Rachel Reeves
MP for Leeds West and Pudsey · Labour · United Kingdom
“I thank my hon. Friend for his question and his work on the Treasury Committee. On pensions reform, through the Mansion House accord and Sterling 20, we have got pension funds to commit to investing more in British businesses, both through British venture schemes and in British infrastructure.”
“I thank my hon. Friend for her question. As Members will know, this Government are working on plans with our NATO allies for a multilateral defence mechanism. We have already signed a treaty agreement with Finland and the Netherlands, and we are working closely with Scandinavian, Baltic and eastern European countries.”
“At a time of great global uncertainty, it is more important than ever that we deepen ties with our closest allies and biggest trading partners, whose values we share, and whose interests are bound to ours.”
“Today the Government have responded to the covid counter-fraud commissioner’s recommendations in a report that I commissioned, which confirms that the Conservative Government left the door open to more than £10 billion of pandemic fraud.”
“As I just said, the DIP will be published before the summit. It will involve more money spent more effectively, and it will meet the scale of the challenges we face. Frankly, I will take no lectures from the Conservatives, who left our armed forces, in the words of their former Defence Secretary, “hollowed out”.”
“I thank my hon. Friend for bringing the story of Darren and Nicole to this House. I hope that they and their children will benefit from the change I made to the two-child limit for universal credit, as well as from the rolling out of free breakfast clubs to all primary schools, and the introduction of free school meals for all children wh…”
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“The hon. Gentleman is a little behind the curve. That is what the Low Pay Commission does: that is what we set it up to do. The failure to enforce the legislation properly has contributed to a worrying rise in in-work poverty. It used to be thought that if someone got a job, put in the hours and put in the effort, they would be paid enough to keep them and their family out of poverty and have a decent standard of living—that was the deal. But today, for the first time since records began, the majority of people in poverty are in work and the majority of children in poverty are brought up in working households. It is just not good enough that in today’s Britain an honest day’s work does not bring in a decent day’s pay.”
“Member for South Northamptonshire (Andrea Leadsom) has said that people working for businesses with three employees or fewer should not have to be paid the minimum wage. The hon. Member for Esher and Walton (Mr Raab) has said that 16 to 21-year-olds should not have to be paid a minimum wage. The hon. Member for Shipley (Philip Davies) has said that disabled workers should not have to be paid the minimum wage. Shame on them and shame on the Conservative party. It is the same old story from the same old nasty Tories. Their only answer to our economic problems is to cut taxes for the richest and cut pay for the poorest.”
“If we want to get the costs of social security under control and if we want to put our public finances on a sustainable footing, we need to get our economy working for working people, so that we can all earn our way out of the cost of living crisis that this Government have created. What solutions do Government Members have to offer? As my hon. Friend the Member for Feltham and Heston (Seema Malhotra) has indicated, the hon. Members for Christchurch (Mr Chope), for Wellingborough (Mr Bone), for Cities of London and Westminster (Mark Field), for Windsor (Adam Afriyie), for Clacton (Mr Carswell) and for Bury North (Mr Nuttall) sponsored a Bill that would have enabled employees to agree with their employers that they should not be paid the minimum wage. The hon.”
“A Britain where a woman cleaning the offices of well-paid executives before they arrive in the morning and who is still at work in the evening serving on the supermarket tills is not right and it is not fair. This is not just an injustice to those families. It is, as my hon. Friend has said, imposing cost on the rest of us as well, because lower pay means more money spent on tax credits and housing benefit. The bills of in-work poverty are rising faster than this Government can cut people’s entitlements. It also means less tax and national insurance going into the Government’s coffers.”
“I could not agree more with my hon. Friend. If more people were paid a living wage, if the minimum wage were enforced and if more people who want to work full time were doing so rather than working part time, all those things would help bring down the rising costs of social security. A Britain where people who are putting in the effort and the hours still cannot make ends meet cannot be right and it is not fair. A Britain where parents who want to spend more time with their family and children but can hardly see them because they have to take on a second job is not right and it is not fair. A Britain where a young worker who wants to go to evening classes to improve their prospects but cannot because they have to take on an extra shift in the evening just to make ends meet is not right and it is not fair.”
“I could not agree more with my hon. Friend. With almost 1 million young people out of work—250,000 of them for more than a year—hitting them further by saying that they should not be entitled to a minimum wage is doubly unfair, cruel and callous.”
