UK Parliament / Open data

Welfare Benefits Up-rating Bill

I am sorry that we are so pressed for time, because these are issues of real public interest, and I think that they deserve more scrutiny than we are able to give them this evening.

I believe that the 1% cap on the uprating of working-age benefits is an inherently regressive measure. It will make people on low incomes even poorer, will increase deprivation, and will widen the gap between the haves and the have-nots in our communities. It will particularly hit parents in low-paid or part-time work who are already struggling to make ends meet because of the wider economic climate.

I shall oppose the Bill’s Second Reading. Labour’s amendment proposes that the House should decline it a Second Reading, and posits a guaranteed job offer for those who have been out of work for a long time. On the basis that that is a laudable aim, I am prepared to support it, albeit with a caveat. I have listened carefully to the debate, but I have heard no details of how such a proposal could be put into effect in any realistic way. I would not want to endorse any particular scheme until I had seen whether it was workable and fundable in practice.

The Bill will hit those who are working, especially those who are supporting and bringing up children, especially hard. Many people in lower-paid private sector jobs have seen their hours cut recently, and many who are working part-time want to work full-time but cannot find full-time jobs or pick up extra hours. Meanwhile, they are struggling to juggle work with child care.

As others have said, notably the hon. Member for Brent Central (Sarah Teather), we all need to take responsibility for the way in which we portray people who are unemployed. We need to recognise that those who are jobless should not necessarily be blamed for their joblessness, and that the rises and falls in unemployment are caused by wider economic factors more than by individuals’ aspirations. We also need to recognise that the greater part of the savings made here will be taken from people who are working, often in very physically demanding and fairly unrewarding jobs.

Like the right hon. Member for Rother Valley (Mr Barron), I was struck by the comments of the Citizens Advice Bureau on the impact assessment. We had seen no impact assessment until this afternoon, and we have still seen no equality impact assessment. According to the CAB’s calculations, a family consisting of two full-time workers earning the minimum wage with two children, living in private rented accommodation, will be losing £12 a week by 2015. Disabled lone parents will suffer, as will families with a single earner. What those examples mask, however, is the disproportionate impact of the rising cost of living on households with very low incomes. The worst of the cold winter weather is probably still ahead of us, but the rises in domestic fuel bills will cause a very nasty hangover in the spring.

Type
Proceeding contribution
Reference
556 cc256-7 
Session
2012-13
Chamber / Committee
House of Commons chamber
Back to top