Living Standards

Debate between Yvette Cooper and Iain Duncan Smith

Wednesday 30th November 2011 Commons Chamber

[Mr Duncan Smith]

It is all rail fares, but I do not want to split hairs with the hon. Gentleman about whether he thinks it will help his constituency. I think it will.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

The Secretary of State talks about protecting women but he will know that House of Commons Library figures show that women are paying two thirds of the contribution in tax and benefit changes. He also said that the personal allowance increase benefits women more than men. Does he admit that the truth is that the Library figures show that while 13,500 women benefited from the personal allowance increase even though it was compensated for by other cuts, 16,800 men benefited, so in fact women are a minority, even from the personal allowance increase that he parades as a change to help women?

[Mr Duncan Smith]

I can look at the Library’s figures and decide whether they or our figures are correct. We will have a look at them. My view is that the figures that we have show that more women than men benefit from that change. We can debate that if the right hon. Lady likes, but at least she is admitting that, one way or the other, a significant number of women benefit dramatically. That is a good starting point.

I want to move to an important subject. Given that this is an Opposition day debate, I had rather hoped––

Oral Answers to Questions

Debate between Yvette Cooper and Iain Duncan Smith

Monday 19th July 2010 Commons Chamber

[Mr Duncan Smith]

My hon. Friend asks an important question. In the past 14 years huge sums of money have been narrowly focused on different groups, and we have forgotten that in households with families, far too many are out of work. That is one reason why child poverty has been so difficult to tackle, and why we must change the system. We want to consider how to make work pay for those on the lowest incomes, and how work can be distributed more among households and less just among individuals. Most particularly, we want people to recognise that it is more important and more viable for them to be back in work than on benefits. The complicated system that the previous Government introduced, with all its different taper rates and withdrawal rates, meant that people needed to be professors of maths to figure out whether they would be better off going to work or staying on benefits. Our job is to ensure that the system is simpler and easier to understand. Unlike the previous Government, we will value households that take a risk and try to go to work.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

The Secretary of State will know that many young people get fantastic help from the voluntary sector through, for example, the future jobs fund, the youth guarantee, the working neighbourhoods fund, and also through small contracts with the jobcentres to help people into work. As he is cutting those programmes by more than £1 billion, does he think that the funding from his Department for the voluntary sector to help young people and others into work will increase or decrease in the next 12 months?

[Mr Duncan Smith]

I would say to the Secretary of State—[Hon. Members: “Oh!”] I mean the shadow Secretary of State; I nearly made a mistake there. I would say to the right hon. Lady that we will provide sufficient funds as necessary for the voluntary sector. She should know from all our previous work that the voluntary sector is a vital part of finding people work and putting them in closer touch with their local communities. She goes on about the future jobs fund, and she must understand that we are continuing with the programmes that have already been let, but getting rid of those that have not yet been let. She knows that those programmes are incredibly expensive—far more expensive than the guarantee. We simply cannot afford them, because of the mess that the previous Government left, so she must understand that we will get people back into work through ensuring that the economy is back on track, providing apprenticeships, which offer real opportunity for young people, and ensuring that the national insurance hike that she was about to make will not happen.

[Yvette Cooper]

The right hon. Gentleman will know that the consequence of his party’s Budget is to cut, not increase, the number of jobs in the economy. He will also know that he is cutting 90,000 planned and funded jobs from the future jobs fund. He did not answer the question about whether he would increase or cut the support for the voluntary sector to help get people into work. As he well knows, the Minister in the Lords has told voluntary sector providers that they are too small to get contracts under the Work programme. The Government have quadrupled the size of the contracts, and are locking out the voluntary sector for up to seven years. Is not the truth that all the right hon. Gentleman’s talk about the big society is simply a big con, to hide cuts in jobs, in help for the unemployed and in support to get people back to work?

[Mr Duncan Smith]

It is ridiculous for the right hon. Lady to stand there, two and a half months after leaving government with the finances in a total shambles, and try to lecture us about youth unemployment. [Interruption.] I remind her that in the whole time for which Labour Members were in government, there were only three years in which they reduced unemployment for 16 to 17-year-olds. Youth unemployment rose throughout 10 years, and the Labour Government left it worse than they found it. No lectures from the right hon. Lady, please; only apologies will do.

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[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

May I ask the Secretary of State particularly about the overall impact of the welfare changes announced in the Budget and since then, because he will know that, for instance, the value of carer’s allowance is being cut by about £135 a year over the next few years, which particularly hits women, and that the value of attendance allowance is being cut by about £185 a year over the next few years, again particularly hitting women? Has his Department done any assessment of the overall impact of the £11 billion of welfare cuts on women—yes or no?

