Oral Answers to Questions

Emma Lewell Excerpts

Tuesday 22nd May 2018 Commons Chamber

[Mel Stride]

My hon. Friend talks about complexity. The Office for Tax Simplification is looking into the way in which inheritance tax and the regime operate. Changing the way that tax reliefs operate in the way that he describes would add very significant cost. However, we do, of course, keep all taxes under review.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

The TUC estimates that the number of working households in poverty has risen by 1 million since 2010. Inaction on low-paid, insecure work and punitive welfare reform measures have led to record numbers of people accessing food banks. A responsible Government would measure food insecurity to create policies that end hunger. My Food Insecurity Bill does that. Why will the Government not back it?

[Elizabeth Truss]

We are the Government who have introduced the national living wage. We have reduced tax bills for those on the lowest incomes, and we are keeping our food market competitive and have some of the lowest food prices in Europe.

Oral Answers to Questions

Emma Lewell Excerpts

Tuesday 16th January 2018 Commons Chamber

[Elizabeth Truss]

I congratulate my hon. Friend on his work. Since 2010, we have seen a 40% reduction in youth unemployment. Let us compare that with what happened under the Labour Government when, during an economic boom, youth unemployment rose and those young people were left on the scrapheap rather than joining apprenticeships and getting the training opportunities that they have under this Government.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

Here is a reality check for the Minister. Limited well-paid jobs and record levels of in-work poverty coupled with this Government’s unflinching assault on the welfare safety net have contributed to the United Nations estimating that 8 million households in the UK are food insecure. My cost-neutral household Food Security Bill will robustly measure these factors and lead to policy development that will eradicate hunger. Why will her Government not back it?

[Elizabeth Truss]

I am surprised that the hon. Lady is not interested in the news we heard earlier, which is that those on the lowest incomes have seen a 7% real-terms pay rise since 2015, enabling them to support their families.

Autumn Statement

Emma Lewell Excerpts

Wednesday 23rd November 2016 Commons Chamber

[Mr Hammond]

I am grateful for my hon. Friend’s comments and I am glad he is pleased with the statement. I know that he takes a great interest in matters related to fuel duty and vehicle taxation, and I look forward to continuing to engage with him on those issues in the future.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

I remind the Chancellor that the labour market is not working for everyone. Every single year since 2014 I have asked why this Government are allowing the continued exploitation of workers under sham umbrella companies and false self-employment. Every single year I am told that the matter is under review. As the GMB’s recent success in the court shows, these workers are fed up with waiting. Why is it that under this Government a fair day’s work never really translates into a fair day’s pay?

[Mr Hammond]

First, the hon. Lady will find if she looks in the autumn statement document that we are moving to shut down an abuse of the VAT flat rate scheme that has been used by employment agencies to disguise employment remuneration. But she is right about self-employment, and I also mentioned specifically the increasing challenge of incorporation—the increasing number of single-person, zero-employee, single-director companies. The Prime Minister has asked Matthew Taylor to undertake a review of ways of working—

[Mrs Lewell-Buck]

It has been going on for two years.

[Mr Hammond]

No, it has not been going on for two years. Let me tell the hon. Lady what happened. The Prime Minister took office in July, so it definitely has not been going on for two years. She asked Matthew Taylor to undertake that review, which is now under way. It is a very important review, looking at how employment rights more generally are being affected by this transition in our economy. That is being driven by technology, as much as anything, and I have said today that we also have to look at this issue from the point of view of the tax base, because the tax base is also under threat from these changes.

Outsourcing and Tax Credits

Emma Lewell Excerpts

Friday 4th November 2016 Commons Chamber

[Simon Kirby]

My hon. Friend makes a valuable point. It is, I think, important to say that, particularly for vulnerable people, overpayments lead to debt. That is why it is important to make sure that we get the payments right and do not make mistakes. We must act in a fair, appropriate and customer-focused way.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

My constituent Ashley Davenport was one of many who suffered for three months under this contract. She had two children, one of them a new-born, and she contacted me after she had not eaten in days. Concentrix is not the first abysmal private company that this Government have allowed to fail in delivering sensitive public-service contracts. Since 2010, billions have been spent on the outsourcing of privately run public services. Is it not time that lessons were learned right across the board when it comes to welfare and benefits in order to mitigate any further hardship such as what we have seen in this latest shambles?

