. > :32:21.strategy. It will help ensure the industry has the right people and
:32:22. > :32:27.skills to deliver the programme of transport infrastructure and
:32:28. > :32:32.investment. I was recently fortunate to visit a college in basalt and
:32:33. > :32:36.that has created a unique partnership between engineering and
:32:37. > :32:40.construction companies to train the next generation of technicians. Can
:32:41. > :32:46.I invite him to look at their model and perhaps visit with a view to
:32:47. > :32:50.widening the range of opportunities across the whole country to give
:32:51. > :32:56.young people the skills to deliver our plans? I will look at the
:32:57. > :33:02.approach used by them and would like to visit. It is vital colleges and
:33:03. > :33:07.universities work with employers to get the skills industry needs. It is
:33:08. > :33:12.crucial in transport as more people are required. I would highlight the
:33:13. > :33:17.work of the college to Terry Morgan as he develops the strategy. An
:33:18. > :33:26.important element of the transport infrastructure is the road haulage
:33:27. > :33:32.industry that helps the economy and the government. Driving up exports.
:33:33. > :33:37.They reported a recruitment shortage of 54,000 in drivers which is likely
:33:38. > :33:42.to increase because of the ageing population. What plans and
:33:43. > :33:49.discussions has the minister had to ensure young people are encouraged
:33:50. > :33:54.to take up opportunities? The industry has a responsibility to
:33:55. > :33:58.bring new people in and I am aware of the recruitment challenges. There
:33:59. > :34:02.is a retention issue. I have met with the industry and will continue
:34:03. > :34:07.to do so. It is important this industry brings people into it. If
:34:08. > :34:10.we did not have it performing to a high level of the country would
:34:11. > :34:17.grind to a halt in a couple of days. Number nine, Mr Speaker. The
:34:18. > :34:21.Chancellor announced in the 2015 budget report the government will
:34:22. > :34:24.commission a study into the possibility of reopening Plymouth
:34:25. > :34:31.airport. I am keen to determine the final form of the study and how best
:34:32. > :34:36.to take it forward. As he knows Plymouth will be the focus of global
:34:37. > :34:42.attention in relation to in five years' time Mayflower 2020, when the
:34:43. > :34:47.Mayflower set sail to found the American colonies. Does he agree
:34:48. > :34:53.that to be a major tourism area we need to make sure people can get to
:34:54. > :35:00.Plymouth which means improved roads and railways and air links? That new
:35:01. > :35:11.colony worked out quite well, certainly! He is right that
:35:12. > :35:15.investment in this is vital to the south-west which is why we have
:35:16. > :35:19.committed ?31 million on the great Western route. We heard about the
:35:20. > :35:26.?40 million to fix Dawlish and the long overdue investment on the 830
:35:27. > :35:30.and a 303 which has long been a scourge of tourists and business
:35:31. > :35:40.people driving to the south-west -- a 30. Recent improvements to
:35:41. > :35:43.security measures include fencing, additional security guards, dogs,
:35:44. > :35:48.improved CCTV including thermal imaging. In addition, the French
:35:49. > :35:57.government has committed significant police resources to Calais. On a
:35:58. > :36:02.summer business tour I met exporters having trouble getting goods into
:36:03. > :36:05.Europe. Can he assure me and reddish businesses his department is doing
:36:06. > :36:12.everything he can to make sure my businesses prosper in the future?
:36:13. > :36:16.The channel link is vitally important to the whole UK economy
:36:17. > :36:19.and particularly the haulage industry. I was at Folkestone and
:36:20. > :36:25.saw some of the problems first-hand, in particular issues regarding
:36:26. > :36:31.just-in-time delivery of parts to the motor industry for steel rails
:36:32. > :36:35.produced in Scunthorpe which are exported to the continent and
:36:36. > :36:44.lobster produced in my constituency that travels in trucks to France and
:36:45. > :36:49.Spain. This summer the 23 my constituency was close for 32 days.
:36:50. > :36:54.I'm grateful for the attention the ministerial team is giving to this
:36:55. > :37:00.problem. Can he update me on the progress to avoid a repeat of the
:37:01. > :37:05.closures this summer next summer. The key to preventing a recurrence
:37:06. > :37:12.of the problems this summer is sorting out issues in France. I am
:37:13. > :37:16.pleased to say the industrial dispute has been solved and we do
:37:17. > :37:19.not have that additional problem. The government put in place a
:37:20. > :37:23.contingency plan at Manston. It would have been there to relieve the
:37:24. > :37:26.problem. It is important to look at how we can improve the situation
:37:27. > :37:44.where we have disruption on the channel. Thank you Mr Speaker. I
:37:45. > :37:48.have no representations on this topic. I look forward to a
:37:49. > :37:54.productive engagement with all devolved administrations on this
:37:55. > :38:01.subject. The minister may not be aware that part of the expensive
:38:02. > :38:08.lobbying campaign undertaken on both sides, passengers using Scottish
:38:09. > :38:12.airports are deliberately targeted. If the decision goes the wrong way
:38:13. > :38:17.Scotland will be cut off from the rest of the world, it has been said,
:38:18. > :38:21.which is scaremongering and will not happen. Depending on how the
:38:22. > :38:24.decision goes, the potential of bringing benefit to Scotland and the
:38:25. > :38:31.potential to cause damage to Scotland. Will he give an assurance
:38:32. > :38:34.that when the time comes he will make representations to make sure
:38:35. > :38:40.all members of this House play an equal part in the debate? The rest
:38:41. > :38:45.-- the representations I have received underlines the importance
:38:46. > :38:49.is of having good connectivity to international routes and that may be
:38:50. > :38:55.through an improved additional runway capacity in the south-east.
:38:56. > :38:59.We have been helped to that extent by giving help to the Dundee service
:39:00. > :39:11.to allow passengers reach the capital. Would he agree that
:39:12. > :39:14.expanding connectivity with the Scottish airports is one of the best
:39:15. > :39:21.things we can do to strengthen the United Kingdom? The government will
:39:22. > :39:32.be making an announcement in due course with response to the report
:39:33. > :39:43.and it would be premature to comment on this stage. On the subject of
:39:44. > :39:46.regional airports, agreeing about the commercial and economic and
:39:47. > :39:50.social connectivity required, he said, and his words were, the slots
:39:51. > :39:55.needed by Scottish airports and other airports that have lost them.
:39:56. > :39:59.I hope we can address that. I want to reflect on that while considering
:40:00. > :40:04.the whole report. Does he still agree about the development's
:40:05. > :40:08.importance to Scotland's regional airports such as Dundee and has
:40:09. > :40:13.there been progress on his thinking about root development and public
:40:14. > :40:19.service obligations? I have always made it clear how important I view
:40:20. > :40:23.the local airports. The regional international airports and how big a
:40:24. > :40:28.part they play in the economic development of areas particularly in
:40:29. > :40:31.Scotland. We need to look at aviation as a whole but the
:40:32. > :40:36.representations I get is how important it is to get connectivity,
:40:37. > :40:40.whether through Amsterdam, Paris, Frankfurt, or indeed to slots
:40:41. > :40:46.available in the south-east. Given this recognition and importance, can
:40:47. > :40:50.he confirm any decision on the development of a third runway at
:40:51. > :40:55.Heathrow or development at Gatwick would not have to go through an
:40:56. > :41:00.additional stage in the legislative process, a veto on Scottish MPs, as
:41:01. > :41:11.suggested by the honourable member for Milton Keynes, and will... What
:41:12. > :41:15.will he do to make sure this subject will be delivered from evil? It is
:41:16. > :41:24.premature to enter that discussion. I am always in favour of jumping
:41:25. > :41:30.one's fences when one reaches them. Could the minister tell me how many
:41:31. > :41:35.of the 47 recommendations ignored by the Airport Commission would have
:41:36. > :41:38.benefited Scotland? And whether those recommendations would have
:41:39. > :41:39.increased the domestic flights on likely option at Heathrow which
:41:40. > :41:50.would decrease them. One of the concerns I have picked up
:41:51. > :41:55.around the country outside the south-east is a pressure for slots
:41:56. > :41:59.at Heathrow and Gatwick at peak times means there are always
:42:00. > :42:04.concerns about those connecting flights coming in from other parts
:42:05. > :42:14.of the country, which we need to -- we are very well aware of Anthony to
:42:15. > :42:20.address. -- need to address. We're making great progress in upgrading
:42:21. > :42:21.the railway in the south-west, including delivering new trains to
:42:22. > :42:26.carry more people on faster journeys carry more people on faster journeys
:42:27. > :42:33.and improving resilience to make sure the region can stay connect it.
:42:34. > :42:39.The task force recently published its interim report on a 20 year plan
:42:40. > :42:46.for Devon and will. Can he confirm that the primary aim is to secure
:42:47. > :42:49.the resilience to South Devon, and any other options will be
:42:50. > :42:58.additional, not alternatives. The other options would indeed be
:42:59. > :43:02.impact will overruns and the cost impact will overruns and the cost
:43:03. > :43:18.have on the investment she has mentioned? -- the overruns. Can he
:43:19. > :43:28.repeat the question? She was chuntering to her colleague!
:43:29. > :43:31.Scandalous disregard! What impact will overruns and the cost have on
:43:32. > :43:38.the investment she has mentioned? Apologies. I was misspeaking on the
:43:39. > :43:44.double-check. The roots will be double-check. The roots will be
:43:45. > :43:47.additional, not alternative. He knows that there is an enormous
:43:48. > :43:55.south-west, in terms of Brazilians, south-west, in terms of Brazilians,
:43:56. > :43:58.they hundreds new trains. I wish he would get behind the attempt to the
:43:59. > :44:10.government to connect the vital region, rather than keep shouting
:44:11. > :44:15.about things. He will be delighted to know that the first section of
:44:16. > :44:26.the rail line was opened this Monday, allowing people to travel
:44:27. > :44:27.from Oxford to London Marylebone. I welcome this new service running
:44:28. > :44:33.along the first stage. It is a very along the first stage. It is a very
:44:34. > :44:36.strong business case, as is the project as a wall. Will she do
:44:37. > :44:44.everything to make sure the Hindu review does not delay this? Yes, and
:44:45. > :44:46.we will know more about it in the next few weeks. I want to pay
:44:47. > :44:52.tribute to these MPs who have left us in no doubt of the importance of
:44:53. > :45:06.this East to West rail link. Topical questions. I have seen first hand
:45:07. > :45:08.the work Network Rail are doing, including a ?44 million regeneration
:45:09. > :45:13.of Manchester Victoria station, making it a station Manchester can
:45:14. > :45:17.be proud of. It was voted the worst station in Britain in 2009. The
:45:18. > :45:26.rebuilding of Birmingham new Street station, transforming it. And the
:45:27. > :45:28.reconstruction of bandwidth tunnel, allowing trains to travel from
:45:29. > :45:33.Manchester to Bolton. This will allow diesel trains to be used in
:45:34. > :45:40.the north-west, providing 30,000 more seats per week. This will help
:45:41. > :45:44.to build a Northern Powerhouse. I will not refer to Sheffield
:45:45. > :45:49.you will be pleased to hear. I will you will be pleased to hear. I will
:45:50. > :45:53.refer to Sir David Higgins' report, where he described transport links
:45:54. > :45:59.between Sheffield and Manchester as a matter of national concern. Will
:46:00. > :46:08.he give serious consideration that HSV should link Manchester and
:46:09. > :46:12.Sheffield, and secondly that consideration is given to a route
:46:13. > :46:15.under the Pennines as the only serious way to link Sheffield and
:46:16. > :46:24.Manchester without damaging the Manchester without damaging the
:46:25. > :46:35.national park? Harsh HS3. Can I agree that more needs to be done to
:46:36. > :47:03.improve the links between Sheffield and Manchester, and I hope that when
:47:04. > :47:03.we announced the new franchise for trans-Pennine and Northern Rail,
:47:04. > :47:06.will go some way to meet the will go some way to meet the
:47:07. > :47:10.demands. The two projects he talks about are huge. Work is being done
:47:11. > :47:11.by Colin Matthews on whether a tunnel is the right way forward, and
:47:12. > :47:11.we expect more up dates that next we expect more up dates that next
:47:12. > :47:12.year. On HS3, I understand the year. On HS3, I understand the
:47:13. > :47:12.Figures released by male honourable Figures released by male honourable
:47:13. > :47:14.Severn Bridge is generating more Severn Bridge is generating more
:47:15. > :47:20.profit... It is a great opportunity for the government to slash the toll
:47:21. > :47:23.prices on the bridge, and still have enough money to pay for the
:47:24. > :47:33.maintenance. -- generating more profit than the costs. The toll
:47:34. > :47:37.prices set by others to repay the construction, finance, maintenance
:47:38. > :47:52.and operation costs. We expect the costs to be recovered in 2018, and
:47:53. > :47:55.Government. We're working on the Government. We're working on the
:47:56. > :47:58.future of their son I have heard future of their son I have heard
:47:59. > :48:02.what he has said and I will keep updated. We have always supported
:48:03. > :48:03.Labour councillors on time and we are, including when they were
:48:04. > :48:11.subjected to appalling abuse. I subjected to appalling abuse. I
:48:12. > :48:17.cause of bust tendering. But does he cause of bust tendering. But does he
:48:18. > :48:18.agree with me that the bill must be available to all communities that
:48:19. > :48:28.want them, including rural and isolated communities? -- bus
:48:29. > :48:35.tendering. She knows what will come next, I have been doing this job for
:48:36. > :48:39.three years, the fourth -- she is the fourth shadow Secretary of State
:48:40. > :48:51.I have seen. We will see whether I have seen. We will see whether
:48:52. > :48:53.there is more to come. She asks me and asserts she knows what is in the
:48:54. > :48:57.bus bill. It has not yet been bus bill. It has not yet been
:48:58. > :49:05.published, so I am interested to know how it has been achieved. The
:49:06. > :49:06.simple point is that we're there are elected mayor is, there will be
:49:07. > :49:15.opportunities for those areas to opportunities for those areas to
:49:16. > :49:20.take advantage of. I was hoping for a straight answer to a straight
:49:21. > :49:30.question. With more than 2000 routes lost and downgraded, and fares up by
:49:31. > :49:37.25%, will he rule out any plans to slash support for buses even
:49:38. > :49:41.further? Well, I am not in a position to announce the Spending
:49:42. > :49:45.Review. Like every other member of the House, she will need to wait
:49:46. > :49:49.until the Spending Review is announced by my right honourable
:49:50. > :49:54.friend, the Chancellor of the Exchequer, on the 25th of November.
:49:55. > :50:01.I hope that as a straight answer. Is he aware that added to the many
:50:02. > :50:06.defects in the rolling stock which operates on the West Anglia line,
:50:07. > :50:12.there occurred this week a case of trains stopping, screeching to a
:50:13. > :50:26.halt near Bishops Stortford, apparently for lack of air. Surely
:50:27. > :50:30.more support should be given to this franchise which can offer more
:50:31. > :50:35.assurances for rolling stock. I will make enquiries into this, I do not
:50:36. > :50:40.know about the specific case but I will do by later on today, I assure
:50:41. > :50:47.him. He is absolutely right about the need to improve rolling stock
:50:48. > :50:52.availability, and I hope the invitation to tender on the line
:50:53. > :50:57.will do this. Can the Secretary of State tell the House what measures
:50:58. > :51:07.Network Rail are taking to ensure that skilled rail jobs no longer
:51:08. > :51:14.appear on the cheers -- level two skill shortages list. 95% is brought
:51:15. > :51:17.from UK production, but if I have got the wrong part of his question,
:51:18. > :51:24.perhaps he can write to me and I will write back to him. The
:51:25. > :51:28.Secretary of State mentioned the success of the Norwich campaigns.
:51:29. > :51:35.Worcester is six miles further from London as the crow flies, but my
:51:36. > :51:40.constituents take 150 minutes to reach the capital from Worcester.
:51:41. > :51:44.Can he do everything he can to lean on great Western and Network Rail to
:51:45. > :51:55.get the service down to under two hours? My honourable friends have
:51:56. > :52:00.campaigned on this issue. There is work going on on ways to improve
:52:01. > :52:06.journey time, and we have started the work on delivering it. Commuter
:52:07. > :52:07.routes into Manchester are soon to lose trains to London Midland,
:52:08. > :52:10.raising memories of the raising memories of the
:52:11. > :52:16.trans-Pennine rolling stock to buckle, which cost ?20 million and
:52:17. > :52:24.let the services being downgraded. The Secretary of State, did he have
:52:25. > :52:29.an option in the latest cased, and is this not another example of
:52:30. > :52:37.fragmented railway is letting them passengers? He should just wait and
:52:38. > :52:43.see what comes out of the two franchises. In 2004, it is worth
:52:44. > :52:53.remembering that when the franchise was last let, it was done on a no
:52:54. > :52:56.growth basis. That is what the last government thought of the Northern
:52:57. > :53:06.Powerhouse. I invite him to wait and see the announcements made shortly.
:53:07. > :53:09.Can I seek assurances from the Minister that the new stations fund
:53:10. > :53:17.will be accessible to applications from councils, as the rail Minister
:53:18. > :53:19.knows a new station in my constituency has one of the
:53:20. > :53:20.strongest business cases in the North Devon, of which my
:53:21. > :53:25.constituents which hugely benefit. constituents which hugely benefit.
:53:26. > :53:26.The new station 's fund announced in The new station 's fund announced in
:53:27. > :53:37.applicants. The Derbyshire Dales is applicants. The Derbyshire Dales is
:53:38. > :53:43.a hub for manufacturing in regard to the rail industry. Does he agree
:53:44. > :53:46.that this is a real opportunity for forward planning on getting
:53:47. > :53:50.manufacturers to come together to prepare bids for the work of HS2?
:53:51. > :53:57.Much as this causes me pain, I will Much as this causes me pain, I will
:53:58. > :54:03.agree with the honourable member! The point he makes is absolutely
:54:04. > :54:06.not only companies within the not only companies within the
:54:07. > :54:09.position of taking advantage of it, position of taking advantage of it,
:54:10. > :54:18.but others as well. -- at in the but others as well. -- at in the
:54:19. > :54:29.the government has made ?6 billion the government has made ?6 billion
:54:30. > :54:39.roads, how can we encourage local roads, how can we encourage local
:54:40. > :54:41.repairs? We are supporting local repairs? We are supporting local
:54:42. > :54:41.authorities with financial support, which is a record ?6 billion
:54:42. > :54:41.now and 2021 for highways now and 2021 for highways
:54:42. > :54:43.maintenance. We are also encouraging maintenance. We are also encouraging
:54:44. > :54:44.them to look at how they manage their programmes, and 20% of local
:54:45. > :54:47.authorities have signed up to an authorities have signed up to an
:54:48. > :54:50.efficiency programme. What we're efficiency programme. What we're
:54:51. > :54:54.talking about here is a significant talking about here is a significant
:54:55. > :55:01.investment, and if the deal with 18 investment, and if the deal with 18
:55:02. > :55:12.able to deal with 18 million able to deal with 18 million
:55:13. > :55:15.industry is likely to suffer greatly industry is likely to suffer greatly
:55:16. > :55:21.with the latest announcements of steel closures. Will he persuade his
:55:22. > :55:24.honourable friend the Prime Minister honourable friend the Prime Minister
:55:25. > :55:26.to end his policy of gifting British to end his policy of gifting
:55:27. > :55:36.jobs to Chinese workers? I am all jobs to Chinese workers? I am all
:55:37. > :55:40.too aware of the importance of ports in getting exports out of the
:55:41. > :55:45.country and imports in. I was in Bristol yesterday which will benefit
:55:46. > :55:51.from developments in the nuclear industry, financed partly by the
:55:52. > :55:59.Chinese. I am going to Felixstowe today to see developments. The
:56:00. > :56:01.government's commitment to join the M 45 and improvements to a
:56:02. > :56:10.roundabout were warmly welcomed by East North Hampshire residents. Can
:56:11. > :56:13.he provide us with an update? I will check progress on this and
:56:14. > :56:18.back to the honourable gentleman. back to the honourable gentleman.
:56:19. > :56:20.Many constituents of mine rely on the number 44 bus to get the
:56:21. > :56:22.Southport Hospital, and the service has been cut as a result of cuts by
:56:23. > :56:28.his department. He spoke earlier his department. He spoke earlier
:56:29. > :56:33.about the opportunity of having directly elected mayor is, but if
:56:34. > :56:34.the cuts continue, the additional powers will be meaningless and of no
:56:35. > :56:43.help to my constituents. I want to help to my constituents. I want to
:56:44. > :56:47.see the widening of services to all our constituents, which is why the
:56:48. > :56:49.government is supporting transport investment to a record amount in
:56:50. > :57:13.this Parliament. The motorway that are restricted to
:57:14. > :57:20.50 mph. The work should be done for the convenience of the road users
:57:21. > :57:22.and not the highly agency. I entirely agree with my honourable
:57:23. > :57:28.friend and I think the wrong stretches of road works frustrate
:57:29. > :57:35.riders, especially as the new completion. - long stretches. We
:57:36. > :57:40.want stretches which are shorter in length and a reduced time. He will
:57:41. > :57:47.be reduced down from one third to one half of the current size. You
:57:48. > :57:53.will be evening and weekend working. If the Minister can get it sorted,
:57:54. > :58:02.who knows, he might be carried aloft in the House. The award is linking
:58:03. > :58:09.of the great cities of the North but it did not include Hull. Now we have
:58:10. > :58:14.come to the electrification of routes when will be secretary give
:58:15. > :58:21.the green light to the initiative to electrify the line all baby to hold?
:58:22. > :58:33.I do apologise to the honourable lady. - Hull. The honourable lady
:58:34. > :58:39.says they are not that many but I think there are a number of eight
:58:40. > :58:46.cities in the north. If I named them all I would get into trouble. -
:58:47. > :58:51.great cities. I have been able to move forward with infrastructure
:58:52. > :58:56.investment. As far as giving the extra money we gave to take the
:58:57. > :59:03.scheme she is talking up to HS2 I am waiting for talk is about that
:59:04. > :59:07.particular scheme. Yesterday there was an important point of order from
:59:08. > :59:13.a wide commie member when he pointed out how excellent the transport
:59:14. > :59:15.department was in answering questions and hopefully the Treasury
:59:16. > :59:20.Department is in answering questions. As the Secretary Of State
:59:21. > :59:27.been contacted by the Chancellor to find out how it is done? I am sure
:59:28. > :59:37.that is meant a helpful question. In the run up to the spending review,
:59:38. > :59:41.it is not. I think chartered engineer and as a member of the IEE
:59:42. > :59:47.G I was horrified to learn that software engineering had an sleep
:59:48. > :59:53.and used to cheat legitimate regulation and possibly undermine
:59:54. > :59:56.public health. What discussions has he had with the professional bodies,
:59:57. > :00:00.the skills Minister and the automotive industry to ensure the
:00:01. > :00:10.whole swag and sort of dark engineering has now place here? The
:00:11. > :00:14.industry across the East is very embarrassed by what has happened and
:00:15. > :00:21.I am sure they will take proper action on the measures. I wonder if
:00:22. > :00:26.my honourable friend could update the house or more progress is being
:00:27. > :00:32.made to bring Crossrail to through Harold Wilson's station? We are out
:00:33. > :00:36.to consultation but I would expect my honourable friend to have said
:00:37. > :00:43.what a great job we are doing as far as Crossrail one has been done. But
:00:44. > :00:51.I have come to learn no sooner do you complete one project and people
:00:52. > :00:57.are talking about the second. Last week the pilot was Mike union wrote
:00:58. > :01:01.to the management at Albany who operates selfless as to the
:01:02. > :01:04.Highlands and Islands about that concern where cases are being
:01:05. > :01:08.returned to the line despite being unserviceable. They brought in some
:01:09. > :01:15.cases a craft contain defects that in some cases affect safety and in
:01:16. > :01:20.other cases affect the aircraft to be an usable. These are lifeline
:01:21. > :01:26.services to some of the most economically fragile communities in
:01:27. > :01:33.the country. What can the aviation Minister do to ensure, through his
:01:34. > :01:35.department or the CE, our local communities can retain full
:01:36. > :01:44.confidence in these crucial services? I regularly meet with that
:01:45. > :01:48.union. It is a good example of how unions can work with government to
:01:49. > :01:57.promote their members. Safety is our top priority for air travel in the
:01:58. > :02:05.UK. We have two meet strict maintenance requirements. I
:02:06. > :02:12.understand that the CAA is aware of the difficulties and is taking care
:02:13. > :02:15.of safety requirements. This matter will be under review. I want to hear
:02:16. > :02:22.from a member of the select committee. Thank you. In recent
:02:23. > :02:27.weeks passengers on the Cleethorpes to Manchester rail routes have had
:02:28. > :02:31.to the top with cancellations due to driver shortage. Customers do not
:02:32. > :02:36.care if this is the company problem or union problem but can the good
:02:37. > :02:42.offices be used to sort this out, please? I will be delighted to do so
:02:43. > :02:47.and will try to do so. This is why the new into regions to end have
:02:48. > :02:55.customary expedience right at the heart of them. Business question,
:02:56. > :02:58.Chris Bryant. I wonder whether the leader of the house could give as
:02:59. > :03:04.the business for next week. The leader of the house. The business
:03:05. > :03:08.for next week, on Monday second November we will have the second
:03:09. > :03:11.reading of the Housing and planning Bill, on Tuesday November, second
:03:12. > :03:17.reading of the European approvals will Lord's. All by the remaining
:03:18. > :03:21.stages of the national insurance contributions Bill followed by a
:03:22. > :03:26.motion to improve the money resolution for access to medical
:03:27. > :03:29.treatments innovation bill. On Wednesday 4th of November will be
:03:30. > :03:36.the ninth opposition day including a debate on policing. Thursday fifth
:03:37. > :03:40.November a debate on the stake in the bank of Scotland and the future
:03:41. > :03:45.of UK banking followed by a debate on the motion relating to the dog
:03:46. > :03:50.meat trade as determined by the backbench business committee. Friday
:03:51. > :03:53.7th of November will be private members bills. The provisional
:03:54. > :03:57.business for the week commencing 9th of November will include, on Monday
:03:58. > :04:01.the ninth, the remaining stages of the Scotland Bill and on Tuesday the
:04:02. > :04:07.remaining stages of the trade unions bill. The business for Thursday
:04:08. > :04:11.fifth November will be a general debate on funding for schools. Mr
:04:12. > :04:16.Speaker will wish to be reminded as well colleagues that the house will
:04:17. > :04:20.rise for the end of business on Tuesday ten November and return on
:04:21. > :04:24.Monday 16th November. I should add that hearing that need we are
:04:25. > :04:29.expecting a visit from the Indian PM to this house and I hope those
:04:30. > :04:37.colleagues who are around and able to be soap will be part of that
:04:38. > :04:43.visit. Mr Chris Bryant. Yesterday set latter admitted the award of the
:04:44. > :04:47.World Cup to Russia had been decided long before England had in its bed
:04:48. > :04:53.and yesterday the select committee will World Cup sponsors on that
:04:54. > :05:00.complicity in blatter's kleptocratic rule. Can we have a debate on the
:05:01. > :05:08.sink of corruption that is a fact? British taxpayers and football fans
:05:09. > :05:17.have been diddled out of millions. - Fifa. Talking of stitch up jobs, can
:05:18. > :05:21.these eco-explain something he said yesterday, the review from the
:05:22. > :05:25.second Baron of Strathclyde into the privileges of we the Commons, the
:05:26. > :05:29.reader club members that is absolutely essential we do not rush
:05:30. > :05:34.into this and for that matter we should not rush headlong into
:05:35. > :05:38.unfortunately, undermine the leader unfortunately, undermine the leader
:05:39. > :05:42.of the house by telling the world that one yesterday all of this could
:05:43. > :05:47.be done and dusted white Christmas. How can this be right? If the risen
:05:48. > :05:53.issue shouldn't this house a debasing it? It is not a review at
:05:54. > :05:59.all, it is a Fifa style stitch up. I am not sure the government has got
:06:00. > :06:03.over its tantrum of losing in the Lord's on Monday. He has said
:06:04. > :06:07.several times now he will make substantial changes to his plan in
:06:08. > :06:12.the Autumn Statement on November 25. The reader will know the Autumn
:06:13. > :06:17.Statement is precisely that, a statement and no more, it does not
:06:18. > :06:21.actually do anything legislatively. I asked the reader again, will he
:06:22. > :06:27.allow a three-day debate on the effects of the Autumn Statement this
:06:28. > :06:33.year? On Tuesday the chairman of the National Cleese chief counsel and
:06:34. > :06:37.the Deputy Commissioner of the Met police said if the Home Secretary or
:06:38. > :06:42.Chancellor of the Exchequer get their way with the police budget it
:06:43. > :06:48.will be the end of the year of bobbies on the beat. Is that
:06:49. > :06:51.something to be proud of? Officers have already gone and it looks
:06:52. > :06:56.likely more than 20,000 more officers will be lost by the end of
:06:57. > :07:02.this Parliament. We should be devoting our opposition day next
:07:03. > :07:07.week to this. Can the Home Secretary herself answered this debate so we
:07:08. > :07:11.can take her to task? Can we have a debate on the ministerial code of
:07:12. > :07:16.conduct? Deviously this has made clear that there was an overarching
:07:17. > :07:20.duty on ministers to comply with law including international law and
:07:21. > :07:26.treaty obligations. Last week it was revealed that the GM has insisted it
:07:27. > :07:31.Attorney General and conservative Attorney General and conservative
:07:32. > :07:35.Attorney General says it is impossible to understand how this
:07:36. > :07:38.change has been carried out and cover was broken as the head of the
:07:39. > :07:45.contempt for international law. legal service accused number ten of
:07:46. > :07:48.contempt for international law. Surely to goodness a minister's word
:07:49. > :07:53.is still his wand when he signs a duty. Does he still crosses fingers
:07:54. > :08:00.behind his back when he signs treaties? Why on earth was the Ford
:08:01. > :08:06.of conduct issued any ministerial statement to the Lords and still not
:08:07. > :08:11.to the House of Commons? Mr Speaker, many parts of this country as many
:08:12. > :08:16.members have said still have terrible mobile telephone coverage.
:08:17. > :08:18.Last year the government had to withdraw its hourly drafted
:08:19. > :08:23.telecommunications code which was intended to deal with these spots
:08:24. > :08:30.around the country. He promised to bring any new electronic code as a
:08:31. > :08:33.matter of urgency but they've is still no sign of it so can the
:08:34. > :08:39.reader tell us when this will appear? Mobile phone coverage is
:08:40. > :08:45.every bit as much a public utility as water and electricity so will be
:08:46. > :08:49.government get a move on? Mr Speaker I confess I am worried about the
:08:50. > :08:53.state of health of the Chancellor, he looked really appeal earlier this
:08:54. > :08:59.year and I thought. He has, did I see it, something of the night about
:09:00. > :09:04.him. With Halloween upon him can the reader as sure as he will be staying
:09:05. > :09:11.at home on Saturday night when it is dark. It is one thing to scream
:09:12. > :09:15.along with order but quite another to encounter the Chancellor in a
:09:16. > :09:21.dark alley and his form of trick or treat is to suck family finances
:09:22. > :09:28.dry. Talking of Halloween, in Scotland it is the time for guising
:09:29. > :09:31.when people go around in fancy dress but has the member for South
:09:32. > :09:37.Cambridgeshire will expose the fact that however hard the PM has tried
:09:38. > :09:44.to dress the Tory party up, hugging the gays and marrying huskies,
:09:45. > :09:50.conservatism is dead, all that is left is a fake skeleton costume. We
:09:51. > :09:53.should be debating a motion next Thursday on the dog meat trade, I
:09:54. > :09:57.wondered whether this was the debate of the dogs wrecked first the
:09:58. > :10:02.Chancellor has made of the tax credit fiasco but today is award the
:10:03. > :10:08.award the Westminster dog of the year. I wish my deputy's badly
:10:09. > :10:13.behaved Rottweilers well in the competition but I gather that the
:10:14. > :10:20.member for helmet and Rockwell has two dogs called Boris and Maggie. A
:10:21. > :10:28.found bodices behaviour improved significantly when he was castrated.
:10:29. > :10:29.Well this advice be passed on to the Chancellor, Home Secretary and other
:10:30. > :10:39.candidates for the Conservative Party leadership? Leader of the
:10:40. > :10:43.house, Mr Chris Grayling. Can I start by delivering some good news
:10:44. > :10:48.to my honourable friend the member for Kettering who sadly is not in
:10:49. > :10:52.his ways today. I shall also informed the house that you, after
:10:53. > :10:57.receiving positive feedback, have authorised that the new alphabetical
:10:58. > :11:07.meetings will be kept in place for the rest of Parliament. The new warm
:11:08. > :11:14.relationship that exists between the Fs and Gs is getting on well. In all
:11:15. > :11:19.the old terms it has worked well and we will be continuing it. Can I
:11:20. > :11:27.associate myself with the remarks of the honourable gentleman about Fifa?
:11:28. > :11:29.He works hard on the brief and I am reliably informed he was
:11:30. > :11:34.disappointed to move away from that. He knows very well how
:11:35. > :11:39.shocking the developed and sat Fifa have been. It is no excuse
:11:40. > :11:44.whatsoever for what has taken place. I would commend all of those who
:11:45. > :11:48.have been involved in pursuing the investigation to the stage we have
:11:49. > :11:54.reached no. It does look likely that prosecutions will fall and rightly
:11:55. > :11:59.so. It is of absolute importance in a game that is seen around the world
:12:00. > :12:04.as a region for young people that it should be absolutely clean. Those
:12:05. > :12:06.who have left it in a position with it has been this marched by
:12:07. > :12:10.corruption should be dealt with by the full force of the law and
:12:11. > :12:18.changes essential, I completely agree with him on that.
:12:19. > :12:24.Regarding the Strathclyde review into the House of Lords, there will
:12:25. > :12:29.be a full statement about the terms of reference when he is ready to
:12:30. > :12:34.publish those details, which is right and proper. He will take the
:12:35. > :12:40.time necessary, given the scope of the work he intends to do, and he
:12:41. > :12:42.will make clear how that will work. On the tax credits point, I will
:12:43. > :12:46.remind the honourable gentleman that remind the honourable gentleman that
:12:47. > :12:50.we will be using for the Autumn Statement the same procedure is that
:12:51. > :12:53.operated in 13 years of Labour Government. Now they are in
:12:54. > :12:58.change how the House works. We will change how the House works. We will
:12:59. > :13:01.continue to operate the way we have, debating issues fully. We have
:13:02. > :13:10.already had extensive debates on the tax credits issue, and no doubt we
:13:11. > :13:14.will have more. Under Conservative leadership of government and
:13:15. > :13:19.Coalition, and under this government, crime has fallen. We
:13:20. > :13:34.have had to take some difficult decisions, and they are challenges
:13:35. > :13:36.facing the police. He made a point about the ministerial code. I would
:13:37. > :13:44.simply say that under the new ministerial code, listers are still
:13:45. > :13:58.required to uphold the law. We would expect that. -- ministers are still
:13:59. > :14:02.required. We spoke about the Department of Culture, Media and
:14:03. > :14:04.Sport. Just to remind them that the former Secretary of State, now the
:14:05. > :14:11.Business Secretary, secured a deal to secure five Ilion pounds of
:14:12. > :14:29.investment in mobile telephony. We do not just a published. --
:14:30. > :14:32.published documents, we do things. We have watched with interest the
:14:33. > :14:37.pale faces on the side of the House, the huddles of pallid people asking
:14:38. > :14:41.how we get ourselves out of this mess. My worry is for the health of
:14:42. > :14:45.him and his colleagues, not for the him and his colleagues, not for the
:14:46. > :14:50.Chancellor, who I can assure him is in great form. He made reference to
:14:51. > :14:57.the point that this weekend as Halloween. My sympathies today are
:14:58. > :15:02.with the children of the Rhondda. It is my hope that he is not planning
:15:03. > :15:11.to go trick or treating, because can you imagine the horror of a small
:15:12. > :15:29.gentleman is out trick or treating? gentleman is out trick or treating?
:15:30. > :15:40.76-year-old joint Iranians citizen has been held in Iran's notorious
:15:41. > :15:48.where his health deteriorates. -- where his health deteriorates. --
:15:49. > :15:49.the Iranian and British citizen. Has Sun and grandchildren are in the
:15:50. > :16:01.gallery today with a simple message, please let grandpa come
:16:02. > :16:09.his constituent's family and for the his constituent's family and for the
:16:10. > :16:13.work he is doing. Given the obvious urgency of this, I will make a point
:16:14. > :16:17.of ensuring this is communicated immediately after the session to my
:16:18. > :16:19.colleagues in the Foreign Office and I will ask them to ensure that
:16:20. > :16:30.respond as quickly as possible. Can respond as quickly as possible. Can
:16:31. > :16:39.announcing business for next week. announcing business for next week.
:16:40. > :16:48.Our thoughts are very much this morning with the school community
:16:49. > :16:52.their pupils in Aberdeenshire. One their pupils in Aberdeenshire.
:16:53. > :16:55.of my honourable friends was a pupil of my honourable friends was a pupil
:16:56. > :16:55.at this school. This was an at this school. This was an
:16:56. > :16:55.appalling tragedy witnessed appalling tragedy witnessed
:16:56. > :17:04.yesterday. It is Dave four of The Great War of the nobles, and it is
:17:05. > :17:07.starting to get ugly. -- day for. They have released their not so
:17:08. > :17:14.secret weapon, codenamed big boy, to go to the House and sort them out.
:17:15. > :17:16.He is going down there to emasculate the House of Lords and ensure that
:17:17. > :17:24.they never do anything like this again. Of course they can. The House
:17:25. > :17:29.of Lords is without a shred of democratic legitimacy, it represents
:17:30. > :17:32.absolutely no one. I am certain the Tories will get their way when it
:17:33. > :17:38.sensing is a real desire amongst the sensing is a real desire amongst the
:17:39. > :17:41.Conservative benches to deal decisively with the House of Lords.
:17:42. > :17:48.I get the sense they have had enough of that unelected chamber with the
:17:49. > :17:54.Lords, baronets, earls, dancing around like Santa Claus, having a
:17:55. > :18:00.stake in this democracy. I appeal to the Conservative members to join us
:18:01. > :18:09.Let us have a proper enquiry into Let us have a proper enquiry into
:18:10. > :18:14.the role of that place. We get the Scotland Bill back in a couple of
:18:15. > :18:20.weeks, and there is only one day set aside for the remaining stages and
:18:21. > :18:24.third reading. We had four days were not one amendment was made, even
:18:25. > :18:31.though they were backed by every member of Parliament who represented
:18:32. > :18:33.a Scottish constituency. The Secretary of State said he would
:18:34. > :18:36.spend the summer reflecting, and said he would try to bring back
:18:37. > :18:42.Bill in line with what was promised Bill in line with what was promised
:18:43. > :18:48.in the Smith Commission. Surely we need more than one day looking at
:18:49. > :18:52.this. This is the first is in his questions I have had an opportunity
:18:53. > :19:00.to speak of a second-class member of this House. Groaning
:19:01. > :19:06.I am certain the Leader of the House has recognised the sheer anger put
:19:07. > :19:15.forward in Scotland about Scotland's member of -- members of
:19:16. > :19:23.Parliament being told not to leave the union, but as soon as we get
:19:24. > :19:29.here things change. Is this going to be subject to an English veto, and
:19:30. > :19:32.if it is, how will it work out? We are grateful to you, Mr Speaker, for
:19:33. > :19:41.backing the call we have been making about getting rid of the ridiculous
:19:42. > :19:46.that we abandon business for that we abandon business for
:19:47. > :19:49.participating in a voluntary organisations association. I would
:19:50. > :20:00.ask you to use your considerable authority to make sure the summer
:20:01. > :20:04.recess covers all parts of the UK, there school holidays. A new
:20:05. > :20:09.tradition has been taken up by the children of Scotland, where the goal
:20:10. > :20:12.disguised as Conservatives because they are so unusual Andre. The only
:20:13. > :20:21.problem is when they turn up to the door, there is real fear that this
:20:22. > :20:30.people who open the doors that they will get any treats because they are
:20:31. > :20:34.Conservatives. I have a confession to make. Until last week I had not
:20:35. > :20:43.previously heard any of the work of that distinguished band MP four, of
:20:44. > :20:49.which he is a great part. I did not realise what great showman he was.
:20:50. > :20:58.He does bring a bit of that showbiz to this House. A little bit of fake
:20:59. > :21:01.outrage on some theatre. He showed a chink a couple of weeks ago when he
:21:02. > :21:10.said nice things about the House of Lords, but he is back to his usual
:21:11. > :21:14.form. I know where he is coming from, I am confident that we will be
:21:15. > :21:18.able to find a resolution under the guidance of Lord Strathclyde. The
:21:19. > :21:23.fake outrage has been there on the Scotland Bill as well. The Law
:21:24. > :21:29.Society of Scotland emphasised we are delivering what we committed to.
:21:30. > :21:33.I would not expect a group of politicians whose mission is to
:21:34. > :21:38.secure independence for Scotland to do anything else but have fake
:21:39. > :21:45.outrage. We are delivering what we promised. If ever there was an
:21:46. > :21:52.example of that little bit of showbiz that he brings, it is over
:21:53. > :21:55.the issue of English votes. He describes himself as a second-class
:21:56. > :22:01.citizen, which he will never be anywhere. Having listened to all of
:22:02. > :22:05.his arguments, I would remind them about what he said on the 14th of
:22:06. > :22:10.October last year, which is I sympathise totally with English
:22:11. > :22:16.members. Of course they should have English votes for English laws. They
:22:17. > :22:22.have every right to demand English-only legislation. I admire
:22:23. > :22:29.him for this, but on occasion he has a habit of delivering slightly mixed
:22:30. > :22:32.messages. Regarding Conservatives in Scotland, I think people have the
:22:33. > :22:40.reason to be skewered this autumn, come Halloween and the weeks ahead,
:22:41. > :22:43.-- to be frightened. Are the Labour Party. They have been done over by
:22:44. > :22:52.the SNP colleagues, and we intend to do them over as well. The nice
:22:53. > :22:57.quality standard of autism calls for waiting times between referral and
:22:58. > :23:04.initial appointment for assessment to be no longer than three months.
:23:05. > :23:08.-- NICE. Currently these targets are not being met. Could we have a
:23:09. > :23:12.debate on research from the National Autistic Society, which has shown
:23:13. > :23:26.that on average the wait for children is 3.5 years and adults
:23:27. > :23:28.raising concerns the diagnosis. As raising concerns the diagnosis. As
:23:29. > :23:28.every member of this House has every member of this
:23:29. > :23:29.approximately 1000 people in their approximately 1000 people in their
:23:30. > :23:34.constituency suffering from autism, these long waiting times are
:23:35. > :23:44.to crisis point. She makes a very to crisis point. She makes a very
:23:45. > :23:46.important point. As constituency MPs all of us have experience of the
:23:47. > :23:49.autistic child face and the autistic child face and the
:23:50. > :23:53.importance of doing everything we can to give those children the
:23:54. > :24:03.opportunities in life. I am sure opportunities in life. I am sure
:24:04. > :24:09.interest in this area, sheer concern interest in this area, sheer concern
:24:10. > :24:18.is shared by the Secretary of State, is shared by the Secretary of State,
:24:19. > :24:30.and I will raise the concerns with. I would ask her to continue bringing
:24:31. > :24:34.these issues to the House. Does the House and government think that once
:24:35. > :24:35.again, just looking at the House of Lords, is like looking at one
:24:36. > :24:35.on the bicycle. Not looking at the on the bicycle. Not looking at the
:24:36. > :24:36.person driving. Should we have a person driving. Should we have a
:24:37. > :24:37.comprehensive review to bring this comprehensive review to bring this
:24:38. > :24:41.into the 21st century? There are many ways about how the whole of the
:24:42. > :24:51.constitutional arrangements should work. The constitutional committee
:24:52. > :24:54.is engaged in this at the moment. The chair of the committee is hard
:24:55. > :24:56.at work looking at the constitutional arrangements and I'm
:24:57. > :25:06.interesting ideas. As you know the interesting ideas. As you know the
:25:07. > :25:09.credentials of the current UK delegation to the parliamentary
:25:10. > :25:14.assembly to the Council of Europe expire next week. As the membership
:25:15. > :25:18.of the new delegation is the responsibility of Parliament and not
:25:19. > :25:27.the government, will he make time next week for this House to express
:25:28. > :25:33.its opinion? I am aware of the motion down on his order paper --
:25:34. > :25:37.the order paper. This is a matter that I have no doubt the House will
:25:38. > :25:42.give careful consideration to, and the point of a backbench business
:25:43. > :25:48.committee is to ensure there is time available to members of the host to
:25:49. > :25:57.allocate time to debate. -- the Leader of the House to allocate time
:25:58. > :25:59.to debate. Can I thank the Leader of the House for the business
:26:00. > :26:05.statement. For the avoidance of doubt, next Thursday we have two
:26:06. > :26:11.debates from the backbench business committee. One on this taken because
:26:12. > :26:23.Bank of Scotland, and the other is the trade in dog flesh. Could the
:26:24. > :26:25.Leader of the House gives the backbench business committee and
:26:26. > :26:33.early indication if there is any possibility for time in the week
:26:34. > :26:35.beginning 16th November? I cannot give that undertaking, but my
:26:36. > :26:46.expectation is there will be time. I have no reason to believe it will
:26:47. > :26:48.not be available. He is picking interesting subject for debate which
:26:49. > :26:55.will command great attention, and I think particularly the debate on dog
:26:56. > :26:59.meat happening as it is. It is a sign of how much concerned there is
:27:00. > :27:04.across the House about the welfare of dogs. Also the fact this is a
:27:05. > :27:09.trade that most people in this country do not support at all.
