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UK PARLIAMENT · SITTING

Catherine McKinnell

MP for Newcastle upon Tyne North · Labour · United Kingdom

IN THEIR OWN WORDS

The family of a terminally ill constituent contacted me in desperation last month after trying to resolve the pension issues of their family member since January. She died yesterday, with her pension still unresolved. Can the Minister be more specific for that family about what will be done to resolve this issue?

CIVIL SERVICE PENSIONS · 2026-07-06 · READ IN HANSARD

As the UK trade envoy to Italy, I thank the Secretary of State for confirming the GCAP funding in his statement. As MP for Newcastle upon Tyne North, I add my voice to those who want to see this as an opportunity to genuinely spread investment and opportunity that will build strength and resilience in our people right across the UK—they a…

DEFENCE INVESTMENT PLAN · 2026-06-30 · READ IN HANSARD

This report is welcome, but that does not make its existence any less tragic. Far too many mothers and babies have been failed, including mothers like my constituent Amie, who late last year was turned away repeatedly, despite reporting reduced movements. Her baby Seren was born stillborn.

NATIONAL MATERNITY AND NEONATAL INVESTIGATION · 2026-06-30 · READ IN HANSARD

Failures to address these issues have significant effects, both on the public finances and on the most vulnerable people in society, and, indeed, they are issues that are often reflected in our constituency mailboxes. I was contacted recently by a young woman who had reported child sexual abuse to the police last year.

HOME OFFICE AND MINISTRY OF JUSTICE · 2026-06-29 · READ IN HANSARD

Her husband was the victim of an assault by the defendant, who had raped his wife. They were forced to wait four hours for the trial to begin. They were eventually told that the defendant would arrive and that the delay to his delivery was causing the delay, but it had a knock-on effect on additional days in court.

HOME OFFICE AND MINISTRY OF JUSTICE · 2026-06-29 · READ IN HANSARD

Friend has said, we need a court estate that is fit for purpose in order to maximise the use of these additional days. I too have visited my local court, in this instance Newcastle Crown court.

HOME OFFICE AND MINISTRY OF JUSTICE · 2026-06-29 · READ IN HANSARD

The complete record

Every one of 4,961 lines we hold for Catherine McKinnell, in date order, each linked to its source. Free to read, in full, without an account. Page 69 of 100.

  1. Up and down the country, there is deep concern about the disappearing Sure Start services. We know that the worst is yet to come when we look at the dire straits in which many local authorities find themselves and the difficult decisions that many are having to make about their Sure Start services. My hon. Friend makes a very good point: that does sum up the Government’s attitude to support for children and families. They simply wash their hands of the issue whenever it is raised in this House. We tabled new clause 1 because we want to compel the Government to explore the effectiveness of extending the free entitlement for three and four-year-olds when both parents are in work. The first part of new clause 1 seeks to understand what support the current proposals will provide to the parents who need it most.

    CHILDCARE PAYMENTS BILL · 2014-11-17 · READ IN HANSARD

  2. I thank the Minister for her thorough reply to the concerns that I expressed earlier. She has gone some way towards alleviating them, but some concerns remain. We shall have to give the Government the benefit of the doubt on the delivery of her reassurances, but that does not take away from the fact that dealing with the supply-side issues and extending the free entitlement for three and four-year-olds would constitute a much better offer to parents. The Government could do that now to provide support for parents who are struggling with child care costs and with the cost of living more generally. We will therefore press new clause 1 to a vote. Question put, That the clause be read a Second time.

    CHILDCARE PAYMENTS BILL · 2014-11-17 · READ IN HANSARD

  3. Friend the Member for Wirral South (Alison McGovern) clearly set out in her speech on new clause 2. The Government have only one chance to get the hugely important IT infrastructure right, but crucially there is huge concern that parents might face a nightmare of complexity and confusion if the Government fail to provide adequate support and information to help them to make informed choices and to navigate between the schemes for universal credit and for the top-up payments. Welcome though the support is, for far too many parents it will be far too little, far too late. I hope that the Minister has taken on board the concerns we raised throughout the proceedings in Committee and on Report, whether on some of the more technical aspects of the Bill’s operation or on the more fundamental issues.

