Danny Kruger

We did not pledge to do it and we did not do it. I think it is important to have universal entitlement to essential benefits, but if there does need to be some means testing, surely it should penalise, or withdraw the payment from, only the wealthiest pensioners, not 90% as is happening under this policy. The other thing that the Government have done is impose a significant tax on employment through the national insurance rise, which they promised not to do in their manifesto. The cost of that will fall disproportionately on low-paid workers, who will see the impact of that tax in their wage packet. The Joseph Rowntree Foundation, which is no friend to my party, has pointed out that poverty is due to rise because of the Budget that the Chancellor has introduced. Every household type, except pensioners, will be poorer. Single-parent families will be £1,000 poorer. An average couple with children will be £1,760 poorer. Inequality will be higher. That is all the testament of the Joseph Rowntree Foundation. The Office for Budget Responsibility points out that real wages will fall and indeed, the Budget has caused the OBR to lower its real wage growth forecast by 0.5%. As the OBR says, the Budget shifts “real resources out of private households’ incomes in order to devote more resources to public service provision.” That might indeed be the policy that the Government want to pursue, but the effect will to be to reduce household income, as the OBR acknowledges.