Budget Resolutions and Economic Situation
Jack Dromey Excerpts(8 years, 10 months ago)
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Jack Dromey (Birmingham, Erdington) (Lab)
Yesterday, the Chancellor trumpeted one nation. If one nation means anything, it is that Britain cannot succeed through London and the south-east alone. Building on Labour’s great devolution legacy in Scotland, Wales and London, we are pleased to see the devolution agenda for England moving forward, but we in the west midlands were surprised that there was but a throwaway reference by the Chancellor yesterday to the midlands powerhouse. Little wonder that the Birmingham chambers of commerce accuse the Chancellor of hot air and say it is time that he backed the midlands engine.
Julian Knight (Solihull) (Con)
Does the hon. Gentleman acknowledge that the midlands engine and the devolution we are undertaking in this country are supposed to take a bottom-up approach, rather than a top-down approach? It is up to the authorities in the west midlands to come to the Chancellor with their proposals, rather than for the Chancellor to dictate to them.
Jack Dromey
On this issue, we are as one. We are working together in the west midlands to construct the midlands powerhouse and realise the full potential of the midlands. What was surprising yesterday was that the Chancellor waxed lyrical about the remarkable Greater Manchester, mentioned the northern powerhouse in considerable detail and referred to just about every other part of Britain, and at the end of his remarks made a throwaway reference to the midlands powerhouse. That has not gone down well in the midlands.
Crucially, at the next stages what the Chancellor cannot do is empower but impoverish. One of the great problems with this Government is that everything they do is characterised by a fundamental unfairness of approach. Some £700 million has been cut from the budget of Birmingham City Council—£2,000 for every household—yet in the Chancellor’s own constituency there has been an increase in spending power of 2.6%. Likewise, the West Midlands police have been treated unfairly. If they were treated fairly, they would be entitled to £43 million more—enough for 500 police officers back on the beat.
We will never be one nation while the Chancellor and the Government continue to demonise and divide, with their talk of shirkers or strivers, work or benefits. I was born in poverty—my father a navvy, my mother training to be a nurse; they worked hard to get on. I have always believed that those who can work should work, but I object to wicked caricatures of the sort we heard yesterday in relation to the young homeless—“they come out of school, they go on benefits, then they want to get a flat”.
Three years ago, I hosted in the House of Commons the Homeless Young People’s Parliament in Parliament—quintessentially middle England, middle Scotland, middle Wales young people, the best of Britain, who had ended up homeless, overwhelmingly through no fault of their own. Last Friday, I was at Orchard Village, which serves young homeless people in my constituency. It is substantially dependent on housing benefit for its income and now faces closure.
If we are to be one nation, the Chancellor cannot continue to play politics with the United Kingdom, posing one nation against the other. EVEL—if ever there was an accurate acronym, that is it.
As for the Tories being the party of working people, they introduced in the Budget a tax on aspiration, saying to working families in social housing, “If you get on, you have to pay much more or move out.” The party of working people? On Sunday trading, I agree with what was just said. One of Labour’s greatest achievements, the weekend, is now threatened by this Conservative Government, who would compel seven-day working, in reality forcing millions of retail workers, particularly women, to work on Sunday and putting at risk thousands of small stores all over the country.
The party of working people, with the so-called living wage? Yesterday, when the Chancellor spoke about this, he grinned like a Cheshire cat and the Secretary of State for Work and Pensions punched the air, as if England had scored the winning goal in the World cup. The living wage? Twelve years ago, I was a founder member of the drive for the living wage, working through the former Transport and General Workers Union, with the East London Citizens Organisation and London Citizens, to organise, for example, thousands of cleaners in Canary Wharf and the City of London and the first-ever strike in the history of the House of Commons to win the living wage. This is not the living wage or a “new contract” with the British people, as the Chancellor called it this morning; this is a con trick by a cunning Chancellor, who gives with one hand and takes away with the other.
In the west midlands, 56% of families are on tax credits and 300,000 children depend on tax credits. Yet a family with two children and one full-time earner on £20,000-plus now faces losing £2,000: for every £1 they get from a higher living wage, they will lose £2 in tax credits. What is the Government’s answer? They say, “Ah, the £9”. That is £9 in 2020, but they are cutting tax credits in the here and now.
Chris Stephens (Glasgow South West) (SNP)
The hon. Gentleman is making an excellent speech. Does he agree that there has been a further attack on working people in that public sector workers have been told there will be a 1% pay rise every year?
Jack Dromey
The hon. Gentleman and I both come from a trade union background. I feel for public servants such as the firefighters, the police officers, the nurses. All those who do excellent work for the communities we serve, who have already been squeezed for five years, now face a 1% increase for the next four years. Effectively, that means a substantial cut in the living standards of millions of public servants.
The Chancellor says that the £7.20 rate will start next April, but the real living wage—I repeat, the real living wage—is already £7.85, or £9.15 in London; that is not based on cutting tax credits. As for the Chancellor being the workers’ friend, I did not come down with the last rainfall, and neither did the country. It is not a living wage if people cannot live on it. As the reality dawns and millions feel the pain of what the Chancellor has done, the last 24 hours of triumphalism on the part of the Conservative party will give way to the grim reality as Government Members go back to their constituencies and explain why they are inflicting cuts in living standards on the hundreds or potentially thousands of families they represent. The IFS’s verdict today is absolutely damning: for 13 million families, the living wage will not compensate for the tax credit cuts, and the poorest will be hit much harder.
