Concentrix: Tax Credit Claimants

Stephen Kinnock Excerpts

Tuesday 18th October 2016 Westminster Hall

[Stephen Kinnock (Aberavon) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Nuttall.

Since 6 September—just six weeks ago—I have had 11 constituents bring their complaints to me. In one case, Concentrix did not believe a young woman because it saw money from someone with the same surname going into her account. It refused to believe that it was because she handled her mother’s bills. Just because she was helping out her ageing mother, that lady had to pawn her late father’s jewellery so that she could put food on the table for her family. Another constituent’s tax credits stopped after the Concentrix system incorrectly calculated that she had worked under the threshold; it even ignored a letter that she provided from her employer. As of today, she has been without payment for nearly four months.

It is degrading to not be believed and trusted, to be considered to be cheating the system, especially when evidence and sound reason to the contrary are given. When someone is working hard to make ends meet, it is deeply insulting and demoralising to have the floor unjustly ripped out from under them.

Fortunately, the message seems to be getting through, because Concentrix has, indeed, been given the boot, but the Government’s new approach, which has ended up with their having to hire hundreds of staff into the Revenue, will end up costing millions—talk about a false economy. That is the problem of a Government who know the cost of everything and the value of nothing; the presumption is of guilt, not innocence; the currency is suspicion, not trust, and those who need and are entitled to help are made to feel like cheats.

Theresa May claims that she wants to build a country that works for everyone, yet her Government consistently undermine some of the basic binds that are supposed to hold our country together. There is no excuse or reason for that. Let us hope that lessons are learned and that, from now on, systems are built to reduce insecurity in people’s lives rather than leaving them on the edge of survival.

Article 50: Parliamentary Approval

Stephen Kinnock Excerpts

Monday 11th July 2016 Commons Chamber

[John Penrose]

As I understand it, I think that any alteration to the article 50 process requires unanimity from other EU member states, which represents a pretty high bar for any Government. I am sure that that factor will be considered by the incoming Prime Minister and her negotiating team. I am also sure that they will want to consider many other options to maximise our negotiating leverage. As I have said, the hon. Gentleman and I will have to wait until the new Prime Minister is ready to announce precisely how she and her team wish to approach these issues.

[Stephen Kinnock (Aberavon) (Lab)]

The referendum has been a deeply divisive process that has divided city against town, community against community and nation against nation. Does the Minister agree that we now need a cross-party approach to deal with when to invoke article 50 and the basic negotiating position around that, and how we hold the negotiating team to account? Will he consider setting up a special parliamentary Committee to do both those jobs?

[John Penrose]

The current Prime Minister has said that he believes it is very important not just for the UK Government to contribute, but for the devolved Governments—and, wherever possible, other parties on a cross-party basis—to contribute so that we can, whenever possible, speak as a nation with one voice. The hon. Gentleman is right to say the referendum was a pretty divisive affair. It is not just political parties that need to knit together again; society needs to knit together again. I am not sure that I would necessarily share the hon. Gentleman’s enthusiasm for a parliamentary Committee as the solution to achieve that, but I share his conviction that a degree of healing is required, and that all of us on both sides of the House have a duty to ensure that our respective parties and the communities that we represent are able to come together for the good of the country.

The Economy and Work

Stephen Kinnock Excerpts

Thursday 26th May 2016 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab)]

It is a pleasure to follow my neighbour, my hon. Friend the Member for Neath (Christina Rees). The Prime Minister declared this to be a one nation Queen’s Speech for a one nation Government. He said that his Government were a Government for whom

“economic security always comes first”—[Official Report, 18 May 2016; Vol. 611, c. 22.]

He said they were a Government with a “long-term economic plan”. But, once again, we have seen nothing to substantiate those grand plans. All we have seen is stasis.

The British economy in its current state is best described by the saying, “All that glitters is not gold.” At first glance there is the semblance of a positive picture, but scratch away at the surface and a very different story emerges: a story of low productivity, ballooning personal debt, a yawning trade deficit, creaking infrastructure, a dangerous over-reliance on financial services and a growing chasm between London and the rest. To put it simply, our economy is too unbalanced and too unstable to be resilient and to serve the British people. It is too short-sighted, too inward looking and far too unequal.