    CHILDCARE PAYMENTS BILL · 2014-11-17 · READ IN HANSARD

  4. Researchers from the London School of Economics and the university of Essex have released findings showing that the clear losers under the Government are lone-parent families, large families and children. This summer, the Prime Minister announced that all Government policies have to pass a families test. It is interesting that that is his aspiration only now, because it is abundantly clear that the Government have completely failed the families test to date. We share the widely expressed concern that the Bill will not go anywhere like far enough to make up the shortfall that families face, partly because of the tax and benefits changes, but also because of soaring child care costs. Aside from that central issue, we have several other concerns. We are worried that parents will be left exposed to inflated child care prices, as my hon.

    CHILDCARE PAYMENTS BILL · 2014-11-17 · READ IN HANSARD

  5. Any new investment in child care—particularly support for struggling families up and down the country who are battling to juggle their work and family lives—is clearly welcome. The Bill is therefore important, but it is long overdue for thousands of parents. Fundamentally, we remain concerned that the Bill will simply not address the situation in which too many parents have been left. The evidence is now overwhelming. The cumulative changes to tax and benefits over the Government’s time in office have hit families hardest, as is clearly shown by new research published today. From our analysis of official statistics, we know that some families in which both parents are in work will be £2,000 a year worse off on average by the next election as a direct result of the Government’s tax and benefits choices.

    CHILDCARE PAYMENTS BILL · 2014-11-17 · READ IN HANSARD

  6. I look forward to the arrival, in 2015, of a Labour Government who will ensure that parents receive not only the support provided in the Bill, but an additional 10 hours of free child care for three and four-year-olds. That will deal with many of the supply-side and price inflation concerns, and it will also provide child care support for the parents who will not benefit at all from the scheme.

    CHILDCARE PAYMENTS BILL · 2014-11-17 · READ IN HANSARD

  7. It would help more parents to get back into work or to work more hours, and it would help to bring home more pay for the hours they work. We know that so many parents are desperate for such support. It would be simple and effective, and it would not place any more burdens on parents than those they already face. It would not add any more complexity to a child care market that is already hugely complicated. Parents have struggled for four years under this Government with a child care crunch of rising prices alongside stagnant wages. Although we will support the Bill tonight, I urge the Minister to ensure that she, her officials and her partners who deliver the scheme fulfil the promises that have been made during its passage in Committee so that parents can receive this much-needed support.

    CHILDCARE PAYMENTS BILL · 2014-11-17 · READ IN HANSARD

  8. It might be burdensome for parents to navigate it, particularly those at the lower end of the income scale who have to navigate between a reduction in universal credit support and a movement into the top-up payments scheme, where potentially disastrous child care support pitfalls await them. We discussed that at length in Committee and we have put our concerns on the record. Other Opposition Members and I very much hope that the Minister has taken all such concerns on board and can deliver on the reassurances that she has given. Let me take this last opportunity to urge the Government to recognise the value to parents not only of this support with child care costs, but of the extension of the free entitlement to three and four-year-olds. Quite simply, that would ensure that working parents are better off.

    CHILDCARE PAYMENTS BILL · 2014-11-17 · READ IN HANSARD

  9. My hon. Friend has herself made the point very powerfully. I was concerned when the Minister spoke at length about child poverty because the Bill will do very little to deal with such issues, and we know that such figures will only increase. Levels of child poverty have increased significantly under this Government, as the facts and evidence prove. Although we should focus on what the Bill will achieve—it will provide support in meeting demand for some payments for child care—my hon. Friend clearly sets out which parents will benefit most from the support. However, even those parents are concerned that the scheme might unduly complicate their lives.

    CHILDCARE PAYMENTS BILL · 2014-11-17 · READ IN HANSARD

  10. In her open letter of 24 October, the Minister thanks firefighters “for your patience in letting me work through these issues”. The regulations she has put forward were in place in June 2013, so what exactly have they been patient for, and why does not she treat them with the respect that they deserve?

    FIREFIGHTERS’ PENSIONS · 2014-11-10 · READ IN HANSARD

  11. The Chancellor talks about creating a northern powerhouse, but really is he not just struggling to play catch-up, because while he has been shifting funds from northern cities to wealthier parts of the country, the unemployment rate in the north-east is the highest in the country, wages for working people in the north have fallen by even more than the national average and across the north the number of people unemployed for a year or more is up 62% since the last election? Why will he not match Labour’s plan to devolve real power and £30 billion of funding not just to the north, but to all city and county regions?