When it comes to the Tories as the party of working people, let us not forget that this was certainly not a Budget for young working people. The crucial test of any Government is how they treat the next generation. Young people need the basics in life to get on—a decent job or education, and a roof over their heads. The Budget fails on all those points. It locks young people out of the living wage, makes higher education increasingly a luxury and cuts housing benefit for thousands who would otherwise end up homeless.
At this defining moment for our country, we must ask ourselves about what kind of country, economy and society we want. For me, it is an economy with a real living wage, not a phoney one. Crucially, as I have argued throughout my trade union life, it is the high-pay, high-quality, high-productivity culture of the kind that can be seen in the Jaguar factory in my constituency. We need a serious long-term economic plan if we are to promote such a high-pay, high-quality, high-productivity culture throughout our country, but the Budget failed lamentably on the fundamentals of productivity, skills, homes, rail and road. Ultimately, this country will never succeed and working people will certainly never succeed if we proceed on the basis of a low-waged, low-productivity economy.
What kind of country do we want? It has to be one in which our citizens are safe where they live and work, their children are protected and we are protected from terrorism. It is therefore fundamental folly for the Government, having cut 17,000 police officers, to continue down the path of cutting 17,000 more police officers. What kind of society do we want? Before the Budget, the OECD was right to warn against measures that would slow recovery and harm the poor, but that is exactly what will now happen.
Rick was a lifelong Tory and an ex-sergeant-major in the British Army, but he has joined my local Labour party. He told me, “I was a lifelong Tory, but I have joined the Labour party because I believe in both aspiration and support for the vulnerable.” He is in sharp contrast to a cunning Chancellor who gives hubris a bad name and is ambitious not so much for the country as for himself. After the last 24 hours—and the last century—now and in the future, the simple reality is that the party for the working people always was and always will be the Labour party.
Child Poverty
Jack Dromey Excerpts(8 years, 10 months ago)
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Mr Duncan Smith
Okay, that is an interesting argument. I simply say that, if the hon. Lady wants to claim that, she can also claim the disaster of the crashed economy that the Labour party delivered, putting millions of people out of work.
Jack Dromey (Birmingham, Erdington) (Lab)
Following his damascene conversion on the road to a Glasgow housing estate, the Secretary of State pledged that there would be no going back on Labour’s target to end child poverty. With nearly 9,000 children in poverty in Erdington, the great majority in working households, what does he have to say to the working mums I met in the Erdington food bank, who despair at what now looms for them in the next stages? To use the grotesque words of the Chancellor, these are strivers, not shirkers, but his Government are about to make them and their children poorer.
Mr Duncan Smith
I hope the hon. Gentleman also tells them that his Government failed to halve child poverty against their target. Before we get another lecture about child poverty from that lot over there, I simply say to them that their economic mess—crashing the economy and putting millions out of work—did more damage to his constituents than anything else. We are here to help them and get them back into work.
Oral Answers to Questions
Jack Dromey Excerpts(9 years, 3 months ago)
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Yvonne Fovargue (Makerfield) (Lab)
12. What recent estimate he has made of the number of people whose housing benefit has been reduced as a result of the social sector size criteria.
Jack Dromey (Birmingham, Erdington) (Lab)
17. What recent estimate he has made of the number of people whose housing benefit has been reduced as a result of the social sector size criteria.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
The latest published figures for August 2014 showed that the number of people affected by the removal of the spare room subsidy has fallen by 75,000. This follows a general downward trend, bringing the number of those affected down from 547,000 in May 2013 to 472,000.
Mr Duncan Smith
In previous speeches and today, the hon. Lady has talked about the fact that there are just not enough properties in her constituency to enable people to downsize. In fact, I understand that there are 2,700 people subject to the under-occupancy spare room subsidy, but something like 15,000 one and two-bedroom houses in the social sector properties in Wigan. There are many houses—many more than she might have laid out.
My point to the hon. Lady and the Opposition is that, in their opposition, they need to explain how they will afford it. The policy is saving some £500 million a year. It has already saved £830 million to date. They have no plans for substituting that, which means that their economic record is in tatters. After all, Labour, when in power, was the party that introduced that very policy for those in social sector private rented tenancies.
Jack Dromey
Once in every generation, there is a tax so bad that the next generation looks back and asks, “Why did they do it?” Such was the poll tax, now the bedroom tax. Will the Secretary of State tell us how many victims of domestic violence liable to the bedroom tax have had their sanctuary rooms deemed as spare rooms?
Mr Duncan Smith
The hon. Gentleman knows that that is just another attempt to start scaremongering about the whole idea—[Interruption.] Yes, it is. What has been disgraceful about the Opposition is that they have spent their time scaremongering up and down the country about this issue. He knows very well that local authorities and the police work together, they have discretionary housing payments to deal with that matter at a local level and they can resolve it. More than £380 million has been granted to local authorities for discretionary payments.
I have looked at what the hon. Gentleman said previously about the number of houses available. He said that some 5,000 people are suffering due to the under-occupancy rules because they had nowhere to move, but I remind him that there are 63,500 one and two-bedroom properties in Birmingham. He yet again mis-states the reality, which is that this has to work. I remind him again that it was his Government who introduced this for the private-rented social sector.
Housing Benefit (Abolition of Social Sector Size Criteria)
Jack Dromey Excerpts(9 years, 4 months ago)
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Jack Dromey (Birmingham, Erdington) (Lab)
Eighteen months ago, on a brilliant spring morning, a Meriden grandmother, Stephanie Bottrill, got up, sat down at her kitchen table, wrote notes to her son, her daughter, the grandson she adored and her friends and neighbours, fed the cat, put the keys through a neighbour’s door and then walked three miles through the early dawn light to the M6, where she threw herself under a lorry and committed suicide. The last straw for Stephanie Bottrill was having to pay the bedroom tax.
