The Minister of State, Department for Work and Pensions (Chris Grayling)
I beg to move,
That this House has considered the matter of tackling poverty in the UK.
Helping people in the UK to escape poverty is one of the key challenges for the new Government and something that we are passionate about achieving. Although this Administration face one of the biggest financial challenges in our peacetime history, we are determined that we will not act in a way that leaves behind some of the poorest and most vulnerable in our society. Before Labour Members contribute to this afternoon’s debate, I hope that they will think back to their 13 years in power in times when they felt able to spend money freely, and remind themselves just how little progress was made with so much money.
Within days of taking office we saw the release of official poverty statistics, and what a bleak picture of progress they painted: 18% of people in the UK today live below the official poverty line, defined as a typical family, comprising a couple with two children under 14, having an income before housing costs of less than £342 a week. Official research has shown the number of children who live in families where even the most basic needs cannot be met. Of children in households with incomes in the bottom 20%, more than half live in families who cannot afford to replace worn-out furniture or broken electrical goods, and about two thirds cannot afford to make a saving of £10 a month. Of course, families under pressure to meet their daily needs are likely to see making provision for their retirement as a relatively low priority, which adds further to poverty down the line.
We believe that the last Government went wrong because they simply did not understand the nature of the poverty problem in this country. With one or two notable exceptions—I shall return to the right hon. Member for Birkenhead (Mr Field) later in my speech—they seemed to believe that Whitehall knew best: they always talked about poverty simply in terms of money and seldom demonstrated a clear understanding of the far deeper problems that can leave so many people struggling. Behind the facts and figures—beyond the statistics and the measures of material deprivation—lie incredibly complex and challenging issues.
Poverty is not just about income. Family breakdown, a lack of experience of work and education in the home, a lack of experience of parenting in the home—all contribute to a climate of poverty. Some children are brought up without even a single stable family home or in households that are ridden with the challenges of addiction. All of that shapes someone’s chances of getting on or not getting on in life.
Bob Russell (Colchester) (LD)
A debate on child poverty, which I introduced, was held yesterday in Westminster Hall. Will the Minister confirm that, according to Barnardo’s, at the conclusion of 13 years of Labour Government the number of children living in poverty totalled 3.9 million?
Chris Grayling
The hon. Gentleman makes his point very well and I commend him for the work that he has done to highlight the subject. One of the most disappointing things about the last Administration is that, despite talking as much as they did about child poverty, they missed their 2010 target. In their later years in office, child poverty was rising, and not simply as a result of the recession.
The reality is that being in poverty shapes those children’s lives and too often ends the lives of too many people. On average, people living in the poorest neighbourhoods in England will die seven years earlier than those living in wealthier neighbourhoods. Health inequalities today are worse than they were in the 1970s and the gap in educational attainment between children from rich and poor backgrounds remains persistently great.
Mark Tami (Alyn and Deeside) (Lab)
Does the Minister agree that one form of poverty that is little mentioned is poverty of aspiration for young people who come from very deprived backgrounds? They do not see further or higher education as something that is for them. That is why it is important that we continue to put money into education: if we do not, that gap will worsen.
Chris Grayling
The hon. Gentleman is right. What he says about higher education is one reason why I am proud that the present Administration will provide more university places this year than were planned by the previous Administration. He makes a valid point. I remember the hon. Member for Nottingham North (Mr Allen) saying in the House some years ago that in his constituency, a person was seen to be weird if he or she stayed on in education past the age of 16. That underlines the challenge in communities where there is too little experience of educational achievement. I absolutely agree with the hon. Member for Alyn and Deeside (Mark Tami): there is a need to break down the barriers and to raise aspirations.
Kate Green (Stretford and Urmston) (Lab)
Does the Minister agree that evidence also shows that children from the poorest families are unable to make the most of their education? At as early as 22 months, children from poorer backgrounds are doing less well than children from better-off backgrounds and that gap continues to widen as they go through the school system. Does he agree that efforts to address both educational attainment and aspiration and family incomes need to go hand in hand if children are to make the most of their schooling?
