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Supporting Britain's Families   April, 2008                                                              On 6th April 2008, tax and benefit changes announced at Budget 07 and Budget 08 come into force, benefiting millions of families, pensioners and businesses.   The British economy under Labour has seen a record of eleven years of stable, strong growth, low inflation, high employment, and low interest rates, made possible by Labour taking the responsible, tough, long-term decisions - such as giving independence to the Bank of England.   The combined effect of Budget 2007 and Budget 2008 is to put more money into the economy this year to help families, businesses and the wider economy respond to the global economic uncertainty and to promote economic stability.   As a result of the changes a further 250,000 children will be lifted out of poverty and around 600,000 more pensioners will no longer pay any income tax at all.   The biggest threat to living standards would be a return to the economic instability of the 1980s and 1990s. Unemployment of over 3 million, interest rates of 15 per cent and two deep recessions – that is the worst recipe for living standards and contrasts with the unprecedented eleven years of sustained growth in incomes this Government has delivered.     Measures   From this month, millions of hard working families will benefit from the lowest basic rate of income tax for 75 years.   The package of tax credits and personal tax changes was announced as part of the 2007 and 2008 Budgets. Measures include:               a cut in the basic rate of tax from 22 to 20 pence,             higher tax free allowances for the over 65s,             the removal of the 10p rate and             a further boost to family tax credits and child benefits.   Real household disposable incomes have risen by around 27% in real terms since 1997. Growth for the bottom 20% of households has exceeded that for richer households.   Budget 2008   Because we recognise the pressures that families and pensioners are feeling as a result of rising world fuel prices, we announced in Budget 2008 there will be an additional one-off payment of £100 alongside the Winter Fuel Payment to over 80s households and £50 to over 60s households in 2008-09.  This will benefit around 9 million households.    For the future, the Government is working with the utilities companies to increase the help they provide to low income households from £50m a year to £150m year.   In the longer term, the Budget set out further financial support for families, increasing Child Benefit and the child element of the Child Tax Credit, which will lift up to 250,000 children out of poverty.   The Economy   Turbulence on world financial markets, the global credit squeeze and rising world food and fuel prices are putting pressures on economies all over the world, but the UK it better placed than other countries to respond. The OECD forecasts the UK will be the joint fastest growing economy in the G7.   Before 1997 we were one of the least stable major economies. And working families paid the price with high unemployment, high inflation and interest rates reaching 15%.   UK inflation (2.5 in February) is presently lower than in the US (4.1 per cent in February) and euro-area (3.3 per cent in February).   UK GDP per head is second in the G7.  Before 1997 under the Tories it was bottom. The UK has seen the fastest rise in income per head of any G7 economy since 1997 - including the US.   At 2.5 per cent, CPI inflation is low by historical standards.     Household Incomes   Budget 2007 announced a cut in the basic rate of income tax to 20 pence – the lowest basic rate for 75 years – alongside the removal of the 10p rate, increased tax credits and pensioner tax allowances.   As a result of measures announced in Budget 2007 and since, from April 2008, in real terms:               Households will be, on average, £150 per year better off;             Families with children will be, on average, £250 a year better off;             Families with children in the poorest fifth of the population will be, on average, £400 a    year better off - 1% of their average net income.             Four-in-five households will be better off or no worse off;   As a result of direct tax and benefit measures since 1997, from April 2008, in real terms:               Households will be on average £1,150 a year better off;             Families with children will be on average £1,800 a year better off;             Families with children in the poorest fifth of the population will be on average £4,050 a   year better off;             Pensioner households will be on average £1,500 a year better off;             Poorest third of pensioner households will be on average £2,100 a year better off;       Government policies, including minimum wage and tax/benefit policies mean that poorer households will share higher growth in real disposable income.  Minimum income guarantees for October 2008 compared with October 2007 are:               £832 a year higher for a family with one child, full time work;             £468 a year higher for a single person, 25+, full-time work.   Real household disposable incomes have risen by around 27% in real terms since 1997. Growth for the bottom 20% of households has exceeded that for richer households.   