debates/debates2025-04-08b conversation_13
Source: hansard.parliament.uk (2025-04-08)

UK Parliament Hansard data: debates/debates2025-04-08b conversation_13

Diane Abbott:What steps she is taking with Cabinet colleagues to support people on the lowest incomes following the spring statement 2025. \p James Murray: Helping people into good work and financial independence is at the heart of our approach to supporting people on the lowest incomes. That is why we have increased the national living wage by 6.7%, which is equal to £1,400 this year for someone working full-time. Our plan to make work pay will tackle the poor job security and working conditions that have been holding back our economy, and the pathways to work Green Paper announced an additional £1 billion investment in employment, health and skills support. \p Diane Abbott: It is all very well for the Minister to talk about helping people into work, but is he aware of the many millions of people on personal independence payments who rely on them in order to work? Yet that PIP will be slashed as a consequence of the spring statement. Is he also aware that very many people would prefer the Government not to balance their books on the backs of some of the poorest and most vulnerable people in our society? Why are the Government rejecting a tax of just 2% on people with assets of over £10 million, which would raise over £24 billion? \p James Murray: At the autumn Budget last year, the Chancellor announced a series of reforms to fix the public finances in as fair a way as possible, and make sure that the wealthiest in society pay their share of tax. The welfare reforms announced in the spring statement are principled reforms to help get people back into work, because work is the best way out of poverty. The reforms also provide support for those who need it and make sure that the system is sustainable for the future. \p Zöe Franklin: Earlier this year, I spoke to members of my local Christians Against Poverty debt support team in Guildford, and they explained to me that they support many low-income individuals out of debt, but they are no sooner out of debt than they start accruing it again, because universal credit is insufficient to cover their basic needs due to the cost of living in areas such as Guildford. What work has the Minister done to assess whether universal credit levels are sufficient to cover the varied and increasing basic living costs across the country, and to prevent people on the lowest incomes from getting further into difficulty and debt? \p James Murray: The Government have already taken action on the fair repayment rate, lowering the cap on deductions from universal credit to 15%—it was 25% before the autumn Budget last year. That will benefit 1.2 million households by an average of £420 a year, and 700,000 of the poorest families with children will benefit. \p Lindsay Hoyle: I call the shadow Minister. \p James Wild: Businesses have just been hit by the Chancellor’s £25 billion jobs tax, which will cost working families £3,500; also, business rates are nearly doubling for hospitality and retail businesses. How does imposing taxes that the Office for Budget Responsibility says will result in lower wages, higher prices and fewer jobs help growth and those on the lowest incomes, and will the Chancellor keep her promise not to come back with more taxes in this Parliament? \p James Murray: The shadow Minister talks about business rates support. I remind him that if we had carried on with the plans inherited from the Conservative party, business rates relief would have ended entirely this month. It is only thanks to a decision of this Government that rates relief is continuing for this year, ahead of permanent reforms that will permanently lower tax rates for retail, hospitality and leisure premises on the high street from April 2026. That is thanks to a decision this Government made.