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Finance (No. 4) Bill

I am grateful to the hon. Gentleman for having rebalanced his view slightly, but I still think that he is wrong. When I talk to employers about the difficulties they have in recruiting, they tell me that they have two priorities, particularly in regard to young people. The first is that the young people should have the right skill set and should be capable of doing the job without needing too much training from the employer. The second, which is harder to pin down, is about attitude. Employers are looking for people who are disciplined enough to turn up at the right time and not to take days off on a whim. Such considerations come ahead of the concerns that the hon. Gentleman has described. I want to talk briefly about the cumulative effect that the measures in the Budget will have on the people in Knowsley whom I represent. I also want to cover the proposals for minimum unit pricing for alcohol, as one of the major employers in my constituency will be affected by them. I have also received quite a lot of correspondence from individual constituents on that matter. I am concerned about the impact that the working tax credit changes will have on my constituents, in conjunction with the other changes to the benefit system that are already taking place. To qualify for working tax credit, couples with children will now have to work at least 24 hours a week between them, instead of 16, with one of the couple working at least 16 hours a week. There are exceptions for people with a disability or incapacity. There is also an issue with the backdating of the entitlement to tax credit. It will now be one month, instead of three months. A further concern is that the main elements of the tax credit have been frozen for 2012-13. I am unable to give the House any statistics to show how those changes will directly affect my constituents, but it is clear that changes to tax credits impact most heavily—indeed, entirely—on those on low incomes. That is another contrast between the situation experienced by the hon. Member for Cities of London and Westminster and me. It is estimated that, nationally, 212,000 working couples with children who earn less than £17,000 a year will lose all their working tax credit. Unless those people are able to find someone who will employ them for an extra eight hours a week, that could equate to a loss of £3,870 a year. That will be a substantial loss for the many families in my constituency who will be affected by the change. We must also take into account other things that have been going on. Low-income families are already disproportionately affected by rising fuel costs and rising food bills, for example, and these changes will only add to those pressures. Child benefit has been frozen for another two years, until April 2014. Before the Budget, there was a lot of negative publicity about the plans to withdraw child benefit from families with a higher-rate taxpayer in the household. The hon. Member for Cities of London and Westminster referred to that in his speech. In the Budget, however, the Chancellor backtracked a little. From January 2013 there will be no loss of child benefit until at least one parent earns £50,000, after which the benefit will be gradually reclaimed through increasing the take up to £60,000. Beyond that, people stop getting the benefit at all. That will be a very complex system to administer, and my major concern is how it will affect people in my constituency. If the benefit had been raised in line with inflation, a couple with one child would have received £88 a year more in child benefit or £145 a year for two children in 2012-13, but now they will simply not get that. The latest Department for Work and Pensions figures show that in Knowsley 21,185 families were in receipt of child benefit, with 35,725 children between them. That is a substantial number of people who will be adversely affected by these changes in my constituency alone. It is inevitable that I should comment on that, as it is totally unacceptable for those families. I fear that one consequence will be—perversely perhaps, or even unintentionally—that some families that manage to convince the Jobcentre Plus people that they are genuinely unemployed, might decide that they will be better off if they are not working.