From April 2008, families, pensioners and businesses will see the following changes:               A cut in the basic rate of income tax to 20 pence – the lowest basic rate for 75 years – alongside the removal of the 10p rate, increased tax credits and pensioner tax allowances.               Increasing the higher personal allowance for those aged over 65 by £1180 a year taking            580,000 pensioners out of paying tax.               Alongside the Winter Fuel Payment, an additional one-off payment of £100 to over 80’s households and £50 to over 60’s households in 2008-09. This will benefit around 9 million households;   For families and tackling child poverty   The Child Tax Credit child element increases by £175 above earnings indexation from £1845 to £2085, providing additional financial support for families and further reducing child poverty.     The first income threshold of Working Tax Credit rises significantly from £5220 to £6420, supporting work as the best route out of poverty by increasing the gain for work for many low income households.   Also Child Benefit increases in line with inflation: the rate of Child Benefit for the eldest child increases from £18.10 a week to £18.80, and for each subsequent child from £12.10 to £12.55 a week.   Tax and savings:   From 6 April, the Government will raise the overall annual ISA investment limit to £7,200, of which up to £3,600 can be in cash. [Current limits are £7,000 overall, £3,000 for cash]   This is to encourage individuals to engage with the reformed ISA regime, and to encourage further savings in ISAs. As well as increasing the amount that people can save in a tax-advantaged way, this also means that for the first time, both limits are divisible by 12, for the purposes of simple monthly direct debits.   The Inheritance Tax allowance for 2008-09 rises to £312,000 for individuals and £624,000 for married couples and civil partners (from £300,000 and £600,000 respectively in 2007-08). Over the next year only 5% of estates are expected to give rise to an IHT liability.   A major simplification of the Capital Gains Tax regime will reset the headline rate of tax to 18%. Alongside this change a new entrepreneur's relief will reduce the effective tax rate to just 10% for up to the first £1 million of qualifying gains made over a lifetime.   Fuel   The delay to fuel duty announced at the Budget will support businesses and families during a period of high oil prices.   For businesses:   A reduction in the main rate of Corporation Tax from 30 per cent to 28 per cent, effective from April 2008, maintaining the UK’s position as having the lowest rate in the G7.   The introduction of an Annual Investment Allowance (AIA) available to all businesses regardless of size and regardless of their legal form.  This new allowance will mean that 100 per cent of expenditure up to £50,000 on general plant and machinery (other than cars) can be offset against taxable profits.  The AIA will target support on all businesses that are investing for growth and will be particularly beneficial to small and medium-sized businesses.   Promoting innovation:   Building on the Government’s commitment to ensure high levels of innovation and growth, an increase in the large company R&D tax credit from 125 per cent to 130 per cent; and An increase in the enhanced deduction element of the SME and mid-sized R&D tax credit from 150 per cent to 175 per cent.   Changes to the Tax Package: Q&A   Why have we made these changes?   The changes represent the next stage in the Government’s programme of reform to the tax and benefit system. They include simplifying the rates of income tax, increasing personal allowances for those aged 65 and over, and changes to the rates and threshold for Child Tax Credit and Working Tax Credit.    This package was carefully designed and balanced so that the tax credit changes focused on those who need the greatest support. They are a more effective method of targeting low and middle income families with children.  Alongside this the tax changes provide a simpler personal tax system with more support to pensioners aged 65 and over with increased personal tax allowances.   Overall as a result of these changes the vast majority of households will be better or no worse off, with households with children £200 per year better off on average, 200,000 fewer children living in poverty and 600,000 more pensioners paying no income tax at all.   What are the changes to age-related allowances?   It is a long standing feature of the tax system for specific support to be provided through increased age related personal tax allowances, and this Government has gone further by announcing at Budget 2007 that the age-related allowances would rise by £1,180 above inflation in April 2008. The new personal allowances for 2008/9 are £9,030 for the over-65s and £9,180 for the over-75s.   The age-related allowance is however tapered away at the age income limit, which is £21,800 in 2008/9 until it reaches the normal personal allowance.  Age related allowances therefore do not excessively benefit the most wealthy pensioners and can provide more support to pensioners on low or modest incomes. This measure has removed 600,000 pensioners aged 65 and above from paying tax, and means that nearly 60% of this group will be paying no income tax at all.   What will happen to those currently paying only the 10p rate?   