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Mr. Steve Webb (Northavon): I welcome many aspects of the statement, but I want to press the Minister to look more closely at three aspects of it. First, will he look at provision for pensioners aged over 80? As happened under the Conservatives, the Minister has chosen to freeze the extra help for the over-80s at just 25p a week, which is an insulting amount. Does not he accept that pensioners over 80 are the poorest in the land and that many of them do not claim income support? Converting that 25p into a worthwhile sum such as £5 a week would guarantee help for the poorest and would give them not £20 a year, but £20 a month.
Secondly, I understand and appreciate why the single room rent reform was reversed. Would the Minister, however, look at the way in which that change has been funded? Has the increase in non-dependant deductions--that is, the tax on young people who live with their parents--gone too far? For the highest-earning young people, the figure has gone up by 36 per cent. in the statement. Will the Minister at least undertake research to see whether the change breaks up households? It may produce more demand for housing and more burden on the Exchequer.
Thirdly, we must return to lone parents. The statement means a freeze not for new claimants, but for the 1.5 million lone parents who are existing claimants. Does the Minister accept that many of those people will not move from welfare into work? Does he accept that, yesterday, the Secretary of State for Social Security seemed to acknowledge that looking after young children at home was a valid thing to do? Will he explain why he is cutting the real living standards of those families?
Mr. Bradley:
I shall try to answer the hon. Gentleman's three questions. We recognise the plight of
I am grateful for the hon. Gentleman's support for our decision not to extend the single room rent limit to 25 to 60-year-olds. I recognise that the non-dependant changes are hard choices, but I hope that the hon. Gentleman will recognise that we have protected the lowest-paid within that to ensure that the system is as fair as we can make it, in context. In our current housing review, which is under way as part of the comprehensive spending review, all those matters will be reconsidered as we develop a sensible housing policy and sensible housing benefit changes.
I have confirmed the figures for lone parents. I must put them in the context of the new deal and in the context of the speech yesterday by my right hon. Friend the Secretary of State about choice for lone mothers and about flexibility. The crucial aspect of the national child care strategy will be to ensure that that is a reality.
Ms Margaret Moran (Luton, South):
I welcome the opportunities that my hon. Friend outlined to move the poorest from welfare to work. As part of his review, will he consider the opportunity for substantial housing benefit savings that might be afforded through rent reductions? Does he accept that a 10 per cent. rent reduction would not only afford substantial housing benefit savings, but could offer many households the chance to move from welfare to work, alleviating the poverty trap?
Mr. Bradley:
I am grateful for my hon. Friend's comments. I recognise and value her expertise, particularly on housing benefit. We recognise that housing costs can be a critical element in decisions on general reform programmes. I assure my hon. Friend that we shall look carefully in our housing policy review at the disincentives that emanate from the current system in our welfare-to-work programme. I should be grateful if she could send any further comments on that to me at the Department.
Mr. Andrew Rowe (Faversham and Mid-Kent):
The Minister may know that I have always been rather in favour of a minimum income scheme. One of the disadvantages of the idea is that it involves a minimum wage at some point. Now that the Government have decided that we shall have a minimum wage, will the Minister look carefully at the advantages of a minimum income scheme?
Ministers have constantly complained about the lack of skills in society. Will the hon. Gentleman give further thought to the 50-year-olds who have been sliced out of employment, often to save their employers' considerable pension contributions? Will he ensure that that pool of
potentially highly skilled people with the capacity to learn new skills is properly catered for in the new deal or in some other manner?
Mr. Bradley:
I am grateful for the obvious overwhelming support for the Government's reform programme, particularly the recognition of the introduction of a minimum wage. I shall refer the hon. Gentleman's comments to the Taylor review of the tax-benefit system. I am sure that his contribution will be valued. We recognise that many people have been dumped out of employment and on to benefit dependency at too early an age. That is not acceptable. I welcome the hon. Gentleman's recognition of that. It is unfortunate that the Conservatives did not recognise the value of people in that age group when they were in government and did not do anything to help them get into work, where many of them want to be.
Audrey Wise (Preston):
My hon. Friend said that all children should be supported by their working parents. For lone parents, that implies full-time work, as one part-time job is not enough to support a family. Will he clarify what he means? Will he also tell the House why child care is regarded as a job if done by a stranger, but not if done by the child's mother or father?
Mr. Bradley:
The purpose of our reforms is to create opportunities and flexibility, so that people can move flexibly into work. Many lone parents want to work. The changes that we have made to family credit and the increase in the child care disregard to £100 will help to fund those proposals. The national child care strategy, with the development of 30,000 after-school and out-of-hours clubs to benefit up to 1 million children will help in that. Our package of measures will give real help to ensure that children do not remain in poverty and are able to benefit from the fruits of economic prosperity.
Mr. John Swinney (North Tayside):
The Minister said that his comments would not be marked by a long list of cuts to the welfare programme. There may not have been a long list, but there were cuts. Does he accept the growing anxiety about the Government's proposals to cut child benefit for lone parents? Will he give a commitment that the Government will think again about the concern that is being expressed and remove the relevant provisions in the Social Security Bill?
Mr. Bradley:
I have made the rates of child benefit for next year clear in my statement. Personal allowances and children's additions in income support will be uprated as normal. That will mean an increase in benefits. Lone mothers in low-paid work will benefit from the full uprating of family credit by the Rossi index. I have confirmed that the child care disregard will go up to £100 per week from next June. All those measures will help lone parents and their children. All Departments, including the Department of Social Security, always look carefully at new measures and evaluate them before undertaking the reforms that are necessary for a modern social security system.
Mr. John Cryer (Hornchurch):
The aim of full employment, which seemed implicit in my hon. Friend's statement, is laudable, but I do not understand how that is
My hon. Friend talks about tough decisions. Tough decisions are not made by people who earn a minimum of £43,000 a year. Tough decisions are made by people who live in genuine poverty, which has affected ever greater numbers in this country for the past 10, 15 or 20 years. People who have to choose between eating and heating are the ones in difficulty. We are in danger of making their situation worse by cutting the higher rate of child benefit.
Madam Speaker:
Order. That was an interesting contribution, and would have been so in a debate, but there was not a question in it. If the Minister would like to make some comments, of course I shall allow him to do so, but I want questions from other hon. Members.
Mr. Bradley:
I agree with your view, Madam Speaker. As I have said, there will be an opportunity for a full debate on the orders when they are presented to the House, before they are implemented.
Mr. Tam Dalyell (Linlithgow):
Is my hon. Friend aware that, in the year that I was elected to the House, Buckingham palace sent just over 200 telegrams of congratulation to those who had reached their 100th birthday? Last year, the palace sent 5,460. Anecdotally and from constituency experience--I have no definite evidence--I suspect that many nursing homes and homes for old people do not take up the income support that people in their late 90s are unable to claim themselves. Will that be addressed in the review? Will something be done to help carers, who play an increasingly important role?
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