Wednesday Volume 507 17 March 2010 No. 59 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Wednesday 17 March 2010 £5·00 © Parliamentary Copyright House of Commons 2010 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through the Office of Public Sector Information website at www.opsi.gov.uk/click-use/ Enquiries to the Office of Public Sector Information, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 859 17 MARCH 2010 860 House of Commons Tax Credits 2. Mr. Tom Watson (West Bromwich, East) (Lab): Wednesday 17 March 2010 What recent discussions he has had with the Chancellor of the Exchequer on the tax credit system in Wales. [321806] The House met at half-past Eleven o’clock 7. Mrs. Siân C. James (Swansea, East) (Lab): What recent discussions he has had with the Chancellor of PRAYERS the Exchequer on the number of families claiming tax credits in Wales. [321813] [MR.SPEAKER in the Chair] 8. Mrs. Betty Williams (Conwy) (Lab): What recent discussions he has had with the Chancellor of the Exchequer on the number of families claiming tax credits in Wales. [321815] Oral Answers to Questions The Secretary of State for Wales (Mr. Peter Hain): We introduced tax credits to provide support to families, to help to reduce child poverty and to make work pay, benefiting about 326,000 families and more than 500,000 WALES children in Wales. Mr. Watson: Happy St. Patrick’s day, Mr. Speaker. The Secretary of State was asked— Can my right hon. Friend assure me that he has no Crime Levels plans to axe or cut tax credits? 1. Chris Ruane (Vale of Clwyd) (Lab): What recent Mr. Hain: I, too, wish you a happy St. Patrick’s day, discussions he has had with ministerial colleagues on Mr. Speaker. levels of crime in Wales. [321805] I can certainly give my hon. Friend that assurance, as can the whole Government. Tax credits have made The Parliamentary Under-Secretary of State for Wales work pay, lifted hundreds of thousands of people out of (Mr. Wayne David): As a member of the national policing poverty, and encouraged people to get off benefits and board and the crime reduction board, I have regular into work. That is why I resent the fact that there is now discussions with ministerial colleagues on all matters a Tory sword of Damocles hanging over tax credits for relating to law and order. The latest statistics show that, those on low and modest incomes in Wales. The sooner overall, recorded crime in Wales is down 3 per cent. on that the Conservatives stop threatening to cut tax credits last year. and many other support mechanisms in Wales, the better. Chris Ruane: I thank the Minister for that response. I have in my hand an article from the Daily Post, which says that north Wales is one of the safest places to live Mrs. James: In my constituency, just more than 7,000 in the whole of Britain. Denbighshire has the third best families have benefited from the child tax credit system. crime and disorder reduction partnership in the whole Can the Secretary of State tell me how many families in of England and Wales. Why are Tory MPs and candidates total have benefited from the policies of this Government in north Wales going round claiming that violent crime on this important issue? there has risen by 68 per cent.? Mr. Hain: As I have said, 326,000 families have Mr. David: It is not for me to say why the Conservative benefited right across Wales. This is not simply a question party behaves as it does. I simply say that that comes as of their benefiting from tax credits; these measures have no surprise; it is a dodgy party that uses dodgy statistics. helped to lift people out of poverty. About 50,000 children in Wales have been lifted out of poverty, and Jenny Willott (Cardiff, Central) (LD): Alcohol continues we also have a policy to offer free breakfasts for primary to play a major role in fuelling violence and criminal school children. That is part of our policy of tackling behaviour in my constituency and across Wales. In the poverty. All that would be threatened if the Tory policies light of that, what discussions has the Minister had to cut free breakfasts for primary school children and to with his colleagues in Westminster and in the Welsh cut tax credits were ever introduced. Assembly Government on introducing a minimum price for alcohol? Mrs. Williams: Does my right hon. Friend agree with my constituents that the tax credit system is certainly Mr. David: Discussions on that issue are ongoing. It not a gimmick? Will he confirm my understanding that is important to recognise that the Government take a this Labour Government will continue with the £66,000 firm stance on issues associated with alcohol abuse and limit, whereas the Tory proposal is to reduce it to antisocial behaviour arising from it. That is one of our £50,000, which would certainly affect my constituents? priorities, and it goes hand in hand with the emphasis that we continually place on neighbourhood policing. Mr. Hain rose— 861 Oral Answers17 MARCH 2010 Oral Answers 862 Mr. Speaker: Order. I know that the Secretary of Mr. Hain: As the hon. Gentleman knows, we have State will probably not need reminding, but I hope that lifted many thousands of people across Wales out of he will focus his reply only on the policy of the Government. tax altogether through the changes that we have made to taxation. Of course, we want to make sure that Mr. Hain: I pay tribute to my hon. Friend the Member especially those on low incomes pay the minimum possible for Conwy (Mrs. Williams), who is standing down at tax and no tax at all, if possible. The tax credit system, the next election. She has been a real warrior for north notwithstanding the administrative problems that we Wales, and particularly for women right across have seen at the heart of it, has liberated many hundreds Wales. Everyone respects her for that. As she has said, of thousands of people right across Britain, including tax credits have played an absolutely vital role, particularly Wales, giving them a chance to work. Otherwise, those during the downturn, in helping to keep people in work people would have been languishing on benefits, as they and off benefits. About 21,600 families whose income were under the Conservatives. fell for six months last year benefited from an average increase of £36 a week in tax credits. That helped Julie Morgan (Cardiff, North) (Lab): Does my right to keep people in work, and those people would not hon. Friend agree that families in my constituency and have stayed in work if that support mechanism had in Wales will benefit from the policy change recently been cut from underneath them, as the Conservatives announced by the Government, which means that there are planning. will be much greater flexibility in the tax credit system to cope with changes in the make-up of the household? Mr. Stephen Crabb (Preseli Pembrokeshire) (Con): Is Will that not provide an even better way of targeting not this pathetic scaremongering over tax credits merely help to those at work who most need it? a smokescreen to prevent discussion of Labour’s true failure on welfare in Wales—namely, that after 13 years Mr. Hain: I completely agree with my hon. Friend. of this sorry Government, almost exactly one quarter Women have especially benefited from tax credits, and of the working age population in Wales is economically they feel especially threatened by the policies of the inactive, out of work and doing nothing? That is a Opposition. May I take this opportunity to welcome shameful record. the fact that some 400 new jobs for 18 to 24-year-olds have been announced today in Cardiff, spearheaded by Mr. Hain: I am surprised that the hon. Gentleman Cardiff county council, which will help to create dares to mention economic inactivity on a day when the employment? Many of them will be able to benefit from statistics show that it has fallen in Wales by a larger tax credits in the future, if this Labour Government, proportion than anywhere else in the UK. This shows but not the Conservatives, are re-elected. that the curse that we inherited from the Conservative Government of people being smuggled off the dole Mr. Roger Williams (Brecon and Radnorshire) (LD): queue on to incapacity benefit and of other forms of As we have heard, the tax credit system is very complex economic inactivity has been tackled under Labour. and fraught with difficulties. I am sure that the Secretary Employment is up to nearly 100,000 extra jobs in Wales, of State agrees that one of the main causes of poverty giving people more support, while economic inactivity in Wales is the very low level at which income tax starts is down, contrary to what the hon. Gentleman has said. being paid, which stops people entering or re-entering the employment market. Will the Secretary of State Mr. Peter Bone (Wellingborough) (Con): Will the take the opportunity this morning to support the Liberal Secretary of State tell the House how many constituents Democrat proposal to have a personal income tax allowance at his advice surgeries have been in tears in his office of £10,000, which would take 220,000 people out of tax because of the tax credit system over the past five years? altogether in Wales? Mr.