    NORTHERN POWERHOUSE · 2014-11-04 · READ IN HANSARD

  12. The Minister makes a confused argument. He accepts that Lord Freud has apologised for his comments, but defends them none the less. Surely the problem is the message sent to disabled people such as my constituents who came to see me. They have the most difficult life, and find that, under this Government—they say, “Under this Government,”—they receive abuse walking down the street because of their disability and because one of them receives benefits. The Government should take the stigmatisation of disabled people in this society seriously but the Government are adding to it.

    PARLIAMENTARY UNDER-SECRETARY OF STATE FOR WELFARE REFORM (DISABLED PEOPLE) · 2014-10-28 · READ IN HANSARD

  13. I appreciate that the hon. Gentleman does not accept the point made earlier by my right hon. Friend the Member for East Ham (Stephen Timms), but does he not accept that the last thing business needs at this time is a prolonged period of uncertainty? Will he explain how his proposal will help to support and create jobs in the areas such as the north-east, and, indeed, throughout the United Kingdom?

    EUROPEAN UNION (REFERENDUM) BILL · 2014-10-17 · READ IN HANSARD

  14. Conservative Members do not seem to want to listen to my right hon. Friend’s arguments, but he is making a powerful speech. Perhaps they will listen to their own Lord Heseltine, who has said: “To commit to a referendum about a negotiation that hasn’t begun, on a timescale you cannot predict, on an outcome that’s unknown, where Britain’s appeal as an inward investment market would be the centre of the debate, seems to me like an unnecessary gamble”.