“If that is his way of apologising for his past sins, so be it, but I must warn him and his Government that we will be watching. Working people who are struggling to earn a living and to survive the cost of living crisis need more than warm words and liberal promises; they need action, and only a Labour Government will deliver that.”
“That is why we cannot trust the Tories or their Liberal Democrat supporters to protect the minimum wage, why we cannot trust the Tories to enforce or strengthen it, and why we cannot trust them to deal with the cost of living crisis. It therefore again falls to Labour to protect and strengthen the national minimum wage by increasing fines for those who exploit workers; investigating rogue employers and enforcing the law properly; restoring the value of the national minimum wage and catching up the lost ground of the past three years; and encouraging employers who can do so to go further and to pay the living wage. I suspect that when the Secretary of State gets to his feet, he will tell us how he now supports the minimum wage and wants it to be increased and to be enforced better.”
“It means the Government doing their bit to support the campaign for a living wage by setting an example with their own employees and contracts, as Labour councils are doing up and down this country, and it means the Government sharing the savings to the Treasury with employers who commit to paying the living wage, as we will do with our Make Work Pay contracts. The national minimum wage is one of Labour’s proudest achievements. It was opposed by the Tories every step of the way, while their coalition partners tried to water it down and frustrate its purpose, and the current Business Secretary sat on his hands.”
“I thank my hon. Friend for that intervention and for his work on these issues as a shadow Environment, Food and Rural Affairs Minister. Labour Members know that a strengthened minimum wage and practical policies to promote the living wage are essential to building a recovery that works for working people and to securing rising standards of living for the future. That means stronger penalties and effective enforcement against rogue employers who flout the minimum wage. It means plans to restore the value of the minimum wage, which has been lost over the past three and a half years.”
“We already know that 600,000 people are affected by the bedroom tax, two thirds of them are disabled and 60,000 are carers. Will the Secretary of State now tell the House exactly how many long-term residents have been wrongly paying the bedroom tax since April because the Government failed to spot a loophole in the legislation?”
“The fact is that the Secretary of State has not got a clue. It could be 5,000 or it could be as many as 40,000 people, as reported by the experts. What a total shambles! Will the Secretary of State now guarantee that everybody who has been wrongly paying the bedroom tax will be reimbursed, and instead of closing the loophole, will the Government now do the right thing and scrap the bedroom tax?”
“Friend the Member for Leicester South (Jonathan Ashworth) noted. Many are disabled, including those hit by the cruel, callous and unworkable bedroom tax, which my hon. Friend the Member for Liverpool, West Derby (Stephen Twigg) spoke about. Many are in work but earning less than the living wage. Indeed, the majority of people in poverty today are in work, as my right hon. Friend the Member for Torfaen (Paul Murphy) and my hon. Friend the Member for Aberdeen South (Dame Anne Begg) mentioned.”
“Food banks have become the shameful symbol of Britain under a Tory Government. They have turned us into a country in which, despite being one of the richest in the world, a rapidly rising number of British people, many of them in work, are being forced to turn to charity to feed themselves and their families. But this Government have the affront—we heard it from the Minister—to say that all is well, when for most people things are getting harder, not easier. As my right hon. Friend the Member for Birkenhead (Mr Field) said, the Government just will not admit that they are part of the problem. Ministers are sitting on the independent report that they commissioned, presumably because they are ashamed and embarrassed about what it tells them. The Trussell Trust states that one in three of those fed by food banks are children, as my hon.”
“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.”
“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.”
“That is a really important point, but some Government Members and Ministers have suggested that people go to food banks because the food is free. The welfare reform Minister, Lord Freud, says that there is an almost infinite demand for that but, as my hon. Friend points out, people have real pride and are ashamed to go to food banks. As my hon. Friend the Member for Newport East (Jessica Morden) said, those are sad stories and real lives.”
“Friends the Members for Copeland (Mr Reed) and for Newport East (Jessica Morden), and, most recently, my hon. Friend the Member for Birmingham, Hall Green (Mr Godsiff), who spoke about the kindness of strangers. When the Prime Minister promised us the big society, is this really what he had in mind—homelessness rising, a boom in payday lending, more and more lives scarred by long-term unemployment, and half a million people relying on food banks to feed themselves and their families? It is downright Dickensian, a tale of two nations: tax cuts for the rich and food banks for the poor. As my right hon. Friend the Member for Manchester, Gorton (Sir Gerald Kaufman) said, as we in this Chamber look forward to Christmas, we must spare a thought for those who are not going to have any sort of Christmas at all.”