What kind of Government causes such pain to decent men and women? Once in a generation there is a tax so bad that the next generation looks back and asks, “Why did they do it?” Such was the poll tax, and now we have the bedroom tax. To add insult to injury, on the very day the bedroom tax was introduced the Government gave millionaires a £100,000 tax cut. In Birmingham, more than 10,000 households have been hit hard, 1,529 in my constituency, with an average loss of £16.42 to the most vulnerable and with some losing as much as £1,400 a year. A quarter of them are disabled. Who benefits? The Chancellor, because as far as he is concerned we have seen a weekly reduction in housing benefit of £179,000, with him netting £9 million a year while 10,000 people lose out.
Let me give some brief examples from my constituency. Terry lives in a two-bedroom house with his wife, and he has to have a separate room because she needs specialist breathing apparatus at all times. They have had to pay the bedroom tax because they are in a two-bedroom home. Brian lives in a two-bedroom property and was desperate to move to a one-bedroom property to avoid paying the bedroom tax. He tried time and time again, but he could not do it because there were only 43 available in the whole of Birmingham for in excess of 10,000 households.
Robert Flello (Stoke-on-Trent South) (Lab)
On that point, in Stoke-on-Trent, there is nowhere for the 2,700 families affected by the bedroom tax to go. There are no other properties for them to take.
Jack Dromey
My hon. Friend is absolutely right. They are trapped, having to pay the bedroom tax whether they like it or not.
A third constituent, Nicky, lives with her husband in a two-bedroom property. Her husband is a paraplegic and they are unable to share a bedroom, which is why they are in a two-bedroom house. They, too, have to pay the bedroom tax.
The Opposition are all in favour of reducing the housing benefits bill, but housing benefit is being pushed up by low wages and high rent. I met a young mother in the food bank in the Baptist church at the end of Erdington High street. She is in work, doing two jobs, but she is on poverty pay and is having to claim housing benefit as a consequence.
There are also not enough homes in our country. In government, we built 2 million homes and 500,000 affordable homes, but under this Government we have the lowest level of house building since the 1920s. Tens of thousands of people all over the country are trapped in homes in which they have often lived for decades, having to pay a retrospective tax and struggling as a consequence.
In conclusion, Government Members, particularly those on the Front Bench, just do not get it. They just do not understand the pain that has been felt as a consequence of their actions. The Secretary of State has often affected a damascene conversion on the road to a Glasgow housing estate, yet now he is presiding over pain on a grand scale to tens of thousands of decent men and women in this country. He has sat there throughout this debate with a Cheshire cat smirk on his face, oblivious to the consequences of his actions. This is a cruel, callous tax and one of our first acts as a Labour Government will be to confine it to where it richly deserves to be: the dustbin of history.
Parliamentary Under-Secretary of State for Welfare Reform (Disabled People)
Jack Dromey Excerpts(9 years, 6 months ago)
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Kate Green
I will make some progress as I know that many other colleagues want to join the debate.
It seems that the Government are happy to accept a waste of potential, and the additional cost of leaving disabled people on benefits year after year is resulting in their spending £8 billion more than Ministers planned. I think we are all agreed: if we—including Lord Freud—want more disabled people in work, as Labour does, there are plenty of policy areas to consider and policies that could be improved before we start to talk of cutting pay.
We have already come forward with our ideas: to refocus the work capability assessment on its original purpose of helping to identify the package of support that a disabled person who could work would need in order to do so; to introduce penalties for wrong or poor-quality assessments by work capability providers; and to ask disabled people to be part of a process of reviewing and improving the WCA, as they have direct experience of it. We know that the Work programme is not working for disabled people. We have said we will replace it with a specialist programme of locally contracted support that will mean that local providers, who have best knowledge of local opportunities, services and other providers, will be able to design holistic support for disabled people, to enable them to prepare for work. Perhaps Ministers will heed our practical suggestions, and most importantly, perhaps they will heed our promise that under a Labour Government the tone of the debate will be different.
We should all be ashamed that disability hate crime continues to increase, and that disabled people report experiencing a stream of negativity and hostility towards them. Research by Scope last year, one year after this country proudly hosted the 2012 Paralympic games and celebrated our medal winners, found that 81% of disabled people said that attitudes towards them had not improved in the previous 12 months, with 22% saying that things had got worse. Some 84% of those who said that that had happened thought that media coverage of benefit claims and the welfare system had had a negative effect on public attitudes.
I am deeply ashamed that disabled people feel hounded and bullied in our country, and I am angry that DWP Ministers, if not actually using hostile and negative language towards disabled people, are certainly not doing anything to halt it. Indeed, the DWP is promoting it. In one egregious example recently, the DWP press office retweeted a derogatory story about disabled people on benefits that had appeared in the national media. Last month’s remarks by Lord Freud have done yet more damage.
Jack Dromey (Birmingham, Erdington) (Lab)
Angela Maher, a brave mother battling angina with two disabled sons in my constituency, fell prey to a whispering campaign—“Why is she getting a car on benefits?” It culminated in her severely disabled son having stones thrown at him when he was in his wheelchair. She came to see me the day after the Chancellor’s speech on shirkers and strivers. Does my hon. Friend agree that it is absolutely shameful that the disabled should ever in those circumstances be branded as “shirkers”? It is a disgrace that we have a tone that has led to hate crime on the rise once again in 21st-century Britain.