:27:10. > :27:17.Steve eco. Communications this week seemed to suggest some members of
:27:18. > :27:24.the public might have even confused about the finance will weave aborted
:27:25. > :27:29.on on Monday. Could we have a statement from the reader that makes
:27:30. > :27:34.clear what the true position is and can we also understand from him what
:27:35. > :27:43.keep hands to do to counter the occasional misrepresentation of
:27:44. > :27:46.business of this House? - voted on. There is no clarification of the
:27:47. > :27:51.nature of a division on the website. I have listened to colleagues and do
:27:52. > :27:58.intend to write to that website asking them to write some degree of
:27:59. > :28:03.explanation on issues of this kind. Given this was a debate about and
:28:04. > :28:09.civil, not substance, it is not possible under the current treaty
:28:10. > :28:15.arrangements for this House to cut VAT to zero. That decision had to be
:28:16. > :28:22.taken in Brussels. There is strong interest in securing change. It is
:28:23. > :28:27.utterly unacceptable to have a situation where party groups are
:28:28. > :28:32.misrepresenting the vote as a 0 rate for tampons, it is completely
:28:33. > :28:42.unacceptable. There should be a 0 rate for a product that is clearly
:28:43. > :28:56.not a luxury. The minister gave a commitment he would raise that has
:28:57. > :29:02.in Euro and he has done so. The Cannes of the House has promised to
:29:03. > :29:12.negotiate at European level to achieve a 0 rate of the 80 on
:29:13. > :29:17.women's products. This should go alongside the court demands in the
:29:18. > :29:21.forthcoming Wii negotiation. Women's rights are not a
:29:22. > :29:27.second-class issue, can he confirm that? Women's rights will never be a
:29:28. > :29:34.second-class issue. The party in power opposite for 13 years and
:29:35. > :29:40.never secured anything of this sort. Since the debate on Tuesday we have
:29:41. > :29:47.already seen the vice chairman of the mission say this is an issue
:29:48. > :29:51.that are willing to consider. We are taking a step in the right
:29:52. > :29:57.direction. If a minister gives a commitment to this has the will do
:29:58. > :30:05.so, they will find it through. Devolution is something we all
:30:06. > :30:12.expire to and my county in Somerset wish to embrace revolution. We wish
:30:13. > :30:15.to embrace it so that the money follows the devolution coming from
:30:16. > :30:21.the centre which is fantastic, we want to do it. In this House can be
:30:22. > :30:24.debate this so there is a clear message going out to district and
:30:25. > :30:30.unity is for how they can get involved in maximising their return
:30:31. > :30:34.for taxpayers? This is what the government is seeking to do and
:30:35. > :30:38.there will be no one size fits all for different settlements in
:30:39. > :30:42.different parts of the country, it depends on the circumstances and
:30:43. > :30:48.different geography and nature of the economy. I would encourage my
:30:49. > :30:52.honourable men to make this point to other ministers. It is a great
:30:53. > :30:55.opportunity for counties like Somerset to be involved in
:30:56. > :31:02.defamation to give them greater control over matters that affect
:31:03. > :31:06.their area. There is a real opportunity for local authorities
:31:07. > :31:12.and local communities. Given the difficult financial circumstances
:31:13. > :31:17.that the NHS finds itself in, is it not time for a debate on a national
:31:18. > :31:28.tariff for the treatment of IVF given that CCG 's are paying fees as
:31:29. > :31:35.varied as ?2500 to ?6,000 per cycle? We have a choice in the NHS, we can
:31:36. > :31:39.either devolved responsibilities to local lactation is keep everything
:31:40. > :31:46.at the centre. The moment we start to say we do not like different
:31:47. > :31:51.areas where different CCG 's make different decisions we start to be
:31:52. > :31:58.centralised again. I want decisions taken by local doctors. I would eat
:31:59. > :32:03.reluctant to reverse that. With my honourable friend consider having a
:32:04. > :32:07.debate on the future of the House of lords in the near future purely and
:32:08. > :32:11.simply because of the events of this week and also I have been doing some
:32:12. > :32:16.work and had a successful debate in West and start all on a particular
:32:17. > :32:22.oppose all that was met and welcomed on all sides of the House. Part
:32:23. > :32:27.Westminster Hall. I have no doubt be will have such a debate in future
:32:28. > :32:31.but can I encourage him to talk to Lord Strathclyde as well as he
:32:32. > :32:36.dubbed his review? The scope of the review will be out shortly but I
:32:37. > :32:40.suggest he takes any ideas for change to the noble lord who will
:32:41. > :32:48.wish to hear the views of people in this House? The approach of another
:32:49. > :32:51.Parliamentary recess and no indication whatsoever that the
:32:52. > :32:56.government intends to seek a mandate for military intervention in Syria.
:32:57. > :33:01.Isn't it he can play obviously there is no appetite across this chamber
:33:02. > :33:06.for a second goal through military venture. Can we look at the
:33:07. > :33:12.financial initiatives which might actually contribute to bringing
:33:13. > :33:17.peace and stability to that country? I would simply say to the right
:33:18. > :33:21.honourable gentleman, there will be no statement or debate about
:33:22. > :33:26.military intervention in Syria unless we have an intention to
:33:27. > :33:28.intervene voluntarily in Syria. The reason we do not have another
:33:29. > :33:34.statement about that is because no decision has been taken to intervene
:33:35. > :33:39.militarily in Syria and should that happen we will come to this House
:33:40. > :33:44.and discuss it fully. We have debated this extensively in we said
:33:45. > :33:49.weeks, the Foreign Secretary was before this House regularly. They
:33:50. > :33:52.will be plenty opportunities to debate what is an difficult
:33:53. > :33:58.situation, something we all of us wish to see the resolution but it is
:33:59. > :34:03.difficult to see a path to that resolution given how complex the
:34:04. > :34:12.situation is. I feel sure he reader of the House is a Downton at the fan
:34:13. > :34:18.and will have been as alarmed as me by what happened two weeks ago.
:34:19. > :34:25.Fortunately Lord Grantham is recovering well what it is pointed
:34:26. > :34:28.out that survival from upper gastrointestinal bleeding in this
:34:29. > :34:33.country lags behind those countries with which we could reasonably be
:34:34. > :34:38.compared. I wonder if we could have a debate on how we could configure
:34:39. > :34:42.endoscopy services in this country to bring us up among the best in
:34:43. > :34:49.Europe rather than the worst? She makes a very important point in his
:34:50. > :34:55.customer Blake light-hearted but also serious weight. I did not see
:34:56. > :35:00.the particular scene in Downton Abbey but I believe it was
:35:01. > :35:05.eye-catching to say the least comment he makes today I think are
:35:06. > :35:12.important ones and I will make sure they are forwarded to my colleagues
:35:13. > :35:18.in the Department of Health. My honourable friend from the front
:35:19. > :35:23.bench quite rightly lead on the issue of Fifa which he described as
:35:24. > :35:26.a sink of corruption but football is still the beautiful game and will be
:35:27. > :35:34.readers of the House on behalf of the government join me in paying
:35:35. > :35:38.tribute to a happy birthday to a former Derbyshire player who was the
:35:39. > :35:45.first black professional footballer in the world. We are very proud of
:35:46. > :35:52.him. Years and adopted son of Darlington and will be Cannes what
:35:53. > :35:59.the House join me with say happy birthday to him? The beautiful game
:36:00. > :36:05.is tarnished because of the penalty shoot out at all Trafford last
:36:06. > :36:09.night. I will join her and also pay tribute to all of the black leaders
:36:10. > :36:11.Huebner Pathfinders in the game and opened it up to evil generation of
:36:12. > :36:17.young people. I would like to see young people. I would like to see
:36:18. > :36:22.more black coaches in this country as well and I think that should be a
:36:23. > :36:28.minority for the game. I congratulate him for all he has done
:36:29. > :36:33.to contribute to the sport. My hard-working constituents who use
:36:34. > :36:39.Kingston and Surbiton station 's art forced to pay for zone six tickets
:36:40. > :36:43.when logic and fairness dictates they should be in zone five. 26
:36:44. > :36:48.stations are in zone five yet further from their London terminus.
:36:49. > :36:52.I know there are other reasoning campaigns in London yet houses
:36:53. > :36:59.certainly the most compelling. We make time for a debate on the zoning
:37:00. > :37:06.of stations in London? I would not go as far to say... He may be the
:37:07. > :37:09.most campaigning campaign in London but the campaign to get Epsom in
:37:10. > :37:15.zone six which is outside London may be a great important. There are
:37:16. > :37:21.zoning concerns and I have drawn this to the Department for Transport
:37:22. > :37:25.was my attention. I hope we can make regressing what we are doing and our
:37:26. > :37:33.constituents can see that. It is something I know people in still are
:37:34. > :37:38.looking forward to him succeeding in due course in. A cross-party support
:37:39. > :37:42.for a series of appeals. Open up family courts is something a
:37:43. > :37:48.succession of governments have promised to reform. Will there be a
:37:49. > :37:52.debate on how we can break open the cartels that surround the family
:37:53. > :37:57.courts system? Having been Secretary Of State for just as I am aware of
:37:58. > :38:02.this and sympathetic. We have two be careful there are some deeply
:38:03. > :38:05.distressing stories take place within the family courts and we must
:38:06. > :38:12.not open them up in a way that exposes family heartache to the
:38:13. > :38:18.tabloid media. He is right to say there is no reason for the agree of
:38:19. > :38:23.closed environment that exists around those family courts. I know
:38:24. > :38:27.this is a matter of concern to my colleague the Secretary Of State
:38:28. > :38:32.today. He will be here again on Tuesday and I would encourage him to
:38:33. > :38:38.re-raised this point. As my right honourable friend knows, I am
:38:39. > :38:43.running a campaign to save the hedgehog. Will my right honourable
:38:44. > :38:46.friend 's urge every member and right on rubble member to ensure
:38:47. > :38:54.there are safety measures in place within one fires next Thursday which
:38:55. > :38:57.is Guy Fawkes night? Thank you. I share his concern about the
:38:58. > :39:04.hedgehog. We have seen a really distressing fall in our hedgehog
:39:05. > :39:07.population in the last few decades. When I was a child you would find
:39:08. > :39:13.one in every garden, it will would feed them outside the door and it
:39:14. > :39:17.now does not happen to any degree like it used to. I would say to
:39:18. > :39:22.members on all sides of the House and anyone listening to this debate,
:39:23. > :39:27.bonfire night is a period of great danger to hedgehogs. If you drive
:39:28. > :39:33.around the country you will already see large piles of wood setup. It is
:39:34. > :39:38.all too common that a hedgehog finds refuge in those bonfires in the next
:39:39. > :39:42.few days. I would ask anyone to double-check before they like them
:39:43. > :39:48.to make sure there is not a hedgehog nesting inside, we cannot afford to
:39:49. > :39:53.lose any more. Young people are being killed on our streets.
:39:54. > :39:59.Tragically, in my constituency, there have been two youth deaths in
:40:00. > :40:05.as many months. This is not isolated. A boy stabbed to death in
:40:06. > :40:12.Aberdeen, shooting in Hackney, Alford, even machine-gun fire in
:40:13. > :40:14.Willesden. This had to stop. With the government continuing to cut
:40:15. > :40:19.front line services, young people are turning to crime and violence in
:40:20. > :40:24.bigger and bigger numbers. Is it not time to call an urgent debate
:40:25. > :40:30.looking at how all parties can work together to stop the rise of youth
:40:31. > :40:36.violence? Mr Speaker, firstly, let us be clear, knife crime is a blight
:40:37. > :40:43.on our society as our knife murders and I would endorse the comments
:40:44. > :40:46.made earlier about the tragic events in Aberdeen yesterday. They are
:40:47. > :40:51.fortunately rare in this country that makes them even more shocking
:40:52. > :40:54.when they do happen. I send my condolences and good wishes not only
:40:55. > :40:59.to the family but also those in the school for whom it would have aimed
:41:00. > :41:04.a deeply traumatic experience. On the streets of London any death
:41:05. > :41:07.through knife crime is too much, we have taken measures to toughen the
:41:08. > :41:12.law around carrying knives but it is important to support those
:41:13. > :41:19.organisations that try to take young people away from crime and carrying
:41:20. > :41:26.by a couple who set it up after the by a couple who set it up after the
:41:27. > :41:30.death of their son. The number of young people entering the criminal
:41:31. > :41:34.justice system for the first time is balding and has continued to fall
:41:35. > :41:38.for a number of years. That is a great step forward. The challenge of
:41:39. > :41:43.the offending is a good news story that fewer people are entering the
:41:44. > :41:51.justice system for the first time, long may that continue.
:41:52. > :41:55.British farmers who successfully applied for environmental
:41:56. > :41:59.improvement grants are being told that unless they put up all boards
:42:00. > :42:13.indicating the money came from the EU, they could lose part or all of
:42:14. > :42:33.and net contributors to the EU, and net contributors to the EU,
:42:34. > :42:33.isn't it akin to me taking my money from my bank to do a home
:42:34. > :42:34.improvement, and putting up a billboard saying, thank
:42:35. > :42:34.Barclays? Could we have a statement Barclays? Could we have a
:42:35. > :42:34.from an agricultural Minister saying from an agricultural Minister saying
:42:35. > :42:35.the British countryside by this the British countryside by this
:42:36. > :42:38.propaganda? The countryside here is around the most -- among the most
:42:39. > :42:44.beautiful anywhere in the world. I have some sympathy with him, and I
:42:45. > :42:50.do not want to see anything detracting from its natural beauty
:42:51. > :42:55.full stop DEFRA questions are next Thursday, so he can put it to him
:42:56. > :43:02.directly. But keep the countryside pure and natural. Will the
:43:03. > :43:08.government make a statement on the situation of employees pensions and
:43:09. > :43:18.the Commonwealth War Graves Commission? He will not allow them
:43:19. > :43:24.to make a decision on closing... Does he agree that staff working
:43:25. > :43:28.harder than ever due to the centenary commemorations at cutting
:43:29. > :43:35.committee staff pensions while the Director-General gets a 50% pay rise
:43:36. > :43:40.is utterly inappropriate? I understand the point he is making. A
:43:41. > :43:48.range of organisations have had to make decisions about final salary
:43:49. > :43:52.pensions. I will make sure they concerns he has raised will be
:43:53. > :44:03.passed on to my ministerial colleagues. Following the comments
:44:04. > :44:09.from the honourable member for Perth and your excellent article this week
:44:10. > :44:31.Mr, Mr Speaker, will he arrange for a debate on whether this House
:44:32. > :44:39.should continue to have a conference recess, or whether the
:44:40. > :44:39.party should sort themselves out and party should sort themselves out and
:44:40. > :44:40.arrange their confidence at the arrange their confidence at the
:44:41. > :44:40.weekend, like the SNP do. We would be able to work out which MPs are
:44:41. > :44:41.able to do the job in their -- their able to do the job in their -- their
:44:42. > :44:42.job in this House and hold the government to account. There is
:44:43. > :44:44.growing interest in this area. Particularly given the fact that
:44:45. > :44:47.there are perhaps fewer Liberal Democrats than there used to be for
:44:48. > :44:50.the confidence week. This has been raised through the usual channels.
:44:51. > :44:55.Confidence became take place some years in advance. This is something
:44:56. > :45:04.that needs to be dealt with carefully. I am pleased to hear
:45:05. > :45:09.there will be a debate on policing, but I am concerned at the lack of
:45:10. > :45:13.reality in the Leader of the House's responses on police
:45:14. > :45:20.150 plus uniformed presence from the 150 plus uniformed presence from the
:45:21. > :45:23.street and seen a 22% increase in violent crime in the last year. It
:45:24. > :45:28.is a connection between these things. Will the Leader of the House
:45:29. > :45:32.ensure that when the government come to this House to pretend there --
:45:33. > :45:46.present the debate on policing, that they face the facts as we do in our
:45:47. > :45:48.communities? I can only reactivate that the crime survey shows that
:45:49. > :45:52.notwithstanding some of the difficult challenges the police
:45:53. > :45:57.force has had to face up to, crime has continued to fall. There is
:45:58. > :46:04.scope for police officers and police forces to deliver new ways of
:46:05. > :46:08.working, bringing down cost without affecting front line support to the
:46:09. > :46:16.community 's. Labour run Kirklees Council have written off ?850,000 in
:46:17. > :46:20.section 106 cash which was allocated to improve local infrastructure by
:46:21. > :46:25.house-builders and developers. Can be debate how appalling situations
:46:26. > :46:30.like this is seeing local communities lose confidence in
:46:31. > :46:37.planning opportunities? I am aware of the issue. Begs questions about
:46:38. > :46:41.credit control and bringing money when it is due. Local authorities
:46:42. > :46:48.have the power to set timelines even to get money in advance for the
:46:49. > :46:52.payments they receive. Can I suggest to him, it is a matter of concern,
:46:53. > :46:56.that he raises this with the department concerned, perhaps
:46:57. > :47:03.through an adjournment debate or the next time they are in this House for
:47:04. > :47:06.questions? Can he share his current understanding of when legislation
:47:07. > :47:12.regarding the Stormont House regarding the Stormont House
:47:13. > :47:16.agreement may be brought forward? With the government continue a draft
:47:17. > :47:19.committee from both houses, dealing committee from both houses, dealing
:47:20. > :47:23.with the sensitive issue of legacy, which there has not been due
:47:24. > :47:27.consultation with victims for a consultation with victims for a
:47:28. > :47:33.variety of reasons and excuses, and this Parliament has been asked to
:47:34. > :47:39.legislate in lieu of the assembly. With the government give that period
:47:40. > :47:41.of special legislative scrutiny? I will discuss that with the Secretary
:47:42. > :47:46.of State. We have been involved in discussions with all parties in
:47:47. > :47:54.Northern Ireland, and those are continuing. We will bring it to this
:47:55. > :47:57.House as soon as we can. But I will make the Secretary of State of the
:47:58. > :48:04.issue he has raised. I was delighted to hear that others it will be
:48:05. > :48:10.taking place on the 12th to 14th of November, and there will be an
:48:11. > :48:13.opportunity for Parliament to receive him properly. That takes
:48:14. > :48:18.place between the November recess of this place and during Hindu New
:48:19. > :48:26.Year. Can I take the opportunity to invite the Leader of the House to
:48:27. > :48:30.wish a happy, peaceful and prosperous New Year, but equally can
:48:31. > :48:30.we have a statement as to the trade Guilds and educational arrangements
:48:31. > :48:40.and other arrangement is taking and other arrangement is taking
:48:41. > :48:41.place during that visit? I echo the happy New Year wishes he has made
:48:42. > :48:49.reference to, and I hope everyone reference to, and I hope everyone
:48:50. > :48:56.has an enjoyable, relaxing, successful set of New Year festival
:48:57. > :48:59.'s. No doubt we will all wish you, Mr Speaker, and I will make
:49:00. > :49:05.House aware of the details of the House aware of the details of the
:49:06. > :49:14.visit shortly. India is one of the biggest allies and it is a great
:49:15. > :49:22.democracy. This is a great opportunity. We were guests last
:49:23. > :49:24.night for the club the London Tigers, a sports club which does
:49:25. > :49:27.amazing work with young people from all different communities, and it
:49:28. > :49:32.would be appropriate to place on record our appreciation for the
:49:33. > :49:35.call for the debate on families who call for the debate on families who
:49:36. > :49:43.have autism in the family? I'm sure have autism in the family? I'm sure
:49:44. > :49:48.recent news of more diversity in the recent news of more diversity in the
:49:49. > :49:50.boardroom, it is welcome but needs boardroom, it is welcome but needs
:49:51. > :49:58.to go further. Could we have an early debate on diversity, and
:49:59. > :50:00.shouldn't this House be an exemplar? If you look at the photograph in the
:50:01. > :50:15.corridor, it has 64 photographs of corridor, it has 64 photographs of
:50:16. > :50:23.people who run the House at the senior level. Everyone is white and
:50:24. > :50:32.absolutely agree, and I would say absolutely agree, and I would say
:50:33. > :50:36.about the photographs out the back, about the photographs out the back,
:50:37. > :50:37.we have made great progress over the we have made great progress over the
:50:38. > :50:37.like in 2001 when I was elected, and like in 2001 when I was elected, and
:50:38. > :50:38.what it looks like today, there is a what it looks like today, there is a
:50:39. > :50:47.continue this and encourage the continue this and encourage the
:50:48. > :50:51.recruitment process. I want a society that is reflected in this
:50:52. > :50:58.House, and it has two reflect the society outside in all aspects of
:50:59. > :51:03.its working. The plans for the station in Torbay, the first one for
:51:04. > :51:09.therefore can we have a statement on therefore can we have a statement on
:51:10. > :51:14.when the next tranche of station funding will be available to bid for
:51:15. > :51:16.the complete this project? Unfortunately we have just had
:51:17. > :51:21.transport questions, so he will have to wait before the Secretary of
:51:22. > :51:28.State is back again, but his comments will have been noted. But
:51:29. > :51:32.if you look around this country, 20 years after the privatisation of
:51:33. > :51:35.railways, we have new railway lines opening, the start of a new service
:51:36. > :51:42.from Oxford to London, something that would never have happened in
:51:43. > :51:44.the days of British Rail. We have a party opposite who think we would be
:51:45. > :51:50.better off renationalising everything. It would be disastrous.
:51:51. > :51:58.The way we have it now, we are seeing innovations and long may that
:51:59. > :52:03.continue. Last week the Prime Minister said he did not want anyone
:52:04. > :52:07.relying on food banks, but this week the Work and Pensions Secretary told
:52:08. > :52:12.the select committee that he planned to station job advisers and food
:52:13. > :52:19.banks. Is it right that extreme food poverty should become an accepted
:52:20. > :52:27.element of GWP National planning? Could we have a debate on this? She
:52:28. > :52:31.has got this plain wrong. If we have people who are in need of food
:52:32. > :52:35.banks, and I would remind her that we have a lower use of food banks in
:52:36. > :52:38.this country than in countries like Germany, so it is simply not true
:52:39. > :52:44.-- link it to public policy. That we -- link it to public policy. That we
:52:45. > :52:52.should be helping these people into work and out of poverty. Making sure
:52:53. > :52:58.the Jobcentre is aware of what is going on in food banks seem
:52:59. > :53:04.sensible. It was an honour to present certificates recently to
:53:05. > :53:09.some of the 1500 graduates of the National Citizen Service scheme.
:53:10. > :53:12.real government success story and real government success story and
:53:13. > :53:17.will he allow time for a debate on how we can roll out this to more
:53:18. > :53:24.people every year? This has been a huge success story, this is one of
:53:25. > :53:29.the things that will have the most lasting impact on the country. It is
:53:30. > :53:33.growing and developing and proving a great success. It is changing the
:53:34. > :53:37.lives of young people in different parts of the countries, bringing
:53:38. > :53:39.together people from different backgrounds in a way that can only
:53:40. > :53:47.be positive for the future. Long may it continue. The shadow leader of
:53:48. > :53:51.the House was right to raise the ministerial code. Could we have an
:53:52. > :54:02.urgent statement on who made the decision on changing the code, the
:54:03. > :54:06.reasons for doing so? The honour of the ministerial code is the Prime
:54:07. > :54:15.Minister, so there will be plenty opportunities for the honourable
:54:16. > :54:18.lady to ask. On page 29 of the day's order paper there is a motion
:54:19. > :54:24.about the UK dedication to the alimentary assembly of the Council
:54:25. > :54:29.of Europe. It goes on to page 30 because it is signed by 58 members
:54:30. > :54:31.of this House from all the major political parties. It commends the
:54:32. > :54:42.work of the honourable member work of the honourable member
:54:43. > :54:47.Christchurch, his years there, and I wonder if the Leader of the House
:54:48. > :54:53.but put it on the order paper next but put it on the order paper next
:54:54. > :54:56.week. There is not a business of the House committee, so we're relying on
:54:57. > :55:04.the government to bring this motion forward. Would he bring this
:55:05. > :55:12.forward? I have spotted the degree of support for this motion. I am
:55:13. > :55:15.aware of the desire to debate it. What I would say is that there is
:55:16. > :55:20.quite a lot of time allocated through backbench business committee
:55:21. > :55:24.to debate in this House. He will return to the issue shortly, but
:55:25. > :55:33.there is a simple allocation available to debate this. The chair
:55:34. > :55:41.is sitting over there. The Minister may be aware of the case of 26 you
:55:42. > :55:44.will transmit and who been sentenced to serve her prison sentence in a
:55:45. > :55:58.men's prison. The good news I heard today is that she is to be
:55:59. > :56:02.transferred to a women's prison. -- a 26-year-old trans-women.
:56:03. > :56:09.in detail of this tend to be out in detail of this tend to be out
:56:10. > :56:13.with the metal ministers, but the Ministry of Justice will always want
:56:14. > :56:17.decisions of this nature to be taken sensitively and carefully. There are
:56:18. > :56:27.questions for the House on Tuesday, and they will listen to her concerns
:56:28. > :56:36.then. Can we have a debate on how to tackle cyber crime? I have received
:56:37. > :56:52.complaints from constituents in the complaints from constituents in the
:56:53. > :56:59.past, and there is another report in the local newspaper today, one of my
:57:00. > :57:02.convincing and genuine looking convincing and genuine looking
:57:03. > :57:02.e-mail purporting to come from a high street bank asking for
:57:03. > :57:11.details which could lead to people details which could lead to people
:57:12. > :57:11.number of quite worrying cases number of quite worrying cases
:57:12. > :57:11.highlighted in recent weeks and highlighted in recent weeks and
:57:12. > :57:13.months of people losing large chunks of life savings to some
:57:14. > :57:16.complex and sophisticated scams. The complex and sophisticated scams. The
:57:17. > :57:26.message we should give out is to be very careful. This should send
:57:27. > :57:28.messages to the people we represent that they are criminal groups out
:57:29. > :57:34.there who are trying to rip you off there who are trying to rip you off
:57:35. > :57:36.all of the time. I keep saying to my honourable friend, keep bringing up
:57:37. > :57:40.I hear the usual chuntering from a I hear the usual chuntering from a
:57:41. > :57:41.sedentary position from the shadow sedentary position from the shadow
:57:42. > :57:46.leader. This is a really serious leader. This is a really serious
:57:47. > :58:06.issue. On television this week there was a woman who had been swindled
:58:07. > :58:07.for ?35,000 by a gang who persuaded her to go to the bank and transfer
:58:08. > :58:14.her money to a different account. It is not a laughing matter. Does the
:58:15. > :58:17.concern being expressed in concern being expressed in
:58:18. > :58:20.Birmingham and by the Birmingham Post and mail over the threat
:58:21. > :58:25.Freedom of Information and will he Freedom of Information and will he
:58:26. > :58:27.agree to an urgent debate on what is a threat to the cornerstone of our
:58:28. > :58:37.democracy? The irony is that the person who
:58:38. > :58:42.said they regretted the Freedom of Information Act most was Jack Straw
:58:43. > :58:47.who introduced it and looked upon it as one of the things he got wrong.
:58:48. > :58:50.The Freedom of Information Act is something this government is
:58:51. > :58:57.committed to. We want to make sure it works fairly and cannot be
:58:58. > :59:00.misused but it is misused by people who use it as EV search tool to
:59:01. > :59:06.generate stories for the media. It is a legitimate tool for those who
:59:07. > :59:10.understand how this government has taken decisions. It is not the
:59:11. > :59:17.intention of this government to change that. I know from my
:59:18. > :59:21.family's on experience just how devastating pancreatic cancer can be
:59:22. > :59:28.and whether November being pancreatic awareness month can we
:59:29. > :59:31.see what is being done to help those suffering from this disease? My
:59:32. > :59:37.honourable friend makes an important point and of course all forms of
:59:38. > :59:39.cancer, particularly pancreatic cancer, are deeply distressing for
:59:40. > :59:45.the families of those involved and those who suffered from the
:59:46. > :59:49.different varieties of cancer. One of the things that is encouraging at
:59:50. > :59:53.the moment is that we really seemed to be making some significant steps
:59:54. > :59:58.forward in treatment and research for treatment in future. One of the
:59:59. > :00:01.things I am pleased we have done as the government is not withstanding
:00:02. > :00:07.the financial pressures we face. We have continued to keep up our
:00:08. > :00:10.budgets going into the search which open up a better future for those
:00:11. > :00:17.who are sufferers and I hope that what continues. Since the session
:00:18. > :00:23.started this morning welcome news has emerged from China that they are
:00:24. > :00:28.to end their one child policy. Will the leader of the house for a debate
:00:29. > :00:33.on the government's to child policy with particular reference to the
:00:34. > :00:39.Greek clause? The boot them please fill details and I am a wee of the
:00:40. > :00:44.issue she has raised and the fact she has continued to make this
:00:45. > :00:52.concern will be conveyed to my colleagues. -- rape clause.
:00:53. > :01:01.Anti-Muslim rape right -- anti-Muslim hate crime will be
:01:02. > :01:04.recorded separately. Can we therefore have a debate on heat
:01:05. > :01:12.crime in all of its forms and what we can do to eradicate this from our
:01:13. > :01:15.society? Mr Speaker, heat crime in any form is unacceptable. I am very
:01:16. > :01:20.much aware that although we have seen he's beat of anti-Semitic
:01:21. > :01:24.attacks in recent months the also see in this country regularly
:01:25. > :01:29.attacks on mosques and Muslims. The steps the government are taking is
:01:30. > :01:35.right. We should not tolerate heat crime against any of our communities
:01:36. > :01:42.in this country. We should be dealt with with the full force of the law
:01:43. > :01:46.wherever that occurs. This House should remind us of obligations in
:01:47. > :01:52.that direction. Can we have the debate on defence attunement and
:01:53. > :02:02.buying British? Why are the three new royal navy ships and the 500
:02:03. > :02:05.last armed vehicles from the army not been built with British Steel?
:02:06. > :02:10.On occasions when the Lizzie specialist metal requirement we have
:02:11. > :02:14.two source the specialist metal from wherever it comes from. 90s percent
:02:15. > :02:21.of the steel being put into Crossrail is coming from British
:02:22. > :02:26.sources. It is disappointing in Scotland the Scottish Government has
:02:27. > :02:30.not done the same. The steel going into our aircraft carriers is also
:02:31. > :02:34.British Steel. The question I would ask him, he talks about defence
:02:35. > :02:39.procurement and the question I would ask about defence procurement and
:02:40. > :02:44.British jobs, if he is so concerned about the use of British Steel and
:02:45. > :02:49.jobs in Britain, why does his party now support a policy that would
:02:50. > :02:56.scrap the plans for Trident submarines to be built in Barrow in
:02:57. > :03:03.Furness? When can we debate the convention that serving time
:03:04. > :03:08.ministers are not invited to give evidence to select committees? There
:03:09. > :03:11.is compelling evidence now that three prime ministers were
:03:12. > :03:18.unwittingly but directly involved in an enterprise that cost the
:03:19. > :03:23.taxpayers many millions of pounds. Isn't it important, too, that we
:03:24. > :03:40.understand why three prime ministers were infatuated by the delusional
:03:41. > :03:45.fraudsters of Kicks Company dinar two points to make. Everyone on both
:03:46. > :03:52.sides of the House are concerned about what happened with Kicks
:03:53. > :04:08.Company understanding what went wrong in that charity was not the
:04:09. > :04:18.fault of some people involved in it. In my view the Beagle he is looking
:04:19. > :04:23.for is already in existence. Three years ago the caravan manufacturers
:04:24. > :04:30.of Hull had to fight off the caravan tax that would like their industry.
:04:31. > :04:35.Now the government is buying steel from abroad and I wonder if it is
:04:36. > :04:37.time we had a debate about an industrial policy for our country
:04:38. > :04:45.and not every other country in the world? Let me tell her about
:04:46. > :04:50.industrial policy. The industrial policy which leads to the dramatic
:04:51. > :04:56.drop in level feel I boot in the UK, and industrial policy that leads
:04:57. > :05:01.to the near halving of manufacturing is a policy we had under the last
:05:02. > :05:04.Labour government. We have been working to restore manufacturing and
:05:05. > :05:09.steel development and production is now at the same level or slightly
:05:10. > :05:14.higher than when he took office. Just on occasions, they are the
:05:15. > :05:21.opposition and can ask questions without remembering there on record
:05:22. > :05:28.in government. When it came to manufacturing in this country they
:05:29. > :05:31.made a right royal mess up. Concern about the illegal wildlife trade is
:05:32. > :05:35.growing and the Duke of Cambridge spoke out about this last week.
:05:36. > :05:40.Responsibility in government lies between DEFRA, the Commonwealth and
:05:41. > :05:44.government office. Can we look at how we can better coordinate a UK
:05:45. > :05:52.Government response to end this vile trade? I wholeheartedly agree with
:05:53. > :05:55.him. To see a return to the poaching of elephants in southern Africa is
:05:56. > :06:01.something I find completely distressing. The threat facing the
:06:02. > :06:05.Rhino I find profoundly distressing. I would commend Prince Harry and
:06:06. > :06:10.Prince William for the work they have done on this over the years. I
:06:11. > :06:17.commend everyone in this House who works to work on this challenge.
:06:18. > :06:24.People should be able to CDs great animals in the wild and not look at
:06:25. > :06:30.on the history books about their death. The department that has the
:06:31. > :06:34.biggest role in all of this it is really ought Porto we do everything
:06:35. > :06:43.we can to stem what is a vile trade. -- see these great animals.
:06:44. > :06:47.Gentry and contractor is a debilitating disease of the hands
:06:48. > :06:57.caused by manual Labour. The industrial injuries advisory Council
:06:58. > :07:01.made recommendations to the DWP last year as to why they should make this
:07:02. > :07:06.a prescribed occupational disease yet there has not been any official
:07:07. > :07:09.announcement. With the leader of the house make a statement about why
:07:10. > :07:15.there has been such a delay which has impacted on many disabled people
:07:16. > :07:20.in the UK? She raises an important issue. I do not know the answer to
:07:21. > :07:23.his question but we will have the DWP minister is here on Monday and I
:07:24. > :07:27.will make sure they are briefed in advance of that so they can give the
:07:28. > :07:34.proper response if he raises it then. Point of order, Mr Alex
:07:35. > :07:38.Salmond. At the same time as business questions it was announced
:07:39. > :07:43.nicer John Chilcott why means of a letter to the tri- Minister that it
:07:44. > :07:48.would be a further nine months before the Iraq enquiry is to be
:07:49. > :07:53.published which will mean it is seven years since it was established
:07:54. > :07:59.and the full 13 years since the war was started. Would it not just be an
:08:00. > :08:09.order but a mark of respect to the 179 families of dead servicemen at
:08:10. > :08:14.the government had come to the House to explore reasons of delay in the
:08:15. > :08:19.enquiry and the possible legal consequences that might fall on
:08:20. > :08:24.certain individuals if that enquiry allocates responsibility for the
:08:25. > :08:32.illegal conflict? Yes, perhaps I should just take the leader of the
:08:33. > :08:36.house. I am not exactly aware of when the letter was sent or received
:08:37. > :08:42.but I am a weird and have long been that this is a matter of very, very
:08:43. > :08:47.elite interest and concern to members right across the House. Part
:08:48. > :08:54.I am aware. If the reader of the House would like to come to the orcs
:08:55. > :08:58.we would be pleased to hear him. Let me see firstly that I share and the
:08:59. > :09:02.government share the right honourable gentleman was my
:09:03. > :09:07.frustration about how long this has taken. They are clearly lessons
:09:08. > :09:11.which need to be learned from this whole process. It is an none of our
:09:12. > :09:19.interests that this has taken so long. We were in opposition at the
:09:20. > :09:22.time so have no investment in delaying this matter. It is out with
:09:23. > :09:26.the control of government. The the control of government. The
:09:27. > :09:31.timetable is entirely in his own hands. In terms of the timing of
:09:32. > :09:37.this, I do not know either the time at which the letter was actually
:09:38. > :09:42.released but it is not my job to P and a letter for Sir John Chilcott
:09:43. > :09:48.before he has announced it himself. I want to hear further observations
:09:49. > :09:55.on this matter. Mr Davies? I think we all agree with the member for
:09:56. > :10:00.Banff and Buchan on this and with the leaders comments. These are many
:10:01. > :10:07.suggestions that it has been delayed right Whitehall not leaving things
:10:08. > :10:10.quickly enough and not providing enough information, by challenging
:10:11. > :10:15.the ability to release information. It would be helpful to the House if
:10:16. > :10:20.you were a statement and frankly this is an insult and the
:10:21. > :10:27.compounding of the grief of the many families who have lost loved ones in
:10:28. > :10:33.that war. I wanted to hear the points of order and will view the
:10:34. > :10:39.honourable gentleman in a moment but the leader of the house is correct
:10:40. > :10:44.in saying macro it is not for him to pre-empt the delivery or publication
:10:45. > :10:48.of letters but unlike of what I do sense is quite a strong feeling
:10:49. > :10:51.across the House, it might be extremely helpful if, when the
:10:52. > :10:58.leader of the houses in full session of the facts he perhaps considers an
:10:59. > :11:01.early short statement on which there would be an opportunity for
:11:02. > :11:07.questioning at the start of next week. I newly put that thought to
:11:08. > :11:16.him now and he has a option to refer to it. -- merrily. I can assure my
:11:17. > :11:20.honourable friend that I have seen no evidence on the half of the
:11:21. > :11:25.government to stall on this. We have been as keen as anyone in this House
:11:26. > :11:30.to see this published. Here is no desire in the government to slow
:11:31. > :11:33.this up. It is outwith our control. I will take the point raised about
:11:34. > :11:44.an early statement. The committee that set up the
:11:45. > :11:47.Chilcott enquiry was the public administration committee under Tony
:11:48. > :11:50.right, and at the time they were misgivings about the form of
:11:51. > :11:56.enquiry, and a suggestion made that it should be run by Parliament
:11:57. > :11:59.directly, an entirely new form of enquiry would have been better if
:12:00. > :12:08.parliamentarians had control of this. Can we have assurance from
:12:09. > :12:12.government, as we have now -- no explanation about what happened in
:12:13. > :12:22.Iraq, and no explanation of the enquiry into the Helmand concession
:12:23. > :12:30.which resulted in 454 lives being lost, and can the government given
:12:31. > :12:34.-- give an assurance that we will not be involved in the four sided
:12:35. > :12:42.war in Syria before these matters will be discussed? Can I see to the
:12:43. > :12:46.honourable gentleman, a statement by government to the House on this
:12:47. > :12:51.matter would afford a real opportunity for him to make his
:12:52. > :12:57.point, not my point -- by point of order to me, back to the Leader of
:12:58. > :13:00.the House. It would perhaps be uncontroversial that had there been
:13:01. > :13:07.a parliamentary committee looking at this matter, it would not have been
:13:08. > :13:13.possible for it to do its work more slowly even if it had made a
:13:14. > :13:18.Herculean effort to do so. I think it is important, on behalf of the
:13:19. > :13:28.House, whether it concerns are perturbed them or not, that Sir John
:13:29. > :13:33.should be aware that there is a very real sense of anger and frustration
:13:34. > :13:39.across the whole House over what seems at this line substantial --
:13:40. > :13:48.substantial disservice as to what has been done. I am grateful for
:13:49. > :13:54.this being raised and four other members underlining the strength of
:13:55. > :14:00.feeling. If he could hold his forces for a moment! Point of order, Diana
:14:01. > :14:03.Johnson. When ministers speak from the dispatch box I know they have to
:14:04. > :14:09.make sure they are factually correct, and I am sorry to raise
:14:10. > :14:15.again a point of order about a factual inaccuracy that has been
:14:16. > :14:18.made by the Leader of the House. In his exchange with one of my
:14:19. > :14:23.honourable friend 's this morning, he said that Labour had done nothing
:14:24. > :14:31.in 13 years to deal with the issue of VAT on sanitary products. This is
:14:32. > :14:47.incorrect. A Treasury minister ensured that VAT was reduced from
:14:48. > :14:49.the top rate to 5% in 2001, and I hope the record can be corrected. I
:14:50. > :14:52.think we should leave the exchange think we should leave the exchange
:14:53. > :14:55.there, but if the leader wishes to reply he can do so. She made her
:14:56. > :14:56.point clearly and it is on the record, and will be in the official
:14:57. > :15:01.report. It is important to say it is not often fear to cut sentences
:15:02. > :15:10.short, because I said on zero rating. We now come to backbench
:15:11. > :15:16.business. The first item is a motion in the name of Mr Greer Graham
:15:17. > :15:22.Allen. -- Mr Graham Allen. This is the first case in which procedures
:15:23. > :15:29.have been invoked, it may be helpful if I explain what is happening. This
:15:30. > :15:34.is an identical motion to that which was debated in Westminster Hall on
:15:35. > :15:42.Wednesday the 14th of October, when the question was put in Westminster
:15:43. > :15:50.Hall, the decision of the question was challenged. As the motion was
:15:51. > :15:55.being brought before this chamber, under standing order number ten,
:15:56. > :16:01.subsection 13, I am now required to put the question on the motion
:16:02. > :16:21.without bait to move formally -- without debate. Formally move the
:16:22. > :16:26.motion under House committee. The question is and the order paper. As
:16:27. > :16:36.many as of that opinion seem-macro three. On the contrary, no. The noes
:16:37. > :16:41.have it. Could you assist me on how we can take this matter forward now
:16:42. > :16:45.that the House has expressed a strong views so that we can all
:16:46. > :16:51.discuss the issue of our House business committee, which was in the
:16:52. > :16:55.Coalition agreement, promised by the then Conservative Leader of the
:16:56. > :17:00.House, and was the remaining outstanding business of the right
:17:01. > :17:04.committee on reforming this chamber. Could you give us some advice on how
:17:05. > :17:06.we can move this forward and actually have a genuine debate on
:17:07. > :17:13.whether we need a House business committee or not? Not for the first
:17:14. > :17:18.time, possibly not for the last, I feel that the honourable gentleman
:17:19. > :17:26.flatters me. He does not require my advice. The honourable gentleman is
:17:27. > :17:37.a sellable constitutionalist -- Sarid
:17:38. > :17:42.Constitutionalist and there are number of devices where this can be
:17:43. > :17:49.debated in this chamber, and he knows that he has a fellow spirit in
:17:50. > :17:52.the honourable gentleman the Member for Wellingborough, and other
:17:53. > :17:57.members. So the matter will come back to this House, and I have a
:17:58. > :18:02.feeling he will want it to come back to this House following what has
:18:03. > :18:10.just taken place, sooner rather than later. The matter cannot be avoided.
