Welfare Reform and Work Bill

Debate between Neil Coyle and Oliver Dowden

Tuesday 27th October 2015 Commons Chamber

[Oliver Dowden]

We need to be clear about the problems with tax credits. Let me offer the House three facts. The first is that, under the last Labour Government, 1.4 million people remained on out-of-work benefits for almost the entire period. Secondly, the number of workless households doubled, and thirdly, the level of in-work poverty rose by 20%. So there has been a massive increase in expenditure on welfare and on tax credits, but it is not delivering the reduction in poverty that we all desire.

[Neil Coyle]

Does the hon. Gentleman not agree that tax credits have played a role in tackling in-work poverty?

[Oliver Dowden]

This is precisely the point that I would like to get on to. Despite the increased expenditure on tax credits, we continue to see these dreadful statistics on poverty, and that is because this is a flawed model that is based on taxing people on the minimum wage who can barely afford to pay tax, recycling that revenue through the welfare system and using it to top up low pay. That is not a sensible way to proceed.