“The logic of this Government is like blaming the number of house fires on the number of fire engines. I say shame on the Secretary of State and shame on this Government. We have to ask how many children will have to go hungry this Christmas before the Government take action—before the Secretaries of State for Environment, Food and Rural Affairs and for Work and Pensions acknowledge that there is a problem and then finally do something about it. The charities, churches, community groups and volunteers who run the food banks show us Britain at its best—a country of generosity and solidarity, of one nation where people pull together to do what they can for the least fortunate among us. We should, and we do, applaud them, as many hon. Members have said, particularly my hon.”
“The number of people going to food banks is increasing. The demand is there because they are not getting the support they need from the welfare state. The Red Cross, FoodCycle and the Trussell Trust are all saying the same. It would be useful if the Government published the report that they commissioned on the growing use of food banks. What is the Government’s response to this crisis? The Secretary of State for Work and Pensions—it is nice to see him here—said on the radio this morning: “There has been a growth in food banks, as they grow people attend them.” In the world of the Secretary of State, the rise in food bank use to half a million people reflects an increase in supply, even though people need to be referred to a food bank—they cannot just turn up.”
“My hon. Friend makes an incredibly important point. While we all applaud and thank the food banks, the volunteers and the people who donate food, that is not how our basic needs should be met. The basic need for food should be met through wages and a social safety net when it is needed. The basic need for housing should be met by our wages or by a social safety net when it is needed. The basic need to be able to heat one’s home and turn on the lights should be met by having a decent wage or a social safety net when it is needed.”
“Under this Tory-led Government, those giants are rearing their ugly heads again. We need a Labour Government to slay them.”
“Although we welcome today’s unemployment numbers, we know that a record number of people are working part time who want to work full time, and that for 41 of the 42 months that this Prime Minister has been in office, prices have risen at a faster rate than earnings. For all those reasons, my hon. Friend is right to point to the problems with the minimum wage, which has not kept pace with the rising cost of living and is not even being enforced. With more than 5 million people being paid less than a living wage, we know that we need to redouble our efforts to ensure that more people can support themselves and their families, rather than having to turn to food aid. Seventy years ago, William Beveridge spoke of the five giants that he said a civilised country must overcome: squalor, ignorance, want, idleness and disease.”
“I thank my hon. Friend for that intervention. The national minimum wage was one of the proudest achievements of the previous Labour Government. It lifted millions of people out of poverty pay, the majority of them women, and employment increased when Conservative Members said that unemployment would increase as a result. We also know today that the real value of the national minimum wage has not kept pace with average earnings or with the rising costs of energy, food prices and everything else, and so people who are in work are increasingly having to turn to food banks to be able to make ends meet.”
“The underlying problem is surely that the Secretary of State has not resolved key policy decisions before spending hundreds of millions of pounds of taxpayers’ money on an IT system. One of the issues that has a fundamental impact on whether people are better off in work is free school meals; so which recipients of universal credit will get free school meals—some, none or all? The Secretary of State is in denial. Doubtless, he will deny that he is in denial in a moment’s time. But we all know that until he fesses up, no one will have any confidence in his management of this programme. It is no surprise that a source close to the Chancellor says: “There are some ministers who improve in office and others, like IDS, who show that they are just not up to it”.”
“Will the Secretary of State confirm that this is a delay of two years? Will he also confirm that, even by 2017, 700,000 people will not be on universal credit? How can the Secretary of State say that universal credit will be on budget when, even by his own admission, £40.1 million is being written off on IT costs? What budget heading was that under? The Secretary of State also revealed yesterday that another £90 million will be written off by 2018. Does this mean an additional IT system is having to be built? The reset exercise began in February. On 18 November, the Secretary of State still claimed that there would be no delay to universal credit. At what point did he learn that there would be a delay of two years?”
“On 5 September, the Secretary of State told the House: “We will deliver this in time and in budget”. —[ Official Report , 5 September 2013; Vol. 567, c. 472.] On 14 October, he said: “Universal credit will roll out very well and it will be on time and within budget.” —[ Official Report , 14 October 2013; Vol. 568, c. 429.] And just last month, on 18 November, he said that “universal credit will roll out and deliver exactly as we said it would.” —[ Official Report , 18 November 2013; Vol. 570, c. 947.] The Secretary of State must answer these questions. How on earth can this be on time when in November 2011 he said that “all new applications for existing benefits and credits will be entirely phased out by April 2014”, but we now learn that this milestone will be reached only in 2016?”
