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David Miliband:
The short answer is no; I do not know whether new evidence about the ventilation issue has been sent. That is not one of the routes of transmission
that has been suggested. Under the rules of the House, I am not allowed to look at the civil service bench to see whether officials are nodding or shaking their heads about whether or not ventilation is an issue. [Hon. Members: They are all nodding.] Indeed, they are doing so. However, perhaps I can advertise my ignorance to the hon. Gentleman by saying that that ventilation issuein other words, airborne transmissionhas not been raised as a possibility, but I am happy to send him some details about that.
Miss Anne McIntosh (Vale of York) (Con): The Secretary of State confirmed in answer to an earlier question that the virus can live for longer than six hours on dead meat. Why therefore were the dead birds transported all the way from Suffolk to Staffordshire, when the lessons that we learned from foot and mouth and BSE outbreaks were that animals or birds, once dead, should be destroyed as close to that point as possible?
David Miliband: There is a very straightforward answer to that; the lessons are that the birds must be killed not just as fast as possible, but as securely and safely as possible. The Staffordshire rendering plant offered the most safe and secure way not just to destroy but to eliminate those carcases. It is worth pointing out that that operation was extremely effective and that there was certainly no question that the transport of those 160,000 dead turkeys posed any risk to anyone on the route of that transit.
Mr. Shailesh Vara (North-West Cambridgeshire) (Con): The Secretary of State made reference to his meetings with the European Union. Although all hon. Members would recognise that it is right and proper that everything necessary be done to deal with the outbreak, will he give an assurance that if the EU proposes extra and additional burdens beyond those that our scientists and poultry farmers recognise as necessary to deal with the outbreak he will not cave in to its demands and will effectively stand up for the interests of British farmers? I emphasise that we must do whatever is necessary but nothing that the EU wants above that which our scientists recognise as necessary.
David Miliband: The hon. Gentleman speaks as a Member of the House, but I know that he also holds an exalted position as shadow Deputy Leader of the House. His question might be better directed at Members on his own Front Bench, because there seems to be some dispute among them about exactly whose scientific standards we should be [ Interruption. ] If the hon. Gentleman holds on, I am happy to answer his question. I would say two things. First, it is important that our scientific advice helps to lead the European debate in this area. That is why our epidemiological work does so. Interestingly enough, the Weybridge laboratory, which does a lot of this work, is recognised around Europe as leading much of it. Secondly, it is not in the interests of British farmers, or anyone else, for there to be any doubts in the public mind that public and animal health is the absolute priority guiding the Department, the Government and all parties in the House. That must be addressed in a way that does not pretend that risk can be eliminated, but that minimises that risk. That is what we will seek to do.
Mr. Simon Burns (West Chelmsford) (Con): On a point of order, Mr. Deputy Speaker. May I seek your guidance on a narrow point of procedure? At Home Office questions, Question 20 on the Order Paper stated:
Which Questions for oral answer by
on todays Order Paper were drafted wholly, or in part, by a member of the ministerial team, special adviser, civil servant, or, on his behalf, by a parliamentary private secretary or Government whip; and if he will make a statement.
As you may be aware, Mr. Deputy Speaker, before Home Office questions started at 2.30 pm, that question was withdrawn. As you are aware, when a question is withdrawnrather than not reachedno automatic written answer is given. Question 20 had been withdrawn, so there will be no written answer. Given that that question was on the Order Paper for answer today, but was withdrawn, would it be permissible for me to table an identical written question to seek an answer to a question that is of considerable interest to many hon. Members in the House?
Mr. Deputy Speaker (Sir Michael Lord): First, the reason hon. Members withdraw questions is entirely a matter for them and not for the Chair. Secondly, if the hon. Gentleman chooses to put down a question framed in whatever way he chooses, that is entirely a matter for him.
The Minister for Pensions Reform (James Purnell): I beg to move,
That the draft Social Security Benefits Up-rating Order 2007, which was laid before this House on 24th January, be approved.
Mr. Deputy Speaker (Sir Michael Lord): I understand that with this it will be convenient to discuss the following motion:
That the draft Guaranteed Minimum Pensions Increase Order 2007, which was laid before this House on 24th January, be approved.
James Purnell: I am satisfied that the orders are compatible with the European convention on human rights. The uprating order will, as usual, increase most national insurance benefits by the retail prices index, which is 3.6 per cent, and increase most income-related benefits by the Rossi index, which as the House will know, excludes rent, mortgage interest, council tax and depreciation, and is 3 per cent. The guaranteed minimum pensions increase order sets out the amount by which contracted-out occupational pension schemes must increase members guaranteed minimum pensions that accrued between 1988 and 1997.
Where the annual increase in the retail prices index exceeds 3 per cent., the guaranteed minimum pensions indexation requirement is capped at that level under the primary legislation. This years order therefore provides for an increase of 3 per cent. This years uprating adds more than £3.5 billion to Government spending and reinforces our commitment to build an active welfare state and to tackle poverty by helping those most in need. The order provides an extra £2.48 billion to pensioners, of which £300 million is above inflation, and an extra £560 million to disabled people and carers.