Kate Green
None of us can feel proud when we hear that story. Hon. Members do not have to take my word for the concerns of disabled people. Michaela, a member of Trailblazers, Muscular Dystrophy Campaign’s network of young disabled campaigners, says of Lord Freud’s remarks:
“I’ve worked since I was 17 to improve, enhance and find full inclusion for those of us living life with disabilities. I’ve worked with a range of charities as a volunteer, pushing for better policies for a range of services, tried to give my voice to the cause and I can honestly say that I do feel more included in society today than ever before…What happened yesterday”—
she means the day Lord Freud’s remarks became public—
“has damaged our position. Lord Freud has enforced the idea that we are less productive, less valuable and by definition less human than the rest of society.”
That is how disabled people feel, and Ministers know how damaging Lord Freud’s remarks have been.
On 16 October the Secretary of State for Health said on “Question Time”:
“Well first of all, I don’t defend what he said, those words were utterly appalling.”
and the Minister’s colleague, the Minister for Employment, the right hon. Member for Wirral West (Esther McVey), said:
“you’re right those words will haunt him. I cannot justify those words, they were wrong.”
I know Lord Freud has apologised, but the damage has been done—done in deed and in word by the Minister and his Government. Disabled people deserve a clear signal that we know the offence and hurt that Lord Freud’s remarks have caused. This afternoon we can send them a clear message that we will not tolerate such language, and that we value and respect them as equal members of our society. This afternoon, we can vote for the motion before the House, and I ask hon. Members to do so.
amendment of the law
Jack Dromey Excerpts(10 years, 1 month ago)
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Jack Dromey (Birmingham, Erdington) (Lab)
It was a great Conservative Prime Minister, Harold Macmillan, who once said that it would be “quite intolerable” for a modern economy and a compassionate society not to have at their heart social security and a welfare state. Quintessentially a one-nation Conservative, he was right. Sadly, the modern Conservative party is very different. We have a Chancellor who seeks to divide our nation between shirkers and strivers—now doers—and is often engaged in a grotesque demonisation of anyone on benefits in a system that can be cruel in its application and is not fit for purpose.
It is cruel in application on the one hand, as can be seen in the case of Bobby Busby in my constituency. His legs and pelvis were crushed in his youth, and he was on sticks, but he was passed fit for work, and his benefits were cut off. He fell into despair and could not stop crying. He went looking for his father, even though his father had died many years earlier. He retreated to his home and died of a heart attack. The benefits system is not fit for purpose on the other hand, as in the case of one Erdington family. Fiona was diagnosed with cancer of the spine last October, and applied for personal independence payment in November. Only now, four months later and as a consequence of my intervention, will she get a home assessment carried out by Capita. That is one of many cases that demonstrate a shambolic system.
I come from an upstanding working-class background where people believe that if you can work, you should work. It is also absolutely right that we should seek to reduce the benefits bill, but it is how we do it and what kind of society we want to live in that matters. Ours is therefore a very different approach. It involves building homes, because it is crazy that we spend 95p in every £1 that goes into homes as subsidy as opposed to bricks and mortar. The housing benefit bill is rising to £25 billion because of the biggest housing crisis in a generation and soaring rents. That is why Labour would build 200,000 badly needed homes a year to buy and rent.
Labour would get young people into work, paid for by the bankers’ bonus tax. One in four in my constituency is out of work. We must connect the two things, because I want to see many more young apprentices, such as those I saw at Carillion and Willmott Dixon: young men and women building the homes needed for the future. We would introduce free child care for three and four-year-olds so that families can balance work and home; and we would tackle in-work poverty, as we are seeking to do in Birmingham, by driving the agenda for the living wage. We want to see dignity at work, and more time for people to spend with their family, because they do not have to spend every hour of the day and night at work. That is better for employers and, crucially, it brings down the benefits bill.
Ours is a progressive approach that builds a stronger economy in a better society, tackling the price of failure. Ours is an approach that builds a sustainable recovery and one that works for working people. The Government boast of recovery—any progress is welcome, but this is the slowest recovery in 100 years. The Government are borrowing £190 billion more than they planned; there have been 24 tax increases; and working people are £1,600 a year worse off. A building worker I recently met in Kingstanding has had his wages cut by £80 over the past three years. It is little wonder therefore that when I was at the school gates at St Barnabas last Friday, a working mum came up to me and said, “I heard all week about recovery. Jack, what planet do they live on?”
It is not just falling wages; it is also growing insecurity in the world of work. The Bannions in my constituency are an excellent family with a disabled son. The dad has been made redundant three times in the past three years—each new job was on lower pay and was more insecure—and sadly, there are millions like him who live in a twilight world of zero-hours contracts and agency work.
In conclusion, this is a Government who are simply out of touch, and the Tory chairman’s patronising poster said it all. I used to play bingo when I was a young man. I drank too much beer and my waistline suffered as a consequence. We have excellent bingo halls and pubs throughout Erdington, but beer and bingo are not the summit of working people’s ambitions.
Erdington has the 14th highest unemployment level of any constituency in the United Kingdom. It is a constituency of high need, with pockets of severe deprivation, but it is rich in talent. There is Angela Maher, the mother of two disabled kids, who sings in a local choir; Linda Hines, who has built 200 homes in Witton Lodge; and Maurice Weston, a former industrial worker, now a volunteer at Slade school who has written an excellent history of Slade school. There are working-class scientists and working-class engineers from Erdington working in Jaguar Land Rover. There is an airline pilot and outstanding artists such as Jim Allmark and a collective of artists with whom he works. There is our very own Billy Elliot, Amanda Cutler, the chair of the Castle Vale pool user group. She is a mum of two, living on the Vale, who danced with the Royal Ballet in “Swan Lake”.