“This weekend it was reported that Atos had pulled out of a DWP contract providing specialist disability advice. What was the Department’s response? An internal memo instructing staff deciding whether people are disabled enough to receive disability living allowance to “google it”. Is this not the biggest indication yet of the sheer contempt in which the Department for Work and Pensions holds disabled people?”
“I am not sure whether the Secretary of State has even bothered to read the memo from his own Department. As the right hon. Gentleman knows, because of the failure of his Department to deliver the reform, the personal independence payment is going out only to a third of country. After the chaos of the universal credit, the work capability assessment, the PIP, the Work programme and the Youth Contract, DLA is now in chaos as well. Is there any part of the Department for Work and Pensions that is actually working?”
“They are already struggling to survive and to do their best for their loved ones, yet they have been treated with callous disregard by this out-of-touch Government.”
“Some might welcome the fact that one of Parliament’s more dedicated Eurosceptics has suddenly developed such a passion for discussing his problems with our European partners—perhaps he has had a second epiphany—but those affected by his policy will be disappointed that he has chosen not to be here today to answer for the distress and disruption his policy is causing up and down the country and to explain himself to his victims, the more than 400,000 disabled people, as well as their families and carers, as many as 375,000 children forced out of their homes or pushed deeper into poverty and debt, and the foster carers and families of those serving in our armed forces who have also been hit. Those people are at the sharp end of the Prime Minister’s cost of living crisis.”
“This is an important debate, which is why it is so good to see so many Opposition Members on the Benches behind me and so disappointing to see so few Government Members on the Benches opposite. I am also sorry that we will not be joined today by the Secretary of State for Work and Pensions, who apparently has more urgent and important business at an intergovernmental conference in Paris.”
“I beg to move, That this House regrets the pernicious effect on vulnerable and in many cases disabled people of deductions being made from housing benefit paid to working age tenants in the social housing sector deemed to have an excess number of bedrooms in their homes; calls on the Government to end these deductions with immediate effect; furthermore calls for any cost of ending them to be covered by reversing tax cuts which will benefit the wealthiest and promote avoidance, and addressing the tax loss from disguised employment in construction; and further calls on the Government to use the funding set aside for discretionary housing payments to deal with under-occupation by funding local authorities so that they are better able to help people with the cost of moving to suitable accommodation.”
“Rather than going to a conference to discuss youth unemployment, he should be doing something about it in this country. I hope that hon. Members on both sides of the House will have a chance to meet some of the people who have come to Parliament today, many of whom have travelled across the country, to tell their story and hear the debate. But even as they got off their trains and coaches in London this morning, the Secretary of State was already scuttling across the channel on the Eurostar.”
“It is the same callous disregard that has been shown to over 400,000 disabled people in all our constituencies across the country. It is incredibly disappointing that the Secretary of State is not here to hear those stories today.”
“The hon. Lady is absolutely right. That is the story we are hearing in all our constituencies from people who are being hit by this policy and have nowhere to turn. Is not the truth that the Secretary of State does not want to answer for the waste and chaos in his Department, his failure to deliver the great welfare reform he promised, his failure to get more people into work and his failure to get the benefits bill down? He does not want to answer to this House, or to the British people, for the distress and damage he is causing, with desperate measures designed not to control costs or build a fairer system, but merely to distract from his own incompetence.”
“We have been very clear about how we would pay for this policy, if indeed it costs as much as the Government have said it will: we would crack down on bogus self-employment in the construction industry, reverse the tax cut for hedge funds introduced in the Budget earlier this year and cancel the Chancellor’s failed “shares for rights” scheme. We have called this debate to bring the Government to their senses and to ask Members on both sides of the House to consult their consciences and their constituents and call a halt to the havoc this heartless policy has unleashed.”
“My hon. Friend is absolutely right, because many of the spare bedrooms are used by carers supporting some of the most vulnerable people in our constituencies. We think that the time is now right for each and every Member of this House to show where they stand, because we know the facts. Stories of the hardship and heartache that the Secretary of State is causing are streaming in from every part of the country and every constituency.”