The tax package was designed to target extra support to help many of those who only pay the 10p rate.   For those aged 65 and above, age-related allowances were increased by £1,180 above inflation, meaning 600,000 more pensioners paying no income tax at all.   For families with children, the Child Tax Credit child element increases by £175 above earnings indexation from £1845 to £2085, providing additional financial support for families and further reducing child poverty.     For those in low income in work, the first income threshold of Working Tax Credit rises significantly from £5220 to £6420, supporting work as the best route out of poverty by increasing the gain for work for many low income households.   For pensioners aged 60-64, who are not old enough to benefit from the age related allowances, the reforms to the tax and benefits system since 1997 mean that those individuals will be £755 better off by April 2009.   In addition, the Labour Government has provided significant specific help to the over 60s outside tax.  Women aged 60 or over are entitled to the basic State Pension.  The Pension Credit ensures that the over 60s are entitled to a guaranteed minimum net income of £124.05 for a single person and £189.35 for a couple in 2008-09.  The Government has built on its introduction of winter fuel payments of £200 for households with someone over 60 and £300 for households with someone over 80, by announcing at Budget 2008 that there would be a further one off payment of £50 and £100 respectively to help these age groups.  The over 60s are also entitled to free bus travel, prescriptions and eye tests.   For those who are not eligible for tax credits, for example as they do not have children and either work less than 30 hours per week or are under 25, the reforms to the tax and benefits system since 1997 mean that those individuals will still be £495 a year better off by April 2009.   What other support is there?   Further support for families was announced at Budget 2008. The first child rate of Child Benefit is increasing to £20 and the child element of the child tax credit rising by £50 a year above earnings indexation from April 2009. These measures together with the tax and benefits reforms are the best way to help low income families with children whose need is greatest –  in total they assist  another 250,000 children, lifting them above the  poverty line.   Independent analysis shows that the greatest proportionate gains from the reforms are among the poorest families bottom fifth of income distribution. Households with children in the poorest fifth of the population will on average be £340 per year better off.   Inflation   Inflation since 1997 has averaged around half what it averaged in the preceding decade and less than half what it averaged between 1979 and 1997. The volatility of inflation has been just a quarter of what it was in the two decades before 1997.   The recent peak in UK inflation of 3.1 per cent (March 2007) compares with a peak of 8.4 per cent in the early 1990s.   Inflation has been subjected to temporary shocks: increases in energy prices, driven by developments in the oil and wholesale gas markets, and food prices, resulting from mainly global factors.   An open economy like the UK is inevitably affected by global developments - including those from global food and energy prices. But overall UK inflation is presently lower than the US and the euro area and second lowest of all 27 European Union countries.   The Government believes that the maintenance of low and stable inflation is crucial to achieving an affordable cost of living for all. Under this Government’s monetary policy framework the UK has benefited from its longest period of sustained low and stable inflation since the 1960s.

National Minimum Wage to Increase  5 March, 2008.   Prime Minister Gordon Brown today (5/3/08) announced the adult National Minimum Wage (NMW) rate will rise from £5.52 to £5.73.   The rate for 18-21 year olds will also increase from £4.60 to £4.77, while the 16-17 year old rate will rise from £3.40 to £3.53.   Nearly one million low paid employees, two thirds of them women, will benefit from the increase.   The Labour Government has also boosted funding for enforcement of the NMW and is planning tough new penalties for rogue employers who underpay staff as part of the Employment Bill, now before the Parliament.   Ten years after the Minimum Wage Act was passed in 1998, Labour’s National Minimum Wage legislation has made a huge difference in making work pay and helping families out of poverty in Britain.     Labour’s record on helping hardworking families   Labour introduced the national minimum wage as one of a series of measures to make sure that workers are treated fairly and help families out of poverty.   There are 3.4 million more jobs than in 1997 and 600,000 children have been lifted out of poverty thanks to Labour’s determination to tackle social injustice and ensure fairness at work while keeping our economy strong and competitive   Around 1.0 million workers have benefited from the minimum wage each year since its introduction.   Together with the Working and Child Tax Credits, the national minimum wage will currently guarantee that every family with one child and one person in full-time work will receive a minimum income of £276 per week from October 2007, up from £182 in April 1999.