This is a Government who are out of touch, oblivious to the consequences of their actions, divorced from the reality of ordinary people’s lives and who simply do not get it. We want to see a stronger, fairer, better economy that works for all, but that will not happen under this Government. That great task will fall to the next Labour Government.
Chris Heaton-Harris (Daventry) (Con)
It is a pleasure to follow the hon. Member for Birmingham, Erdington (Jack Dromey). I thank him for his valiant attempt to explain his party’s economic policy using real-life examples, but he has to admit that it is a very confused policy. A bit like a chameleon that has fallen into a bag of Smarties, it is changing almost by the day, by the hour. On the Government side of the House, we are waiting to find out what his party will vote for or against in this Budget, with about two hours to go before the vote.
However, the hon. Gentleman identified a really important point, which I would like to come back to. He spoke about the diverse nature of our individual constituencies—Birmingham, Erdington and mine of Daventry. Maybe, just maybe—this follows points made in speeches from Opposition Members—we are all missing a trick in trying to tackle some of the long-term unemployment problems our country faces.
However, I start by saying that this is a very good Budget. A record number of people are now in work. The pace of net job creation under this Government has been three times faster than in any other recovery on record. Unemployment figures for March show a 20% fall in the claimant count in just one year and the fastest fall in the youth claimant count since 1997. That is something we should all be able to welcome. The Office for Budget Responsibility forecast 1.5 million more jobs over the next five years. Again, that is something we can all welcome. There are a record number of women in work, and for the first time in 35 years we have a higher employment rate than the United States of America.
There are good measures in the Budget for our exporters and good financial support to put them on an even keel with their international competitors. We are lifting people out of paying tax—3 million by 2015. So many of them will be better off by £800 each year because of the changes in the tax system. There are 450,000 fewer workless households, which is surely something to celebrate. It might not be enough, but it is something to be pleased about.
We have a fantastic new policy for pensions. We have introduced the workplace pension, the single-tier pension and now the change in policy for annuities will allow people to help shape their futures as they choose, with their own money. Three quarters of a million more people are in full-time work—that is something to celebrate—and 300,000 more people are in part-time work.
I hope that Opposition Members will stop their attack on part-time work, because it is important for all sorts of sectors in the economy, and indeed all types of people, whether students in the summer or mothers returning to work after having children. Part-time work is fundamentally important in helping to drive our economy.
Like the hon. Member for Birmingham, Erdington, I am unsure about zero-hours contracts, having heard good and bad stories about them. However, I remind him that he was the head of a trade union that pushed for a European measure that led to less flexibility in our work force here in the United Kingdom. Indeed, a Labour Secretary of State went to the European Parliament to plead for the United Kingdom to be allowed more flexibility. I suggest that the lack of flexibility in our employment market might have led businesses to look around for something that would allow greater flexibility, and that seems to be zero-hours contracts.
Jack Dromey
I take it that the hon. Gentleman is referring to the agency workers directive.
Jack Dromey
Then I plead guilty. I was one of those involved in those discussions, and absolutely rightly so. If there are two people doing the same job alongside each another, one who is an agency worker and one who is directly employed, it is absolutely right that they should be paid at the same rate. To fail to do that divides work forces and, as we have seen in some areas of economy, damages social cohesion.
Chris Heaton-Harris
I thank the hon. Gentleman for that point. He and I have a difference of opinion on the matter, which I would happily talk to him about over one of those beers he used to have too many of. The point I was trying to make is that the lack of flexibility in our employment market might have led employers to try various tactics to reintroduce flexibility by a different route.
Like the hon. Gentleman, I have been talking to my constituents about the Budget over the past few days. Unlike him—I might be wrong about this—I go to a gym, which is a privilege. My doctor told me I should go. In fact, he says that I have the lower limbs of a runner—“athlete’s foot”, as he puts it colloquially. I was talking to a personal trainer at the gym who recognised the importance of lifting the tax threshold and how much it would mean to him. I also met a man there who has three jobs: he is a pest control expert, he sells logs and he is a gritter for my local authority. He recognised the importance of the change in the tax threshold and welcomes any changes that bring about a healthy welfare cap. I also met a neighbour of mine there who is very pleased with the pension changes because they will allow him to plan for his retirement flexibly, and hopefully spend his own money which he has already earned and paid tax on.
The Government have delivered some good thing for my constituency, such as the university technical college and massive investment in the further education sector, which will help with long-term youth unemployment in future. There has been massive investment in the town of Daventry, helped by the council, and massive investment coming into the Daventry international rail freight terminal, where new businesses and logistics are settling. That means that my constituency is remarkably different from Birmingham, Erdington. There are only 1,000 JSA claimants in my constituency—it is still too many—which is down by 30% from last year. That is a claimant rate of 2.1%. For 18 to 24-year-olds, the rate has fallen by almost 30%. The number of people claiming for more than 12 months has also fallen by over 30%.
As the hon. Members for Birmingham, Erdington and for Liverpool, West Derby (Stephen Twigg) and, to a certain extent, the hon. Member for Wigan (Lisa Nandy) said, we all have completely different constituencies. Perhaps the one-size-fits-all nature of Government delivery in trying to get people out of long-term unemployment simply will not work. We need a much more flexible solution.