“I have heard about a family with a disabled son who have discovered that the room that carers stay in is now designated as a spare bedroom with a charge of £14 a week. In so many cases, local authorities and housing associations are put in impossible situations, trying to minimise the impact of this badly designed policy on local people. Decent people in tough situations who are doing their best and trying to survive are being trapped by an absurd policy that makes no sense. They are terrified of losing their homes or sinking deeper into poverty and unmanageable debt.”
“As in Tameside, two thirds of the budget for discretionary housing payment in my constituency has already been used, despite the council adding £250,000 to the budget. I have heard heart-rending testimony about the tax. I have heard about a man who received worrying letters about rent arrears while in hospital for a triple heart bypass because he suddenly had to find another £18 a week to keep the specially adapted home he had lived in for most of his life. I have heard about a woman with young children who had found another flat with a family and wanted to swap, but she was in a Catch-22 situation because she could not move until she had paid off the arrears she had built up as a result of the bedroom tax.”
“My hon. Friend is absolutely right. As well as being cruel, the policy is unworkable. I know that hon. Friends have heard many such stories, as many have already testified today, about people in their constituencies. I know that we will hear more this afternoon. We know that around 660,000 households across the country have been hit by this punitive tax. All the people affected are in this country, rather than in Paris, where the Secretary of State is today. Many of them have conditions that mean they need to sleep separately or accommodate carers or special equipment. A large number are families with children and they are already at or below the poverty line.”
“It is an anti-family policy as well as an anti-disabled people policy. The average hit per household is £14 a week, or £720 a year. It might not sound much to members of the Cabinet, but it is more than the cost of a daily school meal. It is almost the entire cost of feeding a growing child for a year, or equivalent to someone losing all their child benefit for a second child.”
“When a Labour Government introduced the welfare state it was a safety net for some of the most vulnerable people. The 400,000 disabled people who are going to be hit by the bedroom tax are exactly the people who Beveridge’s and Clement Attlee’s welfare state were designed to protect—and shame on you for taking that safety net away. Many of the people affected by the bedroom tax have nowhere else to go and no choice but to take the financial hit, making impossible choices between feeding their children, paying the gas and electricity bills, and paying the rent.”
“Those who do not move may end up in less suitable housing—homes without adaptations for people with disabilities, or where children have to change school or live further away from family or support networks.”
“I say that instead of presiding over the lowest rate of house building since the 1920s, this Government should get on and build some houses. No wonder the Trussell Trust— [ Interruption. ] Government Members do not want to hear about food banks, and nor does the Prime Minister, but they will hear about food banks. The Trussell Trust cites the bedroom tax as the key driver behind a threefold increase in the use of food banks since April this year. No wonder more people are turning to payday lenders and to food banks. No wonder the Samaritans are training up staff to help people left desperate and distraught by the Secretary of State’s bedroom tax.”
“My hon. Friend is absolutely right. Hospital care costs more, but so does making adaptations to a new property, which is what will have to happen if people are moved. People up and down the country are asking why. Why are we putting vulnerable families through this? Why are we hitting some of the hardest-pressed households in our country? Why are we hitting disabled people like this? Why did the Prime Minister introduce this policy on exactly the same day as cutting taxes for millionaires? It shows how out of touch this Prime Minister and his Government are. The Government would like us to believe that the bedroom tax is cutting the benefits bill and dealing with under-occupancy in social housing, but it simply does not add up.”
“First, as the hon. Lady knows, the Government’s policy is retrospective whereas in the private sector it is not. Also, the discretionary housing payments are not nearly enough to cover this. In my constituency in Leeds— [ Interruption. ] The hon. Lady has asked the question; perhaps she will listen to — [ Interruption. ]”
“Thank you, Mr Speaker. In Leeds, where I am a Member of Parliament, two thirds of the budget has been used with less than half the year gone, despite the fact that the council has topped up the discretionary housing payment pot to help as many people as possible, so that money is not nearly sufficient to help all those who are hit, particularly disabled people.”
“I could not agree more. It is putting housing associations and local authorities in impossible situations where they potentially have to condemn housing that is perfectly fit for people to live in because people cannot afford the rent.”
“I thank my hon. Friend. It is a shame that of instead of just shouting that he is wrong, no Conservative or Liberal Democrat MPs came to visit today’s lobby of Parliament by people who are affected by these policies. It is also a shame that the Secretary of State is in Paris rather than listening to these stories and hearing about the impact of his policy.”