When we came to power, one in four pensioners suffered the indignity of living below the poverty line. The poorest pensioners were expected to live on just £68.80 a week. This years uprating of the pension credit minimum guarantee means that from April no single pensioner need live on less than £119.05 a week and no couple on less than £181.70 a week. The basic state pension will have seen a real-terms rise of 9 per cent. since 1997.
Mr. David Laws (Yeovil) (LD): How many pensioners in Britain are living in relative poverty?
James Purnell: From memory, the number is 17 per cent., which is down from its peak of about 39 per cent. under the previous Conservative Government. There has thus been a significant reduction in the number.
I am looking forward to the speech from the hon. Member for Yeovil (Mr. Laws) because I know that he is burning to answer the question of which premium in pension credit he would abolish. Would that be the extra money for disabled pensioners on pension credit, or that for those who care for people? He did not answer that question when it was put to him during a Committee sitting, as the hon. Member for South-West Bedfordshire (Andrew Selous) will know. Perhaps he
was waiting until today so that he could tell the whole House which of those vulnerable groups he would take money off through his citizens pension. Alternatively, perhaps he has found the 5p increase in income tax that would be needed to fund that pension
James Purnell: When the hon. Gentleman gives me answers to my questions, I will stop using them.
We now spend over £10 billion a year more on pensioners than we would have been doing if we had simply continued the policies that we inherited in 1997. Pensioners incomes have risen across the board, with the poorest benefiting the most. We have lifted 2 million pensioners out of absolute poverty and 1 million out of relative poverty. On average, pensioner households are about £1,400 a year better off in real terms than they would have been under the 1997 system. The poorest third are about £2,000 a year better off, which represents a significant increase in peoples average incomes.
We have now reached a position in which pensioners are no more likely to be poor than the population as a whole. We have broken the historical correlation between being old and being poor. It is genuinely remarkable that that has been achieved at a time of economic prosperity when the wages of the population in work have been increasing significantly. We now need to maintain that achievement, and through the Pensions Bill, which has completed its Committee stage, we will legislate to ensure that the progress that we have made for todays pensioners is locked in for future generations.
The Bill provides an enduring pensions settlement and a solid platform on which people can save for their retirement in the form of a basic state pension that will be wider in coverage and more generous than previously because it will be uprated in line with earnings. The link to earnings will result in a pension that, by 2050, will be worth more than twice as much as it would have been without reform.
We are also tackling inequalities in the current system, especially those faced by women and carers, through the introduction of a modernised contributory principle that recognises and rewards social contributions alongside work. Today, about 30 per cent. of women reaching state pension age receive a full basic state pension. Our reforms will mean that that figure will increase to about 75 per cent. in 2010, and to 90 per cent. by 2025.
We are tackling the problem of complexity in the current system through a radical simplification of the state pension and by streamlining the private pension regulatory environment, thus making it easier for people to plan and save. Additionally, because it is crucial that we do not burden our children and grandchildren with the cost of a population spending longer and longer in retirement, we will gradually raise the state pension age to 68 by 2046, thus ensuring fairness between the generations and helping to secure the long-term financial stability of the system.
The Bill will eliminate the existing gender gap in the state pension system. It will lock in the reduction in pensioner poverty. However, we will truly eliminate
inequality in retirement only when we tackle inequality in working life. That is why our welfare reform programme and our aspiration for an 80 per cent. employment rate are so important.
Ten years ago, nearly 6 million adults in this country were dependent on benefits, and with that dependency came poverty. Over a period of 20 years, the proportion of children in low-income households more than doubled. One in five families had no one in work, one in every three children was living in poverty, and in the late 1990s, the UK had one of the highest child poverty rates in the industrialised world. Today, that rate is falling faster in the UK than anywhere else in the EU. Since 1997, 800,000 children have been lifted out of relative poverty and 2 million out of absolute poverty. Tax credits now benefit nearly 6 million families and 10 million children. From April, families with children will be, on average, £1,550 a year better off in real terms than in 1997, and those in the poorest fifth will be £3,450 a year better offa truly remarkable increase.
That support goes hand in hand with the other measures that are designed to give working families the support they need. In 1997, the standard rate of maternity allowance and statutory maternity pay was only £55 a week; this year, it will be increased to £112.75 a week, as will statutory paternity pay. In 1997, paid maternity leave lasted for 18 weeks; from April, it will increase from six to nine months, and by the end of this Parliament we aim to extend both statutory maternity pay and maternity allowance to a full year. It used to last for 18 weeks; it is now to last for a full year, which will make a genuinely significant difference to working parents. At the same time, we intend to introduce an additional period of paternity leave for employed fathers and we shall offer all parents unprecedented flexibility in dividing maternity and paternity leave between them, allowing both parents to play a greater role in the first year of a childs life.
Of course, there is more to do if we are to eradicate child poverty. We shall continue to consider what more the Government can do to help those who are most in need, but ultimately it is the opportunity to work that provides the only long-term sustainable anti-poverty strategy. That is why the Governments approach has always been about maximising opportunities to work. It is why we have created a national minimum wage and tax credits, invested in Jobcentre Plus and the new deal, and maintained a strong economy in which everyone shares in the benefits of record economic growth.
