European Union (Referendum) Bill
Debate between Baroness Primarolo and William Bain(10 years, 6 months ago)
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Mr Bain
I rise to support amendment 69. I would also like to comment on other amendments, including those tabled by my hon. Friend the Member for Ilford South (Mike Gapes).
Some important points have been raised about the franchise. The first I would take up is the one about EU nationals. I have a regular correspondence with a Danish constituent in the Hogganfield part of my constituency who is married to a UK national, and has the right to vote in a Scottish Parliament election, a local government election in Scotland and European elections in this country. He will have the right to vote in the Scottish referendum, but under the Bill as drafted by the hon. Member for Stockton South (James Wharton) he will not have the right to vote in this referendum.
That throws up an interesting anomaly. We know that one of the implications of the Scottish referendum is that Scotland would no longer be an EU member state. Therefore, my constituent is being allowed the opportunity to vote once on whether to stay in the EU, but in the event of Scotland’s voting to stay in the UK he would be denied the opportunity to vote a second time on whether to stay part of the EU as a citizen of the UK. Such anomalies show the mess that the hon. Gentleman and the Government are getting themselves into with the Bill as currently drafted.
My hon. Friend the Member for Ilford South mentioned prisoners’ right to vote. Of course none of us in the House wants prisoners who have been convicted of serious offences or given long sentences to be given the right to vote, but an important point in relation to the franchise of prisoners in referendums came up in the discussion about the Scottish referendum. It is regrettable that we have not been joined by the Attorney-General because we would have benefited from his good counsel on that point. There is case law from the European Court of Human Rights in 2008. That says that article 3 of protocol 1, which deals with the right to vote and participate in democratic votes, says that that right is qualified, is limited to the choice of the legislature and does not apply to the election of a Head of State or indeed to referendums.
Madam Deputy Speaker (Dawn Primarolo)
That is not a point of order. It is entirely up to Members to indicate when they want to speak. In fact, I have a long list of Members who have indicated that they want to speak in this debate, and it would be good to make some progress.
Huw Irranca-Davies
A crucial point is the cost of compensation resulting from prisoners mounting challenges under the legislation. Would my hon. Friend be willing to give way if the promoter of the Bill—
Madam Deputy Speaker
Order. That is quite enough. If the promoter of the Bill wishes to take part in the debate, he will indicate that in the normal way. I do not require Mr Bain to comment on that. I would like him to speak to his amendment and the other amendments that we are discussing.
Mr Bain
Thank you, Madam Deputy Speaker.
I fully support the amendment on votes at 16 tabled by my hon. Friend the Member for Ilford South. It is clear that 16 and 17-year-olds will have the right to vote in the Scottish referendum, and I support that right for all elections. It is intolerable that, as Demos showed in 2010, 16 and 17-year-olds contributed £500 million in taxes over the preceding 10 years but are still disfranchised.
Economic Growth
Debate between Baroness Primarolo and William Bain(11 years ago)
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Mr William Bain (Glasgow North East) (Lab)
The country is still in the midst of the longest slump for 140 years. We need to generate 2.6% of GDP and more than 900,000 jobs to match the output and employment rates we achieved before the financial crisis struck. Four years into what should have been a recovery, we have unemployment locked at an unacceptable 2.5 million, under-employment among young people at nearly one in five, construction output falling, the IMF describing Britain’s economy as severely demand-constrained, and the OECD saying that our society is increasingly unequal. Yet what has the country seen in this debate today? It has seen an out-of-touch Chancellor, an isolated and absent Prime Minister, a decaying coalition and a weak Queen’s Speech that cannot meet the aspirations of our people. A governing coalition riven with divisions over Europe, welfare and child care cannot unite the country on jobs and growth.
The Gracious Address should have contained measures to inject demand into the economy and offer hope to our struggling construction and manufacturing sectors, but instead it simply compounds the Chancellor’s obstinate refusal to use fiscal policy to ease the pressures on ordinary households. Only this morning, the Office for National Statistics revealed that in the first quarter of this year, pay excluding bonuses rose at its lowest level since 2001, at a mere 0.8%. The OBR’s March fiscal outlook reveals that the decline in real-wage forecasts since December would cost ordinary households a further £200 this year, which is more than four times what the Government are handing back through their increase in the personal tax allowance. The squeeze on incomes is tightening its grip on millions of households, and without an easing of that burden by the Government, the day of real recovery will remain far off.
A Gracious Speech that was focused on the issues of the country, rather than on managing fractures within the coalition, would have contained a jobs Bill to help 2,000 young people in Scotland who have been out of work for more than two years to get back into work.Even with a modest fall in joblessness today, more than 11% of the working-age population in my constituency is unemployed, which is utterly unacceptable. We know from our friends and neighbours the scarring effect that long-term unemployment has on people’s health and, if they can find another job after that period of unemployment, their earnings and job satisfaction. In the UK, 18 to 24-year-olds are now 10% less likely to be in work than they were in 2008. We should be following the successful example of countries such as Sweden with a jobs guarantee—initially for people out of work for two years or longer, but eventually extended to those jobless for a year or more—that would be paid for by a tax on bank bonuses and by limiting the pension tax relief that top rate taxpayers receive to 20p in the pound.
