Welfare Reform and Work Bill

Debate between Lindsay Hoyle and Iain Duncan Smith

Monday 20th July 2015 Commons Chamber

[Mr Duncan Smith]

I want to make some progress. I will give way again later, but I am conscious of the fact that over 35 Members are waiting to speak—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Forty.

[Mr Duncan Smith]

Forty Members, so it is in colleagues’ interest to let me make some progress.

I also want to support parents claiming universal credit to get into and stay in work after having a child. We found just last week that the number of children living in households claiming out-of-work benefits is at a record low, down by 450,000 since 2010. That is very good progress, but we want to build on it. The Government are introducing a far-reaching childcare offer: with universal credit, people will get up to 85% of their childcare costs paid from April 2016—up from 70% under the previous system. All three and four-year-olds already receive 15 hours of free childcare a week, as do 40% of the most disadvantaged two-year-olds. On top of that, there will be an additional 15 hours of free childcare available for working parents of three or four-year-olds. Overall, we anticipate that this provision will be worth about £5,000 per child per year. In line with that, we believe it is fair to ask parents claiming universal credit to look for work when their youngest child turns three, and to prepare for work when the youngest child turns two, and the Bill makes provision for that as well.

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[Mr Deputy Speaker (Mr Lindsay Hoyle)]

We will investigate the matter. I would have thought that the hon. Lady would give me a little more warning of her point of order, but there we are.

[Mr Duncan Smith]

We released them earlier and they have been available since before the debate began, so I will simply move on.

I would like to turn to how we tackle the root causes of poverty. I believe that the past approach focused on dealing with the symptoms of poverty while completely failing to target the root causes. The Bill will provide a statutory basis for much-needed reform to improve children’s life chances. I have long argued that there are five key pathways to poverty that affect children’s life chances: worklessness, educational attainment, drug and alcohol addiction, family breakdown and problem debt. The Bill will remove the existing measures and targets in the Child Poverty Act 2010 and introduce a new duty to report on worklessness and educational attainment. Alongside the statutory measures, we will develop indicators to measure progress against either of those root causes of poverty.

Our new approach will drive real action, which will make the biggest difference to the most disadvantaged children now and in future. The key point is that this will enable us to measure what Government policy actually does, rather than just how much money we put into it. It is worth reminding the House that we will continue to publish the HBAI—households below average income—statistics so that those who wish to look at them can still do so.

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[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. The Secretary of State has given way quite a lot. We cannot have three people at once shouting, “Will the Secretary of State give way?” The Secretary of State will give way when he feels it is correct to do so, but we cannot have three people hanging loose.

[Mr Duncan Smith]

Let me give the hon. Member for Lanark and Hamilton East (Angela Crawley) some figures for Scotland, which are worth looking at. Employment in Scotland is up 40,000 on the year and 179,000 since 2010. The employment rate is 74.3%, up 4.5% since 2010. Private sector employment is up 58,000 on the year and 244,000 since 2010. Just 5.2% of workers in Scotland are on temporary contracts and over 80% of those who work part time do so because they say it suits them. Although there is still much more to do, our reforms to lower corporation tax, get people back to work and create more jobs are exactly the route for her constituents to improve their life chances.

Budget Resolutions and Economic Situation

Debate between Lindsay Hoyle and Iain Duncan Smith

Thursday 9th July 2015 Commons Chamber

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Interventions cannot be used to make speeches. We must have short interventions. There are 29 Members who wish to speak. Let us have short interventions, so that Members can get into the debate.

[Mr Duncan Smith]

There are impact assessments in the Red Book. There will be relevant impact assessments before Second Reading, as there always are.

The key point on tax credits is what they got for all of that: unsustainable spending that went up jerkily, but by huge amounts; and a subsidy for employers, which enabled the payment of lower wages and completely distorted systems, and presented a bizarre set of incentives for moving in and out of work. It is now well documented that for many people it made sense to work only 16 hours —no more, no less—and we saw spikes in the employment data at 16 hours. There were huge spikes of people clustered around 16 hours, because it did not pay to work anything else.

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[Mr Deputy Speaker]

Order. I might be able to help. Both Front-Bench speakers have taken over an hour already. If other Members want to speak, we need to get to the end.

[Mr Duncan Smith]

If hon. Members want, we can go back over the figures one more time. I am enjoying myself, even if the shadow Chancellor is not.

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[Mr Deputy Speaker]

Order. The two Cheshire Members need to take their seats. They cannot remain standing. It is a long way home and they ought to rest themselves.

[Mr Duncan Smith]

I will give way to my hon. Friend the Member for Weaver Vale (Graham Evans). I know he wants me to keep going.

[Graham Evans]

Opposition Members never miss an opportunity to miss an opportunity to apologise for wrecking the country’s economy. The shadow Chancellor criticised my right hon. Friend the Chancellor and said there was no mention of science and technology. My right hon. Friend has a very proud record of investment in the north of England, as part of the northern powerhouse—

[Mr Deputy Speaker]

Order. Mr Evans, you will be making your speech very shortly. The danger is you will have nothing to say because you will have already made it.

[Mr Duncan Smith]

I thought it was altogether too brief. My hon. Friend was just getting into his stride. I feel we need another intervention. I agree with him—how could I not? The Opposition never miss an opportunity to miss an opportunity. They should have said years ago, “We’re sorry; we won’t do it again. We need to spend some more time thinking about what we did wrong.” We intend to give them that time.

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[Mr Deputy Speaker]

Order. First, it is a point of order, so the Secretary of State should sit down until I have heard it. Secondly, I think we can recognise it was a point of clarification, so we can carry on.

[Mr Duncan Smith]

In that case, to clarify, the 30 hours of free childcare for working parents with three and four-year-olds has not been delayed; it will start to be introduced in September 2016. Thank you very much; now let’s move on.

If someone needs support to improve their skills or talk to their employer about increasing their hours, universal credit comes in again. For the first time, it will stick with them and help them to increase their hours, which is why it will complete the process of supporting people back into work. Even with the changes we are making, the welfare system will remain generous.