:18:11. > :18:14.Point of order. Further to this, it may be useful to know that I had an
:18:15. > :18:20.electronic message shortly before the motion was moved that said
:18:21. > :18:27.government payroll members were instructed not to oppose the
:18:28. > :18:30.creation of a business committee. So maybe the government might bring
:18:31. > :18:44.this forward as a motion put for the House. -- before the House. If the
:18:45. > :18:52.honourable gentleman spoke with his usual sincerity, some people may
:18:53. > :19:08.think he displayed an optimism worthy of. Doctor Pangloss. I had
:19:09. > :19:13.not noticed anyone displaying any great earnestness to stick to its
:19:14. > :19:14.commitment to step the proposals for a House committee. Maybe in this
:19:15. > :19:18.parliament it will have remembered that commitment. Maybe it will act
:19:19. > :19:33.on it of its own volition, and maybe it will be congealed and harangued
:19:34. > :19:37.into doing so. -- cajoled. We now come to the debatable backbench
:19:38. > :19:48.of proposed reforms to tax credits. of proposed reforms to tax credits.
:19:49. > :19:57.I have not selected the amendment. I move the motion. Thank you for
:19:58. > :20:03.calling me and for that ruling. I wish to begin by thanking the
:20:04. > :20:10.backbench committee who not only acted quickly and giving us this
:20:11. > :20:13.debate but also decided we should have the whole day to debate this
:20:14. > :20:23.issue, giving the importance of the matter is we are discussing the many
:20:24. > :20:30.those with the money. Order paper those with the money. Order paper
:20:31. > :20:35.has been signed by a large number of honourable members from all sides of
:20:36. > :20:36.the House. First of all we wish to call upon the government to give us
:20:37. > :20:40.more data, so that we can secondly more data, so that we can secondly
:20:41. > :20:48.consider the impact of the tax credit cuts on the lower paid
:20:49. > :20:54.constituents, and thirdly, given that now there is a debate raging in
:20:55. > :20:58.this House as there is outside, but the House have an opportunity of
:20:59. > :21:03.suggesting means by which the government might mitigate these
:21:04. > :21:07.measures, although the debate has now moved so fast I do not think the
:21:08. > :21:14.Treasury benches thinking merely of matters of mitigation. In this
:21:15. > :21:21.opening contribution, I want to touch three things. First of all to
:21:22. > :21:25.congratulate the House of Lords not in causing a constitutional crisis,
:21:26. > :21:27.but giving the government a well earned opportunity to think twice
:21:28. > :21:32.about its proposals. Secondly I about its proposals. Secondly I
:21:33. > :21:38.would like to outline the data we need in this place to consider how
:21:39. > :21:42.what was the biggest change in the budget is going to impact on our
:21:43. > :21:49.introducing proposals of not near introducing proposals of not near
:21:50. > :21:54.mitigation but of reformat members are putting forward now to the tax
:21:55. > :22:00.credit proposals. First of all the lucky break that has been dealt to
:22:01. > :22:01.the Chancellor. When the Lords rejected the statutory instrument
:22:02. > :22:10.giving the government authority to go ahead with the tax credit
:22:11. > :22:16.changes, I began to pity the young adviser in the Treasury who had
:22:17. > :22:18.thought up this idea of putting in as a statutory instrument rather
:22:19. > :22:24.than in the budget itself. While there may be issues we would
:22:25. > :22:28.disagree with Lloyd George, he did have a certain wisdom in deciding
:22:29. > :22:41.how to protect money resolutions in this House from interference from
:22:42. > :22:43.the other place. The convention growing up before was reaffirmed
:22:44. > :22:47.with legislative force they are that if a budget motion goes from this
:22:48. > :22:51.House, the other place might wish to debated, but they could not
:22:52. > :23:05.young adviser who suggested a young adviser who suggested a
:23:06. > :23:17.wonderful pleas not to debate here on the floor of the House but to
:23:18. > :23:19.committee stage upstairs. Now, as committee stage upstairs. Now, as
:23:20. > :23:20.more honourable members have gone to realise the consequences of the
:23:21. > :23:25.credit changes, I began to think, credit changes, I began to think,
:23:26. > :23:27.well, maybe the official is for promotion. It gives a wonderful
:23:28. > :23:31.cover for the government to engage cover for the government to engage
:23:32. > :23:33.with us here, and with our constituents, on what might best
:23:34. > :23:36.done, both in meeting the done, both in meeting the
:23:37. > :23:43.government's target to reduce the deficit, but also to make sure that
:23:44. > :23:49.disproportionately put on those with disproportionately put on those with
:23:50. > :23:55.the weakest shoulders. It is a huge opportunity that I hope we will see
:23:56. > :24:01.the actual changes. The movement has been made since the budget debate.
:24:02. > :24:11.Secondly, might I make the plea for the data that this House requires so
:24:12. > :24:16.that it can understand what is involved for all our constituents
:24:17. > :24:21.but also particularly those strivers who get up and work, who get -- do
:24:22. > :24:23.some of the least privileged jobs in society, and who governments of
:24:24. > :24:24.successive complexion have found it successive complexion have found
:24:25. > :24:38.good that we encourage rather than good that we encourage rather than
:24:39. > :24:41.is worth remarking, you have to go is worth remarking, you have to go
:24:42. > :24:44.back to Lloyd George's debate to look at the information he provided
:24:45. > :24:49.the House on who would pay for his 1909 budget. The budget in which he
:24:50. > :24:57.enshrined in our contribution -- Constitution that it was in this
:24:58. > :24:59.place and not the other place. He provided far more information than
:25:00. > :25:05.the government provided this year on who would be affected if his
:25:06. > :25:09.budget. I know it was simpler then because he made it plain that
:25:10. > :25:12.landlords would pay for these measures and the budget would not
:25:13. > :25:20.just be distribute to the poor, but those who run in trade unions -- not
:25:21. > :25:26.in trade unions and had no one to protect them. I hope the government
:25:27. > :25:29.will withdraw in that innovation in starving the House of necessary
:25:30. > :25:39.information. What I would like to see from the government is firstly,
:25:40. > :25:44.how do we break down amongst our groups 10% of the income groups, the
:25:45. > :26:01.impact of the 4.5 billion cut in tax credits. There are three big changes
:26:02. > :26:06.the government has wrought in the government statement. It has reduced
:26:07. > :26:27.the deficit from ?460 to next April owing its 380 -- 380 million. The
:26:28. > :26:34.child element is valued at ?200,780 a year, which will be lost. This is
:26:35. > :26:42.obviously affecting different groups in our constituents, and there is a
:26:43. > :26:53.unity across the House that the necessary reduction in the budget
:26:54. > :27:00.deficit should be born on those... We need to look at the measures
:27:01. > :27:11.collectively on each decile group. Also we need to look at the type,
:27:12. > :27:17.and each year up to there to the government, many of us wish to put
:27:18. > :27:22.into the analysis four compensatory measures which the government argues
:27:23. > :27:30.will mitigate if not all, most of those changes.
:27:31. > :27:36.The PM is very one axed in telling the country that eight out of ten
:27:37. > :27:42.people, families, will be better off as the result of this budget. Eight
:27:43. > :27:49.out of ten will be better off but practically all of our constituents
:27:50. > :27:55.who draw tax credits are in the two out of ten that have been made worse
:27:56. > :27:59.off. Hopefully we will see not only the careful analysis of the cuts on
:28:00. > :28:09.individual families but also to make it the rounded and fair analysis to
:28:10. > :28:14.make use of the four elements that are mitigating forces. One is the
:28:15. > :28:20.threshold. When the minister comes to reply maybe he will be able to
:28:21. > :28:25.tell as in fact whether all of those claiming tax credits are covered or
:28:26. > :28:30.is it only something like half? I may not have the opportunity to
:28:31. > :28:36.comment on the Minister to reply later on but I have huge regard for
:28:37. > :28:41.him. I also sympathise for the addition he is in. He is defending a
:28:42. > :28:47.government beef that is actually on the move. If I can quote a president
:28:48. > :28:53.which I think we'll cheer him, those who have been in this race for some
:28:54. > :29:00.time watched Mrs T and John Major, to the statue looked and defend the
:29:01. > :29:05.policy on cold weather payments. She decided the policy was to be changed
:29:06. > :29:09.that afternoon and instructed the Minister to come along and tell the
:29:10. > :29:13.House that what he had been telling them in the morning did not actually
:29:14. > :29:21.fall but much better news was in store. I do hope that when the
:29:22. > :29:26.Chancellor who is now in listening mode is thinking about what changes
:29:27. > :29:29.he will make, that he has a generous spirit also to cover the right
:29:30. > :29:34.honourable gentleman, he will allow the honourable gentleman to make the
:29:35. > :29:43.announcement of what the changes are rather than screw any of the kudos
:29:44. > :29:49.himself. One changes the increase in the tax threshold. Is it true that
:29:50. > :29:52.only half of those who will lose out in the tax credit changes will
:29:53. > :29:59.actually be compensated or partly compensated by the increase in the
:30:00. > :30:02.tax threshold? Secondly is probably the most important measure the
:30:03. > :30:09.government will make in this Parliament on a positive front. That
:30:10. > :30:12.is the very significant increase in child care for all our constituents
:30:13. > :30:19.who have children under five, the number of hours of childcare for the
:30:20. > :30:26.rudest two-year-olds and all three and four-year-olds. Part poorest.
:30:27. > :30:33.Will increase. The minister who will come to reply has probably the most
:30:34. > :30:39.important reef of any minister and takes more responsibility for life
:30:40. > :30:42.chances. If the Minister is serious about how we make sure the life
:30:43. > :30:50.chances of those children born in the poorest households are raised to
:30:51. > :30:53.the level of those in more privileged household, we will be
:30:54. > :30:58.looking very carefully at how that extra expenditure will be spent and
:30:59. > :31:04.looking at how our poorest and youngest constituents get the best
:31:05. > :31:07.deal out of that childcare rather than the worst. The second
:31:08. > :31:11.compensatory factor is the increasing childcare which I think
:31:12. > :31:16.is the most important social measured the government is likely to
:31:17. > :31:20.introduce at this Parliament. Thirdly, following closely on the
:31:21. > :31:32.heels is the increase of the national minimum wage. I am grateful
:31:33. > :31:34.to my right honourable friend who is making a characteristically
:31:35. > :31:39.thoughtful contribution but when he comes to discuss the amelioration of
:31:40. > :31:42.the third element, will he also recognised that many of the four
:31:43. > :31:46.years are actually going further than the schedule for the up left in
:31:47. > :31:49.the national living wage and that will be a massive welcome to many
:31:50. > :31:56.across this country and have a material impact on the four elements
:31:57. > :32:01.he is discussing? Many are and some are not, hence the importance of the
:32:02. > :32:05.Chancellor to make this a statutory requirement. It does show the rule
:32:06. > :32:10.of law when it is used cleverly in that the number of those employers
:32:11. > :32:15.who previously were not interested in introducing a national living
:32:16. > :32:21.wage, when I was corresponding with them, said he would not, have now
:32:22. > :32:29.been among those who have in a sense been very welcome in jumping the gun
:32:30. > :32:34.and actually introducing the Chancellor's national living wage
:32:35. > :32:39.before the period that they must do. Isn't there another problem for
:32:40. > :32:45.another sector of employers, the public sector, a number include my
:32:46. > :32:48.own counsel, they are committed to being the leading wheat but quite
:32:49. > :32:53.clearly they do not know whether the will be extra resources made
:32:54. > :32:57.available to increase the money, the funds they have two p that along
:32:58. > :33:05.with all other public sector employers? There is clearly a matter
:33:06. > :33:09.of resources but also in the analysis that I am arguing for from
:33:10. > :33:15.the Treasury bench today, many local authorities will be paying above
:33:16. > :33:19.this level so that when we are actually looking at what the impact
:33:20. > :33:23.of the national living wage with the, those workers, in a sense, have
:33:24. > :33:29.already got that money in that peep at it. The local authorities will be
:33:30. > :33:34.limited to the amount of increase they can make in the years we are
:33:35. > :33:40.considering. That pay packet. Many workers in the public sector is with
:33:41. > :33:45.not be the beneficiaries of the living wage and the significant
:33:46. > :33:48.increase in the p that they will get will be limited to the requirement
:33:49. > :33:52.the government has laid down and maybe that is a factor the
:33:53. > :34:01.government will use in the analysis we are asking for. Which he also
:34:02. > :34:04.accept that when the Dakar is compiled there should be an
:34:05. > :34:09.indication as to the impact that these changes will have on those who
:34:10. > :34:17.are under 25 and will not be covered out the national living wage?
:34:18. > :34:21.Indeed, the V is for us to have the range of analysis which has
:34:22. > :34:24.traditionally accompanied any budget statement that any member in this
:34:25. > :34:33.House, however long they have served, has come to expect. It is
:34:34. > :34:37.the fourth factor that members of the DWP select committee have
:34:38. > :34:43.emphasised. That is, there may be some wage push as a result of the
:34:44. > :34:49.introduction of a national living wage. Will that also be taken into
:34:50. > :34:54.account in the government analysis? I am slightly sceptical on the
:34:55. > :35:00.extent of that wage push because if one looks, again this is one of the
:35:01. > :35:07.problems of actually being in this House for some time, when I was
:35:08. > :35:11.initiated the low campaign the unit to campaign for a national minimum
:35:12. > :35:18.wage, the trade union edition then was actually to officially was it.
:35:19. > :35:23.On the grounds of opposing it was that there would be a mega- bill as
:35:24. > :35:27.we re-established differentials. If we actually look at the impact of
:35:28. > :35:32.the statutory minimum wage there has been a new huge bunching, there has
:35:33. > :35:41.not been this egg increase in differentials that some people
:35:42. > :35:44.feared or expected. I did we. I can call him my right honourable friend
:35:45. > :35:50.because we have known each other 40 years. Before he leaves the question
:35:51. > :35:54.of data that government provides, because it is an incredibly
:35:55. > :35:59.complicated area there are components that would not normally
:36:00. > :36:03.be provided, one is the national withdrawal rate of any scheme that
:36:04. > :36:06.the government puts into effect. Some spokesman for the government
:36:07. > :36:14.have already said people would work their way out of 30. Some of the
:36:15. > :36:18.effects of this seem like a 93% withdrawal rate which means you
:36:19. > :36:24.cannot work your way out of poverty, which she add that to his list? I
:36:25. > :36:28.would certainly do that. I want to come back to a proposal I initially
:36:29. > :36:33.made, I did not do it because I wanted to be dragged to the state
:36:34. > :36:36.and earned on it, I was anxious to begin a debate and one of the
:36:37. > :36:41.crucial thing is if one is asking the government to change their
:36:42. > :36:46.minds, someone who had made the proposals might change their mind
:36:47. > :36:50.but I will argue that any moment. I think the net withdrawal rate for
:36:51. > :36:56.any proposal is very crucial and given that we have in this House but
:36:57. > :37:01.it intolerable that people should pay more than 45% on their income
:37:02. > :37:07.tax, he would suffer that rate of withdrawal, it is not the bad rate
:37:08. > :37:13.to aim for four Bhullar people when we add income tax, national
:37:14. > :37:17.insurance and withdrawal of tax credits and other benefits. I newly
:37:18. > :37:25.wish to underscore the point that my right honourable friend has actually
:37:26. > :37:30.made. -- merely. I am very grateful, he has been generous. Will he look
:37:31. > :37:36.at the distribution geographically of the effects of these measures
:37:37. > :37:41.given that, as a member for Birkenhead, he will low that they
:37:42. > :37:48.are very few communities with the effects would be very widespread. It
:37:49. > :37:54.will not just be proved people but poorer communities that will be
:37:55. > :37:57.affected? Thank you very much. I note that the Treasury minister who
:37:58. > :38:02.is going to apply also has an interest in improving Treasury the
:38:03. > :38:07.tussle we can understand better tax and Treasury changes. I hope the
:38:08. > :38:14.plea he is making will not fall on deaf ears. I give way. Will he also
:38:15. > :38:17.take into account that we need something that is saleable to the
:38:18. > :38:23.people who are benefiting from tax credits? When we talk about marginal
:38:24. > :38:27.rates of return and thresholds and differentials, this is the sort of
:38:28. > :38:32.language that can completely confused not only the beneficiaries
:38:33. > :38:35.but also employers. Which he make it clear in negotiations with the
:38:36. > :38:40.Treasury that we try to make this saleable and simple and try to keep
:38:41. > :38:45.the concept is simple so that people who genuinely need tax credits can
:38:46. > :38:51.clean them because there is still massive under claiming of tax
:38:52. > :38:56.credits. The is and that very neatly leads me onto what might the
:38:57. > :39:02.proposals reform be? I wish briefly, if I need, to touch on four. The
:39:03. > :39:07.first is to make a plea to the government to recognise just how
:39:08. > :39:11.quickly the whole of this debate is changing and for them to take the
:39:12. > :39:20.advantage of that. In that, I think it is worth rooting on the record
:39:21. > :39:23.that tax credit is here, tax credit payments, as he was emphasising,
:39:24. > :39:30.argue for the long run. If we began this debate back in 2010, there was
:39:31. > :39:36.talk, and use the attic talk, but almost in no time here with the a
:39:37. > :39:42.new benefit, universal benefit, that would sweep up means testing and
:39:43. > :39:49.deliver eight seamless service to our constituents. If one is truthful
:39:50. > :39:55.but gentle about universal credit, it is regressed is very modest. I do
:39:56. > :40:00.not disagree with the Secretary Of State looking back at devious errors
:40:01. > :40:07.of trying to smash the forms through whatever the costs but someone in
:40:08. > :40:13.government must look at how slow the progress of roll-out is and question
:40:14. > :40:18.whether that will ever, ever see the light of day in a full flowering. If
:40:19. > :40:23.that is true, it does raise the question of how my tax credits be
:40:24. > :40:29.reshaped given that it is not for the chop, it is you for the longer
:40:30. > :40:34.term, universal credit is not going to, in the lifetime of this or maybe
:40:35. > :40:40.the next Parliament, make tax credits redundant. I think in the
:40:41. > :40:48.debates that we had begun to have here and certainly with the public,
:40:49. > :40:52.when I was recording a programme for This Morning every time I said a
:40:53. > :40:56.word they ought the public would not understand we had to stop and start
:40:57. > :41:03.filming again, I cannot tell you how long it to! So, we do have our own
:41:04. > :41:12.language which any sense is a shorthand that is not understood by
:41:13. > :41:16.people outside the. -- there. She's beaks with great authority and
:41:17. > :41:20.experience on these matters. If I could suggest to him that one of the
:41:21. > :41:25.very straightforward concepts that all of my constituents do understand
:41:26. > :41:30.is that there is a right minded intention to get rid of taxpayer
:41:31. > :41:37.subsidised poverty pay but in doing so we cannot actually say to people
:41:38. > :41:42.on low pay we are going to impoverish you on that journey. The
:41:43. > :41:47.very simple concept is let's talk about the instruments of doing it
:41:48. > :41:52.but actually it is about getting rid of poverty pay and lifting people up
:41:53. > :41:59.so that at some future date we do not have too rely on subsidy to make
:42:00. > :42:10.it worthwhile going to work? I could not agree more. We have not had a
:42:11. > :42:14.Chancellor who has decided to do is misplaced to take into the welfare
:42:15. > :42:25.system the role that our economy takes. That leads welfare reform
:42:26. > :42:27.into new areas about the new wage productivity, particularly amongst
:42:28. > :42:36.those who are lowest paid, so one can safely accept this and how we
:42:37. > :42:47.take it forward. My first comment hand suggestion
:42:48. > :42:55.stems from the fact that the government introduce a national
:42:56. > :42:58.living wage. When the people who thought of the tax credit got to
:42:59. > :43:05.work, no one ever thought the government would bring it forward.
:43:06. > :43:12.Therefore they incorporated in the system two aspects. One was about
:43:13. > :43:25.how we subsidise and make it a more decent level, and secondly, given
:43:26. > :43:28.the lifestyle and how life takes us, that those periods where every
:43:29. > :43:35.they have children. The tax credit they have children. The tax credit
:43:36. > :43:36.first league in asking the Treasury first league in asking the Treasury
:43:37. > :43:42.bench when it is thinking about what it does in only a few weeks' time
:43:43. > :43:49.and the Autumn Statement, is whether in fact we should not grow up and
:43:50. > :43:57.accept we are going to have a national living wage, and there be
:43:58. > :44:01.two aspects of tax credits which subsidise low wages but also take
:44:02. > :44:07.some responsibility of the costs of children that should be made more
:44:08. > :44:14.clear. There would be more support in the country of tax credit was
:44:15. > :44:14.about the support of children rather than the need to subsidise poverty
:44:15. > :44:32.wages. Give way. Would my honourable wages. Give way. Would my honourable
:44:33. > :44:39.friend clarify this is about tax credits and not child tax credit,
:44:40. > :44:46.which are two different benefits? The Prime Minister seems to
:44:47. > :44:54.misunderstand the difference between them because he said during the
:44:55. > :45:03.would not be touched, but of course, would not be touched, but of course,
:45:04. > :45:11.claw-back, the amount of money you claw-back, the amount of money you
:45:12. > :45:19.the threshold in which you begin to the threshold in which you begin to
:45:20. > :45:19.claw back tax credits and the rate claw back tax credits and the rate
:45:20. > :45:20.income, you are affecting the value income, you are affecting the value
:45:21. > :45:20.of the child tax credit. That I of the child tax credit. That I
:45:21. > :45:23.agree, there are two, and there are questions about the sense of having
:45:24. > :45:31.two benefits serving the same purpose. The second proposal, my
:45:32. > :45:36.guess is many Tory MPs have made privately to the government. I
:45:37. > :45:39.cannot imagine the whips on that side are different from those on the
:45:40. > :45:43.side. And if we had been in government making this proposal, the
:45:44. > :45:52.whips on the side would have been very busy fawning members last
:45:53. > :46:01.weekend to ask what individual and members would tolerate. One message
:46:02. > :46:04.bringing them in next April was not bringing them in next April was not
:46:05. > :46:17.acceptable. That would be one of the proposals. A third and more radical
:46:18. > :46:19.one that again unites backbenchers is whether these changes to tax
:46:20. > :46:27.credit should only apply to new claimants. It is one of the problems
:46:28. > :46:33.we have of her popularity in shoving around tax payers money without
:46:34. > :46:40.the music stops and people might the music stops and people might
:46:41. > :46:42.think there was not actually think there was not actually
:46:43. > :46:48.affordable, but in the meantime our constituents have responded to the
:46:49. > :46:53.very clear messages in forms of incentives and tax credits to what
:46:54. > :47:01.we wish them to do. And I think there is a sense, I have noticed it
:47:02. > :47:06.publicly and privately is it is a different ball to say there a new
:47:07. > :47:11.contract for people not claiming tax credits may. It is a totally
:47:12. > :47:17.different ball game to actually see you have responded, you have done
:47:18. > :47:30.all expected you to do, but I'm going to clobber you know for doing
:47:31. > :47:39.so. He's absolutely correct that you cannot do the people change the
:47:40. > :47:43.I also want to say that I have made I also want to say that I have made
:47:44. > :47:46.perfectly clear what's my view is that this cannot go ahead next
:47:47. > :47:51.April, and any mitigation coming in should be for mitigation. I have
:47:52. > :47:59.made that view known to people on my side. It must be mitigation that
:48:00. > :48:07.protects the purist households, -- poorest households, which we have a
:48:08. > :48:13.lot of ink East Yorkshire. Would he accept that the government has
:48:14. > :48:16.accepted the principle he has just discussed about the changes to the
:48:17. > :48:24.system. Coming to pension changes, those who are coming to pension age,
:48:25. > :48:30.the government has not expected their expectations to be changed, so
:48:31. > :48:39.-- in receipt of tax credits? There -- in receipt of tax credits? There
:48:40. > :48:41.will be very little opposition to the government introducing these
:48:42. > :48:53.reforms the people who are not claiming tax credits it is very
:48:54. > :48:58.different when this place has helped shape peoples lives expectations
:48:59. > :49:09.under drive to all of a sudden pulled official and say they are I
:49:10. > :49:12.think people here and in the country feel strongly. Give way. On this
:49:13. > :49:17.specific issue of dealing with changes in relation to people coming
:49:18. > :49:19.into the system, does he not realise it shows the complexity of the
:49:20. > :49:25.system. Someone who is played -- paying enough to be out of the tax
:49:26. > :49:28.system may be a lot and do take the job because of it does not work out
:49:29. > :49:35.they come back into the system as a claimant. I was waiting for the
:49:36. > :49:39.Treasury bench to point out the Treasury bench to point out the
:49:40. > :49:48.difficulties with all of these moves, but it is really important
:49:49. > :49:59.that the government is in the whole. We are tying to make suggestions of
:50:00. > :50:04.how to get out of it. We will not get support from the Minister who is
:50:05. > :50:16.humility from the government would humility from the government would
:50:17. > :50:23.reinforce the requirement for this reinforce the requirement for this
:50:24. > :50:24.not to be another simple yes and no measure but it ought to be part
:50:25. > :50:31.primary legislation? If you were the primary legislation? If you were the
:50:32. > :50:37.Chancellor, you could make the Lords agreed to the new system. If it was
:50:38. > :50:38.an SI that the House cheered on its way to the other place, maybe that
:50:39. > :50:43.would be wise. If it was an SI in would be wise. If it was an SI in
:50:44. > :50:46.which there was deep disagreement which there was deep disagreement
:50:47. > :50:55.particularly on the government side to the proposal, I think it would be
:50:56. > :50:59.unwise not to do so. I give way. Isn't there also were here for a
:51:00. > :51:05.little bit of forethought and pre-emption. We're six months into a
:51:06. > :51:08.five-year Parliament. This is the first of many changes that may
:51:09. > :51:15.happen. Could he stressed that Parliament can be seen as a partner
:51:16. > :51:22.in this process, and rather than having a crisis management approach
:51:23. > :51:26.to this policy, can't we involve the Treasury Select Committee,
:51:27. > :51:29.colleagues in both houses, where the Treasury sets the object of but we
:51:30. > :51:31.say something to help them on their way? We know there has been a
:51:32. > :51:36.general election and they are entitled to get there laws, but to
:51:37. > :51:48.use Parliament as a partner rather than the constant crisis management.
:51:49. > :52:02.glorious opportunity to have a glorious opportunity to have a
:52:03. > :52:11.Chancellor to get it right, to change his image and to become a
:52:12. > :52:21.much more serious reformer on tax and benefit France. I am sure he did
:52:22. > :52:29.not want to land himself, but now he not want to land himself, but now he
:52:30. > :52:30.optimistic on the partnerships he optimistic on the partnerships
:52:31. > :52:30.can build on the way my right can build on the way my right
:52:31. > :52:31.honourable friend has spoken, but honourable friend has spoken, but
:52:32. > :52:31.also the opportunity it gives him, given that it takes into account
:52:32. > :52:32.effect of the welfare effect on the effect of the welfare effect on the
:52:33. > :52:32.wonder whether he has realised how wonder whether he has realised how
:52:33. > :52:33.significant that change is and could significant that change is and could
:52:34. > :52:43.be. If the members would allow me the fourth suggestion, which is one
:52:44. > :52:50.that I put forward and wish to attack no. This is largely to get
:52:51. > :53:03.the debate going. To take the Chancellor serious, reform should be
:53:04. > :53:11.possible to do it at zero cost, possible to do it at zero cost,
:53:12. > :53:12.possible to raise thresholds to the possible to raise thresholds to the
:53:13. > :53:12.national minimum wage at zero cost, national minimum wage at zero cost,
:53:13. > :53:13.but it will require an even greater but it will require an even greater
:53:14. > :53:18.penalty in the loss of tax credit and people above. There is not a
:53:19. > :53:26.great deal of support for the idea, but merely to stress that when we
:53:27. > :53:26.had this great huge uprising of the abolition of the 10p, the government
:53:27. > :53:33.was adamant it was not going to was adamant it was not going to
:53:34. > :53:36.big concessions, huge sums of money big concessions, huge sums of money
:53:37. > :53:42.were found at the Treasury to go were found at the Treasury to go
:53:43. > :53:44.everywhere but to help the 10p everywhere but to help the 10p
:53:45. > :53:48.people. Therefore, supposing the Chancellor did want to go down this
:53:49. > :53:54.zero cost, it is now clear he is going to put some extra money into
:53:55. > :54:01.the whole operation. -- the whole operation, it should go into those
:54:02. > :54:05.who will lose, not to us, who would benefit if the Chancellor raised the
:54:06. > :54:12.tax threshold further on increased the National Insurance threshold.
:54:13. > :54:16.Last quick point, not because I do not want to develop it further, but
:54:17. > :54:22.because I am conscious of large numbers of people wanting to
:54:23. > :54:27.participate. The government is going to give up 4.5 billion pounds in
:54:28. > :54:28.savings towards a deficit production, supplement money come
:54:29. > :54:36.from? I wish to suggest two areas. from? I wish to suggest two areas.
:54:37. > :54:43.One I have lifted from the tragedy because it is now briefing the media
:54:44. > :54:50.that one possible way of finding the actual resources, and what the Tory
:54:51. > :54:58.minimum delay in staged introduction minimum delay in staged introduction
:54:59. > :55:03.of this reform would be to have a smaller budget surplus by 2020. That
:55:04. > :55:13.certainly seems to be a possibility from the Treasury, so I have put it
:55:14. > :55:18.forward. The second proposal I have is that it is very interesting that
:55:19. > :55:25.the Chancellor has asked for views on how we might reform pension tax
:55:26. > :55:31.relief. There are huge sums of money involved here. If we abolished it
:55:32. > :55:35.overnight, and I am not advocating it, I do not think we should treat
:55:36. > :55:40.people who are higher up the income scale in the same horrible way the
:55:41. > :55:42.government was proposing to treat those on tax credits, I think people
:55:43. > :55:51.need time when government starts changing incentives, but if we do
:55:52. > :55:56.change overnight, we are talking about an extra ?34 billion. These
:55:57. > :56:01.are huge sums of money. If we put in 15% of the tax concession 31, it
:56:02. > :56:07.would be over 15 billion. I merely raise this issue because I think the
:56:08. > :56:21.government in this consultation about pension tax relief has not
:56:22. > :56:25.really got up to speed with this. Government had given up the ghost of
:56:26. > :56:42.which would take people off means which would take people off means
:56:43. > :56:45.save more so that they would not be save more so that they would not be
:56:46. > :56:47.in old age. The government is now in old age. The government is now
:56:48. > :56:47.introducing a basic state pension, introducing a basic state pension,
:56:48. > :56:50.which will for the first time ever have that achievement. I make way.
:56:51. > :57:06.LAUGHTER I have never seen that before! I
:57:07. > :57:09.thought if you were on your feet you had the right in the House and you
:57:10. > :57:18.were probably speaking, but there we are.
:57:19. > :57:23.Sometimes Government are very slow at looking how one really radical
:57:24. > :57:29.reform will knock on other parts of their programme. I do not think the
:57:30. > :57:33.Government is taking into account just what resources they begin to
:57:34. > :57:39.unlock, now that we have a pension that is going to come in, which will
:57:40. > :57:45.for the vast majority of people give them a pension that takes them off
:57:46. > :57:50.means-tested assistance. Therefore, the reasons for bribing people to
:57:51. > :57:58.save in particular ways really falls to the ground, and that does begin
:57:59. > :58:01.to unlock huge, huge sums of money. So, I haven't come making proposals
:58:02. > :58:09.without suggesting where money might come from. But I want to end, and I
:58:10. > :58:14.want to end on what these tax credit changes mean to our constituents if
:58:15. > :58:16.we are not successful today in convincing the Government very
:58:17. > :58:21.radically to rethink their proposals.
:58:22. > :58:27.Talking to constituents, and talking to other people's constituents in
:58:28. > :58:31.television programmes, you cannot come away without being incredibly
:58:32. > :58:36.conscious of the fear that people are suffering, about what these
:58:37. > :58:42.effects will actually do to them. People who we should be saluting and
:58:43. > :58:49.cheering, are sick with worry about how they are going to make ends
:58:50. > :58:53.meet, whether they are going to lose their homes, whether the mortgages
:58:54. > :58:58.can be, the interest on mortgages be repaid. Let alone the whole issues
:58:59. > :59:04.ability protecting in a proper way their own children. While it is
:59:05. > :59:09.important that we some time use technical language as a shorthand, I
:59:10. > :59:13.am sure in this debate we are never ever going to forget what this is
:59:14. > :59:18.about. This is about our constituents, about some of our most
:59:19. > :59:22.vulnerable constituents, and about a whole number of our vulnerable
:59:23. > :59:26.constituents, for their efforts in working we should be salutes and not
:59:27. > :59:29.handing out this sentence which terrifies them. So for this reason,
:59:30. > :59:35.I hope the House is going to come to one mind at the end, and pass our
:59:36. > :59:41.resolution and we get a responsive, very clear response from the
:59:42. > :59:45.Treasury bench. Before I call the next speaker I
:59:46. > :59:52.will impose a time limit of seven minutes. There are 30 members trying
:59:53. > :59:55.to catch the chair's eye plus three front bench contribution, we will
:59:56. > :00:02.start with seven minute, with that Steven mechanic part land.
:00:03. > :00:04.Thank you. It's a great pleasure to follow the Right Honourable member
:00:05. > :00:10.for Birkenhead who has spoken a lot of sense so far, I would like to
:00:11. > :00:14.join his thanks in thanking the backbench committee for allowing us
:00:15. > :00:19.to is a full day to debate the issue. I fully support the motion
:00:20. > :00:23.put down and I was delighted to put my name to it. I voted against the
:00:24. > :00:29.statutory instrument because I could not support the Government. It
:00:30. > :00:32.wasn't an easy thing to do. Am a Conservative Party MP, I did not
:00:33. > :00:38.feel I could support the Government on the statutory instrument. I
:00:39. > :00:42.support a high wage and low tax, a low welfare society, but I believe
:00:43. > :00:46.the tax credits need to be reformed. They cost over ?30 billion a year.
:00:47. > :00:50.They have snowballed. I have families who come to my surgeries
:00:51. > :00:56.all the time who are very upset about the fact that no two families
:00:57. > :00:59.are treated the same. There are huge overpayment, underpayment is an
:01:00. > :01:03.incredibly complicated system. A billion is lost a year in fraud.
:01:04. > :01:06.There are huge issues with the tax credit system but the problem was
:01:07. > :01:12.the impact it was going to have on those families with the lowest
:01:13. > :01:16.incomes, so, I accept, within the manifesto we said we would reduce
:01:17. > :01:20.the bell fair bill by 12 billion that will is something we immediate
:01:21. > :01:25.to look at. I will come on to that later. When we look at unemployment
:01:26. > :01:31.benefit, a lot the debate is often round how well fair is made up of
:01:32. > :01:37.unemployment. They make up a small proportion of the actual benefits
:01:38. > :01:42.bill, in total. For example, the welfare cap benefit cap reducing
:01:43. > :01:47.from 26,000 a year to 23,000 a year, which is popular on the doorsteps
:01:48. > :01:52.during the election campaign. It will save less than ?100 million
:01:53. > :01:59.because it affects less than 100 Sir Philip Hampton in the whole of the
:02:00. > :02:05.-- 100,000 families in the whole of the UK. I stood up for those
:02:06. > :02:09.families, that I believe Labour have left behind. I believed those
:02:10. > :02:13.families who occupy the centre ground I want to occupy the Prime
:02:14. > :02:16.Minister and the Chancellor spoke in their conference speeches about
:02:17. > :02:19.wanting to occupy that centre ground, those families who get up,
:02:20. > :02:23.and go to work, they are trying to do the right thing, they are trying
:02:24. > :02:26.to support their families, they are trying to work themselves out of
:02:27. > :02:30.poverty. They are the families that I support and the families I am
:02:31. > :02:35.happy to fight for. They are the families that I voted against the
:02:36. > :02:39.statutory instrument for, in my constituency. And across the United
:02:40. > :02:46.Kingdom. Why have I been so vocal on this? I cannot believe the impact of
:02:47. > :02:49.the changes was fully understood. The Right Honourable member for
:02:50. > :02:54.Birkenhead gave a good critique. One of the thes I want to focus on is
:02:55. > :03:01.the reduction in the threshold, where tax credits you can apply for
:03:02. > :03:09.them and receive them. The reduction from ?6420 down to ?3850, that is an
:03:10. > :03:12.instant ?1200 cut. Anybody who earns over 4628 pound will be hit
:03:13. > :03:18.straightaway. It is far too up many of a blunt instrument for me. So, I
:03:19. > :03:22.have used the example of a teaching assistant earning maybe ?11,000 a
:03:23. > :03:26.year. They have restrictions on the hours they can work. They do a
:03:27. > :03:29.valuable job, educating the next generation of society, future
:03:30. > :03:33.leaders in business and everything else. I am very proud of the work
:03:34. > :03:39.they do. I make no bone, my wife is a primary school teacher. I am proud
:03:40. > :03:44.of her. My sister a secondary school teacher. They do a great job. How
:03:45. > :03:48.are they expected to go out and make up that, be about a ?1400 cut to
:03:49. > :03:55.their income? It is not possible. And for me, it was too much of a cut
:03:56. > :04:01.all in one go. The tapering from 41% up to 48, that was only, that adds
:04:02. > :04:06.only 2 or ?300 in terms of a cut. The original threshold is the ?1200
:04:07. > :04:09.cut. That is the bit I cannot support, that is the bit, why I had
:04:10. > :04:15.to vote against the statutory instrument. Why I have not been able
:04:16. > :04:20.to support the Government in the lobbies since then. Happy to give
:04:21. > :04:26.way. I thank my honourable friend for giving way. Does he agree that a
:04:27. > :04:29.basic test of the fairness of the introduction of this package is that
:04:30. > :04:33.the painful part of the package, such as the reduction in the
:04:34. > :04:39.threshold that he highlights shouldn't be introduced so up many
:04:40. > :04:43.more quickly than the pollstive that the increase in the living wage and
:04:44. > :04:50.personal allowance and other benefits that form part of the
:04:51. > :04:54.package? I agree with the honourable gentleman as members can imagine.
:04:55. > :04:58.For me, I would like to point out on that current mitigation, if we talk
:04:59. > :05:02.about this teaching assistant or the cleaner, people in society who are
:05:03. > :05:10.doing a great job for us, the people we need to reach out to. Those
:05:11. > :05:13.people who are going to have to... You mention teaching assistants and
:05:14. > :05:19.cleaners, I should probably declare an interest at this point, because I
:05:20. > :05:24.was a teacher who was in receipt of tax credit, and at the point with
:05:25. > :05:29.the scheme came into being, I was a single parent, and only that I had
:05:30. > :05:34.the tax credits, I was able to remain in employment. It was a very
:05:35. > :05:38.difficult time for me, and I was faced with the chance of actually
:05:39. > :05:43.going into unemployment, and being with my child or remaining in work.
:05:44. > :05:47.So it is not just teaching assistants and cleaner, thereby
:05:48. > :05:52.others in society as well. -- there are. I a degree. I am using
:05:53. > :05:54.the example of teaching assistants because I think it's a classic
:05:55. > :05:58.example and people who are constricted in the hours they are
:05:59. > :06:02.able to work, they can only have so many hours a week, for so many days
:06:03. > :06:06.throughout the year. In terms of the current mitigation, there has been
:06:07. > :06:11.talk about free childcare for three and four-year-olds and how that
:06:12. > :06:16.helps set it off. If you don't it doesn't help whatsoever. There is
:06:17. > :06:19.talk about the personal income tax allowance is increasing from 11,000
:06:20. > :06:23.to 12,500. I would like to see it go up to 15,000 by the end of the
:06:24. > :06:29.Parliament. If you don't earn more it is of no use to you. If you are
:06:30. > :06:33.on ?11,000 you are being hit with the 1200 cut. It is punishing people
:06:34. > :06:36.who are going out there and trying to work and do the right thing. That
:06:37. > :06:41.does not sit right with me, so that is something I could not support.
:06:42. > :06:48.Happy to give way. Thank you. Would he feel a taper
:06:49. > :06:54.sort of system would better suited for this particular policy? That is
:06:55. > :06:58.a possible solution, I am sure the Treasury is looking into it. I would
:06:59. > :07:04.like to work with the Treasury in how they can do this mitigation, and
:07:05. > :07:10.hope they can listen. Give him a job. I would like to point out I
:07:11. > :07:14.don't want a job. In reality, getting back to these people on
:07:15. > :07:17.?11,000 a year and thereabout, who will be particularly punished by
:07:18. > :07:19.this policy as it currently stands, I am pleased that the Chancellor is
:07:20. > :07:24.listening and though I don't agree with the House of Lords in what they
:07:25. > :07:28.are done, I accept it brought us to this particular position. I want the
:07:29. > :07:31.debate not to be focussed on constitutional issues but focussed
:07:32. > :07:35.on the loss of income for those people who won't have an ability to
:07:36. > :07:40.make that income up else where. That is where I want it focussed. How can
:07:41. > :07:43.we do this? We talk about the changes in personal income tax
:07:44. > :07:48.allowance, changes from 11 thousand thousand pounds to 12,500. That will
:07:49. > :07:52.cost about ?9 billion. One of the points I wanted to make was we spend
:07:53. > :07:57.over 00 billion a year as a vt go. It is as if we can't find this 4.4
:07:58. > :08:02.billion that will be the end of life as we know it, which we know is not
:08:03. > :08:09.going to be the case. There is a way it can be mitigated, dealt with, so
:08:10. > :08:14.how do we reform tax credits without punishing these who try to do the
:08:15. > :08:17.right thing. Three billion of that 4tttese who try to do the right
:08:18. > :08:22.thing. Three billion of that 4.4 billion saving is that original
:08:23. > :08:27.change in thresholds. Talking about the initial ?1200 cut. That broad
:08:28. > :08:33.instrument that punishes, you. Whether you are earning just over
:08:34. > :08:36.6,00 pounds or ?19,000. You are getting hit with that cut. It has to
:08:37. > :08:41.be mitigated, it has to be changed. We have to find a way round that
:08:42. > :08:45.original ?1200 cut. It is too much, too far. There is talk about a
:08:46. > :08:53.discretionary hardship fund. I would welcome that for the people who are
:08:54. > :08:58.struggling happy to give way. No, sorry. There has been a lot of
:08:59. > :09:05.talk about National Insurance. I would like to spiel not pay any on
:09:06. > :09:11.the first 11,000 of their income. It the first 11,000 of their income. It
:09:12. > :09:15.would be too expensive. For me it is how... Suggest to me if you take
:09:16. > :09:19.4ttt to me if you take 4.4 billion off people earning the lowest
:09:20. > :09:22.incomes, that is 4.4 billion straight out the economy because you
:09:23. > :09:25.are taking them out of their pockets and they use that money and go out
:09:26. > :09:28.and spend right away. So every pound you take off them you are taking out
:09:29. > :09:32.of the shops and the local economies. It doesn't seem to make
:09:33. > :09:40.sense. I want to work with the Treasury. I can be a prodigal son, I
:09:41. > :09:49.am sure I can be returned to the fold. Can I join you? You are a bit
:09:50. > :09:52.more than I am. There is huge fear out there in the public and we need
:09:53. > :09:56.to come forward with some proposals as fast as we can. I do want to urge
:09:57. > :10:01.the Treasury to talk to us, to listen to us, to work with us,
:10:02. > :10:04.because I warn the Treasury, if I think that don't come forward with
:10:05. > :10:08.mitigation proposals we are going to continue to raise the issue and we
:10:09. > :10:12.are going to continue trying to ensure we look after those poorest
:10:13. > :10:17.in society. I accept Britain has 1 % of the world's population, generates
:10:18. > :10:21.4% of the world's income and spends 7% on welfare spending. It is too
:10:22. > :10:28.much. I am proud of the Conservative Party, I will continue to put
:10:29. > :10:32.fairness at the heart of it. It is a real privilege to follow the
:10:33. > :10:37.contribution from the member for Stevenage. Other than that last
:10:38. > :10:41.sentence or two, I thought it was a tremendous speech. I do hope that
:10:42. > :10:45.the Treasury bench is listening to the words that he uttered, because I
:10:46. > :10:49.think there is widespread agreement within this chamber, and out new the
:10:50. > :10:55.country, about the points that he made. He made a very detailed
:10:56. > :10:59.analysis of the situation, and made some sensible suggestions, that I
:11:00. > :11:05.think we can all support, so I hope you are able to return to the fold,
:11:06. > :11:08.because we would like to see the Chancellor dig himself out of this
:11:09. > :11:12.hole he has created for himself. He has certainly got himself in a real
:11:13. > :11:17.situation here, we are fascinated to Woolwich how he gets himself out of
:11:18. > :11:24.it. -- to watch. I think the Lords did him a favour there. I think had
:11:25. > :11:29.this whole thing pass, the anger in this nation, these changes, would be
:11:30. > :11:32.something we not seen, certainly in my adult life, and I think the
:11:33. > :11:38.Government in a sense is being let off the hook now, in that it has an
:11:39. > :11:42.opportunity to dream up some mitigation and try and put this
:11:43. > :11:47.awful mess right, but they need to hurry up, because the fear of what
:11:48. > :11:49.is going to happen and the uncertainty about what is going to
:11:50. > :11:59.happen, is already out there. I spent Saturday morning in
:12:00. > :12:03.Darlington talking to residents about the changes to tax credits.
