Business, Energy and Industrial Strategy Committee
Debate between Stephen Doughty and Rachel Reeves
Rachel Reeves
The hon. Lady has made an important point about clarity, which I do not think I put across sufficiently in my statement. The industry representatives who gave evidence to our Committee said that they would need two to five years to prepare for any changes in the regime and the trading arrangements with the rest of the European Union, and of course we do not have those two to five years: we have just over a year and a half until the end of the transition period. That is of great concern to the hon. Lady’s constituents, and to patients and businesses across the UK.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
Both the EU and the pharmaceutical industry contribute significant sums to medical research and development in the UK. I am thinking particularly of Cardiff University’s School of Biosciences, which does fantastic cancer research, and also—in my role as chair of the all-party parliamentary group on HIV & AIDS—of the International AIDS Vaccine Initiative facility, which has fantastic EU funding for its search for an HIV vaccine. Is my hon. Friend worried about the impact on facilities such as those?
Rachel Reeves
I am worried about those issues. My hon. Friend knows full well that we have benefited disproportionately from Horizon 2020: 13% of the funds have come to this country, reflecting our fantastic research base in Cardiff, in Leeds and across the UK. It is welcome that the Government have guaranteed those funds until 2020, but there have been no guarantees beyond that. As my hon. Friend knows, research does not work on two or three-year horizons; it works on 10 or 20-year horizons. We need clarity, and the certainty that we will receive that investment in key research on matters such as the HIV vaccine that my hon. Friend mentioned.
Amendment of the Law
Debate between Stephen Doughty and Rachel Reeves(9 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Rachel Reeves (Leeds West) (Lab)
I thank the Secretary of State for his valedictory address this afternoon, and I hope that this will be my last speech from the Opposition Benches.
The last five years have been a tragic and terrible waste for working people in this country, and a shocking record of Tory welfare waste at the Department for Work and Pensions. What a wasted opportunity this Budget was to put in place the better plan that we need. People in my constituency—and in every constituency around the country—have been let down yet again. People are putting in the hours at work but still falling behind with the rent and the bills; they are desperate to work and earn, but are not getting the support they need to find a job. People who cannot work because they are sick or disabled are forced to turn to food banks because the safety net is being pulled away from them.
The people of our country have been put through five years of hardship by this out-of-touch Government, and they are still waiting to feel the benefits of what has been the weakest recovery in more than 100 years. Five wasted years in which working people have put in the hours, day after day, year after year, only to find themselves £1,600 a year worse off than when the Government took office. Five wasted years in which families have been hit by tax and benefit changes that cost the average household more than £1,100 a year, only to find that the Government have borrowed £200 billion more than they said they would and have totally failed to deliver on their central promise to balance the books. Five wasted years in which people have been told “We are all in this together”, while the Government prioritised tax cuts for millionaires and came back time and again to take money from the poorest. Five wasted years in which a Secretary of State for Work and Pensions has waxed lyrical about his grand scheme for welfare reform, but all he has delivered is delays, backlogs, write-offs and overspends—a record of Tory welfare waste that we cannot stand for another five years.
Let us remind ourselves of the backdrop to this Budget and of the complacent and self-congratulatory speech we have just heard from the Secretary of State. The Chancellor promised in 2010,
“we will bring down the benefits bill.”
Since then we have had five years of cruel and unfair policies: taking money from the pockets of disabled people through the bedroom tax; taking money from working families with restrictions to tax credits; driving hundreds of thousands of people to food banks to feed their families; and increasing the number of children in absolute poverty by 500,000. And yet, at the beginning of this year, the Institute for Fiscal Studies confirmed that
“Real terms benefit spending…is forecast to be almost exactly the same in 2015–16 as it was in 2010–11”.
Why is that, we may ask, after the Government have inflicted so much hardship on so many people who have the least? It is because, the IFS explains, these harsh and unfair policies have been cancelled out by upward pressure on the benefits bill resulting from
“weak wage growth and rising private rents”.