    EUROPEAN UNION (REFERENDUM) BILL · 2014-10-17 · READ IN HANSARD

  15. I fear that the hon. Gentleman has misunderstood the subject of the debate, which is, specifically, carbon taxes on energy-intensive industries. Those taxes have not been supported by Greenpeace, and are not considered to be green taxes at all.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  16. Most importantly, he concluded that “businesses will fail, jobs will be lost, and our country will be poorer.” —[ Official Report , 29 November 2011; Vol. 536, c. 807.] I could not agree more, but unfortunately that has been the consequence of many of the Government’s ill-thought-through carbon taxes to date, which, in the absence of any comprehensive support or compensation, have damaged our competitiveness, cost vital jobs and served only to export carbon emissions abroad and not to eliminate them.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  17. His report clearly set out the challenges we face, including, most importantly for this discussion, on how we have a proper long-term industrial strategy that promotes investment and helps us realise our full productive, innovative potential. Inherent in that is striking the right balance between becoming world leaders in tackling climate change, and in the technical solutions that come with it, and not putting our businesses at a competitive disadvantage compared with other advanced industrial economies. I wish to conclude by reminding hon. Members of the Chancellor’s words in 2011. He told this House in his autumn statement: “We are not going to save the planet by shutting down our steel mills, aluminium smelters and paper manufacturers. All we will be doing is exporting valuable jobs from this country”.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  18. The Financial Times recently reported that the UK Government were “considering options” in that respect and pushing ahead with an application to compensate these newly excluded sectors, although it commented that the chances of success “look slim”. Given that previous Minsters have promised to press the case, only later to seem resigned to lost causes, what reassurances can this Minister give hon. Members and these companies, which we know are interested and following this debate, that the Government are doing everything they can to secure this much-needed support for industries struggling to remain internationally competitive? Earlier this year the Opposition commissioned Mike Wright, executive director of Jaguar Land Rover, to conduct an independent review of advanced manufacturing in the UK.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  19. Perhaps today’s Minister will clarify the point: have the Government given up on backdating as a lost cause? I wish to press the Minister on one further point. Welcome though the state aid clearance in May was, it also turned out to be a further blow for the hopes of many other energy-intensive industries, particularly the glass, ceramics and minerals sectors, which the EU Commission deemed to be “less exposed to higher energy prices” and which were therefore excluded from the list of eligible industries. The then Minister of State—he is now Defence Secretary—said in July that he “remained concerned” about this decision and that the Government would seek a review of eligible sectors with the Commission “later this year”.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  20. I put to the Minister today the same question that I have put to her predecessor and to other Ministers: when will energy-intensive companies finally start receiving compensation for the costs of the carbon price floor, which the Chancellor promised three years ago? More importantly, will she clarify whether the Government have given up on backdating compensation for the last 18 months in which energy-intensive companies have had to pay for the carbon price floor without any of the help that the Chancellor had promised? The former Energy Minister, the right hon. Member for Sevenoaks (Michael Fallon), originally suggested back in February that the Government would continue to press the case for backdating. Yet, in a delegated legislation Committee in July, he appeared to backtrack on that, saying that it was a “lost cause”.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  21. Given that there is effectively an absence of Government intervention at the moment—aside from EU ETS compensation to just 53 of the thousands of companies affected—the Government’s figures drive home the stark reality of the impact on our productive industries. UK energy-intensive industries face the highest costs of any country in the world. The figures predict that in 2015 our energy-intensives’ electricity costs will be almost double those of their counterparts in Germany—a country already known for its high energy prices—let alone of those further afield in Japan, the US or China, whose electricity prices are dwarfed by ours.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  22. It seems that, due to the delays, the Government have paid only about £31 million of the £250 million compensation that they promised in the 2013 autumn statement. Will the Minister clarify whether the Government intend to pay out the full £250 million by the end of this Parliament, as was originally promised? The Chancellor talked about the world economy, but what about the European economy? The Government’s own figures suggest that our heavy industry has been priced out there, too, as the motion before us today notes. A recently published consultation paper included estimates from the Department for Business, Innovation and Skills and the Department of Energy and Climate Change of electricity prices faced by energy-intensive companies in the absence of Government intervention, compared with other countries around the world.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  23. Three years later, however, Ministers’ statements and answers to parliamentary questions suggest that only 53 energy-intensive companies have been compensated for the costs of the EU ETS, and that—as far as I am aware; I would be grateful if the Minister updated us on this—absolutely none has been compensated for the costs of the carbon price floor, even though state aid clearance was finally received for that in May. Energy-intensive industries, having being promised by the Chancellor in 2011 that, thanks to Government support, they would not be priced out of the world economy, have now been waiting for around 18 months for help on the coalition’s carbon tax, but that help remains out of sight.