:12:04. > :12:07.And they already know what is happening. They are already
:12:08. > :12:11.worried, they are already looking at their incomes, they are already
:12:12. > :12:15.changing decisions and plans and financial commitments for the
:12:16. > :12:20.future, and making decisions on employment already. So the
:12:21. > :12:24.government needs to get on with this and come up with some decent ideas
:12:25. > :12:31.that will actually work and mitigate against the very, the damage that is
:12:32. > :12:35.being done that was so cleverly and successfully outlined by the member
:12:36. > :12:44.for Birkenhead when he proposed this debate. I will give way. Isn't one
:12:45. > :12:49.of the major problems the speed in which the tax credits cut is coming
:12:50. > :12:54.in, balanced with the speed with the national minimum wage will rise, as
:12:55. > :12:57.was said to me, it feels like they are removing the life belt before
:12:58. > :13:04.the lifeboat has arrived. I think that will be one of the quotes of
:13:05. > :13:13.the day, that is a very good way of putting this. I am speaking here on
:13:14. > :13:18.behalf of the 7200 families in my constituency who care for the 3900
:13:19. > :13:25.children who will be losing out as a result of these changes. And we
:13:26. > :13:27.really are, when the government brings forward whatever ideas it is
:13:28. > :13:35.going to come up with in mitigation, we must have the information we need
:13:36. > :13:40.in order to assess whether the idea is to mitigate the impact are
:13:41. > :13:44.actually going to be effective. The member for Birkenhead outlined the
:13:45. > :13:50.data that he would like to see, and I would like to see a regional
:13:51. > :13:57.distribution of this. I suspect that communities like the one I represent
:13:58. > :14:00.where wages are low, will be impacted more heavily than other
:14:01. > :14:05.parts of the country. I am also interested in the gender impact of
:14:06. > :14:09.these changes, and I would like to see how much debt the government
:14:10. > :14:15.believes is being serviced by incomes that are in part made up of
:14:16. > :14:21.tax credits. I suspect that there are mortgages, there are car loans,
:14:22. > :14:27.debt are other personal debts, credit cards, being paid back on the
:14:28. > :14:30.back of tax credits. I thank my honourable friend for giving way,
:14:31. > :14:36.but the problem is about to get worse, because there are people on
:14:37. > :14:42.zero hour contracts that cannot get tax credits. I think he makes a very
:14:43. > :14:48.good point and I think it is for the Treasury bench to respond to that
:14:49. > :14:53.intervention and I look forward to hearing the reply. This is about
:14:54. > :14:57.children, and it costs an enormous amount to raise a child as many of
:14:58. > :15:04.us here will know from personal experience. I have read it can take
:15:05. > :15:10.between 100 and ?150,000 to raise a child, and child benefit, it did not
:15:11. > :15:14.meet ten or 15% of that cost for those people who claim it. This is a
:15:15. > :15:25.contribution from towards the cost of raising children. I will give
:15:26. > :15:31.way. There are some children who will benefit from these changes,
:15:32. > :15:34.they are the children of dead millionaires, who will get ?1
:15:35. > :15:38.million extra tax-free, does she think that is the fair transfer,
:15:39. > :15:47.from the poorest to the rich in the country? No, I do not, that is a
:15:48. > :15:50.pertinent point. I know we will be challenged as to whether money can
:15:51. > :15:56.be found to make this change, you can change it and find it from
:15:57. > :16:01.changes to tax relief in pensions and changes in inheritance tax which
:16:02. > :16:06.we remain opposed to. I would like to illustrate the points I have made
:16:07. > :16:09.in the limited time we have been given. We have had quite a
:16:10. > :16:13.high-level discussion so far and this is actually about real people.
:16:14. > :16:18.Very rarely can you find a constituent who is willing to have
:16:19. > :16:21.their name and personal information, particularly about a financial
:16:22. > :16:30.issue, shared in the House of Commons. But I have had no
:16:31. > :16:33.difficulty at all in finding people in Darlington who are willing to
:16:34. > :16:37.have their name and details to become, they would see it, as
:16:38. > :16:42.becoming the poster people for these campaigns because they are so angry
:16:43. > :16:46.about what the government is trying to do to them. Becky in my
:16:47. > :16:53.constituency, she lives in the red Hall estate. She earns around
:16:54. > :17:03.?16,500 per year. She is single parent and her son is eight years
:17:04. > :17:09.old. She stands to lose ?1950 tax credits per year. She said to me
:17:10. > :17:13.that she is already struggling, she has difficulty paying for essentials
:17:14. > :17:19.like heating and electricity will stop she will not seek a change to
:17:20. > :17:22.her salary when the wages increase. And she will not benefit from the
:17:23. > :17:28.childcare changes because her son is eight years old. Eight-year-olds, I
:17:29. > :17:38.can tell the Minister, no cheaper to run than a 4 -year-old. Amen! She
:17:39. > :17:41.has already had to cut out extras, she can no longer buy herself
:17:42. > :17:47.clothes and the reduction in income will have to come from the money she
:17:48. > :17:52.spends on food or heating her home. The government, this is her words,
:17:53. > :17:57.the government have told us that working was the way forward out of
:17:58. > :18:02.poverty and yet these changes will put me and my son into poverty. The
:18:03. > :18:09.very real choice she will have to make is between heating and feeding
:18:10. > :18:14.her son, but it is also going to be, for many people, between working and
:18:15. > :18:20.not working. And that is what concerns me the most. I want
:18:21. > :18:24.everybody who can work in my constituency to get out and get a
:18:25. > :18:30.job. Because it is good for them and it is good for their kids. But it
:18:31. > :18:34.should never, ever, ever be, you should never be better off on
:18:35. > :18:41.benefits than you are in work. And that will be the effect of this
:18:42. > :18:45.change. I will give way. I am so grateful for giving way. Her speech
:18:46. > :18:52.follows in the tradition of Eleanor Rathbone, who was here from 1929 in
:18:53. > :18:54.the earliest of parliaments as a woman, and campaigned for fan in the
:18:55. > :19:01.earliest of parliaments as a woman, and campaigned for constituents is
:19:02. > :19:05.because in this country, we have topped up incomes understanding that
:19:06. > :19:09.position for poor people and children actually four successive
:19:10. > :19:15.governments. Churchill extended the system on family allowances. She
:19:16. > :19:20.makes a fantastic speech. But in her last point, does she also accent
:19:21. > :19:26.that people will take one, two, three jobs, and we will have
:19:27. > :19:29.latchkey kids raising themselves? I am grateful for that information, I
:19:30. > :19:40.wish he had made it a little bit shorter! I am speaking on but half
:19:41. > :19:45.of the cooks, cleans, shop assistants, shop staff, call centre
:19:46. > :19:48.workers and factory workers. This government has got to take the
:19:49. > :19:57.opportunity that it has been granted by the other place and use that
:19:58. > :20:00.opportunity to put this right. Thank you, Madam Deputy Speaker. It is a
:20:01. > :20:05.pleasure to speak in this debate and can I congratulate the member for
:20:06. > :20:09.Birkenhead for securing the debate in support of others. This is an
:20:10. > :20:15.opportune moment to discuss this in more depth, and possibly with eight
:20:16. > :20:18.degree of unanimously across the benches, because this is a conflict
:20:19. > :20:22.area that needs to be looked at carefully. We have heard talk of the
:20:23. > :20:27.need for immediate mitigation. Really what we need to do is look at
:20:28. > :20:30.this issue again. 18 years ago, the Right Honourable member for
:20:31. > :20:37.Birkenhead was asked to think the unthinkable, tried to do so and was
:20:38. > :20:43.properly slacked for his efforts. This is as corrugated now as it was
:20:44. > :20:49.-- and was promptly sacked for his efforts. We need to look very
:20:50. > :20:52.carefully at creating a system that supports working families and people
:20:53. > :20:55.who are raising children, that supports people who want to do the
:20:56. > :21:01.right thing. We need to create a system which does not penalised
:21:02. > :21:05.those buried people due to very high reduction rates and a change that
:21:06. > :21:09.would undoubtedly penalised the poorest workers in society. I find
:21:10. > :21:15.myself in race into this issue feeling disappointed to say the
:21:16. > :21:18.least that I am not in agreement with my government, the first five
:21:19. > :21:21.years in this place, I think the changes we brought forward to the
:21:22. > :21:25.welfare state, the way in which we tried to make work pay for people
:21:26. > :21:28.who were willing to go out and contribute to their communities and
:21:29. > :21:33.look after their families, I was proud of those changes. The most
:21:34. > :21:36.moving events of my time in Parliament was when I actually
:21:37. > :21:44.visited a Tesco store in Toxteth, and I have said this before, and I
:21:45. > :21:48.met people who were there on a DWP effort to get people back into work.
:21:49. > :21:52.And the pride and passion that those individuals had and the fact that
:21:53. > :21:55.they were now working and supporting their own families was testament to
:21:56. > :21:59.the changes that we were making and the fact that those changes were
:22:00. > :22:04.making a real difference. There is no doubt the tax credits, whether we
:22:05. > :22:07.like them or not, and the system had undoubtedly ballooned out of
:22:08. > :22:10.control, but whether we like to tax credits or not, they are an
:22:11. > :22:15.important element of supporting those very workers who are willing
:22:16. > :22:20.to work but who have wages who are not competitive. We come to a
:22:21. > :22:24.situation in which we had a Budget which was important in many ways.
:22:25. > :22:27.The decision to introduce a new minimum living wage is a decision we
:22:28. > :22:31.should all applaud but there is clearly a discrepancy between the
:22:32. > :22:36.timing of the changes to the new living way, for example, and the
:22:37. > :22:40.changes to the tax credit system. There is no balance to the way in
:22:41. > :22:44.which wages will increase and the fact that the tax credits will be
:22:45. > :22:49.withdrawn immediately. I welcome the fact that the Treasury is allowing
:22:50. > :22:52.time for the new living wage to settle in. I represent a
:22:53. > :23:03.constituency of small businesses and self traders, I have the highest
:23:04. > :23:06.proportion of self-employed people in my constituency. The small
:23:07. > :23:10.businesses understand we need to move higher wage economy and they
:23:11. > :23:13.need to pay their staff properly. Many of them take pride in the fact
:23:14. > :23:19.that they pay above the minimum wage as a main means of keeping staff in
:23:20. > :23:21.place. But the small businesses appreciate the fact that the
:23:22. > :23:24.government is giving them time to adapt and change their businesses
:23:25. > :23:30.and business models in order to be able to pay their staff more. It is
:23:31. > :23:34.therefore in my view difficult to understand why we were not able to
:23:35. > :23:37.give tax credit recipients the same time to adapt and change into the
:23:38. > :23:42.situation we were proposing. The decision to cut so quickly and so
:23:43. > :23:50.deeply was clearly problematic and the response in both houses has
:23:51. > :23:54.showing people were concerned. In terms of how do we move forward, the
:23:55. > :23:59.one thing we have to be aware of is we need to educate mothers of this
:24:00. > :24:04.house. I think the worst example of a crass comment in this issue was
:24:05. > :24:09.the Conservative MP who stated quite clearly that if somebody loses ?30
:24:10. > :24:15.per week, they simply need to go out and work an extra three hours. I was
:24:16. > :24:22.genuinely shocked by that comment because with an 80% marginal
:24:23. > :24:27.reduction, an individual on ?10 per hour would need to find 15 hours
:24:28. > :24:32.work to make up that loss. Where we have that kind of comment coming
:24:33. > :24:36.from members who claim to understand their constituents, we need to
:24:37. > :24:40.despair. We need to understand the trap that we have. I was proud of
:24:41. > :24:44.the fact that universal credit was trying to reduce the marginal rate.
:24:45. > :24:48.I was proud of the fact that when I sat on the welfare bill committee,
:24:49. > :24:52.it was stated categorically by the minister that the aim would be to
:24:53. > :24:56.reduce even further the marginal reduction rate, where funds allowed.
:24:57. > :25:01.And the Prime Minister stated categorically that the Conservative
:25:02. > :25:06.Party should be as concerned, even if not more concerned, about
:25:07. > :25:12.marginal eduction rates of 95p that we inherited than the 50p high rate
:25:13. > :25:19.of tax. It was very disappointing to see that incentive be changed as we
:25:20. > :25:22.saw in these proposals. We need to look carefully at what message we
:25:23. > :25:26.are sending to people when we say to them, go out and work an extra
:25:27. > :25:30.couple of hours, but we will take 80% of your efforts. That is
:25:31. > :25:34.something we need to be careful about. That is why when the talk
:25:35. > :25:39.about mitigation, it is short-term response. Long-term, we need to to
:25:40. > :25:44.to about the whole system. -- look at the whole system. I have had
:25:45. > :25:47.numerous conversations with ministers, I am grateful to the
:25:48. > :25:55.Minister on the government bench, who called me up and made my
:25:56. > :25:59.difficulties in a long queue on the roads in Wales more bearable by
:26:00. > :26:03.discussing tax credits with me. The Treasury have shown they are willing
:26:04. > :26:07.to listen. We need to make sure in the long term that we look carefully
:26:08. > :26:10.at how we create a system which is much more likely to support working
:26:11. > :26:14.families in a way which is constructive, but in the short-term
:26:15. > :26:20.he stated clearly that we should look carefully at how we can deal
:26:21. > :26:23.with his ?4.4 billion gap in the government finances. I do take the
:26:24. > :26:27.issue of the deficit seriously. One thing we need to think about is the
:26:28. > :26:32.way in which 70% of all the benefits from the increased personal
:26:33. > :26:36.allowances have gone to the highest paid in society, 70% has gone to the
:26:37. > :26:45.half who are in the richest side of the society. We need to ask clearly
:26:46. > :26:47.whether we can, in view of the fact that we are desperate to find 4.4
:26:48. > :26:50.billion, we need to ask, can we justify an extra 9 billion to
:26:51. > :26:55.increasingly personal allowance? That could mitigate in the
:26:56. > :27:00.short-term. But we need long-term plan as well.
:27:01. > :27:06.He makes a very important point about how little people keep for
:27:07. > :27:10.every pound extra they earn. I seem to recall that the Prime Minister
:27:11. > :27:15.once took to task Gordon Brown for that very issue. It is on film and
:27:16. > :27:19.you can look at it on YouTube. It is important about making work pay that
:27:20. > :27:22.people feel for every extra hour they work they are making a
:27:23. > :27:26.difference to their progression in their working lives. The starting
:27:27. > :27:30.point nor this debate is the Chancellor's ill formed proposals to
:27:31. > :27:34.reform Working Tax Credit. The truth is the distribution aspect of the
:27:35. > :27:39.tax credit cuts are severely regressive. It has shown that the
:27:40. > :27:44.national living wage touted as a solution to this at best undoes 20%
:27:45. > :27:50.of the damage. Today what I want to start with, is how the story really
:27:51. > :27:56.begin, because the story begins in 1997, when Labour came to power, the
:27:57. > :27:59.only help for families was child benefit, a married person's tax
:28:00. > :28:04.benefit and a child personal allowance. A small number of people
:28:05. > :28:07.with disabilities also received a disability working allowance. The
:28:08. > :28:11.Government then found that there were high rates of poverty among
:28:12. > :28:15.families with children and tax credits were thought to be a new
:28:16. > :28:19.mechanism to support those families into work as the best route out of
:28:20. > :28:23.poverty. The evidence is strong. That the more far-reaching tax
:28:24. > :28:28.credits and the introduction of help with childcare costs transformed the
:28:29. > :28:33.prospects for millions of families. One consequence was, one outcome was
:28:34. > :28:39.that the lone parent employment rate Rose, that until 2014 it is the
:28:40. > :28:43.highest on record. 65.7%. That is amazing and of course, a vast
:28:44. > :28:47.majority of the lone parents are women. Another outcome was that the
:28:48. > :28:54.tax credits reduced child poverty. DWP confirm in the first decade of
:28:55. > :28:58.tax credits child poverty fell dramatically as 1.1 million children
:28:59. > :29:02.were lifted out of poverty to 2010. Secondly they gave a benefit to
:29:03. > :29:06.employee, they are not simply a state hand out to bad employer. When
:29:07. > :29:10.most are setting wanes they are blind to the private tax credit
:29:11. > :29:15.details of their employees. What is more, they cannot pay one worker one
:29:16. > :29:21.wage and the next person a different rate because they claim tax credits.
:29:22. > :29:26.In most cases, the employer does not know. As a resolution report found
:29:27. > :29:31.this week, if the Government removes tax credits, the employer will not
:29:32. > :29:33.immediately step in to fill that void, regardless of the rises in the
:29:34. > :29:38.national minimum wage or the national living wage. The Government
:29:39. > :29:43.must know this, and it is wrong to suggest that the only beneficiaries
:29:44. > :29:47.of tax credits are bad employers. Second, we have to challenge and
:29:48. > :29:53.address the Chancellor's claim that the dost of tax credits have risen
:29:54. > :29:57.from 1 billion to 30 billion today. This summer the Chancellor stated
:29:58. > :30:00.the original tax credit system cost 1.1 billion in its first year, this
:30:01. > :30:08.year that cost has reached 30 billion. This claim is bogus.
:30:09. > :30:16.Articles by Declan Gaffney and Tim Blackwell show it relates to only
:30:17. > :30:20.the first reforms which began in October 199 and only covering three
:30:21. > :30:25.months of tax credit payment for a typical claimant. In its first full
:30:26. > :30:29.year, 2000-2001. The cost was more like 10.5 billion, not 1.1 billion.
:30:30. > :30:36.Which brings me to the question, of why the tax credit bill has
:30:37. > :30:38.increased. First, tax credits, a number of previously separate
:30:39. > :30:44.benefits and were more generous, I acknowledge that. But the tax
:30:45. > :30:47.credits we refer to today include childcare costs introduced in 2003
:30:48. > :30:52.which no previous Government had met, so yes, it was about
:30:53. > :30:56.challenging poverty pay, but as my honourable friend from Darlington
:30:57. > :30:59.has referred to in her speech, it was addressing for those many
:31:00. > :31:04.families, particularly women, the lone parent women, even if they were
:31:05. > :31:07.on a reasonable page wage, whatever reasonable is they couldn't afford
:31:08. > :31:11.to work because the amount of their wage that was being paid out in
:31:12. > :31:17.terms of childcare costs. Grateful. She is making a powerful
:31:18. > :31:21.case, does she agree with me that the important element about tax
:31:22. > :31:27.credits was it was a means of getting particularly lone parents
:31:28. > :31:33.into work. And Gingerbread have done aical I can lacing that a 5% rise
:31:34. > :31:37.saves the Treasury ?436 million. So it is a benefit to the wider
:31:38. > :31:40.economy, in itself, just simply getting lone parents in particular
:31:41. > :31:45.into the workplace. I agree. That is another thing
:31:46. > :31:49.missing from the debate. Is what are the impacts of the changes on other
:31:50. > :31:52.sectors of the economy, and the wellbeing and the economic
:31:53. > :31:58.opportunities it provides to people, through being in work. As I said,
:31:59. > :32:04.the employment rate has gone up to 67%, which is brilliant. And the
:32:05. > :32:08.worry is with these changes will it go back wards rather than improving
:32:09. > :32:13.further. The total tax credits families reserve relates to their
:32:14. > :32:18.income. The recession of 20082009 did have a dramatic effect on wages,
:32:19. > :32:21.as wages fell, many of those families, either qualify for tax
:32:22. > :32:27.credits or saw their tax credit rise. It is notable that during the
:32:28. > :32:34.John Major recession, unemployment rose to a peak of 10.7% by 1993.
:32:35. > :32:38.Whereas in the recession of 2008-9, many employers reduced hours or
:32:39. > :32:42.didn't increase pay in order to keep staff in, who. I sort of understand
:32:43. > :32:45.why they did that. I think in this House there were debates about how
:32:46. > :32:49.we did appreciate employers were trying to deal with the difficult
:32:50. > :32:56.situation but hold on to people in work. But, the resulting factor was
:32:57. > :32:59.more people who claim tax credits or their tax credit contribution rose
:33:00. > :33:04.in accordance with that. The other important fact, remember what I said
:33:05. > :33:09.about the John Major recession, in that recession, in the last
:33:10. > :33:13.recession, as a result of a number of factors and employers keeping
:33:14. > :33:18.people in work, unemployment only rose to 8.5%. Recent figures show
:33:19. > :33:23.the number of employees learning less -- earning less than the living
:33:24. > :33:27.wage has risen. Holding people in work, but those very same people
:33:28. > :33:32.needing more support through tax credits, this isn't a conspiracy,
:33:33. > :33:39.this is a reality of an economy adjusting to finding itself in
:33:40. > :33:43.difficult situations, and the state being there as a safety net to help
:33:44. > :33:46.them. Without tax credits the rise in unemployment in that most serious
:33:47. > :33:49.recession we have experienced could have been up many worse. I think
:33:50. > :33:53.that goes a long way to explain the cost of tax credits today. This
:33:54. > :33:57.week, given the voting in other place the Chancellor says he is in
:33:58. > :34:01.listening mode. We must address how we support people into work and to
:34:02. > :34:07.make progress to improve their living standards and the life
:34:08. > :34:09.chances of their children. I agree with everything my right honourable
:34:10. > :34:14.gentleman friend for Birkenhead said today. I won't repeat that. Let me
:34:15. > :34:17.add a final few points, in moving forward, I think there is a number
:34:18. > :34:22.of things that have to happen. First, the Government must be
:34:23. > :34:26.straight about the figures relating to tax credits, only then can we
:34:27. > :34:30.have a sensible conversation, second, the Chancellor needs to
:34:31. > :34:34.provide a proper assessment of the impact of any new proposals on
:34:35. > :34:38.incentives or disincentives to work for those who receive tax credit, I
:34:39. > :34:41.ask the Chancellor if he stood up for working people why this wasn't
:34:42. > :34:45.published with his last proposal. He didn't answer and that is because I
:34:46. > :34:50.feel he is afraid to face the facts. Third, the Chancellor needs to ask
:34:51. > :34:55.what any impact new proposals will have on child poverty. Fourthly, we
:34:56. > :34:58.need to look more widely across departments, at what support
:34:59. > :35:05.actually helps people to get into work, stay in work, and make
:35:06. > :35:09.progress in work. I founded the first all party group on childcare
:35:10. > :35:14.when I came into this place 18 years ago. It is still nod good enough for
:35:15. > :35:18.many working families. This easy are the questions I need answers for,
:35:19. > :35:21.for the 5300 families who are worried about the future of their
:35:22. > :35:25.tax credits and their ability to hold their head up high and say, I
:35:26. > :35:29.am in work, helping to support my children.
:35:30. > :35:38.It is a great pleasure to speak in the debate and can I thank the
:35:39. > :35:44.honourable member for Birkenhead to for initiating this debate. It has
:35:45. > :35:49.been very good. I also want to thank the contributions from the
:35:50. > :35:54.honourable member for Stevenage because I think, I, dare I say I am
:35:55. > :35:57.getting more mature in years, I am a chairman of a Select Committee, I
:35:58. > :36:02.can afford to be a bit more independent, but like I said, it is
:36:03. > :36:06.not always easy in furthering your ambitions in the party, if you stand
:36:07. > :36:10.up for what you believe to be right. I think we are standing up for what
:36:11. > :36:16.we believe to be right, because as far as I am concerned it is
:36:17. > :36:22.absolutely fundamental that people that work are better off than those
:36:23. > :36:29.that don't. I think if we get this wrong, it is absolutely for me, it
:36:30. > :36:31.is something I believe in. Everything I believe about the
:36:32. > :36:35.Conservative Party is in order to encourage people into work, and then
:36:36. > :36:41.they will be better off. And if we are not at all careful, this policy
:36:42. > :36:45.will drive people back on benefit, and it will go in the opposite
:36:46. > :36:50.direction that what we want, where we want to take people.
:36:51. > :36:54.I very much support what the Chancellor has done with taking
:36:55. > :36:58.millions of people out of tax, raising the threshold, halving the
:36:59. > :37:04.deficit and driving the economy. Creating vast amounts of employment
:37:05. > :37:08.in this country. I come from a constituency that only had 1%
:37:09. > :37:16.unemployment. But of course, what that hides is that we have got a lot
:37:17. > :37:22.of employment, but I have, let me check the actual figure, the average
:37:23. > :37:28.salary in Tiverton an Honiton for full and part-time employees is
:37:29. > :37:32.18,000 o 18700. The number of families claiming working and tax
:37:33. > :37:37.credits is over 22%. In addition the average house price
:37:38. > :37:40.in Tiverton and Honiton is round 190,000, because we have quite high
:37:41. > :37:45.prices in the constituency, because it is a beautiful part of the
:37:46. > :37:53.country to live. But we have got to make sure that we support those
:37:54. > :37:56.people that are working hard, in our constituencies across the cub tri.
:37:57. > :38:00.That is why this -- country. That is why this opportunity we have we need
:38:01. > :38:07.to take it and do something real with it. What, I disagree entirely
:38:08. > :38:11.with what the House of Lords did, but what it has done, as it has
:38:12. > :38:18.given us an opportunity to look again. And can I be so bold to say,
:38:19. > :38:22.Madam Deputy Speaker, you can have as many spin-doctors and clever
:38:23. > :38:28.people with figures as you like, but this the end, when it comes to the
:38:29. > :38:33.fact that when you on a low income, and you are relying on tax credits,
:38:34. > :38:37.when you know that money has been taken away from you, it is
:38:38. > :38:42.absolutely real. And so I think the Government and the Chancellor are in
:38:43. > :38:45.this, on this occasion, and I hate to have to say it does have to be
:38:46. > :38:50.absolutely certain as to how many people are going to be affected and
:38:51. > :38:57.what we are going to do about it. Because again, I very much support
:38:58. > :39:00.the national living wage. But again, the Government and the Chancellor
:39:01. > :39:06.needs to give all those small company, because many of us have
:39:07. > :39:12.very much small companies in our constituencies, which will need
:39:13. > :39:15.help, in order to be able to pay the national living wage. As people get
:39:16. > :39:21.more in their pockets and more from their employment. That is when we
:39:22. > :39:26.can reduce the tax credits, that is when we can reduce, if you like, the
:39:27. > :39:31.state subsidy on employment, because we all get that, we all know what
:39:32. > :39:36.has to be done, but we cannot do its in the speed that we are doing it,
:39:37. > :39:42.and drive perhaps millions of people and take money away from them, and
:39:43. > :39:48.of course, you know, in, it is simple arithmetic, if you are on a
:39:49. > :39:53.low salary, those ?1,000 or ?2,000, or ?1300, whatever it might be, is a
:39:54. > :39:58.huge amount of your actual disposal income. It is about disposable
:39:59. > :40:02.income. That is what we must remember, and so I am optimistic, I
:40:03. > :40:07.have always been optimistic in my life, because I believe teleis a
:40:08. > :40:11.solution. I believe there is is a solution because the Chancellor is a
:40:12. > :40:16.very clever man and he should listen and I am sure he is listening, and
:40:17. > :40:21.he will come back to this chamber, with some proposals, that will show
:40:22. > :40:26.that working people, hard-working people, whether they are cleaning,
:40:27. > :40:29.or whether they are classroom assistant, where whether they work
:40:30. > :40:33.in the Health Service, the private sector, whether they work in the
:40:34. > :40:40.tourism industry or whether they work on farms. They are all very
:40:41. > :40:45.hard-working people. We must be a party and a government that supports
:40:46. > :40:50.the hard-working person, and we have done that, up until now, and we have
:40:51. > :40:54.just lost our way, a little. And I think we can come back out of the
:40:55. > :41:06.wilderness, and I think we can put this right. I will give way to the
:41:07. > :41:10.honourable gentleman. I couldn't agree the honourable
:41:11. > :41:15.gentleman more and that is why I am here in politics today. It is to try
:41:16. > :41:18.and make that happen, and that is why I think there is many of us on
:41:19. > :41:23.this side of the House are prepared to stand up and be counted because
:41:24. > :41:29.it is right we do so, because our constituencies expect it and I
:41:30. > :41:33.believe that we can and yes, the Chancellor will say, we must
:41:34. > :41:42.eradicate the deficit. Yes, we must, but if we are six months later or
:41:43. > :41:46.dare I say it, a year late, in -- eradicating the deficit, people, I
:41:47. > :41:52.believe, will understand. If you are taking away yes I will give way.
:41:53. > :41:59.On that point you are absolutely right, and the thing that struck me
:42:00. > :42:03.so much in the last week, I have received hundreds of e-mails and
:42:04. > :42:07.letters. When we talk about debt and deficit, it is not the government's
:42:08. > :42:11.debt and deficit, it is the people's debt and deficit. I have
:42:12. > :42:15.had countless letters from wealthy people telling me that this is
:42:16. > :42:19.wrong. It is absolutely right that they are part of this conversation
:42:20. > :42:23.as well about how we repair the damage to our economy. It is their
:42:24. > :42:28.vote as much as the person who is losing money from tax credits. I
:42:29. > :42:32.thank her very much for her intervention. It is right, to coin a
:42:33. > :42:39.phrase, we are in it altogether. You must make sure that when we reduced
:42:40. > :42:43.the deficit, which we are doing very correctly, and we will get to
:42:44. > :42:46.balance the books as ultimately we must balance the books, you cannot
:42:47. > :42:49.go on borrowing forever because it will be our children and
:42:50. > :42:53.grandchildren and great-grandchildren, at this rate,
:42:54. > :42:58.that will pay that off. It has got to be fair as we do it, and I repeat
:42:59. > :43:02.and I do not apologise for repeating the fact that work must pay, and we
:43:03. > :43:10.must make sure that those in low-paid work can carry on their
:43:11. > :43:17.lives. On this issue of government debt, can I remind the government
:43:18. > :43:21.benches, 375 billion of that debt has been created as a consequence of
:43:22. > :43:25.quantitative easing. The Bank of England had to step in and use
:43:26. > :43:33.monetary policy measures because of the failure of fiscal measures by
:43:34. > :43:40.the government. I will get into an argument... I do not wish to get
:43:41. > :43:42.into an argument with him about quantitative easing, I would argue
:43:43. > :43:49.that we would not have the employment we do have at the moment
:43:50. > :43:53.as a result of those tools, we might have overused it but that is an
:43:54. > :43:57.argument for history. That is where we have got the economy smoothly and
:43:58. > :44:00.in the right direction. I make this final plea, and I am sure other
:44:01. > :44:05.members across the whole chamber will make this plea, please,
:44:06. > :44:11.Chancellor, look at this, look at how we mitigate, and how we actually
:44:12. > :44:18.raise the national living wage so that we get people earning more as
:44:19. > :44:22.we take away those tax credits so people will accept that. What we
:44:23. > :44:30.must not do is take away the tax credit because it is not a crime, to
:44:31. > :44:34.be lowly paid. If you really is not. -- it really is not. This is
:44:35. > :44:38.something I fundamentally disagree with and we have got to put it right
:44:39. > :44:45.because the Conservative Party and discovered's reputation is very much
:44:46. > :44:50.at stake. Thank you, Madam Deputy Speaker. I have to begin by saying
:44:51. > :44:53.it is not normally my business to welcome Conservative contributed to
:44:54. > :44:57.this house, but I have to add knowledge and welcomed the
:44:58. > :45:05.contributions from the Honourable members for Stevenage, Aberconwy and
:45:06. > :45:09.Tiverton and Honasan -- Honasan. I think it goes without saying that
:45:10. > :45:14.the Honourable members on these benches agreed with every thing they
:45:15. > :45:17.had to say, they were brave and welcome contributions, perhaps more
:45:18. > :45:24.welcome on this side than on the Treasury bench. I hope perhaps that
:45:25. > :45:27.is going to probably be the only time I will welcome Conservative
:45:28. > :45:32.contributions in this Parliament! I am sorry that the SNP amendment in
:45:33. > :45:35.my name and my right honourable friends was not accepted, but I'm
:45:36. > :45:42.still very grateful to have further opportunity to set out the SNP's
:45:43. > :45:46.opposition to these cuts. And I will devote a large part of my speech and
:45:47. > :45:51.time this afternoon to address the proposals put forward by the Right
:45:52. > :45:56.Honourable member for Birkenhead. We have much to agree on. His proposals
:45:57. > :46:01.are marginally better than those brought forward by the Chancellor.
:46:02. > :46:04.But they do not protect all low-income households from the
:46:05. > :46:09.Chancellor's ideological wrecking ball to Social Security. I am glad
:46:10. > :46:14.the Right Honourable member has stated that he was putting these
:46:15. > :46:19.forward speculatively, and I hope we can seek a greater consistency, it
:46:20. > :46:23.is fair to say, from the official opposition in challenging the Tory
:46:24. > :46:29.tax credit cuts. As I think we can do much better than this. I think we
:46:30. > :46:33.form a very strong and united opposition on Tuesday because we
:46:34. > :46:40.formed with one voice against these cuts. Since Monday, we have had
:46:41. > :46:43.three different positions, Madam Deputy Speaker, from the Labour
:46:44. > :46:47.Party on tax credits. They pushed a delay in the other place on Monday
:46:48. > :46:53.night but opposed slapping them outright, and then to their credit,
:46:54. > :46:57.joined the SNP completely opposing the cuts on Tuesday, and now today
:46:58. > :47:00.we are presented with a watered down opposition which will steal remove
:47:01. > :47:07.significant amount of money from low-income households. Thank you for
:47:08. > :47:12.giving way. Would he agree with me that having families rely on an
:47:13. > :47:17.unelected chamber to protect their tax credits from this government is
:47:18. > :47:23.a ridiculous situation to be in in 2015? Would he further agree that
:47:24. > :47:30.the interests of Scotland's low-paid would be far better served if all of
:47:31. > :47:38.welfare was devolved to the Scottish Parliament immediately? I welcome
:47:39. > :47:44.his intervention. Under the member's plan, every household under
:47:45. > :47:50.a certain level would continue to lose out. Under his plan, a
:47:51. > :47:58.full-time single earner household with two children and an income of
:47:59. > :48:02.?15,000 would still lose out by ?700 annually. The level by which tax
:48:03. > :48:10.credits were removed thereafter would be 65p in the pound. We are
:48:11. > :48:15.still going to see the budget being balanced on the back of low-income
:48:16. > :48:21.households. I put a number of proposals forward, and I think when
:48:22. > :48:24.he is perhaps in this case a little longer, words like mitigate our
:48:25. > :48:30.words used to unite people with different views, even those that
:48:31. > :48:37.want to see the whole withdrawn. My dad asked him to follow -- might I
:48:38. > :48:44.ask him to follow carefully, I asked him yesterday, would Scotland, even
:48:45. > :48:47.after existing, not waiting for any further devolution, would Scotland
:48:48. > :48:54.be able to use its revenue raising powers to compensate everyone in
:48:55. > :48:58.Scotland should these changes go through? And the reply from the
:48:59. > :49:02.secretary of state was, yes. So are we not going to see in Scotland, the
:49:03. > :49:06.Scottish Government using revenue raising powers to actually not
:49:07. > :49:11.merely put motions on the order paper, but make sure nobody in
:49:12. > :49:18.Scotland discusses from these tax credit cuts? It is worth saying that
:49:19. > :49:21.the SNP is, I would hope the Labour Party is looking to work with the
:49:22. > :49:28.SNP wherever possible to oppose cuts that are out owing to impact on low
:49:29. > :49:32.income families. -- going to impact. I do make my contribution today as
:49:33. > :49:35.best as possible on the basis of consensus, because we need to work
:49:36. > :49:40.together to effectively oppose what is coming down the line from the
:49:41. > :49:44.Conservative government. With regards to the issue of using
:49:45. > :49:47.tax-raising powers, the fiscal framework has not been agreed. We
:49:48. > :49:50.have no idea what is going to be coming forward, we have no idea
:49:51. > :49:57.whether it is going to be possible to raise the taxes in order to do
:49:58. > :50:01.so... So I think it is a slight obfuscation from the Right
:50:02. > :50:04.Honourable member to use that example. The House of Commons
:50:05. > :50:08.library briefing, so we are still going to see the budget being
:50:09. > :50:14.balanced on the backs of low-income households. I hope after today... I
:50:15. > :50:20.thank him for giving way, he will remind the House that the Scottish
:50:21. > :50:22.Government has already spent ?100 million in mitigating existing
:50:23. > :50:29.attacks on the poor from this government. Absolutely, ?100 million
:50:30. > :50:34.on the bedroom tax and a further ?40 million in ensuring that the council
:50:35. > :50:40.tax cuts did not affect low income households in Scotland as they have
:50:41. > :50:45.done in England. I hope that after today, Labour will return to where
:50:46. > :50:50.it was earlier this week, when it stood side-by-side with the SNP in
:50:51. > :50:53.opposing Tory cuts. The SNP will oppose the ideological, regressive
:50:54. > :50:57.and punitive tax credit cuts with every opportunity open to us and we
:50:58. > :51:01.do so again today because we realise the damage these will cause to
:51:02. > :51:05.family incomes, levels of poverty and child poverty in these isles,
:51:06. > :51:09.and to social cohesion in every community in Scotland. The Scottish
:51:10. > :51:14.Government analysis task asked today at First Minister's Questions in the
:51:15. > :51:21.Scottish Parliament shows that 250,000 households in Scotland will
:51:22. > :51:24.lose on average ?1500 from April. And thereafter, with the changes
:51:25. > :51:31.fully in demented, this could rise to an average of ?3000 per
:51:32. > :51:32.household. These changes are fundamentally regressive,
:51:33. > :51:37.disproportionately targeting those in low-income households and posh
:51:38. > :51:44.and -- punish them for what this government's ideological obsession
:51:45. > :51:47.with austerity. The SNP stood on a manifesto which was fundamentally
:51:48. > :51:51.anti-austerities but stood on a responsible path for bringing down
:51:52. > :51:54.the deficit. We have argued for a 0.5% increase in spending per year
:51:55. > :52:02.in this government which would have released money to invest in capital
:52:03. > :52:04.projects and another measure to narrow it income in quality. Our
:52:05. > :52:12.plan would have brought the budget deficit down to 2% at the end of the
:52:13. > :52:17.Parliament but at the same time protecting public senses. It was
:52:18. > :52:19.backed by an IMF report from June this year that highlighted that
:52:20. > :52:29.reducing income in a quality not only leads to reduced -- income
:52:30. > :52:35.inequality not only leads to reduced inequality but also improves growth.
:52:36. > :52:39.I am pushed for time, I know my colleagues are looking to get in. As
:52:40. > :52:43.well as being socially destructive, as an extension of the IMF's
:52:44. > :52:47.thinking, this policy is economically incompetent as well.
:52:48. > :52:52.There was no mention of these wholesale cuts to tax credit in the
:52:53. > :52:54.Conservative manifesto. There were just two references to tax credits,
:52:55. > :52:59.neither referenced anything like these proposals we have in front of
:53:00. > :53:02.us now. I reiterate that this was the central plank of this
:53:03. > :53:07.Chancellor's burst budget since the election. He has based all of his
:53:08. > :53:11.sons on the back of these cuts. They would have merited a passing
:53:12. > :53:18.reference or at least a hint on what down the line. The Chancellor's
:53:19. > :53:24.summer budget was a prized example of offices -- obfuscation,
:53:25. > :53:28.suggesting that these cuts in tax credits would be mitigated by a rise
:53:29. > :53:36.in the living wage is nonsense, the full rise in the national living
:53:37. > :53:40.wage but not coming until four years after the tax credit cuts. Even when
:53:41. > :53:48.it does come in, it still will not mitigate the tax credit cuts. Why
:53:49. > :53:54.did the government decided to undermine and sabotage the real
:53:55. > :53:56.minimum living wage campaign by labelling their minimum wage as
:53:57. > :54:00.such? I would like to address some of the language that has been used
:54:01. > :54:05.over this issue. Many of us have been focusing on impacting working
:54:06. > :54:09.household and lambasting the fact that many working households will be
:54:10. > :54:16.dragged into the body from the tax credit cuts. I have been as guilty
:54:17. > :54:20.as others for this as I attempt to show that the government's rhetoric
:54:21. > :54:25.on making work pay is a sham when we look at these cuts. There should be
:54:26. > :54:31.no distinction for working or known working households who are in
:54:32. > :54:35.poverty or are living in low incomes, we cannot be dragged into
:54:36. > :54:40.the rhetoric of deserving or non-deserving poor, nobody deserves
:54:41. > :54:43.to be living in poverty. Describing hard-working families or the working
:54:44. > :54:47.poor is unhelpful, we do not know the circumstances by which these
:54:48. > :54:51.people are unable to work, and we should not be judging them in the
:54:52. > :54:57.way that some on the oppositions benches are, where, thereby the
:54:58. > :55:00.grace of God go I. None of us know where we may find ourselves in the
:55:01. > :55:05.circumstances when we are out of work. We should be working to
:55:06. > :55:07.address poverty whenever it is manifested and whenever it will be
:55:08. > :55:14.worsened as it will be by this Chancellor's tax credit cuts. It is
:55:15. > :55:20.a privilege to speak in this debate. I1 of the co-sponsors of the debate
:55:21. > :55:25.but the entire credit of the idea it belongs to the right honourable
:55:26. > :55:30.member for Birkenhead. He rightly identified that what we needed was a
:55:31. > :55:35.cross-party, less partisan, as it turns out, non-binding debate, which
:55:36. > :55:40.will allow everybody to explore these issues properly in the
:55:41. > :55:43.national interest without being feted by feelings of joining one
:55:44. > :55:48.side or another in the playground of politics. The result has been very
:55:49. > :55:54.good, this has been the best debate so far on this subject of a number.
:55:55. > :55:59.But it does fall on us all to be honest about it. This policy was a
:56:00. > :56:02.mistake. One can only think that, because I do not think anybody in
:56:03. > :56:08.any party in this house would deliberately, have impoverished the
:56:09. > :56:16.working poor, with dependent families. I do differentiate in this
:56:17. > :56:20.context, I am afraid. That was simply not intended, I am sure. The
:56:21. > :56:25.problem was, it was compounded by the... Not for the moment. It was
:56:26. > :56:30.compounded by the method taken of taking eight statutory instruments,
:56:31. > :56:34.so it is not amendable, and not having enough information, not
:56:35. > :56:37.having a proper impact statement. For five members of this debate so
:56:38. > :56:43.far have made that point. Had it been amendable and it had been prime
:56:44. > :56:46.legislation and there was proper information available from the
:56:47. > :56:49.government, this would not have got to the House of Lords in its current
:56:50. > :56:53.form, it would have been reformed in the south and that is what should
:56:54. > :56:58.have happened. I subscribe to the government's wished to others the
:56:59. > :57:02.books by 2020, I think that is an eminently sensible and responsible
:57:03. > :57:06.game but I also subscribe to the view that we need to protect the
:57:07. > :57:08.poor at all costs. The problem is, how do we identify what the policy
:57:09. > :57:17.does? I trieded to find some example for
:57:18. > :57:23.which he could assess both sides of the argument. I offer my thanks by
:57:24. > :57:27.the way, to the Chancellor's PPS, in helping with that, who was very
:57:28. > :57:34.helpful. I was able to put some of the points he made in defence of the
:57:35. > :57:38.policy to the library. I will pick out a couple of examples, as to what
:57:39. > :57:43.the impact of this policy was. The worst case example I could find was
:57:44. > :57:48.that of a single working single parent, with two children, who
:57:49. > :57:54.without the mitigating effectses could have been ?2,000 a year worse
:57:55. > :57:59.off. In virtually every year, an unbelievable sum of money to take
:58:00. > :58:03.off a family that is already poor. Under the circumstances, in which
:58:04. > :58:12.they are eligible for the mitigation, in particular, housing
:58:13. > :58:17.benefit, that can be reduced, reduced, to 700-round about ?700.