In my constituency, we have seen the costs of the Government’s failure. For more than a year my Labour colleagues and I have called on the Government—we have raised the issue more than 230 times since the general election—to snap out of their stupor and take action to stand up for British steel. We were met with a mixture of indifference and incompetence. Only when the crisis became a PR problem did the Government wake up and seek a last-minute fix to a problem that we have pointed to for a year. The steel crisis really sums up the Government’s approach: it is a problem only when it hits the front pages. If the Government had a real long-term economic plan and a real strategic approach to governing Britain, the crisis could have been averted. Instead, we have a Government with a long-term economic plan that is not a plan at all but a bookkeeper’s to-do list. They are focused only on reducing costs without giving any thought to the generation of revenue through sustainable growth. They think that the solution to everything is to reduce the size of Government and retreat from the challenges of the future rather than addressing the faulty foundations of our economy. That is why the Queen’s Speech was yet another missed opportunity, and that is why I shall vote against it this evening.

Energy BILL [ Lords ] (Fifth sitting)

Stephen Kinnock Excerpts

Tuesday 2nd February 2016 Public Bill Committees

[Matthew Pennycook]

I do not think that if we want it we have to continue to add to the consumer bill. I very much agree that a contracts for difference regime is a much more stable mechanism for driving down costs. I do not use the words “killing” or “attacking”, but I do think that the Government have undermined support in a way that the industry was not expecting. It had stability in this regard.

[Stephen Kinnock (Aberavon) (Lab)]

Does this not ultimately boil down to risk management? Any business looking to invest will weigh up its risks; if we are looking at continuing a subsidy through to 2017, that will clearly play a role in how a business thinks about its risk portfolio before it actually makes the investment that it needs to make. Nobody here is saying that it is black or white—subsidies for ever or straight to a CfD. What we are saying is let us help these businesses, many of which are nascent but very important, to manage their risks. That is surely the role of Government: to have a proactive strategy to help businesses manage their risks and go forward.

[Matthew Pennycook]

I absolutely agree; my hon. Friend makes the case very powerfully. It is what I have heard on the Select Committee time and again, across a variety of renewable technologies. No one argues with the Minister’s point that as costs come down, subsidies should, in a stable and certain flight path, also reduce with them. What we take issue with is the early closure, as announced in June with very little consultation.

This could have been done in a much more effective way, in negotiation and consultation with the industry, where we move to different contracts for different regimes more stably. If the Minister is willing and happy to give the onshore wind industry the certainty that it is looking for around contracts for difference, I am sure we would be happy to hear that. What we have at the moment is a policy vacuum, when we had, before, not indefinite public subsidy but a certain flight path off it through the ending of the renewables obligation in 2017.

I return to my point about the EU renewables directive. When we look at the figures, we see that the situation is stark. We need 180 TW of new low-carbon generation by 2030. Every megawatt of generation that we do not get from onshore wind, in the sense of falling below our EU renewables target, will have to come from a more expensive form of renewable technology, be it offshore wind or nuclear.

Given how far behind we are on heat or transport—and I hope the Minister will agree with the Secretary of State that we do not have the right policies in place; we are behind on those targets and that part of renewables—the idea that this will bring down bills, which I understand is a large part of the rationale, at least according to Ministers, not the windy caucus, is unlikely. Even that 30p in the central scenario in the impact assessment is unlikely to happen, because we will be forced to turn to more expensive forms of renewables to meet our targets.

The worrying signal that this policy has sent, not just for investor confidence, is that the Government have abandoned their previous commitment to a technology-neutral approach at a time when the overriding priority must be decarbonisation at the lowest possible cost, regardless of what technology best aids that. So I support the Bill as it stands and I oppose the amendments.