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  24. Rio Tinto Alcan had estimated that its energy costs would jump from £7 million to £100 million as a direct result of carbon taxes—including, of course, the carbon price floor. I want to turn to the question of compensation. In 2011, the Chancellor promised a £250 million compensation package for the worst-affected heavy energy-intensive industries for the “indirect costs” of the EU emissions trading system and the carbon price floor.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  25. Those concerns, and our amendment, were dismissed at the time, but unfortunately many of them have been realised. The Government’s U-turn in this year’s Budget has recognised that fact, but for some it has come too late. In March this year, for example, Thai-based steelmaker SSI, located in the constituency of the hon. Member for Redcar (Ian Swales), revealed that it had yet to turn a profit despite producing 5 million tonnes of steel. It has regularly raised concerns about the risk to jobs. Indeed, SSI raised concerns about the carbon price floor, along with the rest of us, back in 2012. In March 2012, we lost Rio Tinto Alcan’s aluminium smelter plant in Lynemouth on the Northumberland coast with the loss of more than 500 jobs. It had been a source of employment in the area for more than 40 years.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  26. Friend the Member for Bristol East (Kerry McCarthy), then shadow Economic Secretary to the Treasury, tabled an amendment calling on the Government to at least consider the impact of this carbon tax on a whole range of affected parties, from energy bills and fuel poverty to renewables and the energy sector more widely. More importantly, the Opposition also asked the Government, in carrying out that review, to take stock of the impact of the carbon price floor on energy-using manufacturing industries and on employment in those industries. My hon. Friend said at the time that there was a danger, particularly in the absence of a credible Government plan for growth, that growth and jobs would be exported to other countries, that UK industry would be at a disadvantage, and that jobs and growth would be put at risk.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  27. Member for Warrington South (David Mowat) thoroughly resents what he describes as crowing from the Labour Benches on these issues, but many of the problems that these companies are facing in relation to the changes in the taxation system have arisen under this Government, and we warned of the consequences throughout this period. The carbon price support rates of the climate change levy, which underpin the carbon price floor, were entirely the creation of this Conservative-Liberal Democrat coalition Government. They were introduced in the Finance Act 2011, despite the deeply held and loudly voiced concerns of Opposition Members who tried to amend the legislation on a number of occasions before its implementation. My hon.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  28. However, the bottom line is that this support—capping the future costs of carbon and providing an exemption for combined heat and power plants—has come too late. It is more than 12 months since the measure was meant to begin compensating energy intensives, but that was certainly too late for one company on Teesside, which told me that it had had to close one of its coal boilers in 2014, resulting in 100 job losses. There have been other cases in which manufacturers, steelworks and brickworks have fallen victim to the ill-thought-out carbon price floor, as my hon. Friend the Member for Stockton North has shown. I understand that the hon.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  29. The North East Process Industry Cluster estimates that 1,400 such companies across the region export £12 billion worth of product each year. So, if we are to achieve a balanced recovery and build a highly productive, more export-led economy, we have to recognise that manufacturing, ceramics, glass, chemicals and steel—all energy-intensive industries—are an important part of that picture. There is agreement across the House on the importance of supporting those industries and ensuring that they create the jobs and economic growth that we all want to see. The motion before us today refers to the imposition of carbon taxes and levies, and rightly welcomes the relief announced in this year’s Budget to limit future rises in the carbon price floor.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  30. The Government’s own figures suggest that, at national level, the chemicals, paper, ceramics and metals industries directly contribute about 2% to UK gross value added. They have a combined turnover of £130 billion and directly employ about 330,000 people. The TUC estimates that, if we include those working in the wider supply chain, there are about 800,000 people working in the energy-intensive industries—or foundation industries, as my hon. Friend the Member for Stockton North prefers to call them—and the supply chain. I recently visited Ibstock, which has a brickworks in Throckley in my constituency. It is the largest brick producer in the UK, with 19 sites across the country, employing around 1,500 people.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  31. I congratulate my hon. Friend the Member for Stockton North (Alex Cunningham), the hon. Member for Redcar (Ian Swales), who is no longer in his place, and the Backbench Business Committee on securing this important and pressing debate on the impact of carbon taxes on energy-intensive industries. I speak in my capacity not only as a shadow Treasury Minister but as a fellow north-east MP. The north-east is one of the most energy-intensive areas of the country, and a base for the many companies that have been mentioned today: Wilton International, INEOS and Tata Steel are just a few of the largest. I am therefore aware of the importance of this issue for the future of our productive industries, for jobs and for economic growth in the region and across the UK.