[Mr Duncan Smith]

We are assessing all the impacts of every change we are making. As the right hon. Lady knows, we will be publishing those relating to housing benefit, and as and when we have the full details, I will quite happily let her know.

Capital Gains Tax (Rates)

Debate between Yvette Cooper and Iain Duncan Smith

Monday 28th June 2010 Commons Chamber

[Mr Duncan Smith]

I was not going to deal with that at this point, but while we are on it, I can tell my hon. Friend that I know there has been speculation in the media over the past few hours and days. I can confirm that, as we said previously, we will launch the work programme in 2011, and will migrate current incapacity benefit claimants to employment support allowance over the three years. We have absolutely no intention of changing the current plan to assess 10,000 claimants per week over the period. That is our expectation. As the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper) will know, it will involve challenges, but we will stick to it and see if we can get there. Unlike the last Government, we will provide an extra bit of help for those on employment support allowance who undergo the work capability assessment and need that support. My hon. Friend the Minister of State will table a statement tomorrow giving more details.

I am sure that the right hon. Lady—my opposite number—will back up what I have said. She has already expressed the hope that we will proceed with the changes that she introduced and with which we agreed.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

Will the Secretary of State confirm that his timetable is the one that we proposed for the roll-out of the work capability assessment, and that it is expected to save about £1.5 billion over the next five years? Does he plan to make additional savings, and if so, where? The briefing that was in the papers today will have caused concern to people. Will the Secretary of State also tell us whether he will implement the small amendments to the work capability assessment that we announced just before the election in response to points raised by the citizens advice bureaux?

[Mr Duncan Smith]

We are continuing with the programme that the right hon. Lady left. We thought it a good programme, and I want to make it happen. She asked us to do that, and I agreed that it was right. We always said in opposition that we would do it.

As for whether we are looking for more savings, we are going to intensify the work support programme, which was not there before. I should be happy to give the right hon. Lady more detail about it, and my hon. Friend the Minister of State will make a more detailed statement. We estimate that we will be able to return more people to work, but we will keep that estimate under review. The right hon. Lady will recall that when she was Secretary of State there was a constant review of the programme to deal with the group who were flowing in. Recommendations were made, and we are paying attention to them.

[Yvette Cooper]

Does the fact that the Secretary of State thinks he will be able to help more people to return to work—although he has cut the job guarantee and billions of pounds from the support that would help them to do so—mean that he thinks that other people will not get jobs instead, or is he suggesting that the Office for Budget Responsibility will raise its forecast of the number of people in employment? Where will the jobs come from for the extra people whom he is going to return to work?

[Mr Duncan Smith]

The right hon. Lady is assuming that the economy is static, and that nothing changes in it. We believe that unemployment will fall—that is what the Office for Budget Responsibility says—and that we will therefore create more jobs.

The right hon. Lady’s programme, which we inherited, provided support for the “back to work” element in only two parts of the country. We are extending support to the whole country, and that is where we will get the extra effort. We will continue the programme. We think that we have embellished it and made it somewhat better, and I guarantee that we will keep it under permanent review.

The third thing that we are doing is setting down a strong foundation for long-term reform, which is part of the Budget proposals. Although we must correct the failings of the last Government, we are committed to delivering a better future for Britain, and we have had to make the stability of our economy a priority. I know that it is difficult for many Opposition Members to talk about this, but I also know that it is what they would be talking about if they were in government. There are always difficult choices to be made at a time when we have to draw our horns in.

We have had to prioritise the stability of our economy lest we forget the shambles with which we were left. Borrowing will be £149 billion this year, the second largest amount in Europe, and, as the Prime Minister pointed out before the Budget, it was on course to double in five years to £1.4 trillion—£22,000 for every man, woman and child. As a result of the Budget, however, the debt will fall to £116 billion next year, £89 billion the following year, and £60 billion in the year after that. It will fall to £37 billion in 2014-15, and is projected to fall to £20 billion in 2015-16, with the current structural deficit back in balance. That is the task that we have set ourselves. That was the first test of this Budget: to tackle borrowing and get the deficit down. Our approach has been reinforced by the judgments of the credit rating agencies and the business lobby when they agreed on Budget day that the plan is credible. Measures include reducing current expenditure by £30 billion a year by 2014-15, stronger medium-term growth with more business support to restore UK competitiveness, and reducing regulation and tax rates; and unemployment is forecast to fall throughout the OBR’s forecast period.

