It is a pleasure to speak, very briefly, in this debate.
My starting point is the concern I felt, when I listened to my right hon. Friend the Chancellor of the Exchequer making his autumn statement and highlighting this aspect of the measures he was taking, to hear cries of “not much” and “big deal” from some on the Opposition Benches. It is important to reflect that even if we were looking solely at the class 2 national insurance contributions element, the amount that adds to a household income equates to more than the cost of a child’s school uniform for a year. It is a quarter of what the average household in the UK spends on Christmas. These are significant amounts of money for a good many of our constituents. Indeed, for one of my constituents who is affected by the ultra low emission zone policy, it would even pay their ULEZ charge for a fortnight. Taken in concert with the rest of the measures, it will make a significant difference to many household budgets and ensure that people have more money in their pocket in the new year.
I represent a constituency that, according to the ONS, is very much a constituency of workers. We enjoy a very high level of employment and self-employment, a
very low level of unemployment and, I am very pleased to say, higher household income on average than the rest of the UK. But within that, there are many, many workers—those who are beginning their careers, or who have faced unstable employment—for whom this will make a real and practical difference. For that reason alone, I enormously welcome the measures we will be voting on today.
I would like to offer the Chief Secretary and the Treasury team an issue for consideration, which arises out of something I see in my constituency. It has been the subject of a lot of debate in this House in the last week or so. In 2019, the Conservatives stood on a manifesto that set a target of an additional 600,000 foreign students coming into the UK. That manifesto commitment has been achieved. We know that it earns us, in foreign currency income, around £35 billion a year. It is a bigger earner for the United Kingdom than our oil and gas industry, so it is incredibly important to our economy. Part of the thinking behind it was that many of those workers would become longer-term residents of the UK, especially in areas of great need: our national health service, caring professions and the technology industry. I hear from a good many constituents about the challenges they still face recruiting those workers to ensure that my constituents who need an operation can get it on time and that businesses can grow.
Home Office figures show that a very large proportion of those people leave the United Kingdom at the conclusion of their studies, but that some stay. Concern has been expressed about whether those who transition into work after being foreign students or those who are here for a brief period on a working visa and subsequently move abroad pay a sufficient amount into the UK economy to cover the costs of the benefits they may well receive. Right hon. and hon. Members have highlighted those who come to the UK under care worker visas, but who bring with them dependants who have significant health and educational costs. Would the Treasury team, in due course, give consideration to setting a differential rate of national insurance contributions for those who come to the UK on those types of visa, in line with the measures already taken of charging those applying for those visas a significantly higher fee and the national health surcharge? It would then become absolutely clear to everyone in this country that people who are here for a short period will pay a contribution that reflects the potential benefits available to them, whereas those who are lifelong citizens, for whom those costs will be spread out across their entire working life, will enjoy the benefit of a lower rate?
Every country in the developed world has faced a similar set of challenges around interest rates and costs of living. We all know what the reasons are: the impact of covid and the impact of rising US interest rates, which set basic interest rates and mortgage rates across the whole of the developed world. However, as my hon. Friend the Member for West Worcestershire (Harriett Baldwin) said, the turning point has clearly been reached. Most of us can see and feel in our constituencies the signs of a return to growth and a sense of prosperity. The fact that wages are now rising ahead of inflation is hugely significant to the living standards of all people, but especially to those on lower incomes the measures I am here to support today are incredibly important. I commend the Treasury team for bringing them forward.
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