Are Pensioners Claiming all the Benefits They are Entitled To?  February, 2008 Are pensioners claiming all the benefits they are entitled to?   Some pensioners still do not claim all the benefits that they are entitled to – take-up amongst poorest pensioners is around 81% for those entitled to guarantee credit.    On 5 December 2007, the Works & Pensions Minister announced a package of changes in the House to make claiming entitlements simpler and less intrusive.  These changes are subject to Parliamentary approval.   Subject to this approval from October 2008 pensioners will be able to automatically claim four benefits (the State Pension, Pension Credit, Council Tax Benefit and Housing Benefit) in one phone call to the Pension Service.    These changes, broadly supported by Age Concern and Help the Aged, will help thousands more pensioners with their Council Tax and housing costs.   As part of the package, it is also proposed to change the timescale for the back-dating of claims for Pension Credit, Housing Benefit and Council Tax Benefit for pensioners, from twelve months to three months so that they will be aligned with working age benefits.      Pensioners’ benefits – useful contacts     How to find out entitlements and claim   Through one phone call to the Pension Service, people can check their entitlement and claim the following benefits: State Pension; Pension Credit; Housing Benefit; Council Tax Benefit and Carers Allowance.     The Pension Service: 0800 99 1234. (Monday to Friday from 8.00am to 8.00pm)   If you have speech or hearing difficulties, a textphone service is available on 0800 169 0133.     The Pension Service website www.thepensionservice.gov.uk contains comprehensive information for current and future pensioners.      The Pension Service online calculator that enables people to calculate whether they are entitled to pension credit and other benefits:  www.thepensionservice.gov.uk/pensioncredit/calculator/       Useful information about retirement can be found at: www.directgov.gov.uk/en/Over50s

Peter Hain's Announcement on Welfare Reform  14 December, 2007. WELFARE REFORM   A radical shift from passive to active benefits in the welfare system, to achieve full employment and help eradicate child poverty, was announced on Thursday 13 December, 2007,   by Labour’s Secretary of State for Work and Pensions Peter Hain.   In a major shake-up of the welfare state, Peter Hain confirmed that a raft of 50 changes to the current system of benefits and job-seeking support will be implemented over the next four years – with the bulk of measures taking effect from next year and 2009.   The core of the reforms will see hundreds of thousands of people on benefit moving from being passive recipients of cash handouts to job seekers actively seeking and preparing for work, at the heart of a ‘something for something’ welfare system.   The key points announced on Thursday 13 December, 2007,  by Peter Hain in ‘Ready for work: full employment in our generation’ are:   ·    The presumption will be that lone parents on income support who are able to work will be required to actively seek work once their youngest child is 12 or over from October 2008, 10 or over from October 2009 and 7 or over from October 2010. ·    From October 2009, major reforms of the New Deal will see jobseekers who struggle to find work after 12 months of trying referred to specialist intensive help from private, public and voluntary sector providers.  These providers will get longer and larger contracts and will be paid on the basis of results. ·    A commitment to look further at the idea of a single system of benefits for all people below pension age to provide greater simplicity and incentives to work.   Also announced are measures to ease and encourage the transition from welfare to work and a new emphasis on skills support.    In a written statement on Thursday, 13 December, 2007, Peter Hain said:   “Today I am publishing ‘Ready for work: full employment in our generation’, the Government’s response to the Green Paper on welfare reform published in July 2007.   “Ready for work sets out the strategy to create a society in which as many people as possible can share in the rewards of work – rewards that go far beyond financial independence, important as that is, because work is inherently good for people of all ages: good for their health, good for families and good for communities.   “Today Britain is recognised by the international community as a leader in promoting employment and tackling disadvantage in the labour market. However, there are still too many people living on benefits who could work if they were given the right support.    “Our response will be to move to a new system of active rather than passive benefits.   “We want to see an employment rate of 80%, up from the current baseline of 74.5%, putting full employment at the heart of our anti-poverty strategy and enabling Britain to seize the opportunities afforded by a dynamic global economy.   “In a new and radical approach, we will therefore increasingly look to move people from being spectators on the margins isolated at home - as recipients of passive benefits - to becoming participants, actively seeking and preparing for work with access to training and job-focused activity.   “And we want to ensure that benefit claimants can train and improve their skills so that they are not only helped into jobs but also helped to stay and progress in work.   “Currently benefit rules prevent JSA customers from studying full time for more than 16 hours per week, for more than two weeks per year.  We will reform this.  As I announced in November we will put in place the funding arrangements to ensure that JSA customers who would benefit from longer term, full time intensive and employment focussed training would have the opportunity to do so by moving to a training allowance.   “We will also remove the ‘16 hour rule’ in Housing Benefit completely for short-term recipients of Incapacity Benefit so that they, like long-term claimants, will always be able to take up training to enable them to return to work.   “Lone parents who can work will be required to actively seek work once their youngest child is 12 or over from October 2008, 10 or over from 2009 and 7 or over from 2010, supported by a flexible system of pre-work preparation and in-work support, and by the £21 billion we have invested in childcare since 1997.   “Incapacity benefits for new claimants will go, replaced by Employment and Support Allowance with the emphasis on what a person with a physical or mental health condition can do rather than cannot.   “The New Deal will be modernised so that it better meets the employment and skills needs of those who have been on benefit for a long time or who have struggled to find a stable pattern of work.   “Jobcentre Plus has built up a truly world class record, and will remain at the heart of the system – working in partnership with public, private and third sector specialist providers which will have an enhanced role through new contracting relationships which we will set out early next year. Jobcentre Plus will also work in partnership with the Learning and Skills Council and Devolved Administrations to deliver an integrated employment and skills service. And with employers, opening up more jobs to disadvantaged people through Local Employment Partnerships.   “In an era of record employment and with 680,000 vacancies to fill, our aim is to get British benefit claimants into British jobs to become British workers.   “And we will do more to ensure that the long term unemployed, lone parents and those currently on Incapacity Benefit are better off in work even after reasonable transport costs.    “The reforms that we are bringing in have a central goal: work for those who can, support for those who cannot, combating poverty through full employment.   “That remains our welfare commitment and that is our way forward.”