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[Mr Duncan Smith]

Directly in terms of this Budget, there will be no increase at all; that figure is approved by the OBR, and it is our determination to drive the figure down. Let me say to my hon. Friend that he is right: we have inherited from Labour one of the worst records of household unemployment in western Europe and, worse than that, we have the highest number of children living in workless households in the whole of western Europe. That is a shameful record of the previous Labour Government, and although Labour Members go on about it, it is we who have to deal with it, and I promise my hon. Friend that we will deal with it.

[Yvette Cooper]

Will the Secretary of State confirm that the number of children living in workless households has fallen from about 2.3 million in 1997 to 1.8 million today, and that it was, in fact, his party when in government previously that trebled the number of children in poverty?

[Mr Duncan Smith]

If the right hon. Lady wants to go on fighting past elections, she can; it will not change the results of them. The reality is that under her Government, child poverty rose—[Interruption.] It rose from 2004 onwards, and the Government threw a lot of money at it and absolutely failed. Under her Government, in the last seven or eight years child poverty has risen dramatically, and I have to point out to her that she has failed to recognise that as a result of their policies child poverty is now at serious risk of rising even further. We have to get it down.

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[Mr Duncan Smith]

I will give way in a second; I think that I have been reasonably generous.

I should like to return to the choice on the uprating of benefits—something on which, I guess, Opposition Members will want to intervene. Before the Budget, there was some media speculation, much of it fed by the Opposition. In fact, I think that the right hon. Member for Normanton, Pontefract and Castleford said that she would not support a freeze of benefits and that she would definitely want to oppose that. The media speculation was that we would go to that—in fact, I believe that that would have saved some £17 billion over the lifetime of this Parliament—but I resolved not to do that. We decided that it would be unfair for the worst-off. Instead, the Chancellor and I agreed that we would continue to uprate benefits by the consumer prices index, which is forecast in the Budget to be 2.7% this year. Of course, the CPI does not include housing costs, and it seemed more reasonable. However, the right hon. Lady was reviewing that before she left office, and I am sure therefore that she will want to tell me that she agrees with the uprating, rather than remaining as we were. I would therefore like her to tell me exactly what reduction in spending she was planning as her Department’s share of the £45 billion. I will give way to her if can tell me which elements of saving she would have made in her budget. She does not want to use the CPI; what was she going to do that added up?

[Yvette Cooper]

In fact, as the right hon. Gentleman will be aware, the additional support that we have put in to help the unemployed has kept unemployment at about half the level of previous recessions and nearly 750,000 lower than it was predicted. That in itself is likely to save more than £15 billion over the next five years. We believe that the right way to do welfare reform is help people into work, not just to slash the support for the most vulnerable people in society.

[Mr Duncan Smith]

I am very sad that the right hon. Lady chose not to answer the question. When I give way to an intervention from now on, I will ask Opposition Members—this goes for all of them—the very simple question: what would they have reduced? They were in government not two months ago, and they have left us with a terrible problem.

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[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

The Secretary of State told us in May in his first speech that he would work to improve the quality of life of the worst-off in Britain. He said that

“we are here to help the poorest and most vulnerable in our society.”

He has just spent 40 minutes defending a Budget that kicks the poorest and the most vulnerable in the teeth. How does that sit on his conscience? Was it his idea, or was it the Treasury’s, to tell a woman in her fifties, who has given up work to look after her elderly parents that, in fact, what they wanted to do was cut housing benefit and make her pay VAT—hundreds of pounds a year—and that even her carer’s allowance over the next five years would be cut in value by about £90 a year? Was it his idea, or was it the Treasury’s, to tell someone who is severely disabled—

[Mr Duncan Smith]

rose—

[Yvette Cooper]

Perhaps the right hon. Gentleman can answer this point as well if he is going to respond. Was it his idea, or was it the Treasury’s, to tell someone who is severely disabled and really cannot work, “We’re going to cut the value of support over the next five years by £300 a year”? If he could answer those points, that would be very welcome.

[Mr Duncan Smith]

I should be grateful if the right hon. Lady answered the original question. She was in government not two months ago. [Interruption.] No—the Opposition have to recognise that they have only just left government, so we have a legitimate right to ask the question. They left the deficit behind, which will lead to real problems for Britain—we have had to resolve it. If she does not like what we have done, what would she have done instead? Will she answer that question?

[Yvette Cooper]

The right hon. Gentleman has not answered the question. He has not explained why he claims to help the poorest and most vulnerable, yet is cutting the benefits of those who are poorest and most vulnerable in society. Government Members like to claim that this is inevitable. This is an ideological choice that they are making. They have chosen to cut an extra £40 billion from the economy. They have chosen to cut an extra £11 billion from the value of benefits and tax credits. They have chosen to cut an extra £17 billion a year from Government Departments, and they have chosen to increase VAT. They have chosen to cut the deficit at a pace that is not only unfair and destructive to our public services but damaging to our economy.