[Simon Kirby]

I would say three things in response. First, if the hon. Lady feels that her constituent has been wrongly treated, she should write and apply for compensation. Secondly, it is worth saying that the savings to the taxpayer are probably in excess of £200 million —not a small sum. Thirdly, yes, there are lessons to be learned—[Interruption.] I shall have to say that even more often, because it obviously gets a reaction. As a Government, we would be foolish not to learn lessons and not to make sure that the service we provide is as good and appropriate as possible. [Interruption.] The hon. Lady says from a sedentary position that this is turning into a debate, Mr Deputy Speaker. She asks whether we are going to come back and report. We shall have to wait for the independent NAO report.

The Economy and Work

Emma Lewell Excerpts

Thursday 26th May 2016 Commons Chamber

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

After years of abandoning and punishing the most vulnerable people in society, we get a Queen’s Speech that talks about introducing legislation to tackle some of the deepest social problems and to improve life chances for the most disadvantaged. However, we all know the truth: this Government’s grand rhetoric is rarely matched by policy. In fact, their policies tend to be regressive and punitive, pushing more and more people into poverty. No one living in poverty is there as a result of their own doing; the perpetuation of poverty and the rise in child poverty since 2010 is a clear failing of Government.

A recent report from Sheffield Hallam University, also referred to by the hon. Member for Glasgow Central (Alison Thewliss), looks at the uneven impact of welfare reform, revealing that the north yet again takes the biggest hit on welfare reform while the south, outside London, remains largely unscathed. Some 83% of the overall financial losses fall on families with children. The north-east alone is set to lose £620 million a year by 2020-21, which is a loss per working-age adult of £380 a year. South Tyneside, the council which covers my constituency, is the sixth worst-affected local authority. Even the introduction of the living wage has left the lowest-paid workers little better off, if at all. One of my constituents, a carer, is now in a desperate financial situation because the new living wage has taken her over the threshold to be eligible for carer’s allowance. An extra £8 a week has cost her £62 in lost benefits.

If this Government really care about life chances, they would not be running into the ground the services people that people rely on the most. They would not have closed over 800 Sure Start centres. They would not be presiding over a crisis in teacher recruitment. They would not be focusing resources on adoption to the detriment of social work that can keep families together. They would not be presiding over the collapse of the NHS and social care. They would not have made such a mess of the benefits system to the extent that more than 1 million food parcels have been handed out. Disabled people would not be losing more than £1,500 a year. The terminally ill would not be being declared fit for work and having their income slashed. Homelessness would not have doubled since 2010. We would not have rising wealth inequality in areas blighted by high unemployment. The Children’s Society has reported that children and young people in Britain are among the unhappiest, unhealthiest, poorest and least educated in the developed world.

This Queen’s Speech identifies an impotent and careless Government whose numerous U-turns reveal deep problems at the core of their policy making. Of the 30 announcements, we have heard 28 of them before, because we have for the past year had to put up with a Government obsessed with internal politics. We all know that the EU referendum has nothing at all to do with whether or not we are better off in or out of Europe. The Government have taken up precious parliamentary time with a prolonged, unedifying fight between—[Interruption.] You can have your say later. It is a fight between two middle-aged public school chums over who is going to run the country.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. Even though that was said from a sedentary position, it is not “you” who has had your say—it is “he” who has had his say.

[Mrs Lewell-Buck]

Thank you, Madam Deputy Speaker. I am going to end by saying that if this is the Prime Minister’s last Queen’s Speech, I am sure it is not a legacy that he or anyone on the Government Benches should be proud of.

[Several hon. Members rose—]

Oral Answers to Questions

Emma Lewell Excerpts

Tuesday 1st December 2015 Commons Chamber

[Damian Hinds]

The hon. Lady raises an important point. In fact, full-time workers account for almost three quarters of the employment growth since 2010. The crucial reform in the welfare and social security system is of course universal credit, which specifically seeks to get over the spikes found in the hours scale so that it always pays to move from being out of work into work and, crucially, to move up the hours scale.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

14. What recent estimate he has made of the level of household debt.

[The Economic Secretary to the Treasury (Harriett Baldwin)]

Since the financial crisis, households’ financial positions have improved. Household debt as a proportion of income has fallen to 144% in the second quarter of 2015, down from a peak of 168% in the first quarter of 2008.

[Mrs Lewell-Buck]

I thank the Minister for her response, but a large number of my constituents have been alarmed that mistaken overpayments of working tax credits made by Her Majesty’s Revenue and Customs have been recovered, without warning, from their child tax credit entitlements. Is the Department’s policy now to push people into poverty and debt by punishing them for HMRC’s mistakes?

[Harriett Baldwin]

The hon. Lady might remember the terrible roll-out of working tax credits that occurred when the Labour Government were in power. I can assure her that we will continue to improve the administration of tax credits. When her party was in power, people could have a £25,000 change in their income without it affecting their tax credits. We have brought the figure down to £2,500.

Oral Answers to Questions

Emma Lewell Excerpts

Tuesday 27th October 2015 Commons Chamber

The Chancellor of the Exchequer was asked—

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

1. What assessment he has made of the potential effect of proposed changes to tax credits on child poverty.

[Kirsten Oswald (East Renfrewshire) (SNP)]

2. What estimate he has made of the administrative cost of proposed reforms to tax credits announced in the summer Budget 2015.

--- Later in debate ---

[The First Secretary of State and Chancellor of the Exchequer (Mr George Osborne)]

Last night, unelected Labour and Liberal peers voted down the financial measure on tax credits approved by this elected House of Commons. That raises clear constitutional issues that we will deal with. We will continue to reform tax credits and save the money needed so that Britain lives within its means, while at the same time lessening the impact on families during the transition. I will set out these plans in the autumn statement. We remain as determined as ever to build the low tax, low welfare, high wage economy that Britain needs and the British people want to see.

[Mrs Lewell-Buck]

Six thousand, eight hundred children in South Shields are growing up in families who rely on tax credits. One of my constituents told me, “Tax credits at the moment only just make it possible for families to feed and clothe their children as it is. If this Government keep making cuts on those of us who are lowest paid we may just give up hope.” The public, the experts, some of the Chancellor’s own MPs and the other place all agree that his plans will victimise working parents and their children, so will he please give my constituents some hope and shelve these ridiculous tax credit cuts?

Oral Answers to Questions

Emma Lewell Excerpts

Tuesday 21st July 2015 Commons Chamber

[Mr Osborne]

My hon. and learned Friend is right. The good news is that the gender pay gap is at its lowest level in history, but we have more work to do and that is why we have introduced the new audits for companies. Of course, women will be the biggest group of winners from the national living wage.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

I listened to the Minister and Chancellor talking about tax credits earlier, but here is a bit of reality. A couple in my constituency told me that as carers for a disabled child, they work part time and will lose around £2,000 in tax credits under the Chancellor’s reforms. But they will not benefit from a higher minimum wage because their jobs are professional level and their hourly pay is already above that rate. Does the Chancellor think it is fair that his reforms will make families with disabled children poorer?

[Mr Osborne]

We have to look at the entire Budget package, because that is the new contract. Part of that is a tax cut, which I suspect will help the hon. Lady’s constituents, because we have increased the personal allowance. They may also be eligible for the new 30 hours of free child care. Many more of her constituents will also benefit from the national living wage. But what is the alternative? It is to have an unsustainable welfare system, the cost of which goes up and up and squeezes out spending on infrastructure, education and science, and puts our country at risk from economic storms abroad. That is what we lived through 10 years ago and we do not want to go back there.

Oral Answers to Questions

Emma Lewell Excerpts

Tuesday 10th March 2015 Commons Chamber

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

To follow up the question from my hon. Friend the Member for Leyton and Wanstead (John Cryer), it appeared from recent written answers that the Government are leaving open loopholes that see workers lose hundreds of pounds a month from rip-off umbrella companies. Why is that?

[Danny Alexander]

As I said, we are consulting on that matter and have already taken considerable action to deal with intermediaries. I am sure that more will be said about the issue in due course.

Oral Answers to Questions

Emma Lewell Excerpts

Tuesday 2nd September 2014 Commons Chamber

[Danny Alexander]

The Scottish Government’s plan to renege on Scotland’s share of the debt in the event of independence is simply not credible because of the catastrophic effect it would have on the people of Scotland. Mortgage rates would go up, credit cards and bills would go up, and the Scottish Government would have to resort to the bond market’s equivalent of Wonga to raise money to pay for public services in Scotland. To default on the debt would be to punish every Scot for Alex Salmond’s failure to think through his currency plan B properly.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

T8. Since the Government updated the law in April, thousands of construction workers such as my constituent, Ron Boyle, are facing a new form of exploitation. Forced to register with sham umbrella payroll companies, they lose hundreds of pounds a month in bogus fees, and pay national insurance contributions that ought to be the responsibility of their employers. Will the Minister assure me that that loophole will be closed quickly, so that workers such as Mr Boyle are not continually conned out of a fair wage?

[The Financial Secretary to the Treasury (Mr David Gauke)]

I am grateful for that question, and we all sympathise with some of the difficulties that people have faced. It is fair to say that this Government are closing the loopholes in that area, dealing with intermediaries, and reforming the construction industry scheme to ensure that people who are employed have the full employment rights that they deserve.