A Queen’s Speech that was focused on the issues of the country would also have contained a financial services Bill to reform our banks, creating a default power to separate investment banking from retail banking—if needed—to stabilise the economy, and new regional-based banks to boost investment and lending to our small and medium-sized enterprises.
Families in Scotland are losing £28.63 a week on average through the cumulative effects of this Government’s welfare and wages policies. That should have been addressed in this Queen’s Speech by cutting VAT, to put an average of £450 a year back into the pockets of 67,000 voters in my constituency. There should also have been a consumer rights Bill, to help nearly 6,400 over-75s in my constituency to receive an average £200 reduction in their energy bills this year.
We need a one nation Government who will build an economy for everyone in our society, not just—as is increasingly happening—for people at the top. We need that one nation Government as much in Glasgow as in every nation and region of our United Kingdom.
Madam Deputy Speaker (Dawn Primarolo)
I call Andy Sawford to speak. Could I ask you to resume your seat at 6.35 pm to enable the wind-ups to start?
Universal Credit and Welfare Reform
Debate between Baroness Primarolo and William Bain(11 years, 8 months ago)
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Mr William Bain (Glasgow North East) (Lab)
Let me begin with a statement on which there should be agreement throughout the House: a strong welfare state benefits all of us in society.
A growing body of evidence, extending from the International Monetary Fund to the Obama White House, shows that if we want to lift the current trend rate of growth, we need a fairer distribution of wealth across our society. We need more people to participate in the labour market, particularly the estimated 700,000 to 1.4 million women who are missing from employment in Britain in comparison with the rates in better-performing OECD countries. Our system of child care is less generous and more expensive than those of many of our trading partners in the European Union, and claims an ever larger share of take-home pay for many families. During the past 30 years the link between rising productivity and wages has gone and they have become decoupled, and that trend has accelerated over the last 10 years.
It is clear that there must be a wage-led recovery in living standards, with a living wage in the areas of the economy where it will work, and that companies must be made aware of the benefits to the whole economy of paying higher wages to their staff rather than increasing their short-term profit-taking. However, the role of the tax and benefits system will remain critical to a reduction in poverty, because from 2005 onwards the modest uplift in the living standards experienced by low to middle earners in Britain was exclusively due to the tax credit system. Other countries with better early-years education, which invested heavily in vocational education and skills, such as Denmark, and those with stronger collective bargaining systems in the workplace, such as the Netherlands, had even lower levels of pre-distribution poverty.
In principle, simplifying the tax and in-work benefits system by uniting them in a single integrated payment may have beneficial effects, but there is evidence that the Government are failing to address potential weaknesses in several key areas.
First, the system becomes more complicated for the growing number of self-employed people, and depends on access to the internet. In my constituency, where the poverty level is drastically above the national average, more than eight in 10 people do not have access to the internet at home.
Secondly, the current design of universal credit appears to penalise lone parents. Gingerbread understands that up to 4 million of them, including 1 million who are in work, will lose out under universal credit. Estimates suggest that 150,000 of the poorest single parents could lose up to £68 per week, which would push 250,000 children deeper into poverty. The situation appears worse when we consider the increasing competition for part-time work in a weak labour market. The rate of under-employment among women aged between 16 and 24 has risen by nearly 5% in the last four years, and for women aged between 35 and 49 the figure is nearly 4%.
Thirdly, universal credit does not put right the harm that the Government have already done in regard to support for child care costs. According to Save the Children, 56% of mums say that the main issue preventing them from working, or making them consider giving up work, is the increase in child care costs. However, parents on low incomes are already paying more than they used to because of the 10% reduction in the child care tax credit. The Resolution Foundation found that last year child care costs rose by 50% for some of those families.
Fourthly, the much-trumpeted rise in the personal tax allowance will be counteracted by universal credit, because people on low incomes who receive the credit will no longer receive a reduction in their tax bills. A £1,000 increase in the personal tax allowance will give £200 per year to every basic rate taxpayer except those on universal credit, who will gain only £70. They will receive only a third as much from any increase in the personal tax allowance as the rest of the population.
Fifthly, there is a risk that the withdrawal of “passported” benefits such as free school meals, and the lack of a second-earner disregard in the design of the credit, will create new cliff edges in the benefits system.
Finally, those who take jobs after being unemployed for more than six months will not receive an extra four weeks on benefits to smooth their transition.
The benefits bill is rising by £9 billion because of higher unemployment. I think it is clear that the Government should be focusing on that, rather than taking money away from—