Unlike some Opposition Members, I am quite pleased with the developments in the Work programme. It is a very big programme that has had more than its fair share of teething troubles, but up to December 2013 A4e, one of the two providers in my constituency, has achieved over 100 positive job outcomes in Daventry, which in the majority of cases means someone being supported into a job lasting over six months. On Friday, I went to A4e’s offices and met some of the people who work there helping to get people in my constituency back to work. I met Jodie, Hollie and lots of A4e staff giving their all to try to remedy this problem that we have in all our constituencies. I say to Labour Members that the one-size-fits-all approach does not work all the time. We need flexible solutions, and sometimes private providers are just as good as the public sector in achieving that.
Housing Benefit
Jack Dromey Excerpts(10 years, 6 months ago)
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Jack Dromey (Birmingham, Erdington) (Lab)
As dawn broke on a May morning, a 53-year-old grandmother, Stephanie Bottrill, went to the table in her house—a house she had lived in for 18 years—and wrote notes to her son, her daughter, her mother, her friends and the grandson on whom she doted. She locked up, left the cat behind, went across the street to her neighbour, put the keys in the neighbour’s door and then walked through a silent estate three miles to the M6, threw herself under a lorry and committed suicide. The note that this lady, driven to desperation, left for her son Steven, 27, said:
“Don’t blame yourself for me ending my life. The only people to blame are the Government.”
Days earlier, faced with having to find £20 extra a week, she had said to her neighbours, “I just can’t go on.” Mr Speaker, what kind of country do we live in, and what kind of Government do we have that drives a decent woman like her to suicide? Once in a generation, there is a tax that is so bad that the next generation looks back and asks. “Why did they do it?” Such was the poll tax; now the bedroom tax.
The bedroom tax is an iniquitous, immoral and unjust measure—cruel in its impact on the one hand, and presenting cruel dilemmas on the other. As for cruel in its impact, three years ago, I helped David O’Reilley, his partner Nikky Cunningham and their daughter to get into a council home. It had three bedrooms—a box room for the daughter and two other bedrooms, one of which Nikky cannot sleep in because, tragically as a result of an operation that went wrong, her loving husband David is a paraplegic. With the special bed and special equipment in the room, it is impossible for her to sleep in it too, so she sleeps in another room—but they have to pay the bedroom tax.
Chris Ruane
To what extent does my hon. Friend think that the Government’s policies are being pursued out of political spite rather than in the pursuit of efficiency?
Jack Dromey
I shall come to that very point shortly.
This tax is presenting cruel dilemmas. “Move,” they are told—but who are they? Two thirds of them are disabled. Move where, in Birmingham? There are 13,736 people who are affected by the bedroom tax, and there are 130 one-bedroom properties available to accommodate them. If they stay, they sink into debt. The Government say “Ah, but we have the discretionary housing payments.” The Government gave £3.77 million to Birmingham and the council topped it up by £2 million, but there are 350 new claimants every week. If the current trajectory continues, the fund will run out by Christmas, and thousands of desperate people in Birmingham will face an unhappy Christmas and a bleak new year.
Not only is this an unjust, iniquitous and immoral tax; it is also the economics of the madhouse. If a disabled man or woman is moved from a house that has been adapted to a house that has not been adapted, the adaptations must be paid for. If someone is moved from a two-bedroom council home to a one-bedroom home in the private rented sector, housing benefit will typically cost £1,500 more a year. There is also the impact of bad debt and administrative costs on house building. Housing associations throughout the country are saying, “Just when we need more social homes, fewer of them will be built.”
I know that there are some honourable Members on the Government Benches, and I pay particular tribute to the excellent contribution made by the hon. Member for St Ives (Andrew George), but let me say this to Government Members more generally. Have they no sense of shame about the pain that they are causing to war veterans, children, the disabled and carers, three quarters of whom have said that they are having to cut back on heating and eating as a result of the bedroom tax? Have they no sense of shame when they hear about Nicky Cunningham, the wonderful wife of David, her paraplegic husband? She said to me yesterday, “Jack, they treat us as if we are good for nothing and contribute nothing to society. Us a burden? We are already living with a burden. Why do they do this to us?” There is no answer to that question, other than to do what a Labour Government will ultimately do, and confine the bedroom tax to where it richly deserves to be: in the dustbin of history.
Atos Healthcare
Jack Dromey Excerpts(11 years, 8 months ago)
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Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mrs Riordan.
I am pleased that the Minister of State, Department for Work and Pensions (Chris Grayling) is here. I am not sure whether this will be his valedictory performance in that role, but I saw pictures of him going into Downing street earlier, and if he has been promoted to the post of Secretary of State for Justice, I would like to be the first to congratulate him. I remind him, however, that in that post he will be responsible for the tribunals service, which deals with appeals relating to the work capability assessment, so he will not completely escape responsibility for some issues that will be raised this morning.
I am conscious of the number of people present for this debate, which highlights the fact that although hon. Members may be consumed by events in and around Downing street today, many people outside are concerned about aspects of the work capability assessment and employment support allowance. I am sure that hon. Members will want to reflect those views and with that in mind, I shall endeavour to be brief. I shall take only a few interventions, to allow more Members to contribute.
There are three points on which we probably all agree: first, there are benefits in working. I have seen many of my constituents—although it is harder to do so now than it was a few years ago—return to work after long periods of unemployment. As well as any material benefits, the positive impact on their health and well-being is obvious. We should all encourage as many people as possible to work and get back into work if they have not worked for some time. Secondly, as most of us would acknowledge, helping and supporting those who have not worked for a long time can be difficult and time-consuming. It needs to be done sensitively, so that people feel helped and not as though they are being punished. Thirdly, although not everybody completely accepts this point, many feel that an assessment for those who rely on sickness and disability benefit is useful and appropriate. That was the envisaged purpose of ESA: to support those who can work into work, as well as those who sadly will never be able to work again.