Today, more people than ever before are in work: employment has increased by more than 2.5 million since 1997. It has increased in every region and every country of the UK, with the biggest increases in the neighbourhoods and cities that started in the worst position. We have had real success in extending employment opportunities to those who were previously left behind. For example, since 1997 the employment rate for lone parents has increased from 45 per cent. to 57 per cent., and there have been significant increases in the rates for disabled people, ethnic minorities and older workers. Nearly 1 million fewer people are on benefits, and the number on incapacity benefits is falling, not rising.
The UK has one of the strongest labour markets in the world and has the highest employment in the G8, ahead of Japan, France, Germany, Italy, Canada, Russia and the United States. The contrast with the situation
that we inherited is stark: claimant unemployment has decreased by 43 per cent. in the past 10 years, long-term unemployment has decreased by 73 per cent., and youth long-term unemployment has almost been eradicated.
Pathways to work now covers more than 40 per cent. of the country and we shall roll it out nationwide by April 2008, in time for the new employment and support allowance. Pathways is a success: independent evaluation carried out by the Institute for Fiscal Studies suggests that pathways reduces the percentage of new claimants still receiving an incapacity benefit after 10 and a half months by more than eight percentage points and increases the percentage in employment by more than nine percentage points. No other programme in the world has delivered results on that scale for that client group. Our Welfare Reform Bill will build on that success, delivering on our commitment to reform incapacity benefit while ensuring security for those who cannot work. Together with our city strategy, it will offer a new approach to delivering employment services to some of our most disadvantaged communities.
Adam Afriyie (Windsor) (Con): The Minister mentioned the pathways to work pilot schemes being rolled out nationwide and the new welfare to work aspects of the Bill, but will he confirm whether people will receive the same amount under the employment and support allowance as they do under the pathways to work pilot schemes?
James Purnell: I think that the hon. Gentleman was a member of the Standing Committee, which considered that point, and he will know that it is still being considered. Ministers made the position clear: the ESA will be set at a higher level than the current long-term rate for incapacity benefit. As I think he knows, a decision on that subject will be announced in due course.
Our disability rights legislation, which is the most comprehensive of any European country to date, and our age discrimination legislation are breaking down the cultural and discriminatory barriers facing disabled people and older workers, but we have further to go if we are to meet the challenges of rapid economic, social and demographic change. The Leitch review highlighted the fact that the shape of our work force needs to change rapidly to fit the needs of our future economy. The demand for low-skilled workers is falling rapidly, and it is skills that employers now seek. We want British workers to be equipped for jobs, yet there are currently 4.6 million people without any qualifications. We need to build on programmes such as Train to Gain, which help employers to identify the skills that their businesses need and to contribute to the costs of training, so that they can help many previously unqualified workers.
Mr. Deputy Speaker: Order. Many of the points that the Minister is touching on do relate to the motions before the House, but occasionally he strays wide of the mark. This debate is not a general review of the financial situation.
James Purnell: I have reached the last page of my speech, Mr. Deputy Speaker, so there is not much that I can do to correct that, but I take your guidance.
As I was saying, an active welfare state is crucial to provide people with opportunity and security. This years uprating statement continues the progress that has been made since 1997, and I commend it to the House.
Mr. David Ruffley (Bury St. Edmunds) (Con): We welcome the debate, and recognise its importance for welfare and social justice, and I am grateful to the Minister for setting out the Governments proposals on uprating social security benefits and the basic state pension. The level of benefits, which is the subject of the order before us, is just part of the national debate about poverty in the UK. It is a debate that my right hon. Friend the Member for Witney (Mr. Cameron) has helped to open up in the past 12 months, through a refreshed and renewed commitment to social justice on the part of Conservative Members. Recently, the Department has responded to the policy challenge delivered by the Leader of the Opposition and other Conservative Members with a series of ministerial briefings, and sometimes even with speeches, on the record, on the subject of welfare reform. We await with interest the fruits of the short inquiry led by the Minister for Employment and Welfare Reform, who is not in the Chamber today, and Mr. David Freud. I understand that that report may be published as early as this week.
The order will deliver an increase in benefits, and we Opposition Members support that. It provides for most of the increases to take effect in the week commencing 9 April this year. However, the order specifies that, for statutory sick pay, maternity pay, paternity pay, and adoption pay, and for housing benefit, council tax benefit and the earnings limits in respect of child dependency, the increased rates will take effect at an earlier date in April. The increases take effect on different dates because of the difference in the prescribed pay days of the benefits, but we have no difficulty with those procedures.
I would like to talk about how the rate of the increases is determined. Depending on the benefit, either the retail prices index or the Rossi index is used. Before we decide on the orders merit, it is worth trying to understand which inflation measure is applied to each benefit and why. It is important to air those issues because they open up important questions about whether different groups in our society suffer from different inflationary pressures. The benefits that people will access, as a result of the order being made, will differ depending on the inflation measure that is applied to the benefit. The question that we have to ask when considering the merits of the order is whether the uprating will cover the increased cost of living which any particular group drawing that benefit is subject to.
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