    ENERGY-INTENSIVE INDUSTRIES · 2014-09-11 · READ IN HANSARD

  32. May I add my tribute to our colleague and friend Jim Dobbin, who has been supportive of me since I came into the House in 2010? He will be greatly missed. The appalling attack on flight MH17 saw two avid Newcastle United fans, Liam Sweeney and John Alder, murdered along with 296 other innocent passengers. What specific discussions did the Prime Minister have with his NATO colleagues about ensuring that the perpetrators of that appalling atrocity are brought to justice?

    NATO SUMMIT · 2014-09-08 · READ IN HANSARD

  33. Friend the Member for Birmingham, Ladywood said, if income falls below a certain threshold in a given month—the minimum income floor—the claimant’s income is treated as being a higher amount, and they therefore lose some of their universal credit entitlement for that month. NICs and income tax will count as such deductions, and in any one month liability may fall on both of those under self-assessment. That could result in universal credit claimants losing out in that month, which could set them back significantly for a longer period. The Low Incomes Tax Reform group has expressed its concerns that that shift could “spell misery” for some self-employed people, and create a system where “payments will be made much later and could affect entitlements to benefits in the meantime.”

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  34. The Chartered Institute of Taxation recommended that the option of monthly direct debit is retained, and the Government’s tax information and impact note also anticipates that “a small number may want to continue to make Class 2 NIC payments through a regular payment option.” No such option is referenced in the Bill, however, so it would be helpful if the Minister cleared up that point and said whether there is any intention to include such a measure. There are also implications for self-employed people who receive universal credit—I say receive, but I mean when, or if, universal credit is ever fully rolled out, given the current timetable. Because under universal credit income is reported net of expenses on a monthly basis, as my hon.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  35. The first relates to clauses 1 and 2 and schedule 1, which will simplify the payment of national insurance contributions that are currently paid by monthly direct debit or in six-monthly instalments, so that they will be paid under the self-assessment regime at the end of the tax year. Although that simplified process will be welcomed by many self-employed people, there are concerns that shifting all liability for NICs to the end of the tax year, potentially to be paid in one big lump sum, could be difficult for low-paid workers.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  36. It is for those reasons that the shadow Secretaries of State for Business, Innovation and Skills and for Work and Pensions have written to Sir Andrew Dilnot, the chairman of the UK Statistics Authority, to ask him to examine whether new measures are needed to take better account of the earnings of self-employed people. The truth is that they are working harder for less and that many of them are struggling to make ends meet. We must ensure that they get the support that they need. My hon. Friend the Member for Birmingham, Ladywood set out the Opposition’s concerns about the Bill.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  37. Whereas the official figures show that working people are, on average, £1,600 a year worse off since 2010 after inflation, Labour’s analysis shows that the self-employed have been hit particularly hard and that their average incomes have fallen by £2,000 a year. According to the Institute for Fiscal Studies, “the fall in average living standards was caused primarily by sharp falls in gross earnings and self-employment income.” We know that the Bank of England’s Monetary Policy Committee has a range of views on the extent to which the growth in self-employment has painted a false picture of the strength of the labour market. We also know from a recent survey by the Resolution Foundation that more than a quarter of those who have become self-employed in the past five years—almost half a million people—would rather have salaried jobs.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  38. The Institute for Public Policy Research recently described the UK as the “self-employment capital of Western Europe”. Although the Government like to boast that 2,000 businesses have been set up and have been “flourishing” in every month over the last year, that masks the true effect of the cost of living crisis on many self-employed people. Although self-employed people are included in the employment figures in the ONS labour force survey, they are not included in the pay figures. The Resolution Foundation has concluded that, were the 4.5 million self-employed people included in the labour force survey, average wages could have fallen by a further 20% due to the huge shift towards low-paid self-employment.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  39. There are 4.5 million self-employed people, which is more than at any point in the past 40 years, according to the Office for National Statistics. Welcome though the changes are, the Government need to go further in supporting the self-employed because, while we know that the majority of working people are not feeling better off in their pockets, it is becoming increasingly clear that the self-employed have been hit particularly hard by the cost of living crisis of the past few years. The latest labour force survey figures from the ONS show that more than a third of the new jobs that have been created since the last quarter of the last Parliament—39%—are self-employed jobs. The self-employed make up one in seven people in the work force.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  40. Before I begin my remarks, I should probably declare an interest as a member of the all-party parliamentary group on the freelance sector. As such, I am fully aware of the invaluable contribution that genuinely self-employed people, including freelancers, make to the economy. They play an increasingly prominent part in the generation of economic growth and prosperity. As my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood) and the Financial Secretary set out, the main aim of the Bill is to make life a bit easier for self-employed people in respect of the payment of their national insurance contributions. That is more important than ever, given the structural changes in our labour market over the past few years.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  41. The Government have got it wrong in some respects, such as on the UK-Swiss tax deal, and have over-egged their tackling of tax avoidance and the tax gap, which the National Audit Office recently said is almost £2 billion lower than it should have been, and that the Government have mis-stated the situation. Ministers must provide reassurance for hon. Members and for those who are interested in the debate that they have learned those lessons, and that we will not experience tax avoidance in relation to measures in this Bill that the Government are similarly unable to deal with.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  42. However, I want to make the general point that the Opposition are committed to anti-tax avoidance measures. We believe strongly that everybody should pay their fair share. That is why we support the measures in the Bill, but what reassurances can the Minister provide for hon. Members that HMRC will be sufficiently resourced in order to implement the measures and the safeguards? My hon. Friend mentioned the demographic challenges that HMRC is likely to face in the coming years, and the challenge of the numbers of those available to ensure that the promised safeguards are put in place. Will the Minister provide reassurances on that? I am sure the matter will be debated at some length in Committee. To conclude, we have only to look at the Government’s past record on tax avoidance to understand why the Opposition seek those reassurances.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  43. In fact, it places a much greater burden on some 25,000 pregnant women each year who want to access their entitlement to the standard rate of maternity allowance. The Chartered Institute of Taxation has labelled that approach as “impractical”, and has suggested that a review should be carried out after two years to see what impact it has had on the claims of self-employed women for standard rate maternity allowance. Perhaps the Minister could respond to those concerns. Have the Government considered alternative approaches, and why have they settled on what has been described as an impractical approach for those women who could be affected? My hon. Friend the Member for Birmingham, Ladywood spoke in depth about the anti-avoidance measures in the Bill, which were debated at some length in the Finance Bill Committee.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  44. It states: “The Government recognises that the proposals have implications for the way eligibility for” maternity allowance “is determined for pregnant self-employed women and will be considering how best to ensure the changes have no adverse impact for the small group who might otherwise be affected.” Despite the promise of that wider review of maternity allowance eligibility for self-employed women, the Government have settled on what has been described as a “wholly impractical” solution, whereby women must pay their class 2 NICs throughout the year of their own accord before they file their self-assessment returns at the end of the year. The Bill’s aim is to simplify NICs for the self-employed, but the proposed approach is anything but simple.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  45. In order to receive that, a self-employed woman must have paid 13 weeks’ of class 2 NICs within the previous 66 weeks. That shifting liability for class 2 NICs to an annual payment to cover the previous 12 months’ liability could mean that they fail to satisfy those criteria and are not able to access the standard rate of maternity allowance. HMRC’s consultation document from July 2013 flags those concerns.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  46. There is also an increased administrative burden for those who are self-employed as a result of the introduction of universal credit. They will have to draw up two separate accounts—one for HMRC that they report yearly, and one for the DWP that they report monthly. Perhaps Ministers will provide some much-needed clarity about the provisions that they intend to put in place to support low-paid self-employed people, so that they are not disadvantaged by the Bill. My hon. Friend the Member for Birmingham, Ladywood mentioned the 25,000 self-employed women who claim maternity allowance each year. Currently, class 2 contributions are the means by which a self-employed earner accesses entitlement to contributory benefits, including the standard rate of maternity allowance.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  47. I think the hon. Gentleman very much agrees with the concerns raised by Labour Members, and I hope that the Minister will have some suggestions on how those potential pitfalls can be addressed. If not now, thought should certainly be given to that before the Committee stage to ensure that the most vulnerable self-employed workers, and those on lowest incomes, are not penalised by the change in processing national insurance contributions. We accept that there are clear benefits to reducing red tape and the administrative burden on self-employed people who would benefit from such a measure, but there are those in a more vulnerable position who could be forced into “misery”, as the Chartered Institute of Taxation puts it well.

