UK Parliament / Open data

Welfare Benefits Up-rating Bill

I can tell my hon. Friend that we have his ex-constituent in Greece in our sights. All I can say is that I hope he enjoyed his last payment. Joking aside, even if we took away all winter fuel payments to overseas pensioners, we would be talking about tens of millions of pounds, not savings on the scale that we need.

8.45 pm

I want to say something a bit more positive to my hon. Friend. The gist of his amendment is that he believes that fairness demands that benefits go up in line with earnings. The Bill will deliver that for him over what I believe is not an arbitrary period but a sensible, realistic one. He knows that over the five years since it became difficult to find money for things—the credit crunch and financial crisis of 2008—we have put benefits up by 20%, including 5.2% last year, when inflation was very high. With three years of uprating at 1%, we would be on something like 23%. Wages have gone up by 10% or so over that period, and I would wager that on any credible estimate of wage inflation, benefits will have gone up at least as fast as earnings over the whole eight-year period, if not faster. Over a tempestuous period for the economy and the welfare state, we will have ensured that benefits rise at least as fast as earnings, which is a record to be proud of. The Bill will deliver what his amendment asks for—benefits rising in line with earnings overall.

Type
Proceeding contribution
Reference
557 c115 
Session
2012-13
Chamber / Committee
House of Commons chamber
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