:58:18. > :58:21.The fine detail is unreliable. But ?700 virtually every year again for
:58:22. > :58:28.the next four or five years. Remember, the great battle when the
:58:29. > :58:33.other side was in power, over the 10% rate, was over sums a quarter of
:58:34. > :58:36.that. The great battles over the poll tax were of sums that size. I
:58:37. > :58:43.remember them too well. The impact on a family which is already on the
:58:44. > :58:49.poverty line by definition, is unspeakable. And unthinkable. I
:58:50. > :58:53.speak as somebody who grew up in a poorer era, I can remember children
:58:54. > :58:56.being hungry on Friday when the bills were too big or it was too
:58:57. > :59:03.cold and the heating costs were too high. So that is what we are dealing
:59:04. > :59:12.with here. There are three possible strategies. Before he moves on to
:59:13. > :59:18.his three possible strategies he touched on the housing benefit. Is
:59:19. > :59:20.that not again of the issues with this policy somebody receiving
:59:21. > :59:23.housing ebenefit would see mitigation in the current system.
:59:24. > :59:29.Somebody who has bought their own property would not? That is exactly
:59:30. > :59:35.right. PMQ thinksome who has their own house are better off. Many in
:59:36. > :59:41.this category are people who have fallen into it and get out later.
:59:42. > :59:44.It's a serious consideration, ?2,000, it is an untenable thought
:59:45. > :59:48.that somebody with two children to support and on less than 20,00
:59:49. > :59:57.pounds a year themselves, so I am going to separate the strategy into
:59:58. > :00:02.three, the roam for Birkenhead said four. One possible is we shift the
:00:03. > :00:07.burden elsewhere. Lord Lawson said the same in the House of Lords,
:00:08. > :00:11.during the debate there. That is possible. But I am not going
:00:12. > :00:17.to, elaborate on it because I think there are better ways. The second
:00:18. > :00:23.one is to find savings elsewhere. Now, here I did very much disagree
:00:24. > :00:26.with the right honourable gentleman for Birkenhead, in his almost
:00:27. > :00:30.encouragement of the Chancellor to go hunting for the pensioner pound,
:00:31. > :00:34.because it won't be today's pensioner's pound he will go hunting
:00:35. > :00:39.for it is tomorrow's. By taking out the, taking out the tax benefits of
:00:40. > :00:43.investing in pensions and undermining what we have left of our
:00:44. > :00:47.private pension scheme. I am protected, virtually all my pension
:00:48. > :00:50.is paid for, but it's the next generation that have to worry about
:00:51. > :00:57.that. This would be an unwise route to go. I give way. I thought I
:00:58. > :01:01.thought my argument would have more appeal because it was a free market
:01:02. > :01:04.one. That when Governments have guaranteed a minimum, it is not our
:01:05. > :01:08.business to put our sticky fingers in other people's lives to tell them
:01:09. > :01:12.how they should save or not save. Once you have a minimum pension
:01:13. > :01:17.agreement, to everybody, how people save, when they save, how they save,
:01:18. > :01:22.is not a question for this House. I won't go too far down the route. I
:01:23. > :01:28.will say to him this, for middle class pensioner, one of the highest
:01:29. > :01:32.effective income tax rates of 55% on people who have saved a lot for
:01:33. > :01:36.their pension and gone above the lifetime allowance, so I think we
:01:37. > :01:39.have to be careful. If you let the Treasury at that deferred income,
:01:40. > :01:44.they will take as much as they can. So I just, I think it is not a route
:01:45. > :01:51.which is wise. The third option which is probably the winner this,
:01:52. > :01:55.it will not be by itself, is to stage the cuts, the right honourable
:01:56. > :01:59.gentleman also lit upon this. To match movements in minimum wage and
:02:00. > :02:05.living wage, so that people do not lose. After all, the Government's
:02:06. > :02:08.figures for 2020 broadly look like they balance. They broadly look like
:02:09. > :02:11.they balance. They are not perfect. We have to work through the
:02:12. > :02:16.mitigation, this is where we have the impact statement again. But
:02:17. > :02:20.broadly they balance and they do two things, one they protect the working
:02:21. > :02:29.poor, but on the other hand they also achieve the deficit reduction.
:02:30. > :02:36.And that is vital. Because if we hit that deficit reduction by 2020, as
:02:37. > :02:41.my right honourable friend spoke earlier, said, this is, each year's
:02:42. > :02:44.saving, each four billion a year is not critical. It is less than 1% of
:02:45. > :02:48.the economy. It is not critical. The real critical issue is how the fans
:02:49. > :02:53.shall markets see it. And they don't care what the trajectory is from
:02:54. > :02:56.here to 2020, just the fact that we get there is good enough. --
:02:57. > :03:01.financial. We don't need to worry about the 4 billion a year, we do
:03:02. > :03:05.need to worry about the final outcome, so my argument would be
:03:06. > :03:09.that we should cut the tax credits in steps, minimum, in steps with
:03:10. > :03:14.minimum wage and living wage. The criterion is what is important here,
:03:15. > :03:19.the criterion that the Government must meet is that no losses for the
:03:20. > :03:24.least well-off, in any of those three intervening years. No losses
:03:25. > :03:28.the least well-off. The poorest, the working poor, the dependents cannot
:03:29. > :03:33.afford to lose one pound, and so that is the test the Government has
:03:34. > :03:36.to meet. After all, I was never a great fan of the minimum wage but
:03:37. > :03:41.one of the things that persuaded me it was worthwhile. I have taken two
:03:42. > :03:44.interventions I will lose time. One of the things that persuaded me was
:03:45. > :03:50.social data that showed it cut crime. It led to a reduction in
:03:51. > :03:55.crime. We must not lose sight of the social impact of these things, the
:03:56. > :03:59.distress on stall, the break up. Pushing people to food bank, towards
:04:00. > :04:04.worst, towards loan shark, pushing people into petty crime. There is a
:04:05. > :04:09.cost on those too. The IFS said to the committee that
:04:10. > :04:13.the Government could hit the 2020 target but, on a staged route. So
:04:14. > :04:21.that is what we should do. That is want we should aim for, we can
:04:22. > :04:27.achieve the fiscal target and still remain faithful to Conservative one
:04:28. > :04:33.nation aim, which after all has been the lite motive of the last few
:04:34. > :04:36.moneys for us. If we do, then the Chancellor would have gone reason to
:04:37. > :04:42.be proud of his achievement P Thank you.
:04:43. > :04:46.It is, it is very rewarding and refreshing to follow the honourable
:04:47. > :04:49.gentleman in his comments but also other speakers today, if ministers
:04:50. > :04:56.take anything from what has been said today in this debate, it is a
:04:57. > :05:02.cry to just pause for a moment, deliberate upon the way that
:05:03. > :05:06.proposed changes will impact on many working families, and particularly
:05:07. > :05:09.people within our xhoo communities as well, and to work with
:05:10. > :05:13.Parliament, to work with the Select Committee, to work with the ideas
:05:14. > :05:18.that have being put forward. I don't have all the solutions today, but I
:05:19. > :05:22.think the appeal made by the right honourable gentleman opposite, that
:05:23. > :05:29.in, in effect it is political version of the Hippocratic oath,
:05:30. > :05:33.trying to do good to constituents or do no harm before moving ahead with
:05:34. > :05:39.the policies. I think the evidence is clear. I thank the roam for
:05:40. > :05:43.Birkenhead in laying out so very well some of the analysis of the
:05:44. > :05:50.problem that confronts the Government in the proposals it has
:05:51. > :05:53.brought forward. But some of the possible solution, there are some
:05:54. > :05:58.possible solutions there. But it is clear as day, as the minister goes
:05:59. > :06:02.away and speaks with other ministers and cabinet colleagues that he needs
:06:03. > :06:05.to take this back and rethink it. It is coming from right across the
:06:06. > :06:10.benches here, right across the benches. There has been talk today
:06:11. > :06:15.about lost sheep wanting to return to the flock, I would suggest those
:06:16. > :06:18.lost sheep are in some ways on the sun lit Uplands, what they are
:06:19. > :06:22.saying is come and join us up here. It is not they are lost, they can
:06:23. > :06:26.actually see the way forward here, which need to make sure that we are
:06:27. > :06:33.doing no harm to our constituents. Let me explain I am sure the
:06:34. > :06:39.minister is very aware of the impact of this, within my own constituency,
:06:40. > :06:46.the number of working families currently claiming tax credits is in
:06:47. > :06:54.excess of 4,000 families. The number of working families with children
:06:55. > :06:58.claiming those tax credits, is nearly 33,500. The number of
:06:59. > :07:05.children in those families receiving tax credits as part of working
:07:06. > :07:10.family, is nearly 6,000 children. That is why my mail bag at the
:07:11. > :07:14.moment are full of people who are terrified of what is coming down the
:07:15. > :07:22.track. They are terrified for good reason. It is not because of unreal
:07:23. > :07:29.expectations of what might happen, they know, they have seen the
:07:30. > :07:34.analysis. They have read it, they have read the analyses in
:07:35. > :07:39.Conservative papers or support in papers, not in my news letters or
:07:40. > :07:43.those submited by the Rowntree Foundation or the Children's
:07:44. > :07:47.Society. They see the analysis of them and their families. If you look
:07:48. > :07:50.another the impact. Mention has been made about how this impacts on
:07:51. > :07:54.different communities and it is certainly the case it does have a
:07:55. > :07:58.differential effect. Let me lay out the effect here in Wales. The number
:07:59. > :08:03.of working families in Wales claiming tax credits, that will be o
:08:04. > :08:09.taken chalet affected by this, directly in their -- potentially
:08:10. > :08:14.affected be this. It is over 176,000 families. Over 250,000 families with
:08:15. > :08:18.children, a, we cannot do this. It is a quarter of a million children
:08:19. > :08:22.in Wales, will with after -- affected by this because of what we
:08:23. > :08:26.are doing to their family, because of what we are taking away from them
:08:27. > :08:30.directly. It is clear as day, that we have to change our way on this
:08:31. > :08:36.policy, but lot me look at one particular aspect of this, where it
:08:37. > :08:41.hits really hard. We know on average, a fifth of women's income
:08:42. > :08:46.is made up of welfare payments, and tax credit, compared to round a
:08:47. > :08:53.tenth for men. Benefits make up twice as much of women's income than
:08:54. > :08:58.it does of men. Women... In many of those sectors we have talked about
:08:59. > :09:02.already, the low paid sector, including hospital, in retail when
:09:03. > :09:07.we go out and enjoy ourselves and have that coffee down as we are in
:09:08. > :09:12.our shopping excursion and so on we are typically going to be served by
:09:13. > :09:16.women than men, in care, in domiciliary care, in all thoef those
:09:17. > :09:20.professions, they are more likely to be working part-time, and in those
:09:21. > :09:26.low paid sector, if we look at those areas that we often say we respect
:09:27. > :09:30.so much, the people who work in it, those areas like health and social
:09:31. > :09:34.care, nearly 80% of the people who work in those sectors will be women.
:09:35. > :09:41.You can see where this is going, minister. We are hitting directly at
:09:42. > :09:45.those who are most unable to go out and find another job, another few
:09:46. > :09:49.hour, some other way of support for them and their family and their
:09:50. > :09:53.children. We go right at the most vulnerable here within our
:09:54. > :09:59.community, and in huge number, huge numbers. Analysis by the Resolution
:10:00. > :10:04.Foundation suggests one million single parents in work will be left
:10:05. > :10:10.?1,000 a year worse off. All of this has to surely just shout out to the
:10:11. > :10:15.ministers there has been an almighty cataclysmic mess here, made of this,
:10:16. > :10:20.in going forward at a rate of knots. Slow down, listen to what has been
:10:21. > :10:24.said, work with Parliamentarian, work with outsaid agencies who work
:10:25. > :10:27.in the front line, with some of these people who will be affected.
:10:28. > :10:30.But work with the Select Committees to take it forward. This is too
:10:31. > :10:35.difficult an issue for the Government to do on its own. The
:10:36. > :10:40.purpose of this, yes, to make work pay, excellent, but then it has to
:10:41. > :10:46.pay for everybody. Everybody, not just some. At the moment, this could
:10:47. > :10:50.impact on a community, it is going to be devastating and it will wash
:10:51. > :10:55.right through not only those individual families but into the
:10:56. > :11:00.communities themselves because this will have an economic knock on in a
:11:01. > :11:06.cycle a regressive cycle of spending power, as well. So I would say to
:11:07. > :11:09.the minister, consider the options that have been put for today. Go
:11:10. > :11:16.back and look at what other option there might be out there, but there
:11:17. > :11:22.is no way on earth, it is saleable politically to do this, but more
:11:23. > :11:26.importantly, on the basic human issues, of do no harm to your
:11:27. > :11:29.constituents. I can't go and sell what is being proposed on the
:11:30. > :11:32.doorstep in my constituency. I won't do it. I want to tell these people
:11:33. > :11:38.it is worth going out to work. Go and get a job if you can. Go and up
:11:39. > :11:40.scale if you can and we will make it worth your while. That is our job
:11:41. > :11:53.here. congratulate a member of the
:11:54. > :12:02.opposition benches for initiating a debate of such magnitude as this. I
:12:03. > :12:06.said before I would like to thank my honourable friend, and indeed, I
:12:07. > :12:10.think a lot of people in this chamber to see the Honourable member
:12:11. > :12:14.for Birkenhead as quite a leading light in welfare of the people of
:12:15. > :12:20.this country. I do remember before I was in politics, the Honourable
:12:21. > :12:25.member, being sacked for thinking the unthinkable. I remember that
:12:26. > :12:30.very, very plainly. And here we are. We are debating today about tax
:12:31. > :12:37.credits. The debate: Has been very measured. -- the tone of the debate
:12:38. > :12:43.has been very measured. We have had a very balanced views from all
:12:44. > :12:47.sites. Tax credits were brought in. Let me make some progress please.
:12:48. > :12:53.Tax credits were brought in for the right reasons. But it is a fact that
:12:54. > :13:02.it did spiral out of control. When nine out of ten people who claim tax
:13:03. > :13:10.credits, we have two ask, is it a sweetener for working or is it a
:13:11. > :13:13.benefit as it was claimed to be? In technology the contribution of the
:13:14. > :13:19.Right Honourable member for Birkenhead in securing this debate,
:13:20. > :13:23.would he also add knowledge of the role of the other house --
:13:24. > :13:27.acknowledged the role of the other house for creating a different
:13:28. > :13:30.context for this debate? The tone that he remarked on would not be
:13:31. > :13:34.what we were hearing if it was not for Monday night and the position
:13:35. > :13:38.forced on the Chancellor. I would disagree with my honourable friend,
:13:39. > :13:45.the Honourable gentleman come on this particular debate in the other
:13:46. > :13:50.place. Because I do think it was unprecedented that that actual
:13:51. > :13:53.motion was passed. But I have got my own words to say about that in
:13:54. > :13:58.another context which you will probably read about over the
:13:59. > :14:03.weekend. Going back to tax credits, we were in the position where
:14:04. > :14:08.everybody was on a tax credit, near enough. They were a stepping stone
:14:09. > :14:15.to gainful employment. And the Honourable Lady from... From Don
:14:16. > :14:21.Valley, said it right. The employers, the employers do not
:14:22. > :14:26.know, the employers do not know if their employees are on tax credit. I
:14:27. > :14:29.employed over 100 people and some were claiming tax credits and I
:14:30. > :14:34.found that only down the line in certain circumstances. It is mainly
:14:35. > :14:42.a hidden benefit. I applaud the Chancellor is trying to do. I do not
:14:43. > :14:48.really go with this ?1300 average loss to 3 million households, stacks
:14:49. > :14:52.up. Because they are estimates. We do not really know what is going to
:14:53. > :14:56.come out of what is going to be in the spending review. However, we do
:14:57. > :15:03.know what has already happened by raising the personal tax allowance
:15:04. > :15:08.to 11,000 coming up in April, and 12,520 20. That will help out and
:15:09. > :15:16.create ?1000 worth of the tax break to people all across the country.
:15:17. > :15:20.But we are offering 30 hours of free childcare, which again amounts to
:15:21. > :15:25.?5,000. We have got fuel duty which has been frozen. The economy is on
:15:26. > :15:31.the up. And as the Honourable Lady... I would love to give way. I
:15:32. > :15:35.think what we say about 30 hours free childcare, I think most of the
:15:36. > :15:38.people listening in the gallery today or outside of this place will
:15:39. > :15:42.think that is for all children in any form of childcare. I think we
:15:43. > :15:46.need to have an honest debate. It is 30 hours of free childcare for those
:15:47. > :15:50.three and four-year-old in nursery education, that does not begin to
:15:51. > :15:54.help with those families that have different aged children. The cuts to
:15:55. > :15:57.the working tax credits fundamentally affect those families
:15:58. > :16:03.get access to support with other childcare costs in order to pick up
:16:04. > :16:08.a job and stay in work. I thank her for that intervention, it was very
:16:09. > :16:13.eloquently put. What she has demonstrated clearly if there is a
:16:14. > :16:18.confusion, is it tax credits, child tax credits, the whole survey of it.
:16:19. > :16:23.As I was rightly going to -- sphere of it. As I was going to point out
:16:24. > :16:27.before, tax credits were brought in to help families struggling in times
:16:28. > :16:33.of great posterity. We are still in times of great austerity but the
:16:34. > :16:36.economy is on the up and we are starting to see projections of our
:16:37. > :16:40.economy starting to come out of recession mode and into a lack of
:16:41. > :16:43.deficit with the next five to ten years. So what all these figures
:16:44. > :16:49.mean? These figures plainly and mean? These figures plainly and
:16:50. > :16:53.simply mean this. We have to balance the books, and we have to look at
:16:54. > :16:58.everywhere we can possibly do so. We have to think the unthinkable. As I
:16:59. > :17:04.keep saying it, my honourable friend, the member for Birkenhead,
:17:05. > :17:07.did think all those years ago. I do actually have faith in the
:17:08. > :17:12.Chancellor, I do know the Chancellor personally. He is a good, decent,
:17:13. > :17:16.caring man. Despite what you read in newspapers, despite what is said
:17:17. > :17:22.about him. And I know the Chancellor will be watching this debate, he be
:17:23. > :17:26.hearing is what we are saying and he will be thinking. All I can say is,
:17:27. > :17:34.yes, nine out of ten people were claiming tax credits. And as the
:17:35. > :17:39.Right Honourable gentleman for Birkenhead said, this many benefits,
:17:40. > :17:44.eight out of ten people, but we must look and care for those two people
:17:45. > :17:51.in that ten and make sure that we get the right deal for them. Thank
:17:52. > :17:58.you very much. Mad and if it is beta, like most people, I obviously
:17:59. > :18:01.-- Madam Deputy Speaker, like most people, I would obviously prefer the
:18:02. > :18:06.Chancellor to scrap his tax credit proposals and go back to the drawing
:18:07. > :18:10.board. Not because I am against the phasing out of tax credits, but I am
:18:11. > :18:15.prepared to accept that there might be an argument for saying that it is
:18:16. > :18:19.time for new measures of support. And if we can raise living standards
:18:20. > :18:27.without tax credits, for working families, then that is a desirable
:18:28. > :18:30.aim. And obviously, freezing the value of tax credits is a clear
:18:31. > :18:34.indication that they are on the way out anyway. The truth is, the
:18:35. > :18:42.Chancellor has made a pig in this. He has blundered and low-paid,
:18:43. > :18:47.hard-working parents will pay the price for his mistakes. If we can
:18:48. > :18:52.take the prime minister at his word, I think he suggested during his six
:18:53. > :18:57.nonanswers yesterday, that there would be some attempt to address
:18:58. > :19:01.this mess in the Autumn Statement. Normally his word would be good
:19:02. > :19:06.enough for me, but of course, this is the same prime minister who gave
:19:07. > :19:12.his word on national television that tax credits would be safe. Is it any
:19:13. > :19:15.surprise that within five months of the election, people are beginning
:19:16. > :19:21.to wonder about the long-term future of this government? The benches
:19:22. > :19:26.opposite have taken to telling us that they have a mandate. Let's just
:19:27. > :19:31.remind ourselves that this is a government that didn't expect to
:19:32. > :19:39.win, that secured less than 40% of the popular vote, trade unionists,
:19:40. > :19:42.please note. It has a limited mandate and many more shenanigans
:19:43. > :19:50.like this tax credit to buckle and it will have no moral authority. As
:19:51. > :19:58.I said, there may be an argument for phasing out tax credits, and if we
:19:59. > :20:00.can have some clear indication of government determination that wages
:20:01. > :20:08.and living standards will rise to compensate, most people will accept
:20:09. > :20:14.change. But there is absolutely no sense in a steel fragile economy --
:20:15. > :20:18.in the still fragile economy in taking money from the working poor
:20:19. > :20:23.before their wages have risen. I think it is also a mistake for some
:20:24. > :20:30.in the party opposite to attempt to demonise Gordon Brown and tax
:20:31. > :20:36.credits as a policy instrument. The Adam Smith Institute recently
:20:37. > :20:41.pointed out that working tax credits are the best form of welfare we
:20:42. > :20:48.have, and that simply cutting tax credits will serve as a disincentive
:20:49. > :20:52.to work and hurt those at the lowest levels of society. They also point
:20:53. > :20:56.out that the new minimum wage structure which the Chancellor
:20:57. > :21:04.deliberately misleading the calls a living wage will do little to help
:21:05. > :21:10.those affected by these cuts. At the institute says, enticing more people
:21:11. > :21:13.into work was one of the stated aims behind the working tax credit and
:21:14. > :21:17.attacking it for having achieved this end seems somewhat perverse.
:21:18. > :21:25.Now I want to consider what changes the Chancellor might make, I read he
:21:26. > :21:28.might speed up the increase in the personal tax allowance but
:21:29. > :21:33.increasing the personal tax allowance could cost ?12 billion and
:21:34. > :21:38.70% of that benefit goes to the top half of the income distribution
:21:39. > :21:44.curve. It is actually worth less than ?1 25 per week for working
:21:45. > :21:50.families. I am not at all convinced that such a costly measured in these
:21:51. > :21:54.economically difficult times is the best way to help the low-paid. The
:21:55. > :21:58.House of Commons library has produced simple way to calculate the
:21:59. > :22:04.impact of the combined effect of the reduced threshold and the increased
:22:05. > :22:10.paper which form the centrepiece of the Chancellor's plans, so a family
:22:11. > :22:19.with two children on ?20,420 will, in conversation be ?2200 worse off.
:22:20. > :22:25.3.3 million working households will be losers, over 8000 of them, Madam
:22:26. > :22:31.Deputy Speaker, in my constituency. The Chancellor could decide to
:22:32. > :22:38.change the disregard level. This would not undo the damage he plans
:22:39. > :22:43.to inflict but it would commit a -- mitigate the effect and it would
:22:44. > :22:50.mean that a single parent with two children under school age could lose
:22:51. > :23:00.a lot less money. And he could scale back plans on the paper from 41-48,
:23:01. > :23:05.that would mitigate the impact on those struggling to make a living.
:23:06. > :23:08.He might also decide to turn the clock back and recognise family
:23:09. > :23:11.response when it is in the tax system by reintroducing some kind of
:23:12. > :23:15.tax allowance for children as a feature of our tax system. And of
:23:16. > :23:20.course, he could use the Autumn Statement to revisit his plans in
:23:21. > :23:24.cuts on inheritance tax, and the cuts he has already given to
:23:25. > :23:27.millionaires. If we are in it together, somebody over their
:23:28. > :23:33.suggested, this time we had some evidence to back up the
:23:34. > :23:36.anti-statements. As the former higher education minister now Lord
:23:37. > :23:41.Willets point out in his book, what is really at fault is the balance is
:23:42. > :23:47.wrong. Young people and young families are taking far too big a
:23:48. > :23:50.hit and what we need to do is restructure our welfare system. My
:23:51. > :23:57.honourable friend from Nottingham North suggests earlier that the
:23:58. > :24:01.Chancellor had the parliament should involve parliament. I would like to
:24:02. > :24:04.suggest he involves my right honourable friend from Birkenhead
:24:05. > :24:09.and his works and pensions select committee because what I think we
:24:10. > :24:12.desperately need is a system that promises fairness and support for
:24:13. > :24:18.young people and families and a welfare system that encourages and
:24:19. > :24:24.incentivises people. But above all, the government must make it clear
:24:25. > :24:32.that it is its sincere intention to roll back from this mad cliff edge
:24:33. > :24:38.that it is currently on. Thank you, Madam Deputy Speaker. I write to
:24:39. > :24:46.support the visible of mitigating effect of proposed tax credit
:24:47. > :24:49.changes to low-paid workers, and I suggest that even friends need to be
:24:50. > :24:52.critical of long as it is constructive. I would like to thank
:24:53. > :24:56.the honourable member for Birkenhead for bringing forward the bait. I
:24:57. > :24:59.would like to start by saying that I do support the principle of reforms
:25:00. > :25:03.to tax credits. We need to get on top of our welfare bills. This
:25:04. > :25:07.financial year, central government will spend more on that interest
:25:08. > :25:10.repayments than it will on the education of our children, more than
:25:11. > :25:13.on the defence of our nation. We cannot keep going on spending
:25:14. > :25:17.indefinitely, adding to our debts, and as suggested by my honourable
:25:18. > :25:22.friend the member for South Cambridgeshire, asking our children
:25:23. > :25:27.to pay it off. The honourable member talks about doing no harm, but we
:25:28. > :25:30.must also be mindful of the harm to our constituents of not tackling the
:25:31. > :25:34.deficit and burdening future generations with more debt, although
:25:35. > :25:44.I'd take his substantive point. The current tax credit system is not
:25:45. > :25:47.sustainable, costs have skyrocketed from 4,000,000,019 99 to 30 billion
:25:48. > :25:55.this year. This has had the effect of depressing basic wages and
:25:56. > :25:58.business. As the former Labour Chancellor said tax credits, one of
:25:59. > :26:03.the unintended consequences is that we are now subsidising lower majors
:26:04. > :26:07.in a way that was intended. -- lower wages. The welfare system is there
:26:08. > :26:11.to provide a safety net for the most memorable in our society and those
:26:12. > :26:16.on the lowest incomes, and I fully support moves to move Britain to a
:26:17. > :26:21.high wage, low watt tax, low welfare economy. I am concerned that these
:26:22. > :26:24.tax credit changes could be very tough on some of our lowest paid
:26:25. > :26:28.families and more needs to be done to ease that transition for those
:26:29. > :26:32.easing away from tax credits next year. Many families who have worked
:26:33. > :26:37.hard and done the right thing, everything we have asked them to do,
:26:38. > :26:40.will be needed he hit by a drop in income. I know the gunmen had
:26:41. > :26:47.introduced a package of measures to introduce an increase in pay like
:26:48. > :26:55.the living wage, doubling the free childcare, although I take the point
:26:56. > :27:00.that it is restricted to three and four-year-olds, and a raising of the
:27:01. > :27:04.income tax personal allowance to 2500. I am aware that many of these
:27:05. > :27:07.actions do not take effect immediately in 2016. I was a concern
:27:08. > :27:13.about the effect the tax credit cuts might have on some that work in the
:27:14. > :27:18.public sector, my wife is a teacher. Many of the biggest employers in my
:27:19. > :27:22.constituency are in the public sector. Public sector pay over the
:27:23. > :27:25.next few years has been frozen at 1% as we all know, meaning many of
:27:26. > :27:29.these workers will not benefit from rises in private sector pay. And
:27:30. > :27:33.many of these workers in these sectors rely on tax credits to tap
:27:34. > :27:37.up their income and make ends meet. Moreover, cost saving measures in
:27:38. > :27:42.the public sector mean that these workers cannot take on additional
:27:43. > :27:45.hours to raise income. I have had these concerns about some of the
:27:46. > :27:48.measures since the summer budget and have met with the Chancellor and
:27:49. > :27:51.ministers to raise my points with them. They have listened carefully
:27:52. > :27:55.to what I have had to say and I know ministers are alive to the concerns
:27:56. > :27:58.of members who want to ensure that the most honourable and lowest paid
:27:59. > :28:03.are protected. That is why I welcome the news that the Chancellor will be
:28:04. > :28:06.taking steps to ease the transition of some other changes on the poorest
:28:07. > :28:09.workers on lowest incomes and I look forward to more detail on these
:28:10. > :28:12.extra measures in the Autumn Statement. In general I would urge
:28:13. > :28:17.Treasury ministers to carefully assess what can be done to introduce
:28:18. > :28:21.traditional transitional measures, giving families more time to adjust
:28:22. > :28:24.to the changes in tax credits and allow time for additional policies
:28:25. > :28:28.that I have mentioned such as the free childcare and progressive rises
:28:29. > :28:32.in the living wage over this Parliament to boost families and
:28:33. > :28:36.their income. I care deeply about helping the lowest paid and making
:28:37. > :28:40.sure that work always pays. I welcome the thrust of what the
:28:41. > :28:43.government's Drive is, moving us to low welfare, low tax and high wage
:28:44. > :28:48.economy but more consideration needs to begin into the bloke paid workers
:28:49. > :28:49.who are trying to do the work -- low-paid workers who tried to do the
:28:50. > :28:58.real thing. I add my congratulations to miry of
:28:59. > :29:04.for Birkenhead, for securing this debate in a week of high drama on
:29:05. > :29:08.this subject. I must say I am very encouraged by stuff I have heard
:29:09. > :29:12.from the other side. I hope those honourable members convey a that to
:29:13. > :29:17.their leadership. Yesterday's headlines did make confusing
:29:18. > :29:26.reading, the Guardian went for Osbourne ready to change tack on tax
:29:27. > :29:33.credit. While the Express plumped for defiant Osbourne says taics will
:29:34. > :29:36.not be cut. Before the election the for defiant Osbourne says taics will
:29:37. > :29:38.not be cut. Before the election the Conservative manifesto prop promised
:29:39. > :29:43.to "Work to eliminate child poverty, and two months later, they scrapped
:29:44. > :29:47.existing targets, and poverty measures, so this, to me, looks not
:29:48. > :29:51.even moving the goalposts but ripping up the pitch. We have had
:29:52. > :29:56.the Prime Minister's claim that we must eliminate the scourge of
:29:57. > :30:03.poverty, which is difficult to reconcile with cutses set to put
:30:04. > :30:09.more than 200,000 working households into poverty being affected for an
:30:10. > :30:13.inheritance tax, give a tax doubt the 60,000 wealthiest estates. That
:30:14. > :30:17.is as they stood. We don't know what the next instalment would be. But I
:30:18. > :30:21.mean, do think this is why we don't hear, we are all in this together so
:30:22. > :30:25.much any more. I hope it was... Yes I I will of
:30:26. > :30:30.course. I was a bit confused as well but the
:30:31. > :30:36.only thing that is clear to me, that in Leith we have over 6,000 families
:30:37. > :30:41.on tax credits, over 5,000 families with children. And these measures
:30:42. > :30:49.will drive them into poverty, and that is very clear to me. I than of
:30:50. > :30:51.my for that. We have a similar number in Ealing and Acton. It is
:30:52. > :30:56.those children we should be thinking about. They are not just columns on
:30:57. > :31:02.the spread sheeted. These are real lives. -- sheet. I hope it was the
:31:03. > :31:05.drama of PMQs but six times the Prime Minister was asked by our
:31:06. > :31:09.leader, about these plan, and whether working people would be
:31:10. > :31:15.worse off next year. Six times he refused to answer. Even the Sun has
:31:16. > :31:20.said this morning not the most Labour friendly paper six words by
:31:21. > :31:24.Cam. In the words of the honourable member for Islington North, this is
:31:25. > :31:30.not a constitutional crisis this is a crisis for three million working
:31:31. > :31:36.families. But Madame Deputy Speaker we could go further than this
:31:37. > :31:42.motion. The Chancellor could still perform a full U-turn. I would
:31:43. > :31:51.welcome back this -- welcome this. If he were to do this, as my fellow
:31:52. > :31:55.west London honourable friend I believe he is, for Hayes and Harling
:31:56. > :31:59.on the said, we would welcome that on this side, so you know, we
:32:00. > :32:09.wouldn't taunt him for that, if they want to do that. There is still
:32:10. > :32:13.time. So, he has a choice, the honourable, the right honourable
:32:14. > :32:17.member Coult continue on his tax give aways to the wealthiest in the
:32:18. > :32:24.country or he could reverse the tax breaks to the fewgo for a lower is
:32:25. > :32:29.plus target in 2019/20. While still ticking to his imposed charrer, his
:32:30. > :32:32.self emposed charter. He could still be in a position not to hit the
:32:33. > :32:35.three million working families with the cut, after all this is a
:32:36. > :32:39.government that claims to be on the side of working people, so the ball
:32:40. > :32:49.is in the court of the Treasury ministers opposite.
:32:50. > :32:53.Miry of for Selly Oak mentioned that often the lifting of those out of
:32:54. > :32:57.taxation is taken as a justification for these measures but this is not
:32:58. > :33:03.as progressive as it might initially appear. It helps dual owner
:33:04. > :33:08.households the most and only those who earn enough to begin with. It
:33:09. > :33:13.makes no difference if you start taxing at 6,000, 11 thousand horse,
:33:14. > :33:18.it can kick in at any level. If you are on 5,000. It won't help you,
:33:19. > :33:23.that is the lowest paid on the distributional curve. All studies
:33:24. > :33:29.show, people have said the national living wage, which is not an actual
:33:30. > :33:37.living wage, will only affect a small minority and those under 26
:33:38. > :33:40.never. Miry of for Don Valley pointed out that the childcare
:33:41. > :33:43.element is limited. In my constituency you would be
:33:44. > :33:48.hard-pressed to find a nursery that can offer that at all, there isn't
:33:49. > :33:54.the commensurate resource to match that. And people, people even before
:33:55. > :33:58.the mess of earlier ethis week, people will be wondering how they
:33:59. > :34:03.can trust the Prime Minister who blatantly said one thing on TV as
:34:04. > :34:12.recently as 30th April and just a couple of months later, in July, he
:34:13. > :34:15.promised that voter who phoned in, I think David Dimbleby did a
:34:16. > :34:22.supplementary to check it was clear. That is the fastest U-turn in
:34:23. > :34:27.history. It is, again, in PMQs yesterday it was claimed that MPs
:34:28. > :34:31.were claiming them. I hope that was the theatre of PMQ that made that
:34:32. > :34:36.happen. I have given way once so I would rather not.
:34:37. > :34:39.Reduced tax credits are being introduced alongside a gamut of
:34:40. > :34:44.other welfare change, the effect of which is an assault on the lowest
:34:45. > :34:49.paid in our country, so the, it is relevant to the moerks because it
:34:50. > :34:56.needs to be taken in context, I am sure the gentleman... Order, order.
:34:57. > :34:58.If the country, so the, it is relevant to the moerks because it
:34:59. > :35:01.needs to be taken in context, I am sure the gentleman... Order, order.
:35:02. > :35:04.If the lady was not - please sit down. If she was not speaking to the
:35:05. > :35:07.motion I would stop her, Thank you. It needs to be taken in the whole,
:35:08. > :35:10.in context with the four year benefit freeze reduction in
:35:11. > :35:17.household benefit cap. New claimants no longer are able to claim the
:35:18. > :35:20.family element and controversially the the proposal that after April
:35:21. > :35:25.2017 the third child of any family on wards would not be able to claim.
:35:26. > :35:28.I can't imagine that in any other policy Ayr area. Can you imagine
:35:29. > :35:33.saying the third child can't go to school. If it has my sister would
:35:34. > :35:37.never have been educated. A number of millionaire Tory Lord's voted on
:35:38. > :35:42.Monday to cut help for Britain's poorest workers so at the other end
:35:43. > :35:46.of the scale you have people like Lord Andrew Lloyd Webber, who was
:35:47. > :35:51.flown in from New York, I think, for this. So it seems, it did seem to
:35:52. > :35:55.some extent that the party opposite were throwing the kitchen sink at
:35:56. > :35:58.this. I do think there is growing awareness of the consequences of
:35:59. > :36:03.this. I mean etched into the consciousness of the front pen
:36:04. > :36:07.opposite, -- bench opposite should be that caller who rang in or the
:36:08. > :36:13.lady in tears on Question Time the other night after the election.
:36:14. > :36:17.So I do think that, and we have all through old and new, we have
:36:18. > :36:23.received hundreds of e-mails on this, we await the next instalment.
:36:24. > :36:26.The Autumn Statement. Hopefully kids have been saved the, the
:36:27. > :36:31.unseasonable tidings of this, the notices that would have been
:36:32. > :36:35.plopping on doormats at Christmas. The Government should publish a full
:36:36. > :36:39.impact assessment o their cumulative cuts to tax credits and benefits in
:36:40. > :36:43.the so-called emergency budget. I mean the PM said at his own
:36:44. > :36:48.conference it is not pounds and pence but people that fire him up.
:36:49. > :36:53.Those children in Ealing and Acton are real people. They real lives,
:36:54. > :36:58.not columns on the spread sheet. 70% of the money saved by this are going
:36:59. > :37:01.to be from working mums so I urge the Government to reconsider its
:37:02. > :37:08.proposals and protect those on the lowest incomes.
:37:09. > :37:11.Thank you Madame Deputy Speaker, may I pay tribute to the right
:37:12. > :37:16.honourable member for Birkenhead for securing this debate. I will support
:37:17. > :37:22.the motion, I will be making a short contribution. I come to support the
:37:23. > :37:26.debate from my perspective having live and worked abroad and my
:37:27. > :37:31.perspective more locally. I have lived and worked in communities
:37:32. > :37:36.where there is no welfare system whatsoever, I have also lived and
:37:37. > :37:41.worked in a community where almost ever everybody has been on some form
:37:42. > :37:46.of welfare or credit assistance. Neither of those two different
:37:47. > :37:53.situations are situations I would wish for my constituents. That is
:37:54. > :37:58.why I am fully supportive of the Chancellor's vision of high wage low
:37:59. > :38:02.tax, low welfare society. I know in the places where I have worked, that
:38:03. > :38:08.they would wish for this if they could achieve it in their
:38:09. > :38:12.communities. But I am also supportive of the noble Lord, Lord
:38:13. > :38:16.Lawson in the other place, and of what he has said, is that the
:38:17. > :38:26.welfare and the tax credits have ballooned. But I also agree with
:38:27. > :38:31.Lord Lawson, and the right honourable member for Howden, where
:38:32. > :38:38.by we must protect those at the lowest end of the income scale. That
:38:39. > :38:42.is where my experience of being NHS doctor and therapeutic councillor in
:38:43. > :38:46.this country and locally where I live, I have come across some people
:38:47. > :38:52.going through some of the most challenging times of their lives.
:38:53. > :38:55.But these people contrary to what the right honourable member of
:38:56. > :38:59.Birkenhead said do not have weak shoulder, they shoulders are
:39:00. > :39:05.stronger than mine, or anybody's here. These people that I have met
:39:06. > :39:09.single parents, who have escaped domestic violence, bringing up their
:39:10. > :39:14.children, difficult circumstances, and going out to work for some hours
:39:15. > :39:19.during the week, and they are going out to work because they want to,
:39:20. > :39:24.because they want to be a role model for their children. They are doing
:39:25. > :39:31.their best for their families, and we must do our best for them,
:39:32. > :39:35.because ultimately, they become role models for us, -- our society. I
:39:36. > :39:38.support the Chancellor in looking for mitigation measures, and I am
:39:39. > :39:44.very happy to support this motion today.
:39:45. > :39:49.Thank you. Thank you Madame Deputy Speaker.
:39:50. > :39:54.The last few weeks have been an absolute roller-coaster. We have
:39:55. > :40:00.heard passionate speeches from all sides, urging the Government to find
:40:01. > :40:06.another way forward. Time and time again, the moral argument has been
:40:07. > :40:11.put forward. But time and time again, political games have been
:40:12. > :40:16.played and votes lost. But, Mr Speaker, it is not about
:40:17. > :40:21.scoring points in this place, or that. This is about real people.
:40:22. > :40:26.Sorry Madame Deputy Speaker. It is about real people. It is about how
:40:27. > :40:32.we look after and care for those who are most in need. It is about
:40:33. > :40:38.fairness, about morals, it is about billing the kind of society we want
:40:39. > :40:42.to see. -- building. In PMQs yesterday the Prime Minister was
:40:43. > :40:48.asked six times to confirm that no-one would be worse off with Ness
:40:49. > :40:53.changes, but declined to do so. Earlier this week, I asked the
:40:54. > :40:59.Chancellor directly what he would be putting in place to ensure that the
:41:00. > :41:04.9,000 families in Lewisham Deptford, of which 5 thousand -- 5500 of these
:41:05. > :41:12.families are working families, how he and his Government would ensure
:41:13. > :41:17.they are not out-of-pocket by ?1300. At a time when rents are rising,
:41:18. > :41:22.when people are having to turn to food banks because they are
:41:23. > :41:27.struggling to pay their bills, and feed their families, people will
:41:28. > :41:33.turn to credit. People will fall into arrears with their rent. People
:41:34. > :41:39.will be made homeless. And what does the Chancellor have to say about
:41:40. > :41:48.that? That he is listening. Well, that is astart. That he will change
:41:49. > :41:53.his plans. No such luck as yet. No Madame Deputy Speaker e he says he
:41:54. > :41:59.will introduce a national living wage, a national living wage, what a
:42:00. > :42:04.cheek. The Living Wage Foundation do a fantastic job of campaigning for a
:42:05. > :42:11.real living wage. This is no living wage. This is quite simply spin. The
:42:12. > :42:17.Chancellor is grossly mistaken if he thinks that people will be fooled.
:42:18. > :42:21.He has stolen the brand of the a fantastic organisation, and in an
:42:22. > :42:27.instant contaminated and muddied the waters.
:42:28. > :42:32.When tax credits for introduced by a Labour government, they were
:42:33. > :42:36.introduced because there was a real need for them. This government's
:42:37. > :42:43.failure to build a better economy means that this need is still there.
:42:44. > :42:47.On that point, does she agree with me, we have had a great deal from
:42:48. > :42:52.the party opposite about the rise in tax credits over the last decade,
:42:53. > :42:55.the Institute of Fiscal Studies stated very clearly that child
:42:56. > :42:58.poverty would have stayed the same or risen rather than fall
:42:59. > :43:03.substantially without these increases in tax credits? There is
:43:04. > :43:07.evidence to suggest these reforms prevented large rise in inequality.
:43:08. > :43:14.That is what tax credit achieved and that is why the amateur is
:43:15. > :43:20.worthwhile. I thank her for -- why the expenditure is worthwhile. I
:43:21. > :43:26.thank her for her intervention. I am trying to remember where I was!
:43:27. > :43:29.Personally, I think it is wrong that government subsidises large
:43:30. > :43:34.employers. Large employers can and should pay their staff more. That is
:43:35. > :43:39.a solution that we should all be working on together. Not tit-for-tat
:43:40. > :43:43.political point scoring. And one of the best ways for staff to organise
:43:44. > :43:51.and put pressure on their employers is through their trade unions. If
:43:52. > :43:59.the government had any sense of moral code, it would be working with
:44:00. > :44:02.the trade unions to raise wages. And in the long-term, eliminate tax
:44:03. > :44:10.credits altogether. That must be the goal. But this government is doing
:44:11. > :44:15.anything but that. It is attempting to hamper the great work trade
:44:16. > :44:24.unions do by introducing the negative trade union reform Bill.
:44:25. > :44:27.You do recognise that the national living way which she has appointed
:44:28. > :44:32.is a way of addressing exactly the concern she has just raised? It has
:44:33. > :44:38.been a very effective way of raising the wages of those in employment.