Meanwhile, it says, most of the major structural changes, such as universal credit, have run into problems and are yet to be delivered. This is the reason why, in the past five years, the Government have spent £25 billion more on social security than they said they would in 2010. It is why, yet again, the small print of the Budget reveals another £600 million overspend this year against last year’s forecasts.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
My hon. Friend is making some incredibly strong points. On low wage growth, does she agree that we have seen particular challenges in very low paid sectors, such as care? Not only are carers struggling to get by on very low wages and struggling with the cost of living, we are seeing the minimum wage being undermined and some companies possibly not even paying it. Allegations have been made this week about MiHomeCare in Penarth in my constituency. The Government are failing to enforce the minimum wage.
Rachel Reeves
We know that still too many people are not even paid the minimum wage, and we know that the number of people paid less than the living wage has increased from 3.4 million to 4.9 million in the past few years. It is also true that we need to do more to ensure the minimum wage is always enforced, which is why we have said we would increase fines for non-payment to £50,000 and why we would give more powers to local authorities to ensure that the minimum wage is always paid.
DWP: Performance
Debate between Stephen Doughty and Rachel Reeves(9 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Rachel Reeves
What we do know is that more than 5 million people—20% of the work force—are paid less than the living wage. Furthermore, 1.5 million people are on zero-hours contracts and 1.4 million people are working part time who want to work full time.
When it comes to detailing the extent of the Secretary of State’s dereliction, it is hard to know where to start. For a useful overview, we need look no further than the Department’s own annual report and accounts for 2013-14, which was released at the end of last week. It reveals the latest opinion of the DWP’s head of internal audit—that the Department has yet to take the necessary action to “address control weaknesses” and, in his words, to
“provide an improved…environment from which to manage the continuing challenges and risks faced by the Department.”
It lists no fewer than eight areas described as “significant challenges” where the Department still falls short. Universal credit, we are told,
“continues to be a significant challenge for both the Department and delivery partners”,
and it goes on to say that
“there continues to be an inherent level of risk contained in the plans.”
On fraud and error, we are told that the rate has “worsened” with respect to housing benefit and that the chance of the Government achieving their target for reduction
“remains a very substantial challenge and is unlikely to be achieved.”
The report confirms that in the area of contracted-out assessments for employment and support allowance and the new personal independence payments,
“the volume of assessments undertaken by providers…has fallen consistently below demand, with a detrimental impact on customer service and implications for forecast expenditure on sickness and disability benefits”.
In other words, it is hurting, but it certainly is not working.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
My hon. Friend is offering a stark indictment of this Government’s policies. Does she agree that another stark indictment of their policies is the massive increase in food banks across this country, another one of which I had to open in my constituency just a few weeks ago?
Rachel Reeves
I totally agree with my hon. Friend. Of course, these remarks are from the Government’s own report. In our constituencies we all see people who are so desperate that they have to queue at food banks to be able to feed themselves and their families. That is not something that should be happening in 21st century Britain.
Food Banks
Debate between Stephen Doughty and Rachel Reeves(10 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Rachel Reeves
Sanctions, delays and the bedroom tax are all contributing to the increase in the number of people having to turn to food banks. Today we heard the powerful human stories behind the statistics.
Stephen Doughty
I have compared the use of food banks in my constituency in the festive period over the past two years. In Cardiff the number has doubled since last year, and Penarth has seen an eightfold increase. Is not the real tragedy that this is also a Christmas crisis for food banks?
Rachel Reeves
Yes, and although my hon. Friend refers to the festive period, for many it will not be festive at all.
A fortnight ago a young women with an 18-month-old daughter came to see me in my constituency. She had left her ex-husband to escape domestic violence but was worried sick because the benefits office had cut off her benefits when her ex-husband falsely claimed to have custody of her child. She has been waiting for weeks without any support while it fails to rectify the mistake. Without the food banks in my constituency, run by St George’s Crypt, St Bartholomew’s church in Armley and the Trussell Trust, that woman and her daughter would have gone without food. She has been badly let down by this Government and by their delays and sanctions.