Six months ago, I was fortunate enough to secure a debate on this issue in this Chamber. At that time, the Minister confidently predicted that the performance and situation would massively improve and some changes that had been made had not yet fed through. Six months later, I suggest to the Minister that the number of people present today indicates that very real concerns and problems remain, many of which are sure to be reflected during the debate.
In our previous debate, I focused on the experiences of constituents who had undergone the assessment. I told the story of a constituent trapped in the system who went through an assessment, a successful appeal, a reassessment, followed by another successful appeal and then another reassessment. For too many people, that remains the experience across the country. The Minister and whoever his successor will be need to look carefully at that issue and address it. I have spoken with many constituents who would love to go out to work, but it is not possible to do so because they suffer from a disability or a chronic condition, and I am sure that many Members in the Chamber will want to speak up for such people.
Jack Dromey (Birmingham, Erdington) (Lab)
I congratulate my hon. Friend on securing this debate on a vital public concern. He has spoken of his own constituents. In my constituency, Paul Turner, a manager and proud family man, contracted a serious heart disease. He was off work and although desperate to work, could not do so. However, he was told that he was fit for work and was denied benefit. As his wife says, he went into serious decline and died only weeks later. In the work capability assessment, his heart was not tested. Does that not demonstrate how fundamentally flawed the assessment process and its conduct by Atos are? Does my hon. Friend not agree that it is absolutely wrong in a case such as that for the Minister to refuse to refer it to the serious case review, so that profound lessons can be learned? Never again should anyone be treated in the way that Mr Turner was.
Tom Greatrex
My hon. Friend makes a powerful point. A number of cases could be cited that indicate the lack of comprehensiveness in the assessment process and the failure sometimes to incorporate other evidence to ensure that not as many people are wrongly assessed.
I want to concentrate on some contractual issues this morning, and I am sure that others, like my hon. Friend, will make comments about individual cases to illustrate those points. The work capability assessment must be tailored in the interests of both the individual and the taxpayer. Unfortunately, both are getting a raw deal from the system. It is true that the work capability assessment was introduced under the previous Government, which is a point that Government Members frequently make, as I am sure that they will today. It is also the case, however, that in late 2010 the contract with Atos Healthcare was amended, extending it to 2015, beyond its original conclusion date of 2012. The work capability assessment was rolled out to millions of people on incapacity benefit under this Government, despite pilot projects in Aberdeen and Burnley highlighting serious concerns. The Minister said during our previous debate—I paraphrase him slightly—that, in his judgment, the Government should get on with that process and try to work on the basis of the expert reviews as they were going on, rather than fixing it in the first place.
Oral Answers to Questions
Jack Dromey Excerpts(11 years, 10 months ago)
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Mr Duncan Smith
I shall certainly relay my hon. Friend’s views to the Prime Minister as part of the overall review. When we made the changes to housing benefit, we were attacked by the Opposition for “social cleansing” and all those dangerous things we were supposed to be dealing in—[Interruption.] No, no, by the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) and his team. On the one hand, his team accuse us of social cleansing; on the other, he accused me the other day of not cutting deep enough on housing benefit. The only shambles here is their position on housing benefit.
Jack Dromey (Birmingham, Erdington) (Lab)
A million young people are out of work. Now, the Prime Minister wants to deny housing benefit to under-25s, pushing thousands into becoming homeless and punishing workers on low pay or in an apprenticeship who need housing benefit to keep a roof over their head. Does the Secretary of State agree with the chief executive of the YMCA, who says it is
“difficult…to think in our 168-year history of a proposal more detrimental and having a negative impact”,
and the chief executive of Crisis, who says that the Government are being “irresponsible” and should concentrate instead on creating badly needed jobs and building badly needed affordable homes?
Mr Duncan Smith
We are doing all those things. The housing benefit changes are necessary to bring back under control a budget that was spiralling under the Government the hon. Gentleman supported. In almost 10 years, we saw that budget rise from about £11 billion to £21 billion. That was madness, and it was their lack of control and their creation of the local housing allowance that led to that problem, so we will take no lectures from him or his hon. Friends about what is right or wrong in relation to housing benefit.
Amendment of the Law
Jack Dromey Excerpts(13 years, 1 month ago)
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Jack Dromey (Birmingham, Erdington) (Lab)
This is a Budget for growth: growth in insecurity, growth in inequality and growth in unemployment, which was up by 27,000 in the west midlands last month alone. It is not a Budget for economic growth, which was down last and this year and will be down next year, as are living standards. Not only is unemployment up, but so too are borrowing, inflation, debt interest payments and higher debt interest, which is up by £17.8 billion. Yes, the Budget contains some modest measures, but despite evidence that the economy is getting into choppy waters and despite the widespread concern being expressed, the Government remain lashed to the mast, rejecting any but plan A and sailing on regardless, oblivious to the consequences of their actions.
I want to focus on the consequences for the people of Erdington and Birmingham of the Budget measures of the past nine months in relation to the public, private and voluntary sectors. In the public sector, this Friday 1 April we will see the biggest cut in local government history—£212 million. It is a Budget launched by a laughing Conservative leader and supported by a Liberal Democrat deputy leader who only 24 hours earlier had been one of those who wrote to The Times to protest about the scale and speed of the cuts being imposed on local government.