Helping vulnerable workers – National Minimum wage enforcement campaign   30 October, 2007   As part of Labour’s commitment to protect vulnerable workers and support hardworking families, the Chancellor announced additional funding of around £3 million this year for monitoring and enforcing the National Minimum Wage.   This includes an enhanced awareness and publicity campaign to ensure people know their right to the minimum wage.   This week, a radio advert alerting people to their right to the new rate of £5.52 per hour is being broadcast on national and regional stations. Listen to it now.   In addition, the Department for Business, Enterprise and Regulatory Reform has produced a revised leaflet so employers know what they must do to meet the requirements of the minimum wage. This year, the government is focussing on improving standards in the hotel sector. Leaflets have been prepared covering the National Minimum Wage and wider employment issues identified as problems for the sector.   The Leaflets can be downloaded from :   http://www.berr.gov.uk/files/file41551.pdf     helping hardworking families     There are 2.6 million more jobs than in 1997 and 600,000 children have been lifted out of poverty thanks to Labour’s determination to tackle social injustice and ensure fairness at work while keeping our economy strong and competitive Around 1.0 million workers have benefited from the minimum wage each year since its introduction. A million workers stand to benefit from the 2007 increase. Together with the Working and Child Tax Credits, the national minimum wage will currently guarantee that every family with one child and one person in full-time work will receive a minimum income of £276 per week from October 2007, up from £182 in April 1999.

Bevin Boys Veterans Badge Application Process  30 October 2007 On 20 June 2007, the Government announced that a lapel badge would be established in recognition of the contribution the Bevin Boys made to the war effort and in the post war reconstruction of the UK.   The Bevin Boys Badge is also intended to be a survivor’s badge.  It will be awarded posthumously to the widows of men who were conscripted into the coalmines in lieu of service in the Armed Forces, under the scheme set up by the then Minister of Labour and National Service, Ernest Bevin,  and who have died on or after 20 June, 2007.   Application forms are now available.   The Department for Business, Enterprise and Regulatory Reform is responsible for the policy decision to award the Bevin Boys Badge.  However, the application process for the badge will be co-ordinated by the Service Personnel and Veterans Agency within the MOD.   An application form can be obtained either by calling the SPVA on 0800 169 02277;  the following weblink:   www.veterans-uk.info/bevin_boys/bevin.doc ;  or if you live in the Lanark and Hamilton East Constituency, from my constituency office in Lanark.   Widows wishing to apply for the badge must provide a death certificate with a date on, or after, 20 June, 2007, and a marriage certificate with the same deceased man’s name.   The first badges will be issued in March 2008, to coincide with the 60th anniversary of demobilisation of the Bevin Boys.   Further information can be obtained from my constituency office.