:44:39. > :44:41.The national living wage that you are what talking about is not a
:44:42. > :44:47.national living wage that will drive our people's living standards. In
:44:48. > :44:51.terms of the cuts and in terms of people's wages at the time, people
:44:52. > :44:56.will be worse off because of these changes and that is the reason why
:44:57. > :45:00.this debate has come forward today. Madam Deputy Speaker, this
:45:01. > :45:01.government is a joke. The left-hander not know what the right
:45:02. > :45:07.hand is doing. The ploy left-hander not know what the right
:45:08. > :45:12.hand is doing. The policies are not adding up. Whilst they are laughing
:45:13. > :45:17.at people's stories of people being in the housing trouble, we are
:45:18. > :45:23.working to improve the lives of millions. I want to urge the
:45:24. > :45:26.government to halt the cuts to cut credits -- tax credit until we can
:45:27. > :45:34.guarantee that no family will be worse off. Thank you, Madam T
:45:35. > :45:38.speaker. I would like to thank the Right Honourable member of the
:45:39. > :45:41.Birkenhead for bringing forward this debate, this is the first
:45:42. > :45:46.opportunity I have had to contribute to the tax credits the bait. The
:45:47. > :45:50.primary aim of this government is to pay down the left, reduce our big
:45:51. > :45:59.spending and unshackle the ?3000 that hangs around every child's neck
:46:00. > :46:02.who is born within the UK. The Prime Minister in my constituency has
:46:03. > :46:06.literally lifted thousands of people out of the income tax threshold
:46:07. > :46:09.altogether, given 30 hours of free childcare and introduced the new
:46:10. > :46:12.living wage and I am proud to associate myself with these
:46:13. > :46:16.measures. When tax credits were first introduced by the party
:46:17. > :46:20.opposite, they cost ?4 billion per year. I believe this year they cost
:46:21. > :46:26.?30 billion so they clearly need some form of reform. I will give
:46:27. > :46:34.way. With the honourable member agree with me that understanding
:46:35. > :46:37.that working tax credits and tax credits are other means tested
:46:38. > :46:42.welfare benefit? Therefore if the welfare bill has gone up, it is
:46:43. > :46:45.because family's incomes have not risen significantly and that is the
:46:46. > :46:50.real reason that the bill has increased. We need to get income to
:46:51. > :46:54.go higher. I do accept the Right Honourable member's point, the
:46:55. > :46:58.honourable member's point. I would say that we are looking to try and
:46:59. > :47:08.increase the living way to to make sure people are better off in work
:47:09. > :47:11.than out of work. I am grateful. Surely the government is attacking
:47:12. > :47:15.this the wrong way round. They should be getting income up first
:47:16. > :47:20.before they cut people's wages. They are at the moment cutting peoples
:47:21. > :47:23.earnings and in four years' time, maybe, having a higher wage,
:47:24. > :47:27.something they are calling and national living wage which is not
:47:28. > :47:33.actually a living wage. Thank you for his contribution, I will get
:47:34. > :47:37.onto that as I go later. The debates that have been presented by the
:47:38. > :47:43.opposition, the debates that have been presented by the opposition
:47:44. > :47:48.over recent days has maintained the status quo. They believe this ?30
:47:49. > :47:52.billion tax credit Bill is one we should not change at all and I do
:47:53. > :47:58.not act at that. They have offered no edible plan to take this burden
:47:59. > :48:02.from our children. -- no credible plan. I am elected under a manifesto
:48:03. > :48:06.to reduce the welfare bill and I am hoping we will do that. On this side
:48:07. > :48:10.of the House, we know we have to take difficult decisions ahead in
:48:11. > :48:13.terms of spending reductions. It is all very well for the Leader of the
:48:14. > :48:17.Opposition to ask six questions on tax credits yesterday, but you
:48:18. > :48:25.cannot change a policy that affects 3 million families on a whim. And I
:48:26. > :48:30.welcome the Chancellor's statement that he will look at this in the
:48:31. > :48:34.Autumn Statement. Is he saying therefore that the reason the Prime
:48:35. > :48:37.Minister could not answer is because the government is not committed to
:48:38. > :48:44.protecting families from this problem? Absolutely not. I think we
:48:45. > :48:47.are seriously looking at this proposal and we will make some
:48:48. > :48:51.announcement in the Autumn Statement. North Cornwall, where I
:48:52. > :48:55.represent, is a very modest wage economy. We benefited from the
:48:56. > :48:59.economic improvements at the country has seen, we have seen a rise in
:49:00. > :49:02.school provision and a lot of people in my constituency have been helped
:49:03. > :49:06.with the help to buy scheme. They are trying to improve their lot in
:49:07. > :49:10.life and they are trying to do the right thing. As my right honourable
:49:11. > :49:13.friend from Tiverton said so eloquently earlier, we must ensure
:49:14. > :49:17.on this side of the House that we make it better for people to be in
:49:18. > :49:25.the works and out of work but we must support those who do work. I do
:49:26. > :49:28.not want to put him off, but coming back to a point made by the
:49:29. > :49:33.honourable gentleman opposite, we had a very cross-party nonpartisan
:49:34. > :49:38.discussion during the course of this debate and I thought I heard the
:49:39. > :49:48.honourable gentleman saying the party opposite is keen to see
:49:49. > :49:51.changes in the tax credits. Would he look forward to the remarks from the
:49:52. > :49:54.front bench opposite on how they would cut this Bill? I would welcome
:49:55. > :49:57.that because we have heard nothing from the opposition to hear how they
:49:58. > :50:06.would deal with this ?30 billion deficit. I thank him for giving way.
:50:07. > :50:12.The Labour Party has voted against every single welfare change made
:50:13. > :50:15.over the last five years. That is absolutely correct, I agree with my
:50:16. > :50:18.honourable friend. It is ultimately our response ability to look at all
:50:19. > :50:21.of the financial provision we provide us government and ensure
:50:22. > :50:26.that money is distributed to people who are trying to do the right
:50:27. > :50:31.thing. I will give way more time. Can we be clear here? The honourable
:50:32. > :50:34.gentleman attacks Labour for having a policy we do not have, that is
:50:35. > :50:39.unacceptable. Our policy is not to continue with 30 million pounds of
:50:40. > :50:43.tax credits for evermore. As my honourable friend said in a speech
:50:44. > :50:49.before his speech, we want to change it, it is a question of phasing, as
:50:50. > :50:53.to whether you cut incomes from tax credits before wages go up. That is
:50:54. > :50:58.the government's policy and that is what we oppose. Forgive me, my right
:50:59. > :51:03.honourable friend, I believe that the two opposition day debates were
:51:04. > :51:09.acted to abolish this proposal completely. This government knows it
:51:10. > :51:13.needs to make tough decisions but it also needs to make them with
:51:14. > :51:18.fairness and with compassion. Measures, the measures that we are
:51:19. > :51:22.putting in place to manage that transition to be welcomed. And it is
:51:23. > :51:26.true I think that the national wage, the freeze ghoul childcare
:51:27. > :51:30.arrangement and the social rent reductions that have been in
:51:31. > :51:35.fermented for people who live in social rented homes will be helped
:51:36. > :51:39.with some people managing that transition. However I do believe it
:51:40. > :51:44.is evident that some people will fall between the cracks. People with
:51:45. > :51:46.older children who do not necessarily have childcare provision
:51:47. > :51:53.that they can allocate, children between eight and 14, for example.
:51:54. > :51:58.Single parents, who earn more than the living wage currently. I think
:51:59. > :52:01.they will be affected. And those in private accommodation who do not
:52:02. > :52:06.benefit from the rental reductions. There are many economists in this
:52:07. > :52:09.house who are better than I, it is not something I profess to be
:52:10. > :52:13.particularly good at but I would like to offer some financial
:52:14. > :52:22.solutions. How about we go after VW at the present moment who seem to
:52:23. > :52:28.owe a huge amount of money to our government for the vehicle excise
:52:29. > :52:31.duty they have not paid? How about abolishing national insurance for
:52:32. > :52:35.anyone under the income threshold? We could have tax breaks for
:52:36. > :52:40.grandparent or a transferable allowance that 30 hours of free
:52:41. > :52:44.childcare. A lot of working families utilise grandparents to provide for
:52:45. > :52:46.care, I do not see any reason why we could not change the childcare
:52:47. > :52:52.arrangements so that we could interoperate over that. --
:52:53. > :52:58.incorporate some of that. We could consolidate new claimants. I welcome
:52:59. > :53:01.the opportunity to get on the record in this debate and this moment of
:53:02. > :53:06.poor that has been presented to us by the other place. I am here to
:53:07. > :53:10.stand up for the thousands of working people in North Cornwall and
:53:11. > :53:22.I urge the chance to assist them in their help to work and to end. -- to
:53:23. > :53:25.Turner. -- to earn. When the right honourable gentleman first oppose
:53:26. > :53:31.this debate, he wrote to me and a number of humbug -- other members
:53:32. > :53:42.and I agreed, this was before the storm broke. We have moved on as he
:53:43. > :53:46.acknowledged. I have worked with tax credits, and family credit and
:53:47. > :53:52.family income supplement. The inherent problem with the system was
:53:53. > :54:00.apparent from the start, being a low wage subsidy, to a low extent than
:54:01. > :54:07.they are now. The cost of the taxpayer was very apparent. These
:54:08. > :54:14.problems have gone away. As I said in an earlier debate, I have no
:54:15. > :54:24.problem impossible with removing tax credits as law -- long as we have
:54:25. > :54:28.fair wages for all. We need proper childcare provision available
:54:29. > :54:31.universally, and for my case, particularly in the pride and rural
:54:32. > :54:36.areas where the current provision is very poor and very patchy. I think
:54:37. > :54:41.it is also very important for rural areas in Wales, support for small
:54:42. > :54:46.businesses to enable them to earn and also pay a living wage. Those
:54:47. > :54:53.are the sorts of changes I would like to see and I would gladly agree
:54:54. > :55:04.to the Chancellor's proposals. I have not much of a problem with the
:55:05. > :55:08.fact that tax credit should go down as people earn more. The
:55:09. > :55:19.disincentive effects remain when high rate of combined tax credits
:55:20. > :55:23.and benefits reduce people's incomes. What incentive will there
:55:24. > :55:29.be for owning that extra marginal pound if that melts away with
:55:30. > :55:34.reduced tax credit and benefits as we heard earlier. I think it was 93p
:55:35. > :55:40.in the pound mentioned by another honourable member. I would point out
:55:41. > :55:51.that as the minimum wage or the national living wage rises, then the
:55:52. > :55:55.tax credits will reduce and the cost to the taxpayer goes down. But what
:55:56. > :56:01.the Chancellor intends goes well beyond what is normal and what is
:56:02. > :56:07.accessed four. Had he been happy to just operate the papers as they are
:56:08. > :56:12.now as a starting point, the threshold as they are, he would have
:56:13. > :56:17.gained tax revenue, had he been satisfied with that course of
:56:18. > :56:23.action, people earning more would claim less tax credits.
:56:24. > :56:28.Significantly, people be claiming less housing benefit which is a
:56:29. > :56:31.problem which is well-known to both sides of this house. He has gone
:56:32. > :56:39.further and done so deliberately. Tax credits will be withdrawn
:56:40. > :56:42.earlier and this is on top of the freeze on tax credit levels for four
:56:43. > :56:47.years and the limiting of the childcare elements for the first two
:56:48. > :56:52.children. I would like to ask the Minister in respect of childcare
:56:53. > :56:56.what discussions the government have had with the Welsh government,
:56:57. > :57:01.because the provision in Wales does vary significantly in some places
:57:02. > :57:08.from provision in England. But if we are tailoring system which is
:57:09. > :57:10.promotes proper childcare, there has to be consultation with the Welsh
:57:11. > :57:11.government and the Scottish Government and the Northern Ireland
:57:12. > :57:23.executive. I am concerned on the effects on
:57:24. > :57:28.people under 25. My concern is that this will reduce working incentives
:57:29. > :57:34.and deeping Chile poverty. We have heard a figure of 200,000 children
:57:35. > :57:39.being mentioned. There are I think geographical effects which I
:57:40. > :57:43.mentioned earlier. There are communities in Wales where large
:57:44. > :57:49.percentages of people take advantage of tax credits. The whole community
:57:50. > :57:54.will then be hit as those tax credits are worsened. Particularly
:57:55. > :58:00.for us in Wales, in west Wales in the valley, that region which has
:58:01. > :58:05.been identified as being very poor, and therefore subject to various
:58:06. > :58:09.European grants, on a par with parts of former Communist eastern Europe.
:58:10. > :58:15.And in some of those communities, many people claim tax credits in
:58:16. > :58:22.order to go out to low low paid work and I really am concerned that they
:58:23. > :58:25.will be struck very hard. So, I would repeat my call. Adding to what
:58:26. > :58:36.the right honourable gentleman said. That is when we have data, perhaps
:58:37. > :58:40.they could address that particular geographical distribution of the
:58:41. > :58:46.effects. To turn briefly to some of the points the right honourable
:58:47. > :58:50.gentleman raised, as I said, that is one point, childcare is another.
:58:51. > :58:56.Discussions I hope there have been with the Welsh Government. And I
:58:57. > :58:59.suppose it is almost a, almost a philosophical point we should
:59:00. > :59:03.recognise as a society the value that bringing up children has for
:59:04. > :59:08.us, as a society, and in terms of care for the elderly and in terms of
:59:09. > :59:13.the next generation, perhaps my social add invitation slip is
:59:14. > :59:17.showing here, as I say that, but I am a veteran of many campaigns, to
:59:18. > :59:22.save and secure child benefit, and that is one of the sensible
:59:23. > :59:27.arguments in favour of child benefit as far as I am concerned. To bring
:59:28. > :59:32.my remarks to an end, postponing the introduction of beyond the next
:59:33. > :59:37.April is clearly a very good point. Restricting it to new claimants
:59:38. > :59:41.again, something that I would agree with, though that would put them in
:59:42. > :59:46.that difficult position of going out to work for reduced tax credits, and
:59:47. > :59:50.I have already mentioned the disincentives to taking work that
:59:51. > :59:55.that might provide, so we have to be very careful with that one. Just
:59:56. > :00:00.lastly, on the pension tax relief, that has been mentioned, again, I am
:00:01. > :00:05.afraid I am a veteran of previous debates on tax credit, and it was
:00:06. > :00:08.one of the suggestions that my party made, when Adair Turner was
:00:09. > :00:12.reviewing pensions, the circumstances are different now, it
:00:13. > :00:15.was some years ago, but certainly we could have seen that happen then,
:00:16. > :00:17.and the Government's might not have been in the position they are in
:00:18. > :00:27.now. Thank you.
:00:28. > :00:32.It is a pleasure to follow a thoughtful contribution by the right
:00:33. > :00:35.honourable member. Can I add my claitions to the right honourable
:00:36. > :00:42.gentleman from Birkenhead on securing this debate. And the wisdom
:00:43. > :00:46.of the become business committee in granting such a debate. Of which
:00:47. > :00:50.pleasure I had of chairing the meeting. It is the first opportunity
:00:51. > :00:54.I have had to contribute to the vexed issue over tax credit, I do
:00:55. > :00:57.think it's a great shame the right honourable gentleman for Birkenhead
:00:58. > :01:01.was not able to convince his own party when in Government, of the
:01:02. > :01:06.wisdom of transforming the welfare system in this country, but we are
:01:07. > :01:11.where we are. My big criticism of the last Labour Government is that
:01:12. > :01:16.instead of reforming the welfare system, every time that there came a
:01:17. > :01:19.problem, a new benefit was set up, and it became unwieldy, and
:01:20. > :01:26.unworkable. And when I was elected in 2010, I had a series of people
:01:27. > :01:30.coming to see me, about the hugely complicated financial arrangements
:01:31. > :01:35.they faced, both on working tax credits, and, and child based tax
:01:36. > :01:40.credits. I give way. He said when the previous
:01:41. > :01:44.Government, when they had a problem, the answer was to increase the tax
:01:45. > :01:48.credit. Credit. The real problem is low wage, what this Government is
:01:49. > :01:54.trying to do to enable the workers to strive for a hiring wage, isn't
:01:55. > :01:58.going to help the situation at all. I thank him for his intervention, I
:01:59. > :02:01.that is not what I said. The welfare system, so we had a series of
:02:02. > :02:05.different welfare benefit, what ever the problem was, set up a new
:02:06. > :02:11.benefit, whether it's a tax credit, or another arrangement. That is the
:02:12. > :02:16.reality of the situation. Instead of dealing with the issue during a
:02:17. > :02:20.period of high relatively high unemployment, which the last Labour
:02:21. > :02:22.Government had, they didn't deal with the fundamental issues which as
:02:23. > :02:29.the honourable gentleman rightly pointed out, were that of low wages.
:02:30. > :02:33.Now, the reality is that when we set up this debate, billed at the last
:02:34. > :02:37.chance to review what the Government was proposing before it became fact.
:02:38. > :02:41.Events in the other place mean we are in a position where we can
:02:42. > :02:45.suggest alternatives and proposals forward. Therefore contributions
:02:46. > :02:50.this afternoon are helpful, I think to the Chancellor in deciding what
:02:51. > :02:53.he is going to do and what he comes forward with in the Autumn
:02:54. > :02:57.Statement. Clearly we have to strike balances here. The Conservative
:02:58. > :03:02.Party manifesto laid out that we were going to save ?12 billion in
:03:03. > :03:07.welfare. Now, the challenge for anyone is, to come forward with
:03:08. > :03:12.alternative proposals as to how well fair savings. Welfare savings of ?12
:03:13. > :03:17.billion will be found. Clearly, this is some four billion pounds of
:03:18. > :03:21.savings, that are envisaged. -- envy sad sanged. With where I start from
:03:22. > :03:27.is sympathy from the people affected. What happened when yo you
:03:28. > :03:32.reduce people's benefits, they will always complain. When you increase
:03:33. > :03:38.the tax threshold so they pay less tax, they will be happy. They won't
:03:39. > :03:41.complain. When their wages are increased they also won't complain
:03:42. > :03:47.but few you take benefits away they will squeal. What we have to look
:03:48. > :03:53.at, in the round, is clearly the effect on individual people. Now
:03:54. > :03:57.where people are working full-time, and have no alternative but to have
:03:58. > :04:01.tax credits to top up their salaries, their wage, that is where
:04:02. > :04:04.we must have the utmost sympathy. Because those people have no
:04:05. > :04:09.recourse there is no alternative. What do they do? They suffer a lost
:04:10. > :04:12.loss of income which must by definition impact their family, so
:04:13. > :04:17.what I would like to see the Chancellor do as the first thing, is
:04:18. > :04:22.to examine the measures so that the people that are in full-time work do
:04:23. > :04:26.not suffer any impact whatsoever, because I think it is grossly unfair
:04:27. > :04:30.on those individuals. Equally we face the challenge both in the
:04:31. > :04:36.public sector and the private sector, what has happened over due
:04:37. > :04:39.time as the Government have rightly reduced business taxation, to
:04:40. > :04:44.encourage businesses to grow their businesses, and to locate within the
:04:45. > :04:48.United Kingdom. That has to be good news because it is crating --
:04:49. > :04:52.creating job, they have also kept wages artificially low and that has
:04:53. > :04:56.to change. So I greatly support the principle of a living wage, but
:04:57. > :05:03.clearly, that living wage, as it is set at the moment, is far too low,
:05:04. > :05:09.and we need to see that increase, dramatically, so that work pays
:05:10. > :05:11.instead of supplying through the, through the taxpayer having to
:05:12. > :05:16.subsidise work in private industry. That cannot be right. That principle
:05:17. > :05:19.has to change, so I hope that the Government will look at this
:05:20. > :05:24.particular aspect, in particular, so that we can encourage businesses, to
:05:25. > :05:28.pay their staff more for the work they do.
:05:29. > :05:33.That has to be the right way, that we demonstrate that work should
:05:34. > :05:37.always pay. We also then have the criticism constant criticism from
:05:38. > :05:41.the party opposite, that there have been large numbers of part-time jobs
:05:42. > :05:45.created in this country. One of the reasons why that has happened, is
:05:46. > :05:50.clearly that a large number of people know that if they take on a
:05:51. > :05:54.part-time job for working 16 hours a week, they still have access to a
:05:55. > :05:59.large range of benefits. That is a lifestyle choice. I am not going to
:06:00. > :06:03.give away again because I have given way twice already. That is a
:06:04. > :06:07.lifestyle choice people make, what we can see is that Government
:06:08. > :06:11.proposals, restrictions on taxation and benefits do change people's
:06:12. > :06:17.habits. So what we have to do, then, is to enable people, I am not giving
:06:18. > :06:22.way a third time. What we need do is look at how people can change their
:06:23. > :06:26.behaviours to make sure their income is improved and increased. The first
:06:27. > :06:33.area, I think we have to look at, is childcare. Because working mothers,
:06:34. > :06:36.and for, who have childcare responsibility need to have access
:06:37. > :06:41.to proper and decent childcare. -- fathers. I applaud the Government on
:06:42. > :06:45.the 30 hours free childcare, that is is not good enough for whole ranges
:06:46. > :06:53.of families in this position, who can only therefore work part-time.
:06:54. > :06:58.So can the Government please look at improving the amount of free
:06:59. > :07:02.childcare given not to the limited range but extensively so more people
:07:03. > :07:07.in this country can choose to take on more hours at work, and therefore
:07:08. > :07:13.improve their incomes, at no cost to themselves. That would reduce the
:07:14. > :07:18.tax credits bill and ensure that there was greater productivity in
:07:19. > :07:24.our industry. So, those two measures would start to alleviate in problem.
:07:25. > :07:27.But I do think that the Government now, in listening mode, needs to
:07:28. > :07:31.consider where else we are going to save money from within the welfare
:07:32. > :07:37.system, and the challenge also has to come to the opposition, that if
:07:38. > :07:41.the opposition does not agree with reducing tax credits, where else
:07:42. > :07:47.within the welfare system the money would come from. So the clear
:07:48. > :07:52.challenge has to be there, and I look forward to in the summing up,
:07:53. > :07:58.some answers to some of these issue there is a have been raised through
:07:59. > :08:04.this debate. But the reality is, what I am concerned about, above all
:08:05. > :08:08.else, is the great uncertainty there is among my constituents as to how
:08:09. > :08:16.they will be affected next April where the changes to be introduced.
:08:17. > :08:20.As the royal put forward. One of the problems is people are making
:08:21. > :08:25.lifestyle choices. It is not fair on those families, who now are thinking
:08:26. > :08:30.about what they do in terms of their work, where people are studying,
:08:31. > :08:33.what actions they will take for their lifestyle, to be left in
:08:34. > :08:37.limbo, so the quicker this is resolved. The better for everyone
:08:38. > :08:43.concerned. Thank you.
:08:44. > :08:48.And I would like to thank my right honourable friend the member for
:08:49. > :08:52.Birkenhead for bringing this debate. A wiser Chancellor wouldn't have cut
:08:53. > :08:56.tax credits to some of the poorest families in Britain in the first
:08:57. > :09:01.place, but I do believe he has some wriggle room and he can put the mess
:09:02. > :09:05.he has created for Britain's families right. The child poverty
:09:06. > :09:10.action gripe believes that the proposed changes to tax credits will
:09:11. > :09:15.damage work incentives and increase child poverty. I think we have the
:09:16. > :09:22.message loud and clear, that the cuts will mean that work pays less.
:09:23. > :09:29.The changes affect recipients of working tax credit. Who by
:09:30. > :09:37.definition are in work. Analysis by the House of Commons library finds
:09:38. > :09:42.thaw 3.2 million will lose an average of ?1350 next year. Although
:09:43. > :09:46.doubt has been cast on this figure by the honourable member for more
:09:47. > :09:51.come and Lunesdale I do find generally the House of Commons
:09:52. > :09:58.library are fairly thorough and reliable. The same House of Commons
:09:59. > :10:07.library analysis found over 750,000 families earning between 10,000, and
:10:08. > :10:20.20,000 a year will lose up to ?2184 next year. Over 580,000 families,
:10:21. > :10:25.Britain's poorest working families, earning between 3850-6420 a year,
:10:26. > :10:32.face being taxed for the first time they will lose 48 pence in tax
:10:33. > :10:36.credits, for each pound they earn. Some low income families will keep
:10:37. > :10:41.just three pence in every extra pound they earn following the
:10:42. > :10:43.changing. Child poverty will increase, as 4. Changing. Child
:10:44. > :10:48.poverty will increase, as 4.4 billion will be taken from low paid
:10:49. > :10:55.families. These cuts are not compensated for
:10:56. > :10:59.by other changes, such as the so-called national living wage, the
:11:00. > :11:04.rising income tax threshold or the free childcare offer, and
:11:05. > :11:07.importantly, this impacts of these cuts have not been thoroughly
:11:08. > :11:18.assessed. Some working families will face an
:11:19. > :11:25.effective 97% tax rate, losing 32 pence in income tax and nationalen
:11:26. > :11:29.insurance payments and 48 pence in tax credit entitlement, leaving them
:11:30. > :11:34.with just three pence in the pound. At his last party conference speech
:11:35. > :11:38.before becoming Prime Minister, David Cameron argues against higher
:11:39. > :11:43.effective tax rates on low income families, saying if you are a single
:11:44. > :11:48.mother with two kids, earning ?150 a week, the withdrawal of benefits and
:11:49. > :11:51.the additional taxes mean that for every pound you earn you keep four
:11:52. > :11:57.pence. What kind of incentive is that? So what has changed? Two
:11:58. > :12:02.thirds of poor children live in a family where somebody works, and it
:12:03. > :12:05.is inevitable by taking 4.4 billion away from low income working
:12:06. > :12:17.families more children will be forced into poverty.
:12:18. > :12:20.Child poverty is rising, independent projections from the Institute of
:12:21. > :12:37.fiscal studies show clearly that the falls of child poverty rates will be
:12:38. > :12:42.reversed. The number of people receiving tax credits in my
:12:43. > :12:48.constituency is 9700. In the neighbouring constituency, that
:12:49. > :12:56.figure is 14,900. That is nearly 25,000 children affected across the
:12:57. > :12:59.borough of Rochdale. My constituents, one of them, e-mailed
:13:00. > :13:03.me saying, I am dreading going back to work. I am a single mother of
:13:04. > :13:07.three children and I know I am going to get backs soon but I am scared
:13:08. > :13:12.how we -- go back soon but I am scared how we will survive, I am
:13:13. > :13:16.already struggling as it is. Another constituent, public sector worker,
:13:17. > :13:20.wrote to me saying she provides essential public services and tax
:13:21. > :13:25.credits are an important part of her household income. She said that
:13:26. > :13:28.although she would gain from the ?80 increase in personal tax allowance,
:13:29. > :13:34.overall, she would be much worse off. Especially, as she said, if you
:13:35. > :13:39.take into account the fact that the government only wants me to get a 1%
:13:40. > :13:43.pay increase over the next few years. These women and many more
:13:44. > :13:49.like them speak for the reality of life for the working poor. Something
:13:50. > :13:54.which some in this house are comfortable into related from.
:13:55. > :14:00.Indeed, when I worked for the NHS, child tax credits help to me. They
:14:01. > :14:03.helped me to remain in full-time employment because it helps me
:14:04. > :14:09.afford a childminder for my school-age son. And of course we do
:14:10. > :14:13.welcome the higher minimum wage, and the increase in free childcare
:14:14. > :14:17.provision that as has been pointed out by many honourable members, that
:14:18. > :14:22.only goes so far. We need to get work incentive right, which will be
:14:23. > :14:28.critical in tackling in work poverty. And what we need to do
:14:29. > :14:34.first of all is to push employers into paying the living wage. And
:14:35. > :14:39.that is the real living way, not the government's national minimum wage,
:14:40. > :14:43.which is lower and does not apply to workers under 25 years of age. We
:14:44. > :14:51.need to tackle the causes of low pay, before we start cutting tax
:14:52. > :14:55.credits. I agree with my honourable friend, the member for Darlington,
:14:56. > :15:01.that the vote on Monday may have done the Chancellor favour. In
:15:02. > :15:06.giving him a breathing space and a chance to put this situation right
:15:07. > :15:10.by supporting working families instead of penalising them for doing
:15:11. > :15:14.the right thing. And although the Chancellor may have only just
:15:15. > :15:18.discovered that the House of Lords is unelected, I do hope that he will
:15:19. > :15:25.take this opportunity to reverse these tax credit cuts. Thank you.
:15:26. > :15:29.Thank you, Madam Deputy Speaker. I would like to congratulate the
:15:30. > :15:31.honourable member for Birkenhead and also the backbench business
:15:32. > :15:37.committee for granting us this very timely debate to reconsider the
:15:38. > :15:42.impact on the lowest paid workers of the proposed changes to tax credits
:15:43. > :15:46.and for the government to bring forward mitigation proposals for
:15:47. > :15:51.this house. Early next year, it is the centenary of the birth of Harold
:15:52. > :16:00.Wilson. And that Huddersfield glad coined the phrase that a week is a
:16:01. > :16:03.long time in the ticks. -- in politics. A lot of ermine and a
:16:04. > :16:10.flood of e-mails have flowed under the bridge since I signed this
:16:11. > :16:12.motion last week. I want to make it clear from the start that I
:16:13. > :16:22.absolutely support the Chancellor in getting in Britain to live within
:16:23. > :16:24.its means. I often suggests people talking about austerity replace it
:16:25. > :16:29.with the phrase living within their means, which brings a whole new
:16:30. > :16:33.meaning to the campaign slogan, antique living within your means.
:16:34. > :16:39.Since last week, many constituents have echoed my position. To follow
:16:40. > :16:42.the style of the Leader of the Opposition, I would like to say that
:16:43. > :16:48.Martin from the home valleys says, he agrees with the shift in tax
:16:49. > :16:56.credits to increase to pay, but he does share my concern about the
:16:57. > :17:01.transitional impact of the changes. Bob says, he understands the point I
:17:02. > :17:04.am making about employers underpaying staff and agrees with me
:17:05. > :17:13.on the need to reconsider the pace of change. Nicola says, she agrees
:17:14. > :17:18.that the tax credit system is is not perfect, as is the whole benefit
:17:19. > :17:21.system. Currently, she says, she would be better off financially
:17:22. > :17:27.reducing her hours as she works full-time. The way to change the
:17:28. > :17:31.system needs to be in fermented. She says she feels she is being
:17:32. > :17:36.currently punished by the benefit system by trying to bring home mail
:17:37. > :17:44.money by working her way up. A single person on income support on
:17:45. > :17:48.housing benefit can be paid out more in benefits than she rings home
:17:49. > :17:52.including her tax credits to support her family. And Dorothy says, she
:17:53. > :17:58.fully understands the need for reform. The motion today clearly
:17:59. > :18:06.states it is the pace and the impact on the lowest paid workers. I firmly
:18:07. > :18:11.believe that work should always pay. People should always be better
:18:12. > :18:18.off in a job than benefits. And I say that as someone who did not go
:18:19. > :18:23.to university. When I left school, I did a succession of low-paid
:18:24. > :18:26.part-time jobs before I joined the Royal Air Force at the age of 19,
:18:27. > :18:35.worked my way up and travelled the world. I am proud that since 2010,
:18:36. > :18:42.unemployment in my constituency is down by 51%. I am proud that use
:18:43. > :18:50.unemployment is down by more than one half. -- youth unemployment. I
:18:51. > :18:56.am proud that there is a net increase of 170 new businesses and
:18:57. > :19:01.there have also been over 4700 new apprenticeships started. I am proud
:19:02. > :19:06.to say I have just taken on my first apprentice and I campaign him the
:19:07. > :19:13.living wage. On Friday 20th of November, I am holding my latest
:19:14. > :19:16.jobs fair at the Civic Hall where over 30 local businesses and
:19:17. > :19:23.organisations will be offering quality jobs and apprenticeships. We
:19:24. > :19:27.must build a low tax, low welfare, high wage economy. And as a
:19:28. > :19:34.compassionate conservative, I want to live in a country where everyone
:19:35. > :19:38.has the opportunity of a decent, well paid job. So let's crack on
:19:39. > :19:43.with it, and let's stand up for working people. I welcome the
:19:44. > :19:46.Chancellor's announcement that he will lessen the impact on families
:19:47. > :19:52.and he will lessen the impact on families and people set out these
:19:53. > :19:56.plans in the Autumn Statement. I hope the Chancellor and his Treasury
:19:57. > :19:59.boffins will be listening very carefully to the various
:20:00. > :20:06.suggestions, some of them very, very inventive, the transition
:20:07. > :20:11.arrangementss. Madam Deputy Speaker, let's show that Britain can live
:20:12. > :20:17.within its means but most importantly, whilst looking after
:20:18. > :20:22.the most vulnerable and supporting those who go out and work everyday.
:20:23. > :20:27.I am going to make a very unusual statement. Members have been so
:20:28. > :20:31.disciplined and have taken so few interventions and have been so
:20:32. > :20:38.careful in their remarks this afternoon, that we have more time
:20:39. > :20:41.than I have had anticipated. I am therefore going to increase the
:20:42. > :20:50.limit on backbench speeches to eight minutes. So we will hear even more
:20:51. > :20:56.from Mr Alan Brown. Thank you, Madam Deputy Speaker. I welcome this
:20:57. > :21:01.debate today and I welcome for the most part the tone of the debate,
:21:02. > :21:06.particularly the early contributions from the benches opposite. I really
:21:07. > :21:10.hope these contributions are a sign that there is a mood swing across
:21:11. > :21:17.the whole government benches which, I must say, is in stark contrast to
:21:18. > :21:20.recent contributions. If it is OK, I would like to outline some of the
:21:21. > :21:26.previous actions of this house and contributions from members over the
:21:27. > :21:31.past week which had myself head scratching, and I am sure my
:21:32. > :21:37.constituents, in terms of the focus of this house. Last Thursday, one
:21:38. > :21:41.honourable member suggested that a public fund be set up to donate to
:21:42. > :21:45.the restoration of this house. I found that incredible. If I took
:21:46. > :21:55.that addition to my constituents, the only way I would get money is if
:21:56. > :22:00.I got them to donate to swear box if I suggested it. Another member said
:22:01. > :22:16.there was no need to reform the House of Lords, and we had a debate
:22:17. > :22:21.last Thursday, on the Euro, and a number of members over the other
:22:22. > :22:26.side suggested that this was the thing their constituents were most
:22:27. > :22:36.worried about. Over the weekend, we had the bill for Trident is up to
:22:37. > :22:42.?160 billion. That is a 67% increase and yet, the government does not
:22:43. > :22:46.flinch. They are still taking forward these proposals on tax
:22:47. > :22:51.credits. Monday night, there was a lost opportunity, I think, to kill
:22:52. > :22:56.the tax credit built stone dead. But at least the other place did flex
:22:57. > :23:00.some muscle and is causing the government to think again. There
:23:01. > :23:04.have been plenty of suggestions today on how we can take this
:23:05. > :23:07.forward. I should ask that the previous tone on some of the debate
:23:08. > :23:10.on tax credits has been very unhelpful, and I welcome the earlier
:23:11. > :23:17.contribution from the honourable member for Aberconwy. Which actually
:23:18. > :23:23.can condemns one of his friends for suggesting that one of the
:23:24. > :23:27.suggestions to make up for tax credits was to take to jobs or work
:23:28. > :23:33.longer hours, that is not practical and it is one way to work or soft
:23:34. > :23:37.into an early grave. -- work yourself. This is the number one
:23:38. > :23:43.issue for my constituents and I am pleased that the SNP has been
:23:44. > :23:47.consistent in arguing against the cut in tax credits. Within my
:23:48. > :23:52.constituency, there is an estimated 3800 working families that currently
:23:53. > :23:58.are likely to be affected by tax credit proposals unless they are
:23:59. > :24:02.amended. In previous debates we have talked about the high wage, low
:24:03. > :24:05.tax, low welfare system. That has been clearly blown out of the water
:24:06. > :24:10.by independent analysis and I welcome the fact that many
:24:11. > :24:12.Honourable members in the inches opposite have acknowledged that and
:24:13. > :24:18.they are calling for action to make sure we protect those on the lowest
:24:19. > :24:21.wages. We should not forget people who are not working and are looking
:24:22. > :24:27.to get into work, they are the ones who are in line to lose ?2000 per
:24:28. > :24:31.year. That is impossible. They cannot lose that money and sustain a
:24:32. > :24:35.family. A lot of people move in and out of work. Not only would they be
:24:36. > :24:41.potentially losing money when they are in work, if there are zero hours
:24:42. > :24:45.contract or they are unfortunate enough to lose their work, if they
:24:46. > :24:50.are out of work and they need support, that support is being cut
:24:51. > :24:52.dramatically. So what should we do? There have been some good
:24:53. > :24:57.suggestions earlier on but the first thing is, we need to bring in a
:24:58. > :25:01.proper living wage. A living wage in line with the cuts in tax credits so
:25:02. > :25:06.that we haven't the cuts in welfare to make sure people are protected in
:25:07. > :25:12.terms of income. -- we balance the cuts in welfare. The Chancellor
:25:13. > :25:15.could increase support for small and medium-sized enterprises to take on
:25:16. > :25:20.more employees, to help more people into work. I mentioned the cost of
:25:21. > :25:23.Trident, we could easily scrap Trident, and we could scrap the
:25:24. > :25:27.other place, even though we welcome the decision they made the other
:25:28. > :25:32.day, we still call for the other place to be scrapped. It is
:25:33. > :25:36.perfectly obvious there should be a cut in tax avoidance and evasion.
:25:37. > :25:48.The other night the SNP put forward a motion... I personally think we
:25:49. > :25:56.should press bows -- macro scrap the proposed right to buy social housing
:25:57. > :26:01.and the subsidies on the rights to buy. There is no way the taxpayer
:26:02. > :26:12.should be paying up to ?100,000 for somebody to purchase a home in
:26:13. > :26:15.London. In terms of in Scotland, it would be helpful if the UK
:26:16. > :26:18.Government allowed better borrowing powers for the Scottish governance
:26:19. > :26:23.so they can use those powers to invest in infrastructure and capital
:26:24. > :26:27.spend which will create jobs. I mentioned housing, the government
:26:28. > :26:29.should be building more housing. In government in Scotland we have been
:26:30. > :26:32.showing the way in building more showing the way in building more
:26:33. > :26:37.social housing, producing more jobs and a better standard for living for
:26:38. > :26:40.people. Then they are building energy-efficient homes which means
:26:41. > :26:44.that families are paying less in heating and makes it easier in terms
:26:45. > :26:50.of not having to make that difficult choice in terms of heating and
:26:51. > :26:54.eating. The other measures the SNP suggested, reintroduce the 50p tax
:26:55. > :26:59.rate. We should not raise the upper threshold. We could have a bank
:27:00. > :27:01.levy, mansion tax, and going through with the complete aberration of
:27:02. > :27:12.non-Dom status. The government does not have too go to the deficit so
:27:13. > :27:23.slowly -- quickly, it can go for a more delicate and balanced approach.
:27:24. > :27:30.We should not be looking at low-paid workers, and talking about the
:27:31. > :27:34.exception policy with a third child. Nobody from the opposite benches
:27:35. > :27:40.have intervened in that because it is an obscene policy and nobody can
:27:41. > :27:43.justify or explain it. I asked the government minister to speak with
:27:44. > :27:49.the Chancellor, revisit this whole package because the savings are only
:27:50. > :27:53.?4.6 billion. We need a proper strategic overview and that might
:27:54. > :27:56.get us to a long-term recovery plan which works in action not just in
:27:57. > :28:01.words cheered from the benches opposite.
:28:02. > :28:08.Thank you, Madam Deputy Speaker. Also the government are pursuing the
:28:09. > :28:12.right strategic course of supporting working families through the tax
:28:13. > :28:15.system, it's become very clear over the last few weeks the way this
:28:16. > :28:22.policy was being implemented was going to leave many poor and
:28:23. > :28:27.vulnerable families harshly exposed. As a result of the efforts of my
:28:28. > :28:32.honourable friend this debate, we can properly consider the
:28:33. > :28:39.transitional measures brought in to support those families. The current
:28:40. > :28:43.arrangements and the proposals the government have introduced are to be
:28:44. > :28:46.welcomed. The increase in the personal tax threshold will enable
:28:47. > :28:49.working taxpayers to keep more of the money they earn. The
:28:50. > :28:54.introduction of the national living wage is a bold and radical move
:28:55. > :28:58.which my honourable friend the Chancellor of the Exchequer should
:28:59. > :29:03.be applauded. The government has rightly prioritised working families
:29:04. > :29:06.for the offer of 30 hours free childcare but these initiatives on
:29:07. > :29:16.their own don't go far enough and more transitional supporters needed.
:29:17. > :29:21.In the constituency I represent, people often work part-time. That
:29:22. > :29:25.like to work longer hours and earn more, and through hard work and
:29:26. > :29:30.training, they'd like to climb up a ladder of workplace progression. The
:29:31. > :29:34.problems they have is that this option isn't currently available to
:29:35. > :29:39.them. Has been an economic decline for 40 years. Traditional industries
:29:40. > :29:44.have gone, the factory gates have closed, and the fishing industry is
:29:45. > :29:47.a poor shadow of itself. Scene is repeated in many places around their
:29:48. > :29:50.country. To their credit, the coalition government and this
:29:51. > :29:55.government have recognised this fundamental flaw in the country's
:29:56. > :29:59.economy and they are putting in place policies that will reverse
:30:00. > :30:03.this decline and bring new jobs to many areas. Policies that will
:30:04. > :30:09.ensure that in the long term we will have a balanced economy where growth
:30:10. > :30:11.is not concentrated in a few places, and where opportunities are
:30:12. > :30:16.available for all across the whole country. Devolution, investment in
:30:17. > :30:21.infrastructure, investment in education and schools. These
:30:22. > :30:26.policies will work but they will not do so overnight. They will need
:30:27. > :30:33.time, and they may well need to be refocused, redesigned, and rebooted.
:30:34. > :30:37.In the short term, there is a need for support to ensure that the
:30:38. > :30:42.removal of working tax credits doesn't punitively hit those on low
:30:43. > :30:45.wages. There is no silver bullet, and there may well be a need for
:30:46. > :30:50.more than one initiative. The Treasury will need to weigh up very
:30:51. > :30:54.carefully what alternative tax-raising measures may be
:30:55. > :30:59.necessary in order to produce a balanced budget and to remain on
:31:00. > :31:04.course to eliminate the deficit. It is very important that any tax
:31:05. > :31:09.increases are progressive, and do not hit on fairly the poorest
:31:10. > :31:17.members of society. As mitigating measures, I make four suggestions.
:31:18. > :31:21.Full consideration should be given to phasing and the withdrawal of
:31:22. > :31:26.working tax credits, spreading out would be fairer and rising wages
:31:27. > :31:30.would help reduce the impact. Secondly, increasing the point at
:31:31. > :31:33.which employees start paying National Insurance should also be
:31:34. > :31:39.considered. This will be more effective than a further increase in
:31:40. > :31:44.the personal tax threshold as people will pay National Insurance from
:31:45. > :31:50.?8,164 compared to ?11,000 for income tax. Thirdly, the offer of
:31:51. > :31:53.tax breaks for those businesses who voluntarily and more quickly move to
:31:54. > :31:58.pay the national were living wage should also be looked at. And,
:31:59. > :32:05.finally, I think that we do need to review the current design of the
:32:06. > :32:08.universal credit. It is in many respects bizarre that the
:32:09. > :32:11.introduction of the universal credit and the withdrawal of working tax
:32:12. > :32:15.credits are being carried out at the same time by different apartments.
:32:16. > :32:21.This might explain why the government is in the position they
:32:22. > :32:23.find themselves today, with policies not properly coordinated. Working
:32:24. > :32:30.tax credits were introduced by Gordon Brown with apparently limited
:32:31. > :32:33.consultation with the DWP. It is a fatal flaw at the heart of
:32:34. > :32:39.government which should have been addressed a long time ago. The great
:32:40. > :32:44.advantage of universal credit is its simplicity. It'll boost employment,
:32:45. > :32:48.and it'll make it easier for people to understand why they are better
:32:49. > :32:52.off in work. However, it should be made more flexible. Much of the
:32:53. > :32:56.current emphasis is on getting one person in a household into work.
