8 June 2011
Harriett Baldwin responds to an Opposition motion and welcomes the Government's welfare reforms and the equalisation of retirement ages and pension rights.
Harriett Baldwin (West Worcestershire) (Con): The hon. Member for Leicester South (Jon Ashworth) is no longer in his place, but I too pay tribute to him for a very assured and interesting maiden speech. It was a privilege to be in the Chamber to hear it.
I had not planned to speak today until I saw this patronising and paternalistic motion on the Order Paper—this drivel that we have had to debate all afternoon. I am absolutely incensed by it, because the way in which we address the fact, which we all acknowledge, that women earn and own less on average is not by ensuring that they continue to receive a stream of benefits throughout their lives or only state-sponsored child care options.
From some interesting points that Opposition Members made, we learned that at the next general election the right hon. Members for Normanton, Pontefract and Castleford (Yvette Cooper) and for Morley and Outwood (Ed Balls) will stand on a platform of restoring their household’s child benefit, which is worth £2,400 a year tax-free, despite their combined income being well into the hundreds of thousands of pounds. That will be a difficult message for them to sell on the doorstep, but it was certainly a fascinating insight into planet deficit-denial on the Opposition Benches.
I also thought that I was living on a different planet when we heard no acknowledgement of the fact that over the past 12 months more than 530,000 jobs in the private sector have been created, with 400,000 more, net of the necessary reductions, in public sector employment. How is it good for families and women to be paying £120 million a day in interest? How is it good for families and women if Opposition Members put their heads in the sand and refuse to identify a single cut or alteration that they support? This Government are introducing welfare reform that will incentivise the economic choices of women in recognising that at the end of the day only additional work will help them to address the earnings gap and the asset gap.
As someone who has fought all my life for greater equality for women in the workplace, I feel somewhat differently about pensions. I think that we should welcome the fact that men and women will be retiring at equal ages and that women and men will be treated equally as regards pensions.
Naomi Long (Belfast East) (Alliance): I agree that the equalisation of pension rights and ages is an important and necessary thing that we should all support. Does the hon. Lady accept, however, that the real crux of the issue for Opposition Members is the amount of time that certain women will have to prepare for the change because the goalposts have been moved so quickly?
Harriett Baldwin: We should bear in mind what these women are preparing for. An average 55-year-old woman today will live to 88, on average, and many more women will live to see their 100th birthday. Having the extra year to prepare for saving for that very old age is not at all a bad thing. Like my hon. Friend the Member for Solihull (Lorely Burt), I have absolutely no intention of retiring in my early 60s, and I welcome the fact that men and women will be treated equally regarding pension age.
Mark Lazarowicz rose—
Harriett Baldwin: I am sorry—I do not have enough time to give way.
I acknowledge that equalising the pension age means that there is a group of women who are disproportionately affected, but I would like to hear proposals on how we could avoid that and still end up in what we all agree is the right place, where we have longer to prepare for a much longer old age.
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Harriett's other contributions to the same debate
Harriett Baldwin (West Worcestershire) (Con): Will the right hon. Lady confirm that the numbers she is citing include the £3.75 billion from the child benefit cuts for higher rate taxpayers such as me, who obviously are predominantly women?
Yvette Cooper: The figures include everything, so they do include the child benefit changes, as well as the change in tax allowances, the cuts to housing benefit, the cuts to public sector pensions and a series of other things. The point is that the cumulative impact will hit women much harder than men. Women who are on higher incomes will be hit much harder than men who are on higher incomes. Women who are on lower incomes in households where the man is on a higher income will also be hard hit, even though they may only be on part-time or low earnings. The hon. Lady is right that the analysis does not separate women on the basis of different levels of earnings, but it does show that at every level of earnings, in every sector of the economy and in every sector of society, women are being hit harder than men.
Harriett Baldwin rose—
Claire Perry rose—
Mary Macleod rose—
Yvette Cooper: I give way to the hon. Member for West Worcestershire (Harriett Baldwin) first.
Harriett Baldwin: Is the right hon. Lady saying that she would like my child benefit of £81.20 every four weeks to be reinstated, despite the fact that I make more than £65,000 a year as an MP?
Yvette Cooper: We have said that we think there is a serious advantage in some universal benefits. I do not think that the hon. Lady should be paid child tax credit, and she is not, because it is right that some things depend on people’s incomes. However, it is important that some things are universal. That is why we have said that there are serious problems with what the Government are doing on child benefit. She needs to take seriously the point that at every level of income and in every sector of society, women rather than men are the hardest hit.
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Harriett Baldwin: I thank my hon. Friend for giving way. I was going to make exactly that point: we have heard today that for someone like me who is making £65,000 a year, it is Labour party policy to restore my child benefit after 2013.
Claire Perry: My hon. Friend is right. Moreover, despite the state of the public finances—for every £4 we spend, £1 is borrowed—Labour would like to borrow that money from other countries in order to restore my hon. Friend’s child benefit, thereby putting that debt round the necks of all of our children and grandchildren. How can that be a rational policy? It is sheer, rank hypocrisy—and on that point I will happily give way to the hon. Member for Wolverhampton North East.
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Harriett Baldwin: Is the hon. Lady talking about a constituent whose retirement age is rising to 64? Is that not a policy that her Government brought in?
Barbara Keeley: I did not intend to touch on that, but wanted to take the opportunity to read out my constituent’s comments so that Ministers understand the worry and concern.
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Harriett Baldwin: Will the hon. Lady confirm that the restoration of tax-free child benefit of £2,400 for the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper) and the right hon. Member for Morley and Outwood (Ed Balls) will be in the Labour manifesto?
Rachel Reeves: I will perhaps ask the hon. Lady—[Hon. Members: “Answer!”] I will answer the question, but does the hon. Lady believe it right that a family in which one person in work earns £45,000 should lose their child benefit, while a family in which two people earn a total of £80,000 still get their child benefit? If the Government’s plans for a fixed-term Parliament go ahead, the election is four years away, and as we do not know what the circumstances of that time will be, it would be inappropriate to write our manifesto now. The hon. Lady would not write hers now.
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