Defence Minister Des Browne visits FEBA in Hamilton  31 May, 2007. The FEBA organisation, whose head office is in Montrose House in Hamilton, was visited by the Defence Minister, The Rt. Hon. Des Browne MP, on 31 May, 2007. FEBA was set up by Hamilton’s Tommy Moffat to provide ex-service personnel with practical and emotional support during the transition period to civilian life immediately after they retire from active service. Jim Hood, the Lanark and Hamilton East Member of Parliament, is a Patron of FEBA and accompanied Mr. Browne on the visit.   The visit included the organisation’s activity centre in Strathclyde Park, where they were briefed on the support being offered by FEBA through hiking and walks, keep fit, cycling and water sports activities. Later at the CVS building in Montrose House, Mr. Hood introduced the Minister to FEBA members who have benefited from the programme and then Mr. Browne was given a tour of the CVS centre by the General Manager, Katrina Gibbons. Commenting on the service being provided by FEBA, Mr. Browne said that Tommy and the team at FEBA were doing great work to support our men and women after leaving the forces when they no longer have the structures of military life around them.  FEBA was officially established in May this year, they have 117 members and are currently campaigning to raise £75,000 to further fund the activity centre in Strathclyde Park.  If you would like further information on FEBA you can contact their Chairman, Mr. Tommy Moffat,  on 07910 058106 between 9am and 5pm. (See Photo Gallery covering the visit)

Information Prior to G8 Summit  5 June, 2007 The Rt Hon Hilary Benn MP                                                                                                            Briefing Note Gareth Thomas MP   Department for International Development   The G8 summit 2007:       Progress made since Gleneagles in 2005   June 2007   Introduction   This week, the annual G8 summit is taking place in Heiligendamm in Germany. Key issues for discussion will be Africa, global growth and trade. It is now two years since the historic Gleneagles summit during the UK presidency, in which leaders pledged to cancel debt and increase aid, especially to Africa, as well as make faster progress on HIV and other areas. The UK is meeting our promises. But there is concern that the G8 as a whole needs to do more, and the UK government is working hard with others to make this happen. Civil society is running a “The World Can’t Wait” campaign, asking for the G8 to meet their promises and make further commitments on debt cancellation and more and better aid, trade justice, healthcare, education, water and sanitation for all, and climate change.  There was a rally in London on Saturday, 2 June – more details are available at www.yourvoiceagainstpoverty.org.uk.   Key points   The G8 summit is being held on 6-8 June. The G8 consists of the United Kingdom, France, Russia, Germany, the United States of America, Japan, Italy and Canada. Brazil, China, India, Mexico and South Africa are also attending outreach meetings around the summit. British aid is on track to meet our commitments: it is now £6.85 billion, or 0.52% of GNI (on track to 0.7% by 2013), up from £2.5 billion ten years ago.  We estimate that British aid now helps an average of 5,000 people every day to get out of poverty. Global aid is increasing. It is up from $79.4 billion at Gleneagles to $103.9 billion this year: an increase of 24.5 billion. Aid to Africa is up by $11.1 billion. The figures include significant levels of debt relief, particularly to Nigeria and Iraq. But even without debt, aid is still up from the Gleneagles baseline by $9.7 billion globally and by $2.4 billion to Africa.  We can see many practical examples of the difference global aid is making. The global increase is important, but it falls short of the increases needed to fulfil the Gleneagles promises. The biggest challenge we face in 2007 is implementing what was agreed at Gleneagles.  Getting rich countries – and African Governments - to keep their promises. We want to see progress on commitment to increase aid, education, HIV/AIDS, conflict, and trade.   What was agreed at Gleneagles in 2005?   The G8 summit at Gleneagles focused on Africa and climate change.  It was the focus for huge public attention.  More than 8 million people wore a white band and several hundred thousand marched in London and in Edinburgh, joining many other people across the world as part of the campaign to Make Poverty History.   As a result of this campaign, and a concerted effort by the UK Government, business, African Governments, NGOs and faith groups, there were landmark commitments made in 2005, including:   $50 billion extra aid per year by 2010, of which half would go to Africa 100% debt cancellation Universal access to AIDS treatment Free basic health and education Stronger governance in Africa Training of African Union (AU) forces What are we hoping to achieve during the German Presidency of the G8 in 2007?   The German G8 Presidency will focus on ‘growth and responsibility’, with a particular emphasis on two areas: the global economy and Africa. The African part of the agenda will concentrate on HIV and AIDS, good governance, peace and security and economic growth.   The UK fully supports the German focus on Africa. We will work closely with our German colleagues to push for real progress on these issues. This includes holding Governments to account for continued progress towards the commitments and objectives set at Gleneagles – including getting more children into school.   DFID is playing an active role in UK Government-wide efforts to secure ambitious outcomes from this year’s summit at Heiligendamm on 6-8 June that will have a real impact on the lives of poor people across the world.   