:32:57. > :33:00.There should be more focus on boosting employment within the
:33:01. > :33:05.household as a whole. There is a need to rebalance the incentives
:33:06. > :33:08.universal credit creates to better support single parents, second
:33:09. > :33:13.earners in families with children, and also the disabled. The universal
:33:14. > :33:15.credit should be made easier to use. It should not penalise families
:33:16. > :33:24.whose earnings and outgoings don't fit into the monthly pattern. There
:33:25. > :33:26.is a particular problem for the 800,000 self-employed households
:33:27. > :33:32.moving on to universal credit have to start to apportion their income
:33:33. > :33:37.on a monthly basis rather than through the annual HMC 's
:33:38. > :33:45.self-assessment. This creates a huge bureaucratic burden. I will give
:33:46. > :33:51.way. I agree with my honourable friend. He, like me, represents a
:33:52. > :33:54.coastal community with low pay. Would he acknowledge that as well as
:33:55. > :34:01.the help that needs to be given to those who are in receipt of the tax
:34:02. > :34:05.credits, we must pay particular attention to the fact that the
:34:06. > :34:11.spending power that is being taken out of the local economy, if we
:34:12. > :34:13.proceed with the proposals as the government previously outlined,
:34:14. > :34:19.would be detrimental to our areas, and that is something we have to
:34:20. > :34:22.take into consideration? Grateful to my honourable friend for making that
:34:23. > :34:28.intervention. He is, of course, quite right in making that comment.
:34:29. > :34:32.Very often, perhaps, when in the Treasury, you've got some very
:34:33. > :34:36.clever people there, you look at the country as a whole but you need to
:34:37. > :34:42.realise that things are very different in different places. The
:34:43. > :34:46.final point I want to make on universal credit is the requirement
:34:47. > :34:51.to provide childcare bills on a monthly basis could mean parents
:34:52. > :34:55.whose child care costs are high at certain times of the year will be
:34:56. > :35:00.financially worse off than they would be under the current system.
:35:01. > :35:04.Finally, for those receiving help with rate, the option of payments
:35:05. > :35:10.going straight to the landlord should be more easily accessible. In
:35:11. > :35:14.conclusion, Madam Deputy Speaker, in the longer term, I think the
:35:15. > :35:18.government need to take stock of their approach to welfare reform.
:35:19. > :35:22.They have been right to rise to the challenge and most of their policies
:35:23. > :35:29.have been successful. How they move forward needs careful thought and
:35:30. > :35:33.reflection. Perhaps, alongside the benefit cap, there should be a
:35:34. > :35:39.benefit ceiling. In the short term, in the next four weeks, there is a
:35:40. > :35:43.lot of work to be done to get this particular policy right. To ensure
:35:44. > :35:48.that it is fair, that it does not penalised the working poor. And that
:35:49. > :35:56.it does provide them with that ladder of work -based progression.
:35:57. > :36:01.Madam Deputy Speaker, this has been a very strange debate, it is as if
:36:02. > :36:06.we have managed to collect within the chamber of the House of Commons
:36:07. > :36:12.all the sensible people from all the parties, and have a serious debate
:36:13. > :36:19.about. It is unnerving to step out the comfort zone of yelling of each
:36:20. > :36:23.other and listen to sensible contributions, including the 1 we
:36:24. > :36:26.have just heard. And, perhaps, it is a lesson to all of us that maybe
:36:27. > :36:30.this is the way we should have done it in the first place. Before the
:36:31. > :36:35.Chancellor made an announcement. Actually to set out some broad
:36:36. > :36:38.principles, would need to reduce the welfare budget, we made a commitment
:36:39. > :36:43.in the manifesto and we'd like to look at these issues, we need to
:36:44. > :36:48.find ?12 billion, how might we best do it? And using the wit of all the
:36:49. > :36:51.people throughout the chamber, all the select committees that we
:36:52. > :36:56.nominate and a point which work incredibly hard on our behalf, I am
:36:57. > :37:02.perfectly sure we could have come up with something less painful, less
:37:03. > :37:06.crude and less crass, and saving the Chancellor a fair bit of grief as
:37:07. > :37:11.well. However, we didn't do it that way. We are doing it the other way
:37:12. > :37:17.around. And let's hope we can get to something like a sensible result. It
:37:18. > :37:21.also hope we will listen to the people out there. This is a classic
:37:22. > :37:25.debate, where we need to actually listen to the people who will be
:37:26. > :37:30.influenced, the people impacted. Often not very articulate people,
:37:31. > :37:34.often not necessarily people who will be in touch with a local member
:37:35. > :37:38.of Parliament, but I really want to speak up for all of those people,
:37:39. > :37:44.particularly in my own constituency of Nottingham North, the dinner
:37:45. > :37:49.ladies, the check-out staff, the administrative staff, nursing and
:37:50. > :37:55.teaching assistants, manual workers, all of whom need us, whatever our
:37:56. > :38:01.political persuasion, to be sticking up for them right now because we
:38:02. > :38:05.should all be in it together but, actually, very often it feels we are
:38:06. > :38:09.not. I looked at the numbers of people in my constituency who will
:38:10. > :38:13.benefit from the changes in inheritance tax. And I came up,
:38:14. > :38:19.after a lot of searching, with a large zero. Unfortunately, it didn't
:38:20. > :38:23.take me much time to find the numbers of the people in my
:38:24. > :38:29.constituency who will not be benefiting from these changes on tax
:38:30. > :38:33.credit. It actually amounts to 12,300 children in the families that
:38:34. > :38:39.are impacted. Why is it important to me? It is because I am to be MP for
:38:40. > :38:44.the second most deprived area in the UK in terms of child poverty in low
:38:45. > :38:49.income families. That is a matter of great concern to me. It is not all
:38:50. > :38:55.in it together because those kids are not in it with the people who
:38:56. > :38:59.are on higher incomes, and they should be shouldering a fair share,
:39:00. > :39:05.nothing more, a fair share of the tax burden our country. In effect
:39:06. > :39:12.what we are doing, those colleagues who missed out who know their food
:39:13. > :39:15.banks, this is in effect a food bank recruitment scheme on behalf of the
:39:16. > :39:20.government. And I think we need to be very, very careful about how we
:39:21. > :39:24.tread on this because no one is ready for it. Some of us believed
:39:25. > :39:28.the prime Minister when he was on television before the general
:39:29. > :39:32.election and said there would be no changes to the tax credit system.
:39:33. > :39:36.And that is the same prime minister who, sadly, was in this house with
:39:37. > :39:41.all of us just if you weeks ago saying he was delighted the cuts
:39:42. > :39:46.were voted through on the previous evening. That indicate something
:39:47. > :39:53.else, Madam Deputy Speaker, which is a contempt for institutions other
:39:54. > :39:59.than government. And I do Labour this point, I know, but the point
:40:00. > :40:03.about listening to people outside, it doesn't mean you are diverted
:40:04. > :40:06.from your principles, it means you can enable your principles better by
:40:07. > :40:12.listening to people who might be able to help you in a slightly
:40:13. > :40:17.better way. The other thing is the impact on broader families. Four out
:40:18. > :40:22.of five families in my constituency received tax credits because of the
:40:23. > :40:25.low income nature of my constituency, being in the top 20 of
:40:26. > :40:31.those constituencies that are deprived. We can do a job for them.
:40:32. > :40:36.We're not going to overturn necessary what the Chancellor thinks
:40:37. > :40:41.but members in this house can do as the member for Birkenhead has done
:40:42. > :40:45.and look at the question of papers, of thresholds, transitions, of the
:40:46. > :40:49.time all we need to allow people to adjust to a massive change that is
:40:50. > :40:53.going to take place in their life. Looking at the family element,
:40:54. > :40:58.looking consistently and reviewing and analysing over future years the
:40:59. > :41:03.impact of this so that we can mitigate it on the worst examples
:41:04. > :41:08.and the worst cases. I'm delighted today we haven't heard that word,
:41:09. > :41:13.scroungers, in this debate, or people having a free ride on the
:41:14. > :41:17.state and on the system because, as it happens, in my constituency, two
:41:18. > :41:22.thirds of those people who are on tax credits are at work. They are
:41:23. > :41:27.being subsidised to be at work by the rest of us, and subsidising
:41:28. > :41:34.low-paying employers. I will give way. Maybe one of the reasons this
:41:35. > :41:40.debate today has not been disfigured by such terms is because the people
:41:41. > :41:44.that my honourable friend is talking about are literally the people, the
:41:45. > :41:47.friends and families and neighbours that we stand alongside in
:41:48. > :41:50.supermarket queues and on the side of the rugby pitch on a Sunday
:41:51. > :41:56.morning, and so on. These are literally the people that we know.
:41:57. > :42:04.And they are not them and us. They are us. And that's why we have to,
:42:05. > :42:06.as we side alongside them in the supermarket queues, stand alongside
:42:07. > :42:11.them here as well because they deserve us.
:42:12. > :42:17.My honourable friend is absolutely right, although sometimes when we
:42:18. > :42:20.think this is a big issue and some of the media does, you would be
:42:21. > :42:25.amazed that people don't actually know that it is going to hit them.
:42:26. > :42:33.Until that letter drops. Until it actually happens. As a wise old bird
:42:34. > :42:38.once said, who used to be in the House of Commons, he taught me that
:42:39. > :42:42.lesson. He said it won't affect people's real lives until next
:42:43. > :42:47.April. And then there will be a shock and tidal wave of people
:42:48. > :42:53.saying, "my God, what are you doing to us. Why are you allowing this to
:42:54. > :42:58.happen?" And that's between -- by between now and then, we have to do
:42:59. > :43:01.our best to mitigate the worst consequences. I just want to say a
:43:02. > :43:13.few words about the National Living Wage. The National Living Wage is a
:43:14. > :43:18.bit like evil. It is so smart, but the reality is, is it really be
:43:19. > :43:23.substance? Is it really the detail of what people need in their lives?
:43:24. > :43:25.Saying you are going to have a national minimum wage sounds
:43:26. > :43:29.fantastic, but if it doesn't actually mean that your income is
:43:30. > :43:36.going to be at least as good as it exports before, it is a fraud. -- as
:43:37. > :43:41.it was before. I thank him for giving way. Does he agree with me
:43:42. > :43:45.that the National Living Wage is not the actual living wage, which is set
:43:46. > :43:50.by the living wage foundation, which is far higher than the governments
:43:51. > :43:55.of National Living Wage. And that to call it a living wage is a misnomer?
:43:56. > :43:59.I totally agree with her intervention. The living wage
:44:00. > :44:03.foundation has already blown that myth out of the water and said it is
:44:04. > :44:07.not actually what everybody else seems to think of as being the
:44:08. > :44:15.living wage. The Institute for Fiscal Studies, our own House of
:44:16. > :44:19.Commons library have both said that the so-called National Living Wage
:44:20. > :44:22.doesn't make good what people will lose and both of those highly
:44:23. > :44:26.authoritative independent organisations say it will only cover
:44:27. > :44:35.about one quarter of the loss that family will incur. Then you have a
:44:36. > :44:41.lot of other factors, like being compounded, the difficulties being
:44:42. > :44:46.compounded around the idea of Universal Credit. And all this in
:44:47. > :44:49.terms of my constituency is showing that deprivation is not being
:44:50. > :44:57.addressed and analysis IT in the way that it should be. Over the last
:44:58. > :45:01.five years, in my constituency, 5.9% more people are in the category of
:45:02. > :45:05.being deprived than they were five years ago. And I just asked the
:45:06. > :45:14.Chancellor to try to understand this. It isn't always Witney and
:45:15. > :45:18.pattern. Those are the 20 most deprived constituencies, like
:45:19. > :45:22.Liverpool Walton, Manchester Central. That's where our people
:45:23. > :45:27.live and where people need their representatives to stick up for
:45:28. > :45:31.them. That's where the free market, politically, doesn't work, inviting
:45:32. > :45:36.people over for shooting or writing. That is not where I live, it's not
:45:37. > :45:40.the way other people will get that message over and have their voices
:45:41. > :45:47.heard. It is by sensible people that we have heard from all parties
:45:48. > :45:54.briefly. In the spirit of this briefly. In the spirit of this
:45:55. > :45:58.cross-party co-operation, does he not accept that there are some small
:45:59. > :46:03.businesses where we don't go sheeting and were not into that kind
:46:04. > :46:09.of behaviour. -- shooting. But there are some that appreciate the fact
:46:10. > :46:13.that the Treasury is allowing them to adapt to a new National Living
:46:14. > :46:19.Wage. And the time allowed was not necessarily made available to those
:46:20. > :46:25.recipients of tax credits. The honourable gentleman will forgive
:46:26. > :46:30.me, I'm not trying to trivialise it. We all need to work together and
:46:31. > :46:34.put our points collectively said the government will listen, something
:46:35. > :46:42.they should have been doing before and I represent lots of places, area
:46:43. > :46:46.is not known to places Leigh people in this chamber today. Real people,
:46:47. > :46:56.as you all have in your constituencies. -- these people. And
:46:57. > :47:01.they will be hit hard by this. The technical knowledge around those
:47:02. > :47:10.issues, I am not so were rough, but let's make the best of a very, very
:47:11. > :47:18.bad job. -- so aware of. It's a pleasure to speak in this debate. I
:47:19. > :47:26.echo his comments that I have been sitting through. Far more positive
:47:27. > :47:32.than some of the ones we sometimes see. I would like to thank the
:47:33. > :47:38.member for Birkenhead in securing this debate and I knew I could look
:47:39. > :47:43.forward to a measured speech that he would give and he delivered on it.
:47:44. > :47:50.In terms of speaking today, I wanted to start with do I believe that the
:47:51. > :48:01.tax credits system needs reform? At the moment, six out of ten families
:48:02. > :48:08.receive it. You can receive it and the House of Commons library shows
:48:09. > :48:16.some that are over ?40,000 receive some of it. So it was interesting to
:48:17. > :48:20.hear that one said it was a bill that needs to be reduced. It will be
:48:21. > :48:28.interesting to see what proposals are brought forward. I do support
:48:29. > :48:34.the Chancellor 's aims, doing a high wage, low welfare economy. In my
:48:35. > :48:38.constituency over the last five years, there are less people on
:48:39. > :48:43.unemployment benefit, more people getting opportunities and seen the
:48:44. > :48:49.investment going in to create more jobs and see a real drive to help
:48:50. > :48:53.people get on in life and make a difference to them and their
:48:54. > :48:57.families. That's what I support. That's the core of the reasons I am
:48:58. > :49:07.here and practices on these benches as a Conservative member of
:49:08. > :49:13.Parliament. -- proud to sit. I will end up voting to this motion if I
:49:14. > :49:19.end up sitting on it. My family was rich in love, if not in money when I
:49:20. > :49:27.was growing up. My father worked as a painter and my mother was a
:49:28. > :49:33.teaching assistant. I disagree with some of the members opposite. I
:49:34. > :49:37.think it's right we give people the opportunity to buy their own house.
:49:38. > :49:43.I grew up in a house where my parents were able to be helped to
:49:44. > :49:49.buy their own houses. Ironically, that was brought in by a Labour
:49:50. > :49:52.government. It's not that long ago that those on the left were arguing
:49:53. > :49:58.that people shouldn't be paying rent, they should be owning their
:49:59. > :50:02.own homes. It is right we continue that opportunity for a new
:50:03. > :50:09.generation, based on dealing with having more housing supply coming.
:50:10. > :50:15.For me, we do need to have some clever ideas around how to mitigate
:50:16. > :50:20.it. I notice we seek the usual magic money trees presented by some. Those
:50:21. > :50:23.are the same people whose oil revenue projections weren't exactly
:50:24. > :50:28.accurate last year either. Sticking to the issue, I have confidence the
:50:29. > :50:31.Chancellor will come forward in the Autumn Statement with proposals to
:50:32. > :50:35.mitigate the impact for the lower paid and that is why I am happy to
:50:36. > :50:40.support this motion to ask the government to look at it again. I
:50:41. > :50:47.think the actual hit, it is fine to talk about the destination of a high
:50:48. > :50:52.wage, low welfare economy. Go on then. I wonder if he could enlighten
:50:53. > :50:58.us on how the Chancellor was going to forecast for the debt reduction
:50:59. > :51:03.in the last parliament? Let me talk about how we have an economy moving
:51:04. > :51:07.forward, we have increased health spending, which has not happened in
:51:08. > :51:16.Scotland and I must say, if we talk about what is happening in Scotland,
:51:17. > :51:27.last week 's daily record, our failing NHS is the SNP's fault. --
:51:28. > :51:30.daily record. But going back to what we are here to debate today, it is
:51:31. > :51:36.always lovely to have an accompaniment from this benches.
:51:37. > :51:40.It's not the e-mails I've received, It's not the e-mails I've received,
:51:41. > :51:44.it's not the stuff in the media, it's about the thousands of families
:51:45. > :51:48.I represent that are like the family I came from. And whatever we may
:51:49. > :51:52.think of the destination of this policy area, it is about making sure
:51:53. > :51:59.that the journey we go to get to it is one that doesn't impact on people
:52:00. > :52:06.who are trying to do their best in life. As I listened to the
:52:07. > :52:10.Birkenhead speech, I think it is important is that we have
:52:11. > :52:16.alternatives that don't make things worse or create the wrong
:52:17. > :52:23.incentives. One member made a point about the House of Commons library
:52:24. > :52:29.figures on his proposals, and indicated an effective taxation rate
:52:30. > :52:36.of almost 100%, which would be higher than what anyone in the world
:52:37. > :52:42.is paying in terms of income. It would be strange to implement that
:52:43. > :52:45.just to the people on under ?20,000. When it turns into something like
:52:46. > :52:53.that, it would be a disincentive to work. For me, I look forward to
:52:54. > :52:59.seeing what the government bring forward. I also look forward to
:53:00. > :53:08.continuing engagement with the Treasury bank. And I think it is
:53:09. > :53:14.right that we cannot just oppose and not offer up alternatives and I hope
:53:15. > :53:21.there will be clear engagement with members of this house and with
:53:22. > :53:26.Parliament on how we can mitigate them and deliver them on a
:53:27. > :53:32.deliverable settlement, which means we achieve our fiscal goals, which
:53:33. > :53:35.were so strongly endorsed in the UK General Election not that long ago.
:53:36. > :53:44.It has been a pleasure to sit through this debate and it will be a
:53:45. > :53:49.pleasure to welcome the proposals put forward to mitigate the impact
:53:50. > :53:57.on the lowest paid, as this motion calls for. Thank you. Can I just
:53:58. > :54:00.started by welcoming the Chancellor's announcement on Tuesday
:54:01. > :54:04.that he will be bringing measures forward to mitigate the changes to
:54:05. > :54:09.tax credits, but the question that is on all of our lives is how far
:54:10. > :54:17.does this inclination stretch? To mitigate some to mitigate all? My
:54:18. > :54:22.message is very clear. Changes must be of a certain way. They should be
:54:23. > :54:27.tapered, so people don't lose out. They should be phased in. The
:54:28. > :54:33.package should increase incomes at the same rate as which tax credits
:54:34. > :54:37.are tapered off. It's easy to admit that I have certain sympathies with
:54:38. > :54:44.the principle being pursued here. I think everybody, everybody sensible
:54:45. > :54:52.person -- every sensible person should agree that work should pay.
:54:53. > :54:57.In an ideal world, the government wouldn't need to prop up wages. But
:54:58. > :55:02.we don't live in that ideal world at the present moment. The economy is
:55:03. > :55:09.not in that position. The government had intended to put the cart before
:55:10. > :55:14.the horse. As a cynic, I don't believe the Chancellor's statement
:55:15. > :55:19.had compassion at its heart. For me, it was driven by fear, fear of
:55:20. > :55:26.losing power in the phoney constitutional law that has now been
:55:27. > :55:33.started with the other place. Yes, of course. I agree with my
:55:34. > :55:37.honourable friend that the second chamber has forced the Chancellor's
:55:38. > :55:42.hand here, but would he agree with me that despite their intervention,
:55:43. > :55:47.it still does not legitimise the constitutional absurdity that is an
:55:48. > :55:52.unelected, unaccountable, and ever-growing legislator at the end
:55:53. > :55:57.of the corridor? I think the house would be unsurprised to know that I
:55:58. > :56:04.completely agree, just because it sees sense on one particular issue,
:56:05. > :56:07.it doesn't legitimise it. The Chancellor's statement was
:56:08. > :56:15.predicated on much as the fact that as an unelected chamber, it stuck
:56:16. > :56:22.its nose into financial matters, so it it's corroborate our view that
:56:23. > :56:26.the other patient should go. -- place should go. We should put
:56:27. > :56:31.ourselves back in the shoes that many of us walked in not so long
:56:32. > :56:36.ago. Figuring out what ordinary people would lose them finding that
:56:37. > :56:40.completely and utterly unacceptable. We were elected in this place to
:56:41. > :56:48.protect vulnerable people. Not to punish them. I was going to use this
:56:49. > :56:52.time to talk about some of my constituents in detail. And outline
:56:53. > :57:02.precisely how these changes could destroy their lives. I was going to
:57:03. > :57:09.Katie and Ollie are going to lose over ?100 a month. So they might not
:57:10. > :57:14.be able to take the mountain bike tracks at the weekend. She will move
:57:15. > :57:19.from fresh to frozen food. Katie has no support network for Ollie, she
:57:20. > :57:23.has no choice but to work part-time because her sister has recently
:57:24. > :57:28.passed away. When Ollie isn't a school, she must be available and
:57:29. > :57:32.with him. She works all the hours available to her, she's got nowhere
:57:33. > :57:37.to go with this. I was going to tell you about Jenny, who was
:57:38. > :57:43.self-employed as a childminder. Her partner is also self-employed. They
:57:44. > :57:47.will lose ?130 a month. Jenny worries that her customers who are
:57:48. > :57:52.in receipt of tax credits will no longer be able to use her service.
:57:53. > :57:55.Jenny told me she literally lies awake at night wondering what this
:57:56. > :58:01.place is going to do to destroy her life. I was going to tell you more
:58:02. > :58:05.about Jenny Katie and others but these stories would only have impact
:58:06. > :58:07.if they were listened to by members opposite who displayed some
:58:08. > :58:12.compassion. It has been the case that most of the speeches today have
:58:13. > :58:17.moved into the realms of compassion, and I welcome that, but it is the
:58:18. > :58:22.compassion of the 300 members that are not here today that really
:58:23. > :58:26.concerns me. So, instead of considering how the cuts will affect
:58:27. > :58:31.Katie and Jenny, perhaps the benches opposite should consider how these
:58:32. > :58:37.cuts will affect them as MPs. What have they got to fear? One of the
:58:38. > :58:43.first changes they may notice, and we all may notice, is that our high
:58:44. > :58:47.streets start to struggle more than they are. High streets are
:58:48. > :58:52.struggling in my constituency and the removal of ?4.4 billion from
:58:53. > :58:55.people's pockets, these are not Internet bargain hunters but people
:58:56. > :59:04.who shop on a high streets, it'll compound a precarious situation. If
:59:05. > :59:09.we remove money from people who shop on our high streets, prepare, my
:59:10. > :59:14.honourable friends, for more charity shops. Members may begin to notice
:59:15. > :59:18.the police services in the local areas are busier than they used to
:59:19. > :59:23.be. And they might wonder why instances of crime have increased.
:59:24. > :59:27.It'll be because desperate people, young people with no hope, people
:59:28. > :59:32.disenfranchised from the communities in government, people like that
:59:33. > :59:38.often turn to crime. If we can mitigate these changes in full, it
:59:39. > :59:41.may well be cost-effective. Members may notice over the course of the
:59:42. > :59:46.next Parliament the performance of schools might begin to drop. Members
:59:47. > :59:52.may see them falling down the league tables and wonder why. This will be
:59:53. > :59:56.happening because hungry children do not learn well. Katie is beginning
:59:57. > :00:00.to really worry about Ollie's education as a result of these
:00:01. > :00:04.proposed cuts. The food budget will be the first thing that struggling
:00:05. > :00:08.families will cut and this will have an immediate impact on the
:00:09. > :00:13.educational achievements of the children in all of our
:00:14. > :00:17.constituencies. How many of the absent members on the opposite
:00:18. > :00:20.benched dining out? I suspect quite a few. Nice to have a range of
:00:21. > :00:25.different restaurants to choose from. Well, Madam Deputy Speaker,
:00:26. > :00:30.they did enjoy them while they can because these, too, would be under
:00:31. > :00:34.threat because the hospitality industry, in which I was brought
:00:35. > :00:38.up, depends upon a thriving local economy. Many of the people we
:00:39. > :00:41.welcome to Dumfries Galloway on holiday are people from the rest of
:00:42. > :00:48.the UK who can't afford to go abroad. People in receipt of tax
:00:49. > :00:51.credits. The holiday will be one of the first cuts from the annual
:00:52. > :00:58.budget. Do I need to continue? Make no mistake, these tax credits will
:00:59. > :01:02.have an impact on the absent Tory MPs, too. If the government cannot
:01:03. > :01:08.mitigate the cuts in full, they'll be responsible for the demise of all
:01:09. > :01:12.of our communities. The constituents of Tory constituencies will not
:01:13. > :01:16.thank them, and I doubt they will re-elect them. Madam Deputy Speaker,
:01:17. > :01:21.I look forward to hearing how the government will mitigate in full the
:01:22. > :01:30.very wide and far reaching effects of these unnecessary and wholly
:01:31. > :01:34.ideological cuts. Thank you, that Deputy Speaker, it is a great honour
:01:35. > :01:38.to follow the honourable member the Dumfries Galloway. I have been one
:01:39. > :01:40.of those who has visited that constituency on holiday and I
:01:41. > :01:47.remember one particular evening being bitten alive by midges. We had
:01:48. > :01:52.to escape on our car and smoke cigars to keep them away. Of course,
:01:53. > :01:56.there was nobody under the age of 18 in the car at the time. One very
:01:57. > :02:01.noticeable thing that happened earlier this month, which may not
:02:02. > :02:12.have come to people's attention, was that the IMF, not an organisation I
:02:13. > :02:16.have always had a lot of some lethal -- sympathy for made a statement,
:02:17. > :02:23.which was that excessive inequality damages growth. It damages the
:02:24. > :02:28.economy, and I think it is amazing, and very welcome, that the IMF has
:02:29. > :02:31.come to that conclusion. It has come to that conclusion not just in
:02:32. > :02:36.respect of developing countries but in respect of any country. In my
:02:37. > :02:45.opinion, tax credits have been a means of reducing inequality in this
:02:46. > :02:50.country. When I spoke last week, the opposition led debate last week, I
:02:51. > :02:54.urge the government to look again at this policy, and in particular the
:02:55. > :02:59.timing. I'm so glad the Chancellor has said he will do this and will
:03:00. > :03:01.bring forward measures. I'd like to pay particular tribute to my
:03:02. > :03:05.honourable friend the minister sitting in his place now because he
:03:06. > :03:11.has always been listening, and is a great credit to his position, as
:03:12. > :03:20.indeed has the Chancellor's PPS, sitting behind him. The honourable
:03:21. > :03:26.member for Kingswood, of course. I mentioned to other things. One was
:03:27. > :03:30.the predictability that income is about predictability. It isn't just
:03:31. > :03:36.about levels of income. If you can't predict your income, it is a great
:03:37. > :03:39.driver into relative poverty. We see that all over the world. Therefore,
:03:40. > :03:50.the proposals that were originally before us were to lead to cut soft
:03:51. > :03:54.10-15% without knowing what was going to happen, so getting a letter
:03:55. > :03:58.in December will turn two January for something happening in a couple
:03:59. > :04:04.of months, you will not have had opportunity to correct that. When
:04:05. > :04:07.you have a low income, things are more expensive. The inflation rate
:04:08. > :04:14.is much higher on low incomes than it is for people on higher incomes.
:04:15. > :04:21.You aren't buying products that come down in price, you are not going
:04:22. > :04:26.with easyJet on holiday, something which may have affected the
:04:27. > :04:32.inflation, and we need to bear that in mind. The inflation might be 0%,
:04:33. > :04:40.but it isn't 0% for people on the lowest incomes. I will give way.
:04:41. > :04:45.Would the honourable gentleman agree with me that poverty in this country
:04:46. > :04:50.is poverty of aspiration, and that the people we are talking about
:04:51. > :04:54.today are trying to work themselves out of that kind of poverty? If we
:04:55. > :05:01.see everything in terms of income, we are a poorer society, as John F.
:05:02. > :05:06.Kennedy once said. Honourable members have also talked about the
:05:07. > :05:09.fallacy of trickle-down economic. I've seen around the world when
:05:10. > :05:16.trickle down economics was supposed to be the way the poor would get
:05:17. > :05:20.richer. What we need is surge up economic speakers the people on the
:05:21. > :05:25.lower incomes spend the money locally, goes into taxes, it goes
:05:26. > :05:34.into VAT. Several hundred million of the 4.4 billion. So we have to
:05:35. > :05:38.remember the consequences on the effects of the local economy, the
:05:39. > :05:44.loss of the spending power. If one thing is to be reduced, then we must
:05:45. > :05:46.seize the other sources of income increase simultaneously. There is
:05:47. > :05:53.also the impact I mentioned last week and other honourable members
:05:54. > :05:56.have mentioned, those on fixed incomes, full-time carers, for
:05:57. > :06:00.example, who won't see rises in their income. They have no
:06:01. > :06:06.opportunity to work more hours most of the time. Also the impact on the
:06:07. > :06:09.self-employed and on farmers. In my constituency, they've seen milk
:06:10. > :06:13.prices fall. That is the only source of income, and they are reliant on
:06:14. > :06:19.tax credits as much as anybody else. Sometimes people see those who are
:06:20. > :06:25.asset rich, those delivering on milk week in week out, our wheat, their
:06:26. > :06:31.incomes are low and they rely on tax credits as well. I'd like to also
:06:32. > :06:38.look to the future. Other than the Macs have mentioned areas where we
:06:39. > :06:46.could raise the extra income to offset the cost of deferring the
:06:47. > :06:49.reductions in tax credits. I mentioned a couple last week and I
:06:50. > :06:53.won't repeat those. But I want to make a couple of points about the
:06:54. > :06:57.future. The first is about National Insurance. There's been talk about
:06:58. > :07:02.merging income tax and National Insurance. I think that would be a
:07:03. > :07:06.big Mac mistake. I believe it is incredibly important to have a
:07:07. > :07:10.progressive national, social National Insurance system into which
:07:11. > :07:14.people contribute, even at low incomes, perhaps at low rates, but
:07:15. > :07:19.which they feel they have a stake in, and to which they are entitled
:07:20. > :07:24.to receive benefits from, if the need arises. And I would urge that
:07:25. > :07:27.the government looks very closely at how instead of getting rid of
:07:28. > :07:31.National Insurance we can actually improve it, and improve the National
:07:32. > :07:36.Insurance system so that we are more like the German system, perhaps,
:07:37. > :07:41.where you contribute more into a National Insurance system but you
:07:42. > :07:47.have benefits when you are sick, and when you are out of work, and,
:07:48. > :07:52.eventually, when you retire. The second thing, Madam Deputy Speaker,
:07:53. > :07:58.is to look at our savings. We don't safe enough. That's a fact. Looking
:07:59. > :08:02.at other countries, like Italy, they are far better at saving. The
:08:03. > :08:08.Japanese are excellent saving. That's why when colleagues of mine
:08:09. > :08:12.and I produced a report calling on social stability last year, we
:08:13. > :08:19.emphasised the importance of introducing a lifetime's savings
:08:20. > :08:21.account which could be supported, perhaps, through tax-free
:08:22. > :08:25.contributions over the course of your lifetime which you to be able
:08:26. > :08:28.to draw down at particularly difficult points in your life, if
:08:29. > :08:33.you became seriously ill, if you are out of work, and could eventually be
:08:34. > :08:38.converted into part of your pension. What that would encourage people to
:08:39. > :08:44.do is put aside money, supported by the state, and that would be able to
:08:45. > :08:50.top up what are always paid out of the state system likely to be fairly
:08:51. > :08:57.basic though, hopefully, liveable off benefits. I welcome the
:08:58. > :09:01.Chancellor 's statement this week. I'd urge and to look at all the
:09:02. > :09:09.points made this week made by members on all sides. I thank the
:09:10. > :09:17.honourable member from Birkenhead for his initiative at bringing
:09:18. > :09:21.forward this debate. I think that as other members have said, this has
:09:22. > :09:28.been a very measured debate. It is in no small part, I have to say, to
:09:29. > :09:31.the way in which it started. And the contribution by the member for
:09:32. > :09:35.Birkenhead because he did approach this debate from the point of view
:09:36. > :09:40.that he is a problem which is going to affect many of those people in
:09:41. > :09:46.our constituencies who want to improve their lives to go out and
:09:47. > :09:53.work every day, and yet are going to be adversely affected by this
:09:54. > :10:01.proposal. And it deserves the kind of measured response, the thoughtful
:10:02. > :10:04.ideas which came forth from this debate, and he has set the standard
:10:05. > :10:09.which has probably been replicated by other members. Of course, a
:10:10. > :10:15.debate like this can lead to the kind of knock-about that you get in
:10:16. > :10:21.a confrontational parliament such as this. Some of us enjoy that. But I'm
:10:22. > :10:26.not so sure that it actually serves those whose lives are being affected
:10:27. > :10:34.by this proposal. And, given that, I think it is then important how the
:10:35. > :10:42.government responds to this debate. And... The government can real
:10:43. > :10:47.against the constitutional outrage of the House of Lords defying the
:10:48. > :10:56.House of Commons, the unelected house modifying the elected house.
:10:57. > :11:01.And can call for someone to get rid of the turbulent toffs down the
:11:02. > :11:08.corridor and come forward with minimal changes. I think that is a
:11:09. > :11:14.mistake. The second option, of course, is for the Autumn Statement
:11:15. > :11:20.to be used for the government to bring forward proposals which are
:11:21. > :11:25.perhaps minimalist in trying to deal with some of those who are uneasy on
:11:26. > :11:31.the backbenches but still don't address the real problems. Or to
:11:32. > :11:36.have a complete rethink and to involve those who wish to be
:11:37. > :11:43.involved constructively. It has been suggested here today the committees
:11:44. > :11:47.which could be used here, and, of course, the devolved administrations
:11:48. > :11:53.should not be exempt from this. In Northern Ireland, we have done
:11:54. > :11:58.extensive work for the northern island executive on the impact which
:11:59. > :12:04.to these changes are likely to have no wide range of groups. And I think
:12:05. > :12:05.that should feed into the data which the member for Birkenhead referred
:12:06. > :12:16.to in his comments. I think there's good reasons why the
:12:17. > :12:21.government should take a constructive approach. There is a
:12:22. > :12:28.wide spread recognition and as a spokesman for all parties here
:12:29. > :12:32.today, they do except that we cannot go on with a situation where
:12:33. > :12:39.taxpayers subsidise low wages from employers who could afford to pay
:12:40. > :12:44.more. -- spokesmen for all parties. That covers the whole basis of the
:12:45. > :12:47.government's policy, which is to rebalance the economy and there is
:12:48. > :12:52.now recognition that that needs to be done. And there is also a
:12:53. > :12:58.willingness to look at the issues that need to be addressed. Antidotes
:12:59. > :13:04.are the issues that need to be addressed, and the ones I need to
:13:05. > :13:11.highlight. One is a issue of timing. If we are going to make that change,
:13:12. > :13:15.then there has to be an assurance that the safety net, which is
:13:16. > :13:22.currently available to those who are low paid, is not removed until the
:13:23. > :13:26.problem of low wages has been fixed. I think that must be a central
:13:27. > :13:35.premise in any way in which this issue is addressed and... I will
:13:36. > :13:42.give way. Which he agree with me that issues like public sector pay
:13:43. > :13:48.must be looked at, and that it is the bedrock of our society, in terms
:13:49. > :13:54.of the public sector, like school cleaners and assistance in schools,
:13:55. > :13:58.which we all depend upon. And it will be addressed if we deal with
:13:59. > :14:03.the issue in the way I have suggested, like a safety net is not
:14:04. > :14:06.being removed until the issue of wages has been dealt with. And I
:14:07. > :14:11.think that's the first important principle. The second one is that we
:14:12. > :14:16.must be sure that we have identified all of the groups that are likely to
:14:17. > :14:22.be affected during the transition period. And one group which I have
:14:23. > :14:27.mentioned time and time again are those who will not be affected by
:14:28. > :14:33.the National Living Wage. The under 25 's. Many of them will have
:14:34. > :14:37.families, many of them, if we set the pattern at the very beginning of
:14:38. > :14:43.their working lives, if work doesn't pay, they will stay in their
:14:44. > :14:47.pattern. And it is important that that group is addressed and also
:14:48. > :14:51.that the families with children are addressed. And on that point, I
:14:52. > :14:57.would appreciate some answer from the Minister that childcare
:14:58. > :15:01.allowance and the extra childcare funding which is available. That is
:15:02. > :15:07.a devolved issue in Northern Ireland, but will there be a bonnet
:15:08. > :15:11.consequential, so that the same arrangements can be put in place as
:15:12. > :15:21.our suggested by the Chancellor for England and Wales -- attempt to
:15:22. > :15:32.consequential. -- tax credits consequential. There are some places
:15:33. > :15:36.where the market is buoyant. In those sectors and regions, of course
:15:37. > :15:41.an increase in the National Living Wage can be afforded. But there are
:15:42. > :15:45.other sectors and other regions where that may not be the case. And
:15:46. > :15:52.there is no point in simply saying let's treat everywhere, or the South
:15:53. > :15:59.East of England and the IT industry, or the banking industry, and then
:16:00. > :16:06.impose burdens on small businesses, retail sectors, they have all been
:16:07. > :16:12.identified here today. And we need to address the fact there is uneven
:16:13. > :16:16.performance across the economy. I will give way. I think we also have
:16:17. > :16:25.to pay some attention to the larger picture. When we look at the USA,
:16:26. > :16:34.the top 0.1% have as much as the bottom 9%. It goes to the top, where
:16:35. > :16:41.they have 350 times what an average worker can get. I suppose that
:16:42. > :16:45.brings me to the last point, how do you find all of this? It's a
:16:46. > :16:52.reasonable question and the Chancellor and Prime Minister asked
:16:53. > :16:57.it all the time. I'll be going to keep on borrowing? The one thing I
:16:58. > :17:07.do know, and I served as finance minister in Northern Ireland for
:17:08. > :17:12.four or five years, I can't count... Which doesn't help. But I remember
:17:13. > :17:19.in the very first year, the last government took over, the July
:17:20. > :17:25.Autumn Statement 5% was taken off our budget three months into the
:17:26. > :17:29.financial year. But it was still possible to find the changes which
:17:30. > :17:35.are required, because necessity required us to do that. We are
:17:36. > :17:39.talking about two thirds of a percent of the total budget for the
:17:40. > :17:49.UK, which has to be found to find that. If we decided to do nothing
:17:50. > :17:54.and keep on paying the tax credits, two thirds of a percent had to be
:17:55. > :18:02.found across the whole UK budget. No one is going to tell me that, with
:18:03. > :18:08.planning, that is not possible to do . The have been suggestions put
:18:09. > :18:12.forward. Different people have different political priorities as to
:18:13. > :18:18.where those cuts should can. But I believe it is doable, if there is
:18:19. > :18:22.the will. My fear is this, that the government can make, because it is
:18:23. > :18:26.cocky at the moment, the opposition is not in the best shape that it
:18:27. > :18:31.should be in. I'm not going to start making point about it. They're not
:18:32. > :18:40.in the best shape they should be. And the temptation will be to use
:18:41. > :18:45.the disarray to try and force things through. And we have heard it time
:18:46. > :18:48.and time again. We have got a majority for this in the House of
:18:49. > :18:53.Commons. That doesn't matter. The question is, will it be perceived as
:18:54. > :18:59.fair? If it is perceived as fair, then it will not have support across
:19:00. > :19:05.the country. That's regardless of what happens here. And my fear is
:19:06. > :19:09.this, that in doing so, the government, which of course is the
:19:10. > :19:14.Labour Party time and time again that they are unelectable, may well
:19:15. > :19:20.annoy people so much, and anger people so much, that the unelectable
:19:21. > :19:25.becomes electable. If people can judge whether that is a good thing
:19:26. > :19:30.or a bad thing. If the process of making that happen means that those
:19:31. > :19:34.who are these drivers in society, the low paid workers suffer, I don't
:19:35. > :19:43.believe that is a price worth paying. -- those who strive in
:19:44. > :19:48.society. Thank you. And the member was right when he was talking about
:19:49. > :19:54.that rush to get involved with a policy. And I think it is a real
:19:55. > :20:00.pleasure to be in the chamber today for that rarest of treat, where we
:20:01. > :20:07.are all furiously agreeing on the right thing to do, which is to make
:20:08. > :20:10.a radical change to this approach. And, on that bus that people have
:20:11. > :20:18.been on, it's like we are seeing that awakening of people, they have
:20:19. > :20:22.been slumbering at the back to find the driver is going to be driving
:20:23. > :20:27.them into a lorry. And I welcome it. The tone and contribution today
:20:28. > :20:31.has been terrific. And I think it's worth repeating, because it is such
:20:32. > :20:36.a rare thing to get in this environment. And I was cynical
:20:37. > :20:42.before I got here, and I think it's great that I am here today to be in
:20:43. > :20:47.this debate. So let's just talk about the basics, because a lot has
:20:48. > :20:50.been said today. All of it makes sense. All of us knows there has to
:20:51. > :20:55.be a change. The current policy means that more family will be
:20:56. > :21:03.driven below the poverty line. That there will be more children in
:21:04. > :21:09.poverty. That there is a clear dawn that minimum wage, members opposite
:21:10. > :21:12.that are calling the minimum wage, which it isn't, is not going to
:21:13. > :21:18.bridge the gap. It isn't going to bridge the gap that is going to be
:21:19. > :21:24.created by the people under the age of 25, who won't have the comfort of
:21:25. > :21:28.getting that even diminished living wage or minimum wage that is coming
:21:29. > :21:35.and, because it won't apply to them. And remember, who is not in his
:21:36. > :21:41.place at the moment, talks about the minimum wage cutting crime. -- the
:21:42. > :21:45.member. My friends talked about the effect of changing people's
:21:46. > :21:53.circumstance. If you create a bigger division, with earnings between
:21:54. > :21:59.people, you may find there is a problem. I don't believe that the
:22:00. > :22:04.outcomes that will be created by this policy have been taken into
:22:05. > :22:10.account by certain members in this house. The O N S have provided the
:22:11. > :22:19.Scottish Government with figures that see the 250,000 people are
:22:20. > :22:29.going to lose ?1500 a year, right away. And that rises to ?3000 when
:22:30. > :22:36.these measures are fully implemented. The Centre for Social
:22:37. > :22:41.Justice says household debt is at ?34 billion. That's a devastating
:22:42. > :22:48.cocktail of an outcome that is a possibility for us here if we do not
:22:49. > :22:52.make a change here to the policy. These things, when you put families
:22:53. > :22:56.under pressure, these things actually have a devastating effect,
:22:57. > :23:07.overwhelming stress affecting mental health, affecting work performance.
:23:08. > :23:10.There is an effect on productivity. And a strain on personal
:23:11. > :23:15.relationships. If you want to see more children going into care, this
:23:16. > :23:19.is a measure that could provide some of the stepping stones for that.
:23:20. > :23:24.When the effects of this bite, and we have been talking about when
:23:25. > :23:32.these effects are hit people, that is when we will see what is going to
:23:33. > :23:37.happen. None of us will have to stare into an empty cupboard. None
:23:38. > :23:42.of us will sit in the cold in our own homes, because we do. None of
:23:43. > :23:50.us, as a result, will lick at a pile of bills afraid to open them. --
:23:51. > :23:55.look at a pile. In my constituency, we have a unique problem of having a
:23:56. > :24:00.low-wage, low unemployment community. I say it's unique, but
:24:01. > :24:06.it's not, but it is a particular problem in our community. 7000 100
:24:07. > :24:13.children are going to be pushed further into poverty. -- 7100
:24:14. > :24:20.children. Coupled with the increased cost of living, will post 210,000
:24:21. > :24:24.children into care. We have had a drain of young people over the
:24:25. > :24:31.decades. We have encouraged people to stay and have larger families,
:24:32. > :24:35.and the two children cap is going to punish Highland families. And that
:24:36. > :24:42.will affect other constituencies in exactly the same way. So a big
:24:43. > :24:49.family tradition is being attacked. And China was mentioned earlier.