Chris Grayling
The hon. Lady has extremely extensive experience of these matters and she is absolutely right. We remain firmly of the view that early intervention is important. I mentioned parenting skills earlier; when talking about these matters, I always pay tribute to the charity Home-Start. Enabling people who have good parenting experience to mentor those who do not makes a valuable contribution to helping young people who grow up in more challenging environments to do better than they might otherwise have done. That is hugely important because we have massive divides within communities, between people living side by side.
Here in Westminster, for example, we have the largest difference in life expectancy of any London local authority. In areas such as Knightsbridge and Belgravia, people can expect to live into their mid-80s, but just up the road in Queens Park life expectancy is just over 70—a gap of nearly 15 years. For every two minutes on the tube between Knightsbridge and Queens Park, the life expectancy of the communities through which one travels drops by a year.
Ms Karen Buck (Westminster North) (Lab)
As a resident of Queens Park, this is an opportune moment to seek to intervene.
On the issue of health inequalities, poverty has to be understood as a relative as well as an absolute issue. Before the right hon. Gentleman goes too far in dismissing everything that the Labour Government were doing, does he agree with the Institute for Fiscal Studies, which said:
“Tax and benefit measures implemented by Labour since 1997 have increased the incomes of poorer households and reduced those of richer ones, largely halting the rapid rise in income inequality that we saw under the Conservatives”?
What measures that the Conservatives took—or failed to take—in those years will he now say will not be reintroduced if we are to make further progress?
Chris Grayling
Of course, we have not been in office since 1997. One of the tragedies of the past 13 years is seeing the amount of money spent leading to so little in the way of results. The point made by the hon. Member for Alyn and Deeside about poverty of aspiration is a crucial one. I shall come on to discuss worklessness, but a lack of experience of work or educational achievement in a household, and other factors, can make such a difference. The divides are enormous. If one goes to a city such as Liverpool, one only has to walk for 20 minutes from one of the smartest, newest shopping centres in the country to streets where almost no one is working. Worklessness is central to the challenges faced by many of our communities.
Mark Tami
What are the right hon. Gentleman’s views on the comments made earlier by the Under-Secretary of State for Communities and Local Government, the hon. Member for Bromley and Chislehurst (Robert Neill), who said that local authority cuts will fall hardest on the poorest areas?
Chris Grayling
We have to look at this in a far more three-dimensional way. It is about changing educational achievement, which is why we have said that it is important to focus on a pupil premium for the most deprived areas. It is also why we have said that it is important to ensure, as the economy recovers and as the employment market picks up, that we do not make the mistakes of the past 10 years. Too many of the jobs that were created went to people coming into the country from overseas, as the right hon. Member for Birkenhead has identified on more than one occasion. We have to make sure that we break down the culture of worklessness and educational failure, which is as essential to dealing with poverty as any other factor.
Ms Buck
I thank the right hon. Gentleman for giving way again. To approach the question that I asked earlier from a different angle, the IFS confirmed that Labour’s measures had largely halted the rise in income inequality, which increased dramatically under the Conservative Government. Does he accept that the measures that he has to put in place must not repeat the errors and mistakes, with deep roots in unemployment and social breakdown, that characterised the Conservative years and led to rising income inequality and poverty?
Chris Grayling
We should always seek to learn from the past. We will seek not to make the mistakes of the past 10 years, when billions of pounds were spend on employment programmes that failed to break down the culture of worklessness in many of our communities.
Dr Andrew Murrison (South West Wiltshire) (Con)
My right hon. Friend is speaking very well about the inequalities between rich and poor, mainly in an urban context. Does he agree that nowhere is that difference more stark than in rural locations? Despite their rhetoric on rural-proofing over 13 years, the Opposition did absolutely nothing to narrow that divide. Will he provide an assurance sought by my constituents, and confirm that the plight of the poor in rural locations—they tend to be among the poorest in our society—will be addressed during our coalition Government?
Chris Grayling
My hon. Friend makes a powerful point. As we prepare the Work programme, I shall seek to ensure that it includes scope for the voluntary sector organisations that specialise in local communities and individual groups in our society that can make a difference. Groups that best understand rural areas can make the biggest difference to ensure that we help people in rural communities into prosperous and successful working lives, and not leave them stranded on benefits. I certainly give my hon. Friend that assurance.
