Whether he has had discussions with Cabinet colleagues on the potential merits of introducing a universal basic income to support economic recovery following the covid-19 outbreak.
We have supported those on the lowest incomes throughout this crisis by investing more than £7 billion in the welfare system, and we are focused on helping people to get into work by making up to £30 billion available through our plans for jobs.
Ronnie Cowan [V]
Councils throughout England, Wales, Northern Ireland and Scotland have asked for support to run basic-income pilots, designed to increase our knowledge of the pros and cons of basic income. Five hundred and twenty elected politicians from across the UK sent a letter to the Chancellor on this subject and got a frankly derisory response. Does the Chancellor honestly believe that he knows everything there is to know about a basic income and would not learn from such pilots? If he does not, will he back the basic-income pilots and let us learn together and make evidence-based policy?
I am happy to learn from the 2017 Work and Pensions Committee report that said it was
“difficult to see how”—
a universal basic income—
“would substantially alleviate poverty”,
or from the OECD, which said that a universal basic income could “increase poverty” and negatively affect the poorest. If the hon. Gentleman is putting forward this proposal, he should set out what the specific amount is. I note that to date the SNP has refused to do that.
What representations he has received from organisations representing people who are ineligible for covid-19 financial support schemes; and if he will make a statement.
What representations he has received from organisations representing people who are ineligible for covid-19 financial support schemes; and if he will make a statement.
Fiscal Policy: Household Income (Scotland)
Bounce Back Loan Scheme
Aviation Sector: Financial Support
Covid-19: Public Finances
Self-Employed People: Covid-19 Support
Hydrogen Technology: Fiscal Support
Disguised Remuneration Schemes: HMRC Contractors
Loan Charge: Support
Support for Businesses: Covid-19
Legacy Benefits: Universal Credit
Support for People on Low Incomes: Covid-19
Loan Charge: HMRC Settlement
Net Zero Carbon Economy
Topical Questions
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Paul Blomfield (Sheffield Central) (Lab)
LabourSheffield Central
What representations he has received from organisations representing people who are ineligible for covid-19 financial support schemes; and if he will make a statement.
What representations he has received from organisations representing people who are ineligible for covid-19 financial support schemes; and if he will make a statement.
What representations he has received from organisations representing people who are ineligible for covid-19 financial support schemes; and if he will make a statement.
Before I start, I know that Members from around the House will join me in commemorating World AIDS Day and the many organisations that make this day happen. As we remember those we have lost to HIV and AIDS, we also remind ourselves of the need for further action. I am proud that this Conservative Government’s policy is to end new HIV transmission by 2030—a commitment reaffirmed today at the launch of the HIV commission.
Throughout this crisis, the Government’s economic priority has been to protect jobs, livelihoods, businesses and public services, and we have spent more than £280 billion in doing so.
Given that the Chancellor has accepted that the job retention scheme and the self-employment income support scheme need to be in place until March, does he think it is right that those who have fallen through the gaps in those schemes—highlighted by the Federation of Small Businesses—will have been without support for an entire year by then? Why have Ministers not had the decency to meet groups such as ExcludedUK?
My right hon. Friend the Financial Secretary is meeting that group and other Members, and I and other members of my team have met various representatives of the self-employed and other employed people who would like to make representations. It is fair to say that I do not agree with the idea that those people have been excluded: the Government have provided support in many different ways to many people in different circumstances. We remain committed to that support throughout this crisis.
Surely the Chancellor can understand that these people do not have any money—they have not benefited from the Government schemes that Members from all parties welcome. How can it be that the Musicians’ Union, ExcludedUK, the FSB and various other organisations and trade unions can be wrong, and that the people who have not benefited from the schemes can be wrong, and the Chancellor can be right? Why does he not accept that he has made a mistake and introduce additional funding to support those people who have been excluded from the schemes?
I am not making the point that every single person can access every single scheme that the Government have put in place. That is not what I am saying; everyone will have different circumstances. What I am saying is that across the suite there is a range of support—a sum total of £280 billion-worth—designed to protect businesses, the employed, the self-employed and public services. Indeed, councils have been given large amounts of funding—billions of pounds—to help those in their communities who need it most, and they are well placed to make those decisions.
In the summer, one of my constituents opened a new bar in a previously thriving area, but she shut it on 23 October as we went into tier 3. She paid her workers for that week, but she could not get furlough support until 1 November because, as hers was a new business, her staff were not eligible for registration with the previous scheme. She is just one of many who the Chancellor will know have fallen through the gaps in his support schemes. Will he recognise the problem, act to close the loopholes and provide the support that is needed, particularly in the hospitality sector and its supply chain?
The hon. Gentleman mentioned support for the hospitality sector and bars; he will of course know that support has been provided through initiatives such as the business rates holiday, which I am sure his constituent benefited from for this entire year up until the point she was struggling, as well as the cash grants for businesses earlier in the crisis, the VAT discount, eat out to help out and the further support provided to local authorities to support the supply chain. There is a significant amount of resource to help businesses like that of the hon. Gentleman’s constituent, which I know have had an extremely difficult time.
I was recently contacted by David and Alice, a couple with four young children. They are both directors of Around the Box Limited, but have seen their income slashed this year as a result of the pandemic. Around the Box sells boxes of puzzles and games to encourage families to laugh and connect. I trust the Chancellor will agree that such companies, which bring joy to families in times of real hardship, should be protected. Why, therefore, have my constituents, David and Alice, along with millions of people like them, been excluded from all Government support and left to fend for themselves?
I feel very bad for David and Alice with the difficult situation that they are facing. However, I am sure that their small business, like a million other small companies across the country, has been able to benefit, I hope, from the bounce back loan programme, one of the most successful small business loan programmes that we have seen throughout this crisis. It has provided tens of billions of pounds to a million small and medium-sized businesses—up to £50,000—to help exactly those companies to get through this difficult time.