:24:50. > :24:53.This is an effect almost going into population control. The limits to
:24:54. > :25:03.two children are going to cost ?7.2 million. And the taper increase,
:25:04. > :25:08.?7.7 billion. We heard from my honourable friend earlier on a range
:25:09. > :25:13.of different measures to take to look at putting money back into the
:25:14. > :25:17.system. It doesn't all have to come from the welfare budget. That is an
:25:18. > :25:27.ideological approach. What we can do is make sure that we are not wasting
:25:28. > :25:33.money where you don't have too. The obscenity of looking seriously at
:25:34. > :25:37.spending ?167 billion on weapons of mass destruction that you can never
:25:38. > :25:42.use, because, if you do, it's mutually assured destruction, it is
:25:43. > :25:48.literally mad to consider it and you don't have the control... I will
:25:49. > :25:52.give way. Thank you. He hits an interesting point on the waste of
:25:53. > :26:02.money there is on the weapons of mass destruction programme. It never
:26:03. > :26:08.ending with the patriotism, but we are looking at a time when Britons
:26:09. > :26:18.cannot live greatly. Some will be in terrible poverty. It will affect the
:26:19. > :26:22.poor of the country as well. I couldn't agree more. When we look at
:26:23. > :26:26.the choices, the choices that we are asked to make in this place, and it
:26:27. > :26:32.was mentioned earlier, these choices are made now we decide to do this or
:26:33. > :26:37.that, is the effective on people further the line and that kind of
:26:38. > :26:40.excess, that kind of nonsense, when you actually are talking about
:26:41. > :26:51.people looking into empty cupboards, sitting in the cold, is just an
:26:52. > :26:55.obscenity. And I am grateful to the motion in the House of Lords the
:26:56. > :27:01.other night that change the course of things to allow us to have this
:27:02. > :27:08.debate, it only delays thinks, but I am grateful for it. But if we want
:27:09. > :27:12.to make savings, that could actually make a difference and we want to
:27:13. > :27:16.have a better system of democracy in this country, then that other place
:27:17. > :27:23.should and must go. You should not be inflated -- should not have an
:27:24. > :27:26.inflated other place, with people claiming ?300 a day, when other
:27:27. > :27:33.people are having their benefits cut. I will give way.
:27:34. > :27:44.What see as surprised as I was to see some of those perhaps signs of
:27:45. > :27:52.socialism? Seven Labour peers voted with the Tories for these obscene
:27:53. > :27:58.welfare measures. It is an incredible thing to note. It is
:27:59. > :28:03.worth repeating in this house today. I think there are lots of measures,
:28:04. > :28:08.there are lots of measures the UK government could take. They don't
:28:09. > :28:14.have to continue down an ideological path to actually look at how do you
:28:15. > :28:19.make sure we are taking money from the people that can least afford it
:28:20. > :28:24.in order to make sure other people are able to enjoy more of the finery
:28:25. > :28:30.they've had. We mustn't do that. The words that have been spoken today
:28:31. > :28:33.have been worth listening to. And I hope that the UK government will
:28:34. > :28:41.take this away, that the minister today will take these thoughts he is
:28:42. > :28:43.heard behind his head and in the chamber today into account and
:28:44. > :28:48.persuade the Chancellor to come back with something that is radically
:28:49. > :28:51.different, and supports people. Supports people in our
:28:52. > :29:03.constituencies, people who will be badly affected if this isn't changed
:29:04. > :29:06.dramatically. I'd like to thank the honourable member for Birkenhead to
:29:07. > :29:09.thank the honourable member for Birkenhead visit during this very
:29:10. > :29:12.important debate. When I voiced my opposition to cuts to tax credits
:29:13. > :29:21.back in July, I spoke of how the cuts would hit the poorest hardest.
:29:22. > :29:27.I spoke of how in my constituency of Edmonton, 72% of people receive tax
:29:28. > :29:31.credits. Over 42% of children live in relative poverty. So, you can
:29:32. > :29:38.well imagine how worried I am for those constituents who, I am sure,
:29:39. > :29:43.are watching now. The latest analysis from the Resolution
:29:44. > :29:55.Foundation projects that over 200,000 more children will be in
:29:56. > :30:00.poverty by 2016 if these unbelievable role... I can't even
:30:01. > :30:05.get the word is out because I'm so upset about this. It is going to
:30:06. > :30:08.affect people that I represent. The government has done nothing to
:30:09. > :30:15.assess the impact on cuts and how it is going to affect children. Indeed,
:30:16. > :30:18.the changing definition of child poverty in the Welfare Reform and
:30:19. > :30:23.Work Bill totally fails to capture the true extent of child poverty. To
:30:24. > :30:30.be clear, two thirds of children in poverty live in households where
:30:31. > :30:45.women and men actually go to work. The situation for Edmonton, ranked
:30:46. > :30:51.the six constituency with the third highest child poverty. It'll be felt
:30:52. > :30:57.across the country. The IFA 's has shown that nearly 3.2 million
:30:58. > :31:02.working families on benefits or tax credits only stand to gain an
:31:03. > :31:09.average of ?200 from this so-called national living wage. Whereas they
:31:10. > :31:16.stand to lose over ?750 per year because of benefits and the tax
:31:17. > :31:21.credit cuts. Also, this personal tax allowance does nothing to address
:31:22. > :31:30.the low paid, and won't help those earning below ?10,000. The value of
:31:31. > :31:35.free childcare and to tax credit recipients is also very limited. And
:31:36. > :31:39.hasn't been thought out. Because the reason I say it hasn't been thought
:31:40. > :31:43.out is because I've had words with the National Association of head
:31:44. > :31:47.teachers, and they've said, after speaking with their members, that
:31:48. > :31:52.they are worried about the intake, and will they be able to expand to
:31:53. > :31:58.take more children. So this needs to be thought out as well. So, to paint
:31:59. > :32:01.these reforms as a valid replacement rather than a necessary
:32:02. > :32:08.accompaniment to tax credits is quite untrue. The government has
:32:09. > :32:13.broken its election promise, and is basically betraying the very people
:32:14. > :32:18.it claims to represent. What I am calling for is the government to
:32:19. > :32:21.reverse the cuts to tax credits. The evidence is against them. We've
:32:22. > :32:29.heard it from all sides of the chamber. It is plain to see that it
:32:30. > :32:33.isn't going to work. It isn't going to work because so many people are
:32:34. > :32:38.going to be living in poverty. And I am sure this isn't what this
:32:39. > :32:43.government is here for. If it is, it needs to think again. We also need
:32:44. > :32:49.to think about our constituencies, and think about the surgeries we all
:32:50. > :32:52.sit in and listen. Listen hard to those people who come and tell you
:32:53. > :32:56.how worried they are, and how they don't know how they are going to
:32:57. > :33:03.survive, and how they're going to look after their children. We saw a
:33:04. > :33:07.woman in Question Time crying that she'd voted for a party and that
:33:08. > :33:11.you'd let her down. It's time to stand with the people you represent.
:33:12. > :33:22.I'm going to end by saying pushing ahead with these planned disgraceful
:33:23. > :33:25.plans... Let me put it straight to you, if you try to do this and put
:33:26. > :33:30.them forward, you're only going to show those people that want to go
:33:31. > :33:35.out and work that it doesn't pay to go out and work. And I think you
:33:36. > :33:45.need to look and think deeply about the decision to take these cuts
:33:46. > :33:49.forward. Thank you, Mr Speaker. Mr Speaker, I'd like to thank the
:33:50. > :33:56.honourable member from Birkenhead for securing this debate today. I'd
:33:57. > :34:00.like to also like to applaud the other place for what they did the
:34:01. > :34:07.other night. I'm not in favour of an unelected chamber, which means mean
:34:08. > :34:14.need a second chamber but unelected chamber. I've said before that my
:34:15. > :34:19.constituency suffers the seventh highest employment poverty. And the
:34:20. > :34:27.11th highest income poverty. I have 5800 families would 8800 living in
:34:28. > :34:31.poverty and at work. The school where I am a governor, there are 400
:34:32. > :34:41.children who take free breakfast in the morning. They take it because
:34:42. > :34:44.they need to. We chose to do that because our children couldn't learn
:34:45. > :34:47.because they were hungry. That is why we did it. They couldn't
:34:48. > :34:55.concentrate to learn, which is why we did it. It makes my blood boil,
:34:56. > :34:58.Mr Deputy Speaker, when I heard today a member from the opposition
:34:59. > :35:07.benches talk about people choosing to be part time zero our contract on
:35:08. > :35:15.16 hours or something like that, and other people said they should get
:35:16. > :35:19.another job to get going. I have to represent hard-working people. There
:35:20. > :35:22.are families, men, that went into the bowels of the earth to get
:35:23. > :35:27.called to make the industry work, and many of those men are still of
:35:28. > :35:32.employment age. Many of them on zero our contract. They know what hard
:35:33. > :35:37.work is, and they don't mind it. They miss the, Rhodri of those
:35:38. > :35:40.colleagues, but they look to work hard and earn their money. Many of
:35:41. > :35:47.them worked in class furnaces. I want to tell a tale about a glass
:35:48. > :35:56.furnace. It closed two years ago, the last one where I worked. 120 men
:35:57. > :36:00.lost their jobs, and they were secured employment with the help of
:36:01. > :36:05.their employer, a very large multinational car manufacturer. In a
:36:06. > :36:09.neighbouring constituency. They got employment because they were skilled
:36:10. > :36:17.workers, hard workers, that could use technology, drive vehicles in
:36:18. > :36:21.the factory, and they were told ?10 an hour, not the rate the other
:36:22. > :36:25.workers were on. They worked for 12 months, and then you'll get a
:36:26. > :36:30.permanent contract with this employer on their rate of pay. Just
:36:31. > :36:40.weeks before that 12 months arose, they came home from work, hundred
:36:41. > :36:43.and 20 of them, and on the Friday, on the Saturday they received calls
:36:44. > :36:51.they weren't needed on the Monday. That was after just tend and a half
:36:52. > :36:55.-- ten and a half months of employment. A few of them got calls
:36:56. > :37:01.after a weeks. There was extra work and they could give them work until
:37:02. > :37:06.this Christmas. And they went back. They hadn't been able to find other
:37:07. > :37:11.work. They went back to those jobs. They got three weeks. Within the
:37:12. > :37:16.week 's previous to that, many of them were in rented accommodation.
:37:17. > :37:19.They'd phoned every week to the housing association explaining their
:37:20. > :37:23.benefits hadn't changed. That he benefits hadn't come through. One
:37:24. > :37:27.thing I'd say is that universal credit will make it simpler because
:37:28. > :37:33.they were waiting for housing benefit, council tax assistance,
:37:34. > :37:36.child tax credit, and working tax credits. Each one comes through
:37:37. > :37:41.separately. They hadn't been able to pay the rent. They rang the housing
:37:42. > :37:47.association, and then one woman rang me literally in tears. Had to go
:37:48. > :37:54.around. She had got a notice of possession. We sorted that one out,
:37:55. > :37:59.and we sorted another few out, and we secured some mechanism that that
:38:00. > :38:02.won't happen, that she would ring the number regularly if it happened.
:38:03. > :38:10.When they were offered these jobs back to Christmas, they lasted three
:38:11. > :38:14.weeks. So back they go again to applying for all these tax credits.
:38:15. > :38:23.These are not people who choose to work on zero our contract or agency
:38:24. > :38:28.work. One of the chaps, the woman's husband, he got a call a few weeks
:38:29. > :38:35.ago that you've got a job with an agency. He says, you can't get a job
:38:36. > :38:41.without an agency. He'd got a call that he'd got a job. He was made up.
:38:42. > :38:47.He got a call 30 minutes later that he had to work two weeks free
:38:48. > :38:51.without pay, and then he would be guaranteed an interview for a job.
:38:52. > :39:00.Thank goodness his wife wouldn't let him go. Modern day slave. That same
:39:01. > :39:07.gentleman has two weeks work with pain now and has gone off to do it.
:39:08. > :39:13.Mr Deputy Speaker, what I would ask the Chancellor is to give due
:39:14. > :39:17.consideration to the 700,000, three quarters of a million people, on
:39:18. > :39:23.zero our contracts, and to the hundreds of thousands of people in
:39:24. > :39:30.agency work. Something simply must happen. These agency workers are
:39:31. > :39:35.exploiting unemployed people. It is modern day slavery what is going on
:39:36. > :39:41.in this country. Implement has risen, yes, it has, but I wonder how
:39:42. > :39:45.many members in this chamber realise that one-hour's work in a month
:39:46. > :39:53.counts as being in employment. I couldn't believe it, but it is true.
:39:54. > :40:01.There has been 400,000 increases in the number of people claiming
:40:02. > :40:10.housing benefits. That is despite the bedroom tax and the cap. Why is
:40:11. > :40:20.that? It is because wages are going down, not up. We have 4,300,000
:40:21. > :40:24.earning less than the living wage. There is a national shortage of
:40:25. > :40:29.heavy goods vehicle drivers. Can anyone get training? Many of these
:40:30. > :40:33.men have asked for it. I've told them there is a national shortage.
:40:34. > :40:40.They asked at the unemployment exchange can they be trained? No.
:40:41. > :40:47.What they did do was they send some way to get retrained or get up
:40:48. > :40:50.skilled on stacker truck drivers. They were sanctioned whilst on that
:40:51. > :40:53.course because they didn't turn up somewhere. This is the same people
:40:54. > :41:00.who set up the training sanctioned them for not turning up. So, Mr
:41:01. > :41:04.Deputy Speaker, my question is that the Chancellor doesn't play games
:41:05. > :41:15.with this mitigation, and that he puts a stop on this tax credit
:41:16. > :41:20.change, puts a stop, listens to the many excellent contributions given
:41:21. > :41:24.today, and to please, please give consideration to how we can protect
:41:25. > :41:30.those hard-working people who want to work, who are being punished on
:41:31. > :41:34.zero our contracts, and through being agency workers. That is my ask
:41:35. > :41:46.of the Chancellor, Mr Deputy Speaker. Thank you.
:41:47. > :41:51.I am delighted we have the opportunity to hold the government
:41:52. > :41:56.to account. I would like to thank all the speakers who have argued
:41:57. > :42:04.that they must change course and I pay tribute to those on the
:42:05. > :42:11.government wenches who have said wise words. -- government benches.
:42:12. > :42:14.Why are we here again discussing tax credits? The government has got
:42:15. > :42:21.itself into a mess and it needs to find a way out of it. These
:42:22. > :42:23.proposals, which have now been passed through the statutory
:42:24. > :42:38.instrument and passed through the other place, are not right. --
:42:39. > :42:45.rejected in the other place. There is no economic or moral or ethical
:42:46. > :42:50.rationale as to why we need to rip 4.3 billion out of the programme.
:42:51. > :42:57.Let's look at what the impact will do. And perhaps we can start with a
:42:58. > :43:03.quote from the Adam Smith Institute, much loved by the government benches
:43:04. > :43:08.in the past. "Working tax credits are the best form of welfare we have
:43:09. > :43:13.and cutting them would be a huge mistake. The government has long
:43:14. > :43:17.claimed to want to make work pay for everyone, but cutting tax credits
:43:18. > :43:27.would this incentivise work and hurt those at the bottom of society." The
:43:28. > :43:35.average negative impact amounts to ?1300 in 2016 and 2017, and impact
:43:36. > :43:39.of around ?25 a week on family budgets. There was a line in the
:43:40. > :43:43.period of Margaret Thatcher's government that if it wasn't
:43:44. > :43:46.hurting, it wasn't working. Well, this is going to hurt and hurt
:43:47. > :43:54.millions of families throughout the country. Is that what we want to
:43:55. > :43:57.do? Is this right? Is it fair? Let's have a real debate about improving
:43:58. > :44:03.living standards, but also recognition that we have to reverse
:44:04. > :44:12.the growing inequality in the UK. Driving sustainable economic growth
:44:13. > :44:17.on a fairer society negates the need for tax credits cuts. I thank him
:44:18. > :44:20.for giving way and he makes a very persuasive case that he is
:44:21. > :44:24.absolutely right that this will negatively impact some of the
:44:25. > :44:30.poorest families. Does he agree with me that this will also
:44:31. > :44:34.disproportionately affect the B and E communities? I thank him for his
:44:35. > :44:47.intervention and he often speaks up for those in the BME communities. It
:44:48. > :44:53.is those who will feel the impact. And others in the land. This must be
:44:54. > :45:03.stopped, regardless of where they come from. We keep hearing that we
:45:04. > :45:09.cannot afford this. Is the reverse is true. We cannot keep doing this
:45:10. > :45:16.to families. We all want to reduce the deficit and national debt. We
:45:17. > :45:21.need to drive economic growth to improve our financial position. You
:45:22. > :45:25.don't do that by taking 4.4 billion out of the economy. It's the failure
:45:26. > :45:39.to deliver growth, that constrains our ability to reduce the debt. If
:45:40. > :45:41.the government 's policy had worked, the Bank of England would not be
:45:42. > :45:48.intervening in the way it had, so-called quantitative easing. When
:45:49. > :45:55.we talk about our debt crisis and the need to reduce spending, we seem
:45:56. > :46:02.to airbrush away that we owed 370 billion to ourselves. Debt created
:46:03. > :46:08.by ourselves. We on these benches understand that quantitative easing
:46:09. > :46:16.was necessary. Can I add that the financial markets have benefited
:46:17. > :46:27.massively from this. The FTSE 100 index was -- is at 370. The Bank of
:46:28. > :46:31.England have acknowledged that those with financial assets have benefited
:46:32. > :46:36.enormously from the quantitative easing programme over the last six
:46:37. > :46:45.years. And if you look at the benefits, 40% have gone to the top
:46:46. > :46:51.5% of our society. Don't talk to us about all of us being in this
:46:52. > :46:56.together. This is important as if I am being charitable, the outcome of
:46:57. > :47:00.policy has been to enhance the quality and we are here today being
:47:01. > :47:05.told that the poor, and the working poor, must pay the price in a desire
:47:06. > :47:13.to balance the books. It is unfair and wrong. Yesterday at Prime
:47:14. > :47:17.Minister's Questions, the Prime Minister said that printing money
:47:18. > :47:22.and putting up taxes, it is working people like Karen that are paying
:47:23. > :47:26.the price. Perhaps I should point out to him that it is his government
:47:27. > :47:33.with quantative easing that have been printing money and that tax
:47:34. > :47:41.credits cuts are a reality -- in reality an increase for Karen. Those
:47:42. > :47:48.who have benefited from quantative easing programmes, are now getting
:47:49. > :47:53.an additional bonus through the changes to inheritance tax. Where is
:47:54. > :48:00.the social justice and social cohesion from what we should be
:48:01. > :48:11.striding to deliver? In the spirit of cooperation, let me help the
:48:12. > :48:16.government. Well done. As he says. A report of the House of Commons
:48:17. > :48:22.committee of Public accounts yesterday said that high levels of
:48:23. > :48:28.benefit and tax cuts fraud remain unacceptable. They cost every
:48:29. > :48:33.household around ?200 a year and most money that government could
:48:34. > :48:43.spend on other things. Since 2010, both departments, talking about two
:48:44. > :48:53.different ones have made progress, particularly Hatem RC. However, the
:48:54. > :49:06.WP and hate RC still owed claimants by 4.6 billion because of fraud and
:49:07. > :49:14.error. -- DWO and HMRC. It's just goes to show that if they weren't
:49:15. > :49:21.making errors in overpayments, this could be used to protect low income
:49:22. > :49:30.families. -- DWP and HMRC. Let me say to them, cut out the mistakes
:49:31. > :49:35.and you have achieved the savings, don't go after the poor. Eliminate
:49:36. > :49:42.fraud and mistakes and it's job done. The economic policies of the
:49:43. > :49:47.government have created inequality and the result is that the poor are
:49:48. > :49:50.having to pay again. Before Christmas, and letters will be
:49:51. > :49:56.delivered to our constituents, who receive tax credits informing them
:49:57. > :50:03.of the cuts that they will receive next April. As my honourable friend
:50:04. > :50:11.says, "happy Christmas from Ebenezer Osborne." They will come to other
:50:12. > :50:19.surgeries in despair as to how they are to make ends meet. Let me turn
:50:20. > :50:23.to the proposals that have come from the Honourable member for
:50:24. > :50:25.Birkenhead. I commend them from seeking a way out of the
:50:26. > :50:33.difficulties that government is facing. The plan would involve
:50:34. > :50:38.introducing a secondary earnings threshold. That would be paid for by
:50:39. > :50:44.a steeper withdrawal rate for those earning above the new minimum rate.
:50:45. > :50:50.But I say to him that we do not agree that those earning less than
:50:51. > :50:56.13,000 should be protected, all of those who receive tax credits should
:50:57. > :50:59.be protected. It is admirable but those earning modest amounts will be
:51:00. > :51:05.protected, but those of modest means are still going to be hit. Take the
:51:06. > :51:12.example of a family with two children and gross earnings of
:51:13. > :51:22.?20,000, who was still lose over ?1000. This is not acceptable. The
:51:23. > :51:29.tax credits should be -- tax credits cuts should be stopped. It should be
:51:30. > :51:33.reversed in full. You are aware that I am new on this is the second time
:51:34. > :51:38.I have been let loose at the dispatch box this week. I had the
:51:39. > :51:42.pleasure of facing the member for South West Hertfordshire and today I
:51:43. > :51:47.am facing the member for East Hampshire for what I hope will be
:51:48. > :51:51.the first of many lively debates. I would like to thank the backbench
:51:52. > :51:55.business committee, the Birkenhead and member and the other members who
:51:56. > :52:01.have secured this very important debate. I would like to place on
:52:02. > :52:04.record my thanks to the eye of S and the resolution foundation and other
:52:05. > :52:16.groups for their work on today's issue. -- IFS. We have heard many
:52:17. > :52:20.issues today. The Birkenhead member stated his case very eloquently,
:52:21. > :52:26.saying that these reforms next April will not be acceptable and the
:52:27. > :52:35.government must carry out due diligence reports on this. I also
:52:36. > :52:44.commend the member in making his comments today in that he realised
:52:45. > :52:48.his previous no cost report on -- reform suggestions will create a
:52:49. > :53:00.higher penalty. This is the beauty, we will change our man -- our minds.
:53:01. > :53:05.I emphasised that I put forward one idea to begin initiating debates. I
:53:06. > :53:09.put three others today and I hope they are not going to use that as a
:53:10. > :53:15.cop out for not giving a very clear message to the government on the
:53:16. > :53:21.very point she has just made. I thank him for his intervention. I
:53:22. > :53:26.also highlight the comments that the member made earlier, stating that
:53:27. > :53:31.the people we should be saluting and CHEERING are sick with worry at the
:53:32. > :53:41.moment. Countless members of an opposite members -- opposite members
:53:42. > :53:45.condemned this. We heard the member for Stevenage saying he didn't feel
:53:46. > :53:49.he could support this, because he had frightened families coming to
:53:50. > :53:53.his surgeries. We heard from another who said we needed to look at this
:53:54. > :53:58.does not penalised the very poorest does not penalised the very poorest
:53:59. > :54:02.in society. Then we heard from another who said that everything he
:54:03. > :54:07.believes in as a conservative is to get people into work, but there's a
:54:08. > :54:14.real risk that these proposals will do the opposite. Then we heard from
:54:15. > :54:18.another who said this policy was a mistake and highlighted the absence
:54:19. > :54:25.of a proper impact statement. Then we had a change from this kind of
:54:26. > :54:29.dialogue from another member. He was one of the members who applauded the
:54:30. > :54:34.Chancellor and championed some of the measures that the government
:54:35. > :54:39.would use to offset the tax credit losses. We heard from the member for
:54:40. > :54:43.Colchester who supported the call for mitigation, the member for
:54:44. > :54:50.Twickenham who supported high wage claims, but that the members at the
:54:51. > :54:56.end should be protected. -- people at the end. And then, the member for
:54:57. > :55:03.Harrow East who supported an amendment of the proposals. Another
:55:04. > :55:12.said they needed to reconsider the pace of change. We heard from a
:55:13. > :55:17.member who said a review was needed and transitional support was needed.
:55:18. > :55:21.The member for Torbay supported the motion because his family was rich
:55:22. > :55:25.in love growing up but poor in money and he realise the effect the
:55:26. > :55:33.proposals may have an aspiration in the long term. Then we heard from
:55:34. > :55:38.the member for Stafford, who cited JFK, saying if we see everything in
:55:39. > :55:47.terms of income, we are a pro rata society. He made some very
:55:48. > :55:54.refreshing comments. -- a poorer society. From this side, we heard
:55:55. > :56:00.from the Darlington member, saying the fear is out there already and
:56:01. > :56:07.the government must act quickly. Then another said the distribution
:56:08. > :56:12.will impact were aggressive. Then another member said his mailbag was
:56:13. > :56:18.full of letters from people who were terrified of what was to come. And
:56:19. > :56:23.another said we need to build an economy where families don't need to
:56:24. > :56:29.rely on tax credits, but it is a mistake to take from them before
:56:30. > :56:32.their wages have risen. The member for Ealing Central and Acton said
:56:33. > :56:35.the Chancellor could still change his mind and we would welcome that
:56:36. > :56:41.on this site and the member for Lewisham and Deptford said the risk
:56:42. > :56:48.is to struggling families and they may fall into debts. -- on this
:56:49. > :56:56.site. We also heard from the member for Nottingham, and I had to say I
:56:57. > :56:59.share his sentiments, said that the debate was lovely and is a
:57:00. > :57:02.collective of all the sensible people and the government should
:57:03. > :57:10.maybe have done it this way in the first place.
:57:11. > :57:15.Then the member for Saint Helen 's south and west and who outlined
:57:16. > :57:20.quite worryingly that her constituency was the seventh highest
:57:21. > :57:24.in terms of unemployment poverty. Then we also heard from the
:57:25. > :57:30.honourable members who confirmed that we can do much better than
:57:31. > :57:33.this. Then another honourable member who highlighted the disincentive
:57:34. > :57:41.biasing effect and the impact of under 25s. And the member who asked
:57:42. > :57:47.to revisit the government's tax avoidance policies. And the worry
:57:48. > :57:58.that the local economy might be affected by tax credits because
:57:59. > :58:04.those on low pay our more likely to holiday in Dumfries Galloway, his
:58:05. > :58:07.constituency. Another member highlighted household debt issues
:58:08. > :58:14.and potential to exacerbate a serious problem. And the member who
:58:15. > :58:18.said we need to drive a sustainable economic growth and you don't do
:58:19. > :58:24.that by taking 4.5 billion out of the economy. Now, the motion before
:58:25. > :58:28.the house today is timely in light of the events which occurred in the
:58:29. > :58:32.other place this week and I make clear that we support the position
:58:33. > :58:36.of our noble friends that these proposals shouldn't go ahead.
:58:37. > :58:39.Certainly until there has been a proper consultation, a government
:58:40. > :58:45.response to the distributional analysis conducted by the Institute
:58:46. > :58:48.for Fiscal Studies, mitigation reform and withdrawal if
:58:49. > :58:50.appropriate. From the names on the motion and the contributions we've
:58:51. > :58:56.heard across the chamber today, it is widespread pressure which spans
:58:57. > :59:02.all parties. For the government to firstly carry out and publish a
:59:03. > :59:06.detailed impact assessment of the impact of cuts to tax credit and
:59:07. > :59:10.then to detail proposals which will ensure that no family is worse off.
:59:11. > :59:14.We are clear on the side of the house that is the government commits
:59:15. > :59:18.to ensuring that no family will be worse off as a result of amended
:59:19. > :59:23.proposals, we will put the interests of those families above party
:59:24. > :59:26.political considerations, and we won't attack the government for
:59:27. > :59:31.doing so. Quite frankly, I cannot think of any recent occasion when
:59:32. > :59:34.any opposition has made such an offer, so I would call upon the
:59:35. > :59:39.Minister to truly listen to the contributions today. This house is
:59:40. > :59:43.at its best when we use the power of debate to convince other members to
:59:44. > :59:46.believe on the merits of a particular argument regardless of
:59:47. > :59:50.our ideologies. On rare occasion such as today, we do actually reach
:59:51. > :59:55.a consensus in this house over certain issues. I hope the Minister
:59:56. > :59:59.and members present will agree that the government's Liz Young tax
:00:00. > :00:04.credits links to be reviewed and changed. To anticipate what he might
:00:05. > :00:10.say in response, the Minister and myself agree on one point. It is
:00:11. > :00:14.necessary to reduce the deficit over the economic cycle. Where we
:00:15. > :00:18.disagree, however, is the economic strategy used to achieve this. And I
:00:19. > :00:24.don't believe that the government's plans achieve that goal either
:00:25. > :00:32.fairly or effectively. In fact, over the long-term, the savage cut would
:00:33. > :00:37.achieve quite the opposite. As we have been reminded, the prime
:00:38. > :00:40.minister denied any need or and to cut tax credits during the election.
:00:41. > :00:44.The Minister must understand therefore that members of the
:00:45. > :00:49.public, especially those that voted Conservative, are quite rightly very
:00:50. > :00:54.angry. Cuts to tax credits would mean that more than 3 million
:00:55. > :00:58.families would be on average ?1300 worse off next year. Some working
:00:59. > :01:07.families will be losing nearly ?3500 a year. ?2.5 billion has been found
:01:08. > :01:11.for an inheritance tax cuts benefiting the wealthiest 4% of
:01:12. > :01:17.people in this country yet, at the same time, ?4.5 billion is being
:01:18. > :01:22.taken out of the pockets of low and middle income families. The
:01:23. > :01:26.Treasury's and analysis and that of the Resolution Foundation shows that
:01:27. > :01:31.cuts to tax credits based on the current proposals would put another
:01:32. > :01:36.200,000 children into poverty. Already half a million more children
:01:37. > :01:40.are in poverty today than in 2010. We are told by the government that
:01:41. > :01:45.cuts to tax credits would be compensated by the so-called living
:01:46. > :01:49.wage. Let me be clear on this - they will not. In fact, the Institute for
:01:50. > :01:52.Fiscal Studies made it quite clear that the increase in the minimum
:01:53. > :01:56.wage cannot provide full compensation for the majority of
:01:57. > :02:01.losses that will be experienced. It'll just be arithmetically
:02:02. > :02:05.impossible. We are grateful for their analysis because the
:02:06. > :02:08.government has refused to publish an adequate version of their own. And
:02:09. > :02:13.the research shows further that because of the different profile and
:02:14. > :02:16.scale of families and individuals on the minimum wage versus those in
:02:17. > :02:20.receipt of tax credits, an increase in the minimum wage, although
:02:21. > :02:23.welcome, went to mitigate the effects of these cuts and the
:02:24. > :02:28.average family will still be significantly worse off. And, of
:02:29. > :02:31.course, the rise in the minimum wage was accompanied by ?4 billion worth
:02:32. > :02:37.of giveaways in cuts to corporation tax. We are also told that the
:02:38. > :02:40.government will compensate for losses to income by providing 30
:02:41. > :02:46.hours free childcare for three and four-year-olds. In my own
:02:47. > :02:50.constituency of Salford and Eccles, our Labour council already provides
:02:51. > :02:53.25 hours of free childcare but demand outstrips supply. The
:02:54. > :02:59.preschool learning Alliance has warned that councils are paying
:03:00. > :03:03.childcare providers insufficient hourly rates to provide the existing
:03:04. > :03:08.hours of free childcare and going up to 30 would push many providers to
:03:09. > :03:11.breaking point. If the minister intends to site childcare as the
:03:12. > :03:15.answer to tax credit cuts, perhaps he can confirm the 30 hours scheme
:03:16. > :03:21.will be properly funded and won't push providers to the limit. In
:03:22. > :03:25.conclusion, in my constituency over 61% of families are receiving tax
:03:26. > :03:40.credits. They are not the so-called scroungers we hear about. They are
:03:41. > :03:43.men and women working hard trying to build a future for themselves and
:03:44. > :03:45.children. They are trying to live their children out of poverty and
:03:46. > :03:47.provide them with the nourishment and financial support they need. So
:03:48. > :03:50.maybe, just maybe, they won't have to suffer the same hardship their
:03:51. > :03:52.parents team. There is no equivalent British dream. They work hard and
:03:53. > :03:55.get nowhere. Low-paid and skilled work is the order of the day for
:03:56. > :03:59.many. For some, it's a case of trying to build up a business to be
:04:00. > :04:03.proud of. For some, they juggle work with the responsibility of caring
:04:04. > :04:07.for loved ones. The government's claims tax credit cuts won't cause
:04:08. > :04:12.any family to be worse off do not stand up to scrutiny. These families
:04:13. > :04:20.deserve a future and, as such, we will support this motion. I'm
:04:21. > :04:22.grateful as ever to have the opportunity to respond to this
:04:23. > :04:26.debate on behalf of the government and I must start by thanking most
:04:27. > :04:32.sincerely the chairman of the select committee, the Right Honourable
:04:33. > :04:35.gentlemen, the member for Birkenhead, his expertise and
:04:36. > :04:43.commitment are well-known and respected. I I look forward to many
:04:44. > :04:52.opportunities to debate over these dispatch boxes with the member for
:04:53. > :04:57.Salford and Eccles. The government is listening. And this debate forms
:04:58. > :05:01.an important part of that process. I've heard the argument put forward
:05:02. > :05:05.by Honourable members today. We are all united in wanting to implement
:05:06. > :05:08.policies to deliver the best possible settlement for our
:05:09. > :05:14.constituents. Now, in the near future and for generations to come.
:05:15. > :05:18.This covenant's belief, Mr Speaker, underpins every aspect of our
:05:19. > :05:22.policies, will that without is honoured bases of economic
:05:23. > :05:25.stability, you can't protect the security of the nation. When
:05:26. > :05:29.economic stability is lost, the entire system falls apart and, as a
:05:30. > :05:34.rule, those who end up losing most of those who started with the least.
:05:35. > :05:39.Mr Speaker, I acknowledge as does my honourable friend the Chancellor the
:05:40. > :05:43.concerns expressed today and elsewhere and earlier by members of
:05:44. > :05:45.this house. The Chancellor has said he has listen to concerns from
:05:46. > :05:48.colleagues and will come forward with proposals in the Autumn
:05:49. > :05:52.Statement to achieve the goal of reforming tax credits, saving money
:05:53. > :05:57.needed to secure our economy while at the same time helping in the
:05:58. > :06:00.transition to these changes. In that context, I fear today I'm not
:06:01. > :06:04.telling the house too much that is new. But I respect the reasons that
:06:05. > :06:09.Honourable members have wished to bring forward this to bait. I and
:06:10. > :06:18.others have spoken at length in the past about how tax credits went out
:06:19. > :06:22.of control, how costs trebled and ended up costing ?30 billion. And
:06:23. > :06:26.about how the level of in work poverty rose over that same period.
:06:27. > :06:30.Mr Speaker, reforming welfare as part of the new settlement we are
:06:31. > :06:33.offering working Britain. Fundamentally, we have a choice
:06:34. > :06:39.about how people should be paid. On lower wages topped up why high state
:06:40. > :06:44.benefits, or high wages taking home more wages, and topped up by less.
:06:45. > :06:49.We believe in rebalancing the economy so that it is the boy who
:06:50. > :06:55.provides decent wages for the employees. -- it is the employer.
:06:56. > :07:02.The national living wage will mean over ?5,000 more gross full-time pay
:07:03. > :07:06.for someone on today's minimum wage. With record employment, although
:07:07. > :07:10.inflation, rising wages, a rising standard of living, this is the time
:07:11. > :07:14.to be making structural reform. Mr Speaker, our record on helping
:07:15. > :07:20.working people stretches far beyond this. Since 2010, our mission has
:07:21. > :07:24.been to get wages up, tax down and welfare under control. The best
:07:25. > :07:29.route out of poverty is work. So we have created conditions for 1,000
:07:30. > :07:33.new jobs to be created every day. 2 million since 2010. And we have
:07:34. > :07:35.plans that 3 million more apprenticeships. We have increased
:07:36. > :07:40.the tax-free personal allowance radically, we are doubling our
:07:41. > :07:46.childcare offer with three or four-year-old families. We have
:07:47. > :07:50.protected spending on our schools and National Health Service. As the
:07:51. > :07:53.prime ministers said yesterday, we remain committed to the vision of a
:07:54. > :08:00.high pay, low tax, lower welfare society. We believe the route to
:08:01. > :08:04.ensuring everyone is better off is to get the finances back in balance,
:08:05. > :08:08.keep growing the economy and jobs, keep inflation low, keep cutting
:08:09. > :08:13.peoples taxes and introduce the national living wage. A number of
:08:14. > :08:27.Honourable members have asked about distributional analysis the effect
:08:28. > :08:31.of these cuts. The burden is spread proportionately, albeit with a tax
:08:32. > :08:34.burden at the top of the distribution. The Right Honourable
:08:35. > :08:38.member for Birkenhead asked specifically about the data that had
:08:39. > :08:44.been available on what could be made available. The government has
:08:45. > :08:54.provided analysis about the overall distributional effect since 2010.
:08:55. > :09:00.That does not include the National minimum wage. He also asked about
:09:01. > :09:04.the interaction with the income tax personal allowance. As the Prime
:09:05. > :09:08.Minister said, with the improving labour market, additional childcare
:09:09. > :09:10.support and the introduction of the national living wage, more people
:09:11. > :09:16.would come into income tax and so would benefit from those raised
:09:17. > :09:25.thresholds. He also asked, as did my honourable friend from Holt on price
:09:26. > :09:30.and Howden, about the key subject of the rate at which money is taken
:09:31. > :09:33.away. I agree with the three Right Honourable gentleman on the
:09:34. > :09:38.importance of these threads and the effect they have on work incentives
:09:39. > :09:43.and I acknowledge the proposals did imply a High Peak margin withdrawal
:09:44. > :09:46.rate for people earning above the personal allowance and on the tax
:09:47. > :09:51.credits and housing benefit tapers at the same time but it is also
:09:52. > :09:55.important to remember that compares to a top rate today which is only
:09:56. > :09:59.two percentage points different. I'm afraid it is true that high marginal
:10:00. > :10:04.withdrawal rates have long been a feature of the UK benefit system and
:10:05. > :10:09.most welfare systems in developed nations. As they will both know very
:10:10. > :10:12.well, the key reform in this area is universal credit that this
:10:13. > :10:17.government has introduced, which sympathised the system by merging
:10:18. > :10:26.six benefits into one and moves the hours thresholds to various bikes at
:10:27. > :10:33.16, 24, and 30 hours. -- to various spikes. I will give way. Can I
:10:34. > :10:36.genuinely welcome the broad tone of the Honourable gentleman's
:10:37. > :10:41.contribution, and the fact he says the government is in listening mode.
:10:42. > :10:48.But from his response, it seems that there is no impact. Can I ask for
:10:49. > :10:50.his response to one specific from the House of Commons library 's own
:10:51. > :10:56.statistics, and it goes to the heart of the debate, that a family with
:10:57. > :11:04.two children after all the other changes he has talked about, a
:11:05. > :11:12.family with two children and ?20,420 will lose ?1233 and ?20,420 will
:11:13. > :11:17.lose does he not believe there will be impacts on these families? Mr
:11:18. > :11:21.Speaker, none of the third-party analysis that has been done takes
:11:22. > :11:25.into account all of the front changes and different elements of
:11:26. > :11:27.support that are coming in. Of course, it is the case that
:11:28. > :11:32.depending on exactly how many earners there are, the age of the
:11:33. > :11:37.children, there will be different impacts from any proposal. But the
:11:38. > :11:41.points I have made today is that as we have been discussing, the
:11:42. > :11:46.government is in listening mode. The Chancellor has said he will come
:11:47. > :11:50.back at the Autumn Statement to be able to say more. The question of
:11:51. > :11:55.childcare came up more than once, including most recently in the
:11:56. > :12:00.summing up from the honourable lady. There is a review going on on the
:12:01. > :12:05.cost reimbursement for childcare providers, and it is important that
:12:06. > :12:13.it must be a sustainable model. The question also came up from the
:12:14. > :12:17.honourable gentleman from East Antrim about the devolved
:12:18. > :12:23.administration Pramac. It is the case the 30 our offer is an England
:12:24. > :12:27.offer but there are and consequential is that go with that,
:12:28. > :12:31.and it is up to the devolved administration to proceed in the way
:12:32. > :12:34.they believe it is right. In the Scottish government, although I am
:12:35. > :12:37.happy to be corrected by members from the SNP, I believe the Scottish
:12:38. > :12:41.government has committed to bringing forward 30 hours from 2020. And I
:12:42. > :12:53.wonder if they might do that soon. There are also questions related to
:12:54. > :12:57.Scotland, but they were batted away. About what the ability of this gosh
:12:58. > :13:03.government might be to pursue their own course on tax and benefits. --
:13:04. > :13:08.the Scottish Government. As early as 2017, they will be able to set rates
:13:09. > :13:13.and bounds for income tax on earnings. That is clear in the
:13:14. > :13:19.Scotland Bill. The bill is also clear that they can top up benefits
:13:20. > :13:28.and make discretionary payments to claimants. The Secretary of State
:13:29. > :13:34.cannot withhold consent for them to do this. I am happy to give way for
:13:35. > :13:41.him to confirm what their intentions are. I am grateful. We have
:13:42. > :13:45.demonstrated that the Scottish Government has mitigated some of the
:13:46. > :13:50.worst effect of the welfare cuts over the last few years. ?100
:13:51. > :13:54.million in order to offset the bedroom tax. We want to protect the
:13:55. > :13:57.people of Scotland, but in order to do that we need the people of
:13:58. > :14:04.Scotland, but in order to do that we need to be powerless to do for power
:14:05. > :14:09.over our economy, taxation and Social Security. Give us to do it,
:14:10. > :14:16.we will protect the people of Scotland that West Minister is
:14:17. > :14:20.letting down! It is a line that they have used for quite some time. I
:14:21. > :14:25.don't know how long they will be able to continue. The reforms have
:14:26. > :14:29.been discussed in this house a number of times and voted on by the
:14:30. > :14:34.whole house on five occasions. The case for change is clear. This is
:14:35. > :14:45.not just on the school grounds, but also because the Labour way is not
:14:46. > :14:50.the way for stability. But we do acknowledge the concerns expressed.
:14:51. > :14:55.The Chancellor said we would listen and that is precisely what we intend
:14:56. > :15:00.to do. He believes and I believe that we can achieve the same goal of
:15:01. > :15:05.reforming tax credits, saving the money we need to save to secure our
:15:06. > :15:10.economy while helping in the transition. That is what he will set
:15:11. > :15:15.out in the Autumn Statement. Because we are determined to deliver that
:15:16. > :15:19.lover welfare, higher wage economy that we were elected to deliver.
:15:20. > :15:29.That the British people want to see and that working Britain deserves.
:15:30. > :15:32.Mr Speaker, I thank again the committee for allowing us to stay
:15:33. > :15:39.for what has been a fine debate, not just because of the eloquence, but
:15:40. > :15:43.because there is a very clear message from all parts of the house
:15:44. > :15:48.to the government. Nobody today has spoken in favour of these changes
:15:49. > :15:53.coming into force next April. And if they do not come into force next
:15:54. > :15:58.April, then it gives the government a good period of time to think
:15:59. > :16:02.seriously about how tax credits are reformed. And because I think that
:16:03. > :16:06.message is so important that we get that over to the Chancellor and his
:16:07. > :16:21.thinking, I hope the house will divide. Order, the question is the
:16:22. > :16:50.motion as on the order paper. Those who see aye. Those who see no.
:16:51. > :18:36.Division, clear the lobby. -- see. -- say.
:18:37. > :18:38.The question is in the motion as on the order paper. Those who see