We have a moral duty, even in difficult times, to do what we can to break down the cycle of deprivation that affects many of those communities. My right hon. Friend the Secretary of State for Work and Pensions and his team have committed years to identifying the challenges that face those deprived communities and how to solve them. We have demonstrated a willingness to look at ideas across the political spectrum. I am delighted that we can take advantage of the expertise of the right hon. Member for Birkenhead in his review. He is highly regarded in all parts of the House for the knowledge and insights that he has built up, and we look forward to seeing his conclusions, particularly on how we measure poverty and capture a more accurate understanding of it in all its forms. That work enables us to understand more clearly how to develop solutions for the problems that we face.
I hope that we can maintain dialogue with Members such as the hon. Member for Nottingham North, who is a leading thinker on how to use early intervention to tackle deprivation. He has worked closely with my right hon. Friend who is now the Secretary of State for Work and Pensions, and we believe that this is an issue that should capture expertise wherever it lies. In addition, we have established for the first time a cross-departmental Cabinet Committee under the chairmanship of my right hon. Friend to ensure that we join up all the thinking and work that we do on social justice across government.
All of that will require radical reforms. It is about stimulating economic growth by moving more people into work; providing more effective routes into truly sustainable jobs; establishing clearer links between work and reward; and helping people to make responsible choices and save for their retirement. And ultimately, in these straitened times, we must ensure that we are using the money available to the best possible effect, both for those individuals and the taxpayer.
Kate Green
I agree strongly with the Secretary of State that leading people to, and enabling them to sustain, well-paid jobs is an important route out of poverty, but with only about 0.5 million vacancies—and, as his Government have said, about 5 million on inactive and unemployment benefits—can he confirm that an adequate safety net for people who cannot be in paid work will be sustained, and in particular, that there will be no freezing or cutting of benefits on which families who are out of work rely?
Chris Grayling
I am not going to announce the Budget today, but it will remain a Government commitment to provide a security or safety net for people who find themselves in difficulties. That safety net must not be a place in which people simply live their lives. No one benefits from sitting at home on benefits doing nothing, whether it is people with incapacities, people with disabilities or lone parents. There is general agreement—between ourselves, and between representative groups outside—that if we can help people into work it gives them a more fulfilling life, and it provides a job for their families. We regard breaking down the culture of worklessness as a huge priority.
The hon. Lady is right about the economic situation, but we must not make the mistake that has been made over the past 10 years. The previous Government presided over a situation in which jobs that were created tended to go not to people who were stranded on benefits in this country but to people moving here from overseas. That must not happen in the coming decade.
Richard Graham (Gloucester) (Con)
Further to the Secretary of State’s comments on the balance between work and benefits, will he take into consideration a letter from a constituent that I received this morning? She is a single mother trying to support her children, but she pointed out she was not eligible for a grant for a uniform for one of them because she works.
“Why”,
she writes,
“should I be penalised for not claiming benefits, for going out to work to try and better myself when I am in fact worse off. I am in two minds to give up my job so that I can get more perks.”
I urge the Secretary of State, in reshaping policy, to take into consideration people such as my constituent who are trying to do the right thing but who find that people on benefits are better off.
Chris Grayling
My hon. Friend is right. We have to make sure that people benefit financially from going back to work. We will do everything that we can as an Administration to ensure that people who do the right thing genuinely benefit from doing so, and that no one is incentivised to say, “There’s no point in getting a job. I’ll stay at home.” That does not do them, or any of us, any good whatsoever.
We are talking not just about individuals but about whole families: two or three generations of the same family who not only do not work but have never worked. That is not simply the result of a lack of opportunity. In many of our most deprived and challenged communities, the culture of dependency and the sense of exclusion from mainstream society has resulted in a sense of hopelessness and poverty of ambition, as the hon. Member for Alyn and Deeside said, which we have to break down. We will do everything that we can to meet that challenge.
I want to set out five key areas that are central to helping people to escape from that poverty trap. First, all the evidence shows that early-years experiences are crucial in determining life chances. A stable home life can make a huge difference to the health and well-being of our children. Family breakdown has been linked to mental health problems, addiction and educational failure, and there is no doubt that the impact of families on life chances seems to be more pronounced in the UK than in neighbouring areas. The earning potential of a child in the UK is more closely related to that of their parents than it is in countries such as the United States, Germany or France. The rate of family breakdown is much higher in the UK than in other major countries, and we have one of the highest proportions of single-parent families in the OECD and the