We need to make progress on the areas that matter:   G8 leaders must reaffirm their commitment to increase aid, and set out a path showing how they will increase their aid by 2010. On education, we need African governments to develop sustainable funding plans, and donors to meet financing needs by making long term commitments. We are not yet on-track to reach Universal Primary Education and the UK has led the world by pledging £8.5bn over ten years.  We want the G8 to agree a similar approach.    On HIV/AIDS, we need to fully fund national plans to achieve universal access to AIDs treatment and Global Fund replenishment. The UK has committed £1.5bn over three years. We also need to tackle the increasing feminisation of disease in Africa.  Over the past two years, the number of women and girls infected with HIV has increased in every region of the world. In sub-Saharan Africa, 60 per cent of adults living with HIV are women; worse, 3 out of 4 young people living with HIV are women and girls.   On conflict, we want faster progress on a range of issues, particularly Darfur. Progress has been made to train 15,000 African peacekeepers but Darfur has sorely tested AU’s capacity. We want the international community to keep pressure up on Bashir to support the UN/AU plan, relaunch the political process, honour the commitment to facilitate humanitarian aid, and improve security through UN/AU hybrid force. The UK is pushing for tougher UNSC sanctions resolution in coming weeks.   On trade, we want the G8 to commit to making sure the WTO talks reach an outcome that is good for developing countries. This must include development package of $4bn aid for trade, 100% market access for LDCS and flexible Rules of Origin that recognise the value added to a product by each country. The next few months will be critical to get a deal by the end of July. Can we see the practical difference that the Gleneagles agreements made?   Two years on much progress has been made in delivering the commitments made at Gleneagles. Global aid has risen to more than $100bn and 22 countries have now had all debts to the World Bank, IMF, and African Development Fund cancelled under the Multilateral Debt Relief Initiative.   This has made a practical difference to millions of the poorest people in the world.   For example:   Debt relief   Zambia used its debt relief to abolish health user fees for people living in rural areas – thousands of poor people now have access to free healthcare. Ghana used its debt relief to improve health, water, energy, and other infrastructure, as well as to improve major highways and feeder roads in rural areas. Honduras used debt relief of $27.6 million in 2006 to eliminate fees for public schools. Climate change The World Bank has boosted the financing of renewable energy and energy efficiency projects by 45% – exceeding the 20% annual increase target set in 2004. In the Congo Basin, as part of the UK’s £800 million International Environmental Transformation Fund, £50 million has been given to protect the Congo Basin rainforest. This will protect the livelihoods of people who rely on the forest for food and shelter as well as protecting its role as a ‘carbon sink’, helping to fight against climate change. In Bangladesh we are helping 6.5 million of the poorest, most vulnerable char dwellers to cope with flooding by improving houses and infrastructure.   Conflict   Despite ongoing tragedies, global levels of conflict are falling. The number of armed conflicts in sub-Saharan Africa has reduced by an estimated 60% since 2002. Close to 7,000 African Union troops, civilian police and observers are currently deployed in Darfur, Western Sudan. In Sierra Leone sustained UK support has helped to bring stability to one of the most conflict prone countries in Africa. The civilian population of Northern Uganda has been terrorised for years by the brutal violence of the Lord’s Resistance Army, but now there are glimmers of hope that a final resolution may be in sight through a UK supported for the mediation process. Humanitarian aid In 2006, in Darfur, Sudan, swift allocation of funds allowed agencies to deliver assistance to more than 90,000 newly displaced persons and 14,000 Chadian refugees before the rainy season, which would have made access to many areas difficult. In 2006 in Kenya, drought, floods, outbreaks of disease and the arrival of over 22,000 new refugees, threatened to severely stretch humanitarian capacity. However, new funds made it possible to respond swiftly and effectively to save the lives of more than 3 million people.  In 2005, an earthquake in Pakistan killed 73,500 people. Many of these were children who died because of poorly constructed schools. The UK’s commitment to spend 10% of the £53 million humanitarian response budget on longer-term disaster risk reduction has helped strengthen early warning systems, and support governments in establishing and monitoring effective building codes.   Education   In Ghana, the UK supports the education sector HIV and AIDS programme that provides teachers, students and pupils with relevant knowledge, skills and the means to protect themselves from infection and from infecting others. The project targets 120,000 public and 3,500 private school teachers at primary, junior and senior secondary levels. In India, the UK is helping girls go to school through support for a midday meal scheme, free textbooks, free notebook and pencils and – more recently – free school uniforms for girls. Health The International Finance Facility for Immunisation (IFFIm) has already raised $1 billion out of a target of $4 billion over ten years for new and basic vaccines - which should vaccinate more than 500 million people, and save 10 million lives.  