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[Yvette Cooper]

I do not think that was right. That is why it was right to increase the support for pensioners, to increase the winter fuel allowance and to bring in a floor, so that never again would pensioners face such an increase.

Members on the Government Benches jeer and call, but what are they going to do to the winter fuel allowance and to free bus passes? They are already briefing the newspapers that they plan to cut the winter fuel allowance and free bus passes, and that that is needed to protect the police and public services. I invite the Secretary of State to intervene and to confirm that he will make no cuts in the winter fuel allowance every year for the next five years.

[Mr Duncan Smith]

I tell the right hon. Lady that the coalition gave a commitment. We are paying the winter fuel payment.

[Yvette Cooper]

I hope that meant for this year, next year and future years. [Interruption.] The right hon. Gentleman says that he is paying the winter fuel payment in full. It is not clear, however, what he thinks the full level is. Perhaps he could make the same commitment about free bus travel. Will he stick with free bus travel and not cut it for the next five years?

[Mr Duncan Smith]

I shall tell the right hon. Lady what I am going to do. I am going to answer questions when she answers this question: what would she have reduced with a £45 billion requirement on her head to cut the deficit? Until she owns up and answers that question, she has no right to ask us any more.

[Yvette Cooper]

The right hon. Gentleman has gone £40 billion further. He has proposed an additional £40 billion of cuts that we do not think are the right thing to do. He asks what we would have done, but I am sure that he has read chapter 6 of the March Budget, which sets out £20 billion of saving cuts in some detail and a further £19 billion in tax increases. I shall tell him what else we would not do: we would not waste money on measures such as free schools and the married couple’s allowance.

Nothing in the Government’s plans will get a single extra person back to work. In fact, the opposite is true. The Budget cuts the number of jobs in the economy by 100,000 a year. It increases the number of people on the dole by up to 100,000 a year, and that is on the admission of the experts the Government appointed. At the same time, the Government are cutting 200,000 jobs and training places and the youth guarantee and job guarantee schemes. How on earth will they get more people into work if they keep cutting jobs?

Oral Answers to Questions

Debate between Yvette Cooper and Iain Duncan Smith

Monday 14th June 2010 Commons Chamber

[Mr Duncan Smith]

I am very happy to meet the right hon. Lady at a moment of her convenience. I understand that the centre had reached the end of its lease, and we are trying to find a way of ensuring that there is support in the area. I am happy to meet her and deal with those specifics.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

The Secretary of State says that he wants more people off benefits and in work. He will know that that depends on their having jobs to go to. Can he tell the House exactly how many of the 205,000 jobs planned under the future jobs fund he is cutting as a result of his plans?

[Mr Duncan Smith]

The right hon. Lady will know that we are not cutting any jobs at all. We are saying that we will stop the part of the programme relating to jobs that were not contracted for. All the other jobs that are contracted for will go ahead. Originally it was estimated that that meant that 140,000 jobs would be found. In fact, we understand the number to be about a third fewer than that—about 100,000—although we will know when we get closer to the time.

I say to the right hon. Lady that the money that we save will go towards preventing the jobs tax—the national insurance tax—that her party was going to impose on those people when they took work, which would have meant fewer people being in work. We will also have the money to make sure that 50,000 new apprenticeships, which are sustainable jobs, come into existence under this Government.

[Yvette Cooper]

Can the Secretary of State confirm that the Office for Budget Responsibility, which today issued its forecasts based on the previous Labour Government’s tax and spending plans, in fact confirmed that unemployment would continue to fall in future years, including the plans for national insurance contributions? Can he also confirm that the Labour Government’s plans set out at the Budget were for 205,000 jobs under the future jobs fund this year and next, and his Department’s website says that only 111,000 jobs will be funded? Can he confirm that 205,000 take away 111,000 is 94,000, and that he will therefore be cutting nearly 100,000 job opportunities for young people and the long-term unemployed—cutting support for the jobless when they need it most?

[Mr Duncan Smith]

I know that the right hon. Lady feels personally wedded to this programme, but those figures are quite ludicrous. She poses notional figures of jobs that she might have created had the scheme worked against jobs that we believe are likely to be there, so a silly game is being played out.

Whether the right hon. Lady likes it or not, had she got into government—heaven help us—she would have had to cut back on various budgets, as her own Government at the time said they would. Where would she have made those savings? She cannot, now that she is in opposition, simply say no to everything. Her Government went on a spending spree like drunks on a Friday night, and we have all got the hangover now.