    NATIONAL INSURANCE CONTRIBUTIONS BILL · 2014-09-08 · READ IN HANSARD

  48. If everything is going so well, will the Secretary of State explain why almost one in five parents thinks that schools are squeezing too many pupils into classes and have deep concerns about class sizes? They will find her response in this debate incredibly complacent.

    INFANT CLASS SIZES · 2014-09-03 · READ IN HANSARD

  49. As well as auditing manifestos, we propose that the OBR should be tasked with monitoring and reporting on the Government’s progress on child poverty, including the impact of Budget decisions. Why will not the Government task the OBR with taking on this role? Is it because the Institute for Fiscal Studies predicts that by 2020 almost 1 million more children will be living in relative poverty and almost 1.4 million in absolute poverty?

    PARTY SPENDING (OBR AUDIT) · 2014-09-02 · READ IN HANSARD

  50. I appreciate the points that the Business Secretary is making, but is he aware just how vulnerable some of the workers affected by these arrangements are? Constituents have come to me who dare not go to an employment tribunal. They are already in a vulnerable position because of their employment and dare not pay the costs of that tribunal in case they are unsuccessful. Has the Business Secretary really considered the reality for workers affected by the policies he is introducing today?

    SMALL BUSINESS, ENTERPRISE AND EMPLOYMENT BILL · 2014-07-16 · READ IN HANSARD