Education (Student Support) (Amendment) Regulations 2015

Stephen Kinnock Excerpts

Thursday 14th January 2016 General Committees

[Joseph Johnson]

I am glad that the hon. Gentleman acknowledges that we are following due custom and practice. I will carry on explaining the Government’s intentions in bringing this instrument before the Committee.

The instrument provides that those students beginning courses in 2016-17 will qualify for increased loans for their living costs while studying, instead of maintenance grants. An eligible student whose family income is £25,000 or less and who is living away from home and studying outside London will qualify for up to 10.3% more living costs support in 2016-17 than they would receive under current arrangements. That is an additional £766 of support, and that increase in support for living costs has been called for by individual students. Indeed, the 2012 report by the National Union of Students entitled “The Pound In Your Pocket” indicated that there are two main considerations for students when deciding whether to go to university. The first is whether they have the means to meet their costs when needed, and the second is whether the eventual benefits of higher education will outweigh the costs. With these regulations, we are ensuring that students from the most disadvantaged backgrounds have access to more support than ever before. Students understand the value of obtaining a degree.

[Stephen Kinnock (Aberavon) (Lab)]

I think that all the speeches so far, certainly from Opposition Members, have demonstrated clearly, as has the impact assessment, that this legislation will have a massively detrimental impact on social mobility. We understood that social mobility and aspiration were at the heart of the message that the Minister’s party wishes to put across; a party that claims to be a one nation Government. Does social mobility still feature in the Minister’s party’s claim to be a one nation Government?

[Joseph Johnson]

Yes, indeed it does, and is motivating our decision to increase the amount of support that will be available to students going into higher education in this country. We want everybody who can benefit from higher education to be able to go to university.

We are delighted to see more people applying to university, more people getting in and more people getting on to their first-choice courses than ever before. Critically, we are delighted that more people from disadvantaged backgrounds are applying and going to university than ever before, and we want those trends to carry on.

European Union Referendum Bill

Stephen Kinnock Excerpts

Tuesday 8th December 2015 Commons Chamber

[Mr Alistair Carmichael]

After my experience in the previous Parliament, the irony of hearing Conservative Members arguing for reform of the House of Lords is never lost on me.

In the brief time available, the point I am making is that there is a fundamental inconsistency in the Government’s position. In the previous Parliament the Prime Minister gave power to the Scottish Parliament to extend the franchise for the Scottish independence referendum to 16 and 17-year-olds. We knew what they were going to do with it and, as Lord Dobbs put it in the other place, the Prime Minister acquiesced in it, and he did so for a number of reasons. He did it because it was the most important vote that we would ever face, because it was to be a once-in-a-generation decision, and because referendums are different. That is exactly the situation that confronts the House today.

On financial privilege, it appears that having lost the argument, the Government now want to play their trump card or pull out a joker to thwart a very laudable aim. The hon. Member for St Albans (Mrs Main) said that we were opposing the use of financial privilege because we do not care about where the money comes from. We do care about where that money comes from because it is paid by—among others—16 and 17-year-old taxpayers. They pay it, so they are entitled to a say.

[Stephen Kinnock (Aberavon) (Lab)]

In the 20 seconds that remain to me—[Interruption.] It is now 19 and counting, so I will not take any interventions. I wish to argue that this measure makes sense. We need to trust our young people and empower them. Let us give them this vote and this chance.

Question put, That this House disagrees with Lords amendment 1.

Budget Resolutions and Economic Situation

Stephen Kinnock Excerpts

Tuesday 14th July 2015 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab)]

The Chancellor’s Budget, far from fixing the roof while the sun is shining, will send roof tiles flying while the storm clouds gather. Economic growth is crucial. It brings tremendous benefits. Between 1997 and 2008 it lifted millions of people out of poverty. An economy that is not growing is failing, but the question is: what kind of growth do we need?

The fact is that Britain in 2015 is more unequal, divided and insecure than it has been at any time since 1945. We know that inequality between rich and poor in the United Kingdom has widened in recent years. We also know that inequality is bad for economic growth because the majority of the population are not feeling the recovery at all and so are unable to contribute to it.

