Management of the Economy and Ministerial Severance Payments

Debate between Neil Coyle and Patricia Gibson

Tuesday 15th November 2022 Commons Chamber

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

There was a time, not so long ago, when Governments took responsibility. Listening to the Minister, it seems that time has passed, as we heard no contrition and no humility for the Government’s calamitous decisions.

The events of the last few months in particular have been unbelievable, even by the standards of this Tory Government. “It’s all the fault of Putin. It’s all the fault of covid. A big boy did it and ran away.” People across the UK, including in my North Ayrshire and Arran constituency, are now suffering real financial harm and real financial hardship as a result of this Government’s incompetence. The Minister says there are tough roads ahead, and there are indeed tough roads ahead, but those roads will not be travelled by all equally.

[Neil Coyle]

Will the hon. Lady give way?

[Patricia Gibson]

I will give way.

[Neil Coyle]

The hon. Lady shows more courtesy than the Minister did.

The Minister would have us believe that the Government’s Budget had nothing to do with the 8,000 people in Southwark paying higher mortgage rates, and she would like to blame Russia. Does the hon. Member for North Ayrshire and Arran (Patricia Gibson) believe that the Government should take measures to punish those in Moscow and Russia who have profited since the war broke out, such as the Prime Minister’s family, to the tune of £7 million?

[Patricia Gibson]

The public are becoming increasingly wise to the snake-oil salesman approach in which one thing is said, accompanied by handwringing and head shaking, but no real action is taken to tackle those who profit in a way that most people would find obscene.

If we listened to the Minister, we would think that the so-called mini-Budget had not happened at all. The name “mini-Budget” is ironic because it makes it sound small, but the damage it has caused is very considerable. This Budget revealed, for those who still harboured any vestiges of doubt, whose side the Tories are really on. The so-called mini-Budget sought to scrap the bankers’ bonus cap, reduce taxes for the most well off, cancel the planned increase in corporation tax, refuse to bring forward an extended windfall tax and weaken the rights of trade union members.

Labour’s opposition to the mini-Budget amounted to £24 billion out of £43 billion of tax cuts, and it was left to the right hon. Member for Hayes and Harlington (John McDonnell), as it so often is, to call this mini-Budget what it actually is:

“the most socially divisive Budget in a generation.”

I understand that Labour is a bit worried about upsetting hardcore Tory voters in England, but sometimes harsh language has to be used.

Once the markets took fright and Labour saw the extent of the mini-Budget’s fiscal irresponsibility, it demanded that the entire mini-Budget be reversed, which was not its original position. The Resolution Foundation noted that almost half the gains from the proposed tax cuts would have gone to the richest 5%, who would have gained £8,650 on average, while the poorest half of households would have gained £230 on average. Almost two thirds, 65%, of the gains from the personal tax cuts would have gone to the richest fifth of households.

Torsten Bell from the Resolution Foundation described the measures as a

“simply staggering…tax cut for richer households”.

Save the Children described the tax cuts as

“a hammer-blow to low-income families”.

There were £45 billion of unfunded tax cuts, almost exclusively benefiting the rich.

While all this was going on, the SNP in Scotland was being urged, not least by the hapless hon. Member for Moray (Douglas Ross) among others, to follow the Tories in Westminster in entering the bowels of tax-cutting hell, where the most well off enjoy the windfall of a tax-cutting bonanza. Of course, he U-turned on this, as he so often does. It is often hard to tell if he is going somewhere or coming back.

It was, quite frankly, immoral for such a Budget to be delivered when so many are struggling to pay their bills, and the consequences of announcing these measures—again, it is difficult to call it a mini-Budget given its consequences—were catastrophic. The pound dropped by nearly 2% against the dollar, to the lowest level since 1985. The IMF rebuked the Government for causing such damage to the economy, and international investors declared that the UK’s greater economic suffering than similar countries is a consequence of the “moron premium” it pays due to its terrible leadership under the Tories. The cost of this so-called moron premium stands at £30 billion.

For households across the UK, the cost of the Government’s staggering incompetence is still being counted. Forty-one per cent. of mortgage deals that had previously been available were pulled by the banks, with more than 1,700 mortgage products being reintroduced at rates 2 percentage points higher, leaving hundreds of thousands of families across the UK paying far more for their mortgage. Pensions almost collapsed, and the instability within the UK was the talk of the international steamie. The Minister talks about restoring financial stability, but such urgent measures would not have been needed had the Government not caused such instability.

Work Capability Assessments

Debate between Neil Coyle and Patricia Gibson

Tuesday 9th February 2016 Westminster Hall

[Patricia Gibson]

I am afraid the only possible reason I can think of for that is that the information does not present the work capability assessments in a flattering light. I leave others to draw their own conclusions about how bad it might be.

The worst thing about the system is that those caught up in the controversy and confusion are people with long-term health conditions, and some of the most vulnerable people in our communities. There is a lot of consensus in the Chamber about the need for an urgent review of the work capability assessment. As the hon. Member for Sheffield, Heeley (Louise Haigh) pointed out, the cost is increasing, and it is expected that £595 million will be paid for 3.4 million assessments—about £190 per assessment. There has also been a problem with the recruitment of enough medical professionals to meet the demands of the assessments. At least £76 million of taxpayers’ money has been wasted through the failure to get a new IT system up and running more than two years after it was supposed to be in place. As has been mentioned, the National Audit Office report, which was released only last month, revealed that

“recent performance shows the Department has not tackled—and may even have exacerbated—some of these problems when setting up recent contracts”.

[Neil Coyle]

The points about rising costs and the backlog are well made. Perhaps we can help the Minister by asking her to consider removing some of the routine retests for those with progressive conditions and conditions that will not change. We have all had the excellent briefings from Parkinson’s UK and Mencap, for example. Perhaps the Minister should look again at the frequency of testing for some people, to save the taxpayer money and save some of the stress and anxiety that the hon. Lady has mentioned.

[Patricia Gibson]

That is an excellent, well made point and I thank the hon. Gentleman.

There is also a problem with transparency. In December, the Work and Pensions Committee concluded that it was unable to scrutinise benefit delays fully because of lack of available data. Its report said that

“if the DWP has this data, they should publish them. If they do not, then they are making policy decisions in the dark. The Department should address the lack of data immediately.”

Chillingly, in answer to parliamentary questions about the connection between assessment tests and the incidence of suicide or mental health problems in disability claimants, the Department has admitted that it neither holds such information nor has any plans to collect it. I think that is significant. There has also been an admission that it does not have information on how much, on average, it costs the Department to fund an appeal against a fit for work decision. It is clear—and becoming increasingly clear to claimants—that the system is in a mess. There is clear capacity shortage; there are also wildly optimistic targets, a lack of transparency and problems with hiring and training staff—within the context of dealing with individuals with long-term and serious health problems who are simply trying to access the support they need to survive. The National Audit Office has concluded that this system has

“significant financial and human costs”.

The current situation is cruel, inhumane and demeaning; as has repeatedly been pointed out in the debate, the system is not fit for purpose. I sincerely hope that the Minister will respond to the debate in a positive way and consider the significant financial and human costs to those who need, rather than bureaucracy and judgment, our support and compassion. The debate is about much more than simple work capability assessments. Ultimately, it is about the kind of society we want to create, and the society we aspire to be.