In Tanzania, the UK is supporting a $12 million insecticide treated net programme, which should stop 40,000 children a year dying from malaria. In Uganda we provided help to buy vaccines helping immunise 5.7 million children against polio and measles. In Zambia the UK is supporting the abolition of user fees at public health centres.   HIV/AIDS   There has been a ten-fold increase in people on ARVs in Sub-Saharan Africa, now totalling more than 1 million, 23% of those needing treatment. In 2005, this saved more than 250,000 lives.  In Malawi the UK has committed £45 million to deliver an Essential Health Package which includes the prevention and management of HIV and AIDS. This has helped double the number of people tested for HIV in the last year alone. And increased the number of people receiving Anti-Retroviral Treatment (ART) from 4,000 (2003) to 70,000 in September 2006. In Cambodia the UK has supported the social-marketing of condoms since mid-1995 – providing £15.6m from 2003 to 2007. This has been crucial to improving availability and access to condoms in urban and rural areas and helped reverse the trend of the HIV epidemic among adults from 3% in 1997 to 1.6% in 2005. The UK is providing £1.5 million between 2003 and 2007 to the HIV Prevention among Vulnerable Populations Initiative in Serbia and Montenegro. The programme has helped 4,850 people - including 960 injecting drug users, 350 sex workers and 830 prisoners   Corruption   87 countries have now ratified the UN Convention Against Corruption. This means they have agreed to establish effective systems to deal with corruption, and to co-operate with one another in the global fight against it. 26 countries are now implementing the Extractive Industries Transparency Initiative (EITI) to help stop corruption in mining, forestry and other industries and seven are reporting revenues received. DFID has funded additional police capacity in the UK to help investigate overseas bribery and money laundering. As a result, money that was stolen in from Nigeria has been returned.   Trade   Despite frustrations with the DOHA process, there is now the potential for a pro-development deal on trade. An ambitious deal on Doha would deliver gains to the global economy approaching $200 billion by 2015, equivalent to 0.6% of global income.

Perils Facing an Independent Scotland (Quote from Guardian Newspaper)  8 February, 2007. (Thursday 8 February, 2007) Guardian economist, Ashley Seager wrote: "Over recent decades, the Scottish economy has grown slightly more slowly than the English one, although gross domestic product per head remains broadly similar north of the border to that in England, as in recent years rapid growth of the service sector in Scotland has compensated for the deindustrialisation of the past few decades. Only London, the south-east and East Anglia have higher GDP per head than Scotland." "Scotland spends more public money than England, especially on education and public-sector employment, and has a substantial and persistent public deficit. An independent Scotland would thus face "tough choices" on tax and spending, to use the language of the Scottish MP for Kirkcaldy and Cowdenbeath, one Gordon Brown. Scotland may only account for 8.5% of the British population but it accounts for 9.7% of all spending. The difference may not sound huge, but it is. And this is where much of the fight about Scottish independence centres." "The latest figures from the annual Government Expenditure and Revenue in Scotland (GERS) report illustrate the problem. Public spending in Scotland in 2004-05 was £47.7bn, while total revenues are estimated at £36.4bn, equivalent to 8.1% of all UK revenues. The deficit was thus more than £11bn, or 12% of Scottish GDP - three times the percentage deficit of the UK as a whole." "Nationalists dispute the GERS figures, but few fiscal experts do. Now, that is a big deficit and matters in all sorts of ways. This is the origin of the fiscal "black hole" that is often talked about in relation to Scotland. If you are a member of the European Union, especially one that might want to join the euro one day, as the SNP wants to, you are required to have a maximum deficit of 3% of GDP. Currently the Scottish deficit is covered by the rest of the UK, but that would cease to be the case if Scotland became independent." "Oil prices are highly erratic and already well down from last year. Moreover, North Sea oil production peaked in 1999 at around 3.5 million barrels per day, and is now down to half that and falling rapidly. So independence forged on expectations of an oil bonanza would clearly carry risks." "Scotland currently enjoys Scandinavian levels of spending and American tax levels. Independence would necessitate action to tackle the deficit - either tax rises or spending cuts, or both. Copying Ireland would require a massive reduction in the scope of the state. Tough choices indeed." To read the full article go to :: http://www.guardian.co.uk/britain/article/0,,2008183,00.html

Extension of the Financial Assistance Scheme  21 March, 2007 Department for Work and Pensions Extension of the Financial Assistance Scheme in the Budget 21 March 2007 From the office of Rt Hon John Hutton MP Major extension of the Financial Assistance Scheme Headline Points · The Chancellor has announced in the Budget that the Government will greatly increase the money available for the Financial Assistance Scheme to £8 billion in cash terms, so that those 125,000 members of pension schemes that were wound up under funded between January 1997 and April 2005 due to employer insolvency will now be eligible for assistance under the scheme. · The increase will ensure that the pensions of all eligible members of affected pension schemes are topped up to a level broadly equivalent to 80 per cent of the core pension rights accrued in their scheme. · The cap on maximum assistance will be increased from £12,000 to £26,000. · <