If the Chancellor wishes to do away with state support for the working poor, he must commit to investing in a genuine, broad-based and deep recovery that works for everyone, based on a real industrial strategy and a plan for long-term economic growth. That has to start with a renaissance in our manufacturing sector. In 1970 manufacturing accounted for one third of the British economy, and now it accounts for barely 10%.

The need to drive such a renaissance is imperative for three reasons. First, the manufacturing sector achieves far higher levels of productivity than the service sector. Secondly, it produces much higher quality and higher-income skilled jobs than the rest of the economy, as well as a far greater geographical spread of skills and jobs than the financial sector produces. Thirdly, it enables us to pay our way in the world. Our balance of trade deficit is currently higher than it has ever been since the 1830s. That is a huge drag on our economy, and it can be dealt with only by increasing manufacturing for export.

Given the central part that manufacturing has to play in building that new kind of growth, it is absolutely imperative that the Chancellor now sets out a new industrial strategy, which I think should be based on six key pillars. First, we must produce highly motivated and skilled young people who are capable and willing to enter manufacturing, engineering and wider industry.

Secondly, the UK has a strong research capability, but we struggle when it comes to driving our new ideas and technologies into the business sector. A proper industrial strategy would provide enhanced support to the Catapult centres, which have provided a welcome boost to the commercialisation of research and development, but much remains to be done and they need more resources.

Thirdly, on energy, there is a pressing need for a 10-year plan that lays out the investment path required to build a secure, competitively priced and clean energy supply. The growth of clean energy is a huge opportunity for the UK economy, with projects such as the Swansea Bay tidal lagoon promising to deliver thousands of high-paid, high-productivity jobs.

Fourthly, there is the UK’s inadequate transport and digital infrastructure. This is particularly important, as it contributes to the chasm that exists between London and the rest of the country. There is a pressing need for a long-term infrastructure plan that would properly connect the country and provide a launch pad for a nationwide manufacturing renaissance.

Fifthly, on finance, the UK’s banking system is fundamentally skewed towards the stimulation of private consumption, asset value inflation, and personal debt. It is essential to create a new financial support system for manufacturing that is geared towards enabling the growth of the manufacturing sector. Germany’s Sparkassen should be the model—truly local banking that is an integral part of the regional economy, focused exclusively on lending to start-ups and small and medium-sized manufacturing businesses.

Finally, on procurement, the Government manage a multi-billion-pound budget for the procurement of everything from care services to steel for major infrastructure projects, and their approach is far too laissez-faire. Far more can and should be done to ensure that UK products and services are prioritised for procurement. This can be done without violating EU competition rules simply through tighter definition of value-for-money clauses in tender documents. It is right that contracts funded by the British taxpayer should be won and delivered by British companies.

This industrial strategy sounds wonderful on paper, but it is worthless if not underpinned by strong support for the steel industry, which is the critical foundation industry for our manufacturing renaissance. Steel plays into every aspect of the long-term strategy we need. As the Member of Parliament for Aberavon, which hosts the largest steelworks in the country, I must draw the House’s attention to the importance of the steel industry. No longer can Government-tendered projects such as the refurbishment of the Severn bridge be allowed to go ahead using French steel when the best steel in the world is British.

This Government also need to take into consideration the importance of compensating heavy industries such as steel for the cost of the carbon tax, which eats into productivity. Going back on promises that were made in the previous Parliament would leave steel companies exposed to 70% of the cost of the EU renewable levy policies. That would be seriously detrimental to the steel sector and wider manufacturing, and ultimately harmful to the UK economy.

The time has come for a Government who are prepared to plan for a new type of long-term, sustainable growth that produces high-wage, high value-added jobs and gets the country making and exporting rather than perpetuating the agenda for the status quo of growth fuelled by debt and consumption. Until we have such a plan, I cannot support this Budget. I exhort the Chancellor to go back to the drawing board, roll up his sleeves, and come back with a strategy for a new kind of growth that will build a United Kingdom of strength, purpose and resilience.