The consequences will be felt by everyone, whether they are three, 13 or 73: three-year-olds who go to one of Birmingham’s excellent children’s centres will find the centres’ budget cut by 16%; 13-year-olds who go to one of Birmingham’s 60 excellent youth service centres will see many of those centres face closure; and 3,500 73-year-olds, those who built Birmingham and Britain, face losing their care packages altogether, which for them make the difference between a decent life and a life on the margins.
Jack Dromey
Bankers’ bonuses and, as our Front-Bench team proposes, among other things, we would have a sensible programme of investment, just as we invested in the construction industry to get it going at a time of recession, providing 110,000 homes, 70,000 jobs and 3,000 apprenticeships. We would invest now in a fresh stimulus package of much-needed social housing, creating jobs, apprenticeships and hopes. That is what we would do, and that is the difference between them and us.
The police, too, are feeling the consequences. This Friday 300 of the most experienced police officers in the west midlands will be forced out under regulation A19. I was with five of them this morning. They included an inspector, the national champion of designing out crime, who on one Birmingham estate achieved a 97% reduction in crime levels; a sergeant leading an excellent team of neighbourhood policemen; and a detective constable, the specialist in robbery, who has put away those who robbed old people at cash points and those who robbed shops with a machete. They all now face having to leave the force against their will. The Government have said to them, “Thanks for your past loyalty, but here’s your notice.” Governments should cut crime, not the police.
With regard to the impact on the private sector, 1.2 million people in that sector depend on public expenditure, particularly the £38 billion spent on local government procurement. If local government budgets are cut by 28%, major job losses in the private sector are inevitable. The estimate for the midlands is that 67,000 jobs will go as a consequence of what is happening in local government.
On rebalancing the economy, the Government have abolished the most successful regional development agency in Britain—Advantage West Midlands—and put in its place local enterprise partnerships that have no money, no power, no statutory basis and no power over skills. The planning proposals are a cocktail of confusion and the regional growth fund has only a third of the funds that were available to the RDAs. Incidentally, the RGF is the most elastic fund in history, designed to cope with all sorts of applications according to the Government.
Then there is the impact on the voluntary sector, the good society. Billions will be lost to the voluntary sector, including, in Birmingham, the oldest citizens advice bureau in Britain and 13 advice centres—all facing closure. The CAB was founded in 1938 and is the quintessence of the good society. Excellent people give first-class advice with an army of volunteers, but, just when the people of Birmingham need their support and advice most, those centres are facing closure.
My constituency of Birmingham Erdington is one of the 10 poorest in Britain, but it is rich in talent, with young people who are deeply aspirational and want to get on. What now haunts the people of Erdington is the spectre of the 1980s and TINA: there is no alternative. I know families in Erdington, Kingstanding and Castle Vale, where excellent men and women in the 1980s were made redundant two, three, four, five times. Some of them never worked again, because they gave up hope. The idea that once again the spectre of mass unemployment should haunt north Birmingham is absolutely wrong.
Stephen Lloyd
Is the hon. Gentleman aware that, after 13 years of Labour Government, there are 2 million children in households where no one works?
Jack Dromey
We acted, by way of a range of measures, to help the poorest families, including the poorest families with children. It is a record of which we are proud.
There is a fundamental difference between the Government and this Opposition, not just on economic strategy but on this point: for us, unemployment will never, ever be a price worth paying.
Stephen Barclay
Had the hon. Gentleman bothered to be here for the whole debate he would have heard some of the points made by my colleagues, including the fact that £42 billion is being spent on debt interest this year alone.
The hon. Gentleman is quite right to ask where the money is going, which brings me to my second point: waste in spending. The focus is often on top salaries in the public sector, but in Cambridgeshire there is one station manager, or a more senior officer, for every four full-time firefighters, one police sergeant for every four constables, one inspector for every three sergeants, and one chief inspector or above for every inspector. There has been huge inflation in management costs.
Opposition Members may chunter, but let us look at what many of those managers do. The Ministry of Justice asked local authority youth offending teams to collect more than 3,000 bits of data on process, and yet outcomes were still not measured, so the YOTs still cannot say which prevention schemes work. There has been an inflation of management salaries, but often the same people are paid for the same performance. The chief fire officer of Cambridge earns £190,000—£60,000 more than the chief constable—and has three deputies on £150,000, £140,000 and £130,000 each. Perhaps Opposition Members were marching on Saturday to protect such salaries, but we need to look at productivity, and at what we get in return for those salaries and that inflation in management spend.
Jack Dromey
On productivity, the Prime Minister hailed local government as the most efficient part of the public sector. Can the hon. Gentleman square that with demanding up-front, front-loaded 28% cuts, the consequences of which are being felt in my constituency?
Stephen Barclay
The hon. Gentleman mentioned productivity, but I urge him to read what the independent National Audit Office says about the health service. Spending doubled, so of course waiting lists went down—we would expect that—but the NAO found that health productivity fell dramatically. The spending fell to many of the best-paid staff such as consultants, so productivity did not match funding.
On procurement waste, the NAO says that Firebuy, an arm’s length body set up by Labour, cost twice as much to set up and run as the savings that it made. On NHS procurement, the NAO found that
“NHS…trusts pay widely varying prices for the same items.”
One NHS trust bought 177 types of surgical gloves.
The huge waste in the opaque spending in local budgets needs to be addressed. For example, Cambridge fire service spends £1.77 million, an increase of £600,000, on what it defines as “other services and supplies”. It cannot explain what that spending is. Cambridgeshire police define £7 million of spending as “other”.