Sajid Javid
Main Page: Sajid Javid (Conservative - Bromsgrove)Department Debates - View all Sajid Javid's debates with the HM Treasury
(11 years, 3 months ago)
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Barry Gardiner (Brent North) (Lab)
8. How many households no longer eligible for child benefit have opted not to receive it.
The Economic Secretary to the Treasury (Sajid Javid)
The Government estimate that in the 2013-14 tax year over 1 million out of 8 million families are affected by the new charge. As of 24 January, over 340,000 recipients have opted not to receive the payment. The charge will raise over £1.7 billion each year to tackle the deficit.
Ian Lavery
The Government pride themselves on their fairness. Can the Minister explain to this House what is fair about a one-earner family making up to £50,000 having their child benefit cut while a two-earner family making up to £100,000—twice the amount—is able to retain their child benefit?
Sajid Javid
I know that the hon. Gentleman is a man of principle, and I have respect for him, particularly since he refused to work for the right hon. and learned Member for Camberwell and Peckham (Ms Harman); I do not blame him. I note that on his website he says that he has
“a strong commitment to supporting the…less well off in society.”
He is absolutely right and I agree with him, so perhaps he can explain why he is against a measure that is targeted at the 15% of people who are the highest earners in society. [Interruption.]
Mr Speaker
Order. Question Time must be conducted in an orderly way. It is not for a Minister to suggest that a Member should start getting up and answering questions. It is Ministers who answer questions, and that is the end of it.
Barry Gardiner
Will the Minister discuss with his colleagues in the Home Office and the Department for Work and Pensions the effect of the combined changes that those Departments and the Treasury have made, which mean that a young child in my constituency—a British child whose mother has leave to remain and work in the UK but who is estranged from their British father as a result of his domestic violence—will now not be able to receive child benefit for at least 10 years?
Sajid Javid
The hon. Gentleman raises a very specific issue. I think he will understand that I have not looked at that particular concern of his constituent, but I will be happy to look at it in more detail if he provides me with more information.
Harriett Baldwin (West Worcestershire) (Con)
Can the Minister explain why, at a time when we are having to make such difficult decisions on public spending, it is fair to argue, as Labour does, that we should pay child benefit to millionaires?
Sajid Javid
My hon. Friend raises a very important point. In the 13 years of the previous Government, the welfare budget went up by 62% in real terms; it was out of control. If we are going to deal with the problem that they left behind, we have to make sure that everyone makes a contribution.
Mr Iain Wright (Hartlepool) (Lab)
3. What recent assessment he has made of the effect of the Government’s fiscal policies on the level of long-term youth unemployment.
Mrs Mary Glindon (North Tyneside) (Lab)
13. How many working households will be affected by the changes to the uprating of tax credits and other payments announced in the autumn statement.
The Economic Secretary to the Treasury (Sajid Javid)
The 1% uprating of working age benefits and tax credits is estimated to affect 1.65 million working age households in 2015-16. Of this total, around half of the households have no individual in work and half are households in which at least one individual works at least an hour a week.
Mrs Glindon
Can the Minister confirm that his Government’s own figures show that, shamefully, cuts to tax credits and other benefits will push hundreds of children in North Tyneside—and 200,000 children nationally—into poverty?
Sajid Javid
What I can confirm is that the Government are taking a very focused approach to welfare. Under the previous Government, nine out of 10 families with children were eligible for tax credits. No wonder our welfare budget was out of control. Through the Welfare Benefits Up-rating Bill and other reforms the Government have introduced, we are making our welfare system affordable and more focused.
Andrew Bridgen (North West Leicestershire) (Con)
Can my hon. Friend confirm that working families will be, on average, £125 a year better off after the announcements in the autumn statement?
Sajid Javid
I can confirm the figure used by my hon. Friend. Indeed, if we take account of all the tax changes we have made in the personal allowance, I can also say that an individual on the minimum wage and in full-time employment will see their tax bill halved under this Government.
Rushanara Ali (Bethnal Green and Bow) (Lab)
23. More than 50% of children in my constituency are living in poverty, with the Child Poverty Action Group warning that the Government’s tax and benefit changes will push 1 million children into poverty by 2020. Why did the Minister and his Department decide not to publish the child poverty impact assessment alongside the Welfare Benefits Up-rating Bill?
Sajid Javid
As a child, I lived in a two-bedroom flat with seven people, and I saw child poverty on my street every day. I know that the hon. Lady cares passionately about this issue—[Interruption.]
Mr Speaker
Order. The House must calm down. The Minister’s answer must be heard.
Sajid Javid
I respect the hon. Lady for caring passionately about this issue. She served as a commissioner on child poverty in London and has considered the issue deeply, so I hope she agrees that there is no sense in having a measure of child poverty that just looks at relative income. It is far more important that we all come together and look at education, jobs and access to health services, and have a proper measure of child poverty if we are to truly eradicate it.
Richard Graham (Gloucester) (Con)
The Minister is surely right to focus on the most important elements for our young people, which include considerable Government investment in apprenticeships and taking so many people, including many of those apprentices, out of income tax altogether. Four thousand people, including many young people in my constituency, will be taken out of income tax in April. Does he agree that it is extraordinary that no one on the Opposition Benches realises the importance of this measure?
Sajid Javid
My hon. Friend is absolutely right to raise this issue and the help it brings, particularly with regard to apprenticeships. In fact, in the constituency of the hon. Member for Bethnal Green and Bow (Rushanara Ali), there has been a more than 100% rise in apprenticeships because of this Government.
Mr Andrew Turner (Isle of Wight) (Con)
14. How much revenue will accrue to the Exchequer from the beer duty escalator in each of the next three years.
The Economic Secretary to the Treasury (Sajid Javid)
The Government have inherited plans to increase alcohol duties by 2% above inflation until 2014-15. The extra 2% is forecast to increase beer duty receipts by £35 million next year and £70 million the following year.
Sajid Javid
My hon. Friend is right to raise this issue, and he has contributed to many debates on it in this House. Making the change would mean lost revenue, and we would have to find another way to cover that loss. He may find it useful if I point out some Government measures that have helped pubs, such as the changes in the annual investment allowance, the cut in the small profits rate of corporation tax and the extension of small rate relief holiday.
Lilian Greenwood (Nottingham South) (Lab)
Why does the Chancellor refuse to review the impact of alcohol taxation? Is he worried that it will show the effect of VAT on the prices in our pubs, and the impact that is having on our pub sector?
Sajid Javid
The hon. Lady will know that the beer duty escalator was introduced by her Government. This Government have inherited those plans and are carrying them out. If she does not like this tax, perhaps she could make a stronger case if she tells us how she would cover the lost revenue.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
16. What progress has been made in making compensation payments under the Equitable Life payment scheme.
The Economic Secretary to the Treasury (Sajid Javid)
The scheme continues to make good progress. A detailed report will be published next week, which I am pleased to announce will highlight the fact that the scheme has paid more than £500 million to policyholders. I know that the resolution of Equitable Life is an issue that interests many Members, so I can announce that the scheme will now be moving to quarterly progress reports, with the next one published in May.
Dr Coffey
I welcome that answer from my hon. Friend. I am proud that our Government have started the payment scheme, although there are still some people who have not yet been assessed. I would encourage him to work with his officials to ensure that that happens as quickly as possible.
Sajid Javid
My hon. Friend is right to be proud of the Government’s achievements on Equitable Life. The previous Government had a decade to help victims of this scandal and did absolutely nothing. As mentioned, more than £500 million of payments have already been made. I can assure my hon. Friend that I am in regular contact with the scheme administrators, and I will work closely with them on a regular basis to ensure that things can be improved.
Mr David Amess (Southend West) (Con)
T1. If he will make a statement on his departmental responsibilities.
Steve Brine
Thank you very much, Mr Speaker.
A number of my constituents have been caught out by the high interest rates charged on payday loans. At a time when many families are struggling with high levels of personal debt, what are the Government doing to ensure that consumers are protected against bad practices in that industry and the often extremely high interest rates that are charged on such loans?
The Economic Secretary to the Treasury (Sajid Javid)
I know that my hon. Friend is passionate about this issue, and he is right to raise it today. The Government are committed to ensuring that people who borrow from payday lenders are protected against bad practices. Last January, we announced our intention to transfer the regulation of consumer credit from the Office of Fair Trading to the new Financial Conduct Authority. The FCA will have powers and sanctions to address consumer detriment in the consumer credit market, and we will shortly be publishing consultation on this very issue.
Mr Tom Harris (Glasgow South) (Lab)
T2. May I take this opportunity to pay tribute to the Chancellor’s excellent judgment in supporting Labour’s spending plans up until November 2008? Will he therefore accept that the deficit he inherited was caused not by the spending plans supported by those on both sides of the House but by the worldwide recession?
Kris Hopkins (Keighley) (Con)
T5. The last Labour Government presided over a decline in manufacturing industry in west Yorkshire, which fell from 23% of local economic output in 1997 to just 14% in 2010. What steps is the Chancellor taking to reverse that trend and to support constituencies such as mine, which have relied on manufacturing for jobs and growth?
Sajid Javid
That is a shocking reminder of the economic incompetence of the previous Government and of the damage that they did to our economic base. The revitalisation of manufacturing is important for the rebalancing of our economy. Keighley in west Yorkshire has an important manufacturing tradition, and it is benefiting from the manufacturing advisory service and from the £2.7 billion of regional growth money that is going to the entire nation. Also, the announcement in the autumn statement of more money for UKTI will benefit the help that UKTI gives in Yorkshire.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
T3. Today, we saw the Government unveil their “pile ’em high, teach ’em cheap” approach to child care, hot on the heels of cuts to tax credits for poor working families and cuts to child benefit. When is the Chancellor going to unveil his supposed plans for a tax benefit for child care? What are the Government doing to support working families?
Jeremy Lefroy (Stafford) (Con)
T9. A recent article in MoneyWeek suggested that raising the minimum wage would cut the cost of tax credits and benefits and increase employment. What work has the Treasury done on the interrelationship between the level of the minimum wage, the cost of benefits, tax revenues and employment levels?
Sajid Javid
It is not clear that tax credits are being used to supplement lower wages, but what I can say is that the Government have taken action to bring unsustainable levels of tax credit spending under control. It has already been reduced in respect of eligibility from nine out of 10 families with children to six out of 10. Our reforms are also making work pay. Universal credit will unify the current complex system of welfare and make sure it always pays for people to go into work. The withdrawal rate will aim to smooth that transition into work.
Paul Blomfield (Sheffield Central) (Lab)
T7. Last Friday, the Bishop of Sheffield, the Bishop of Hallam and other faith community and civic leaders came together to launch a campaign for a fair deal for Sheffield. Will the Chancellor recognise their concern that the combined effect of his austerity programme with unevenly distributed cuts and benefit changes that hit the poorest hardest is having a disproportionate impact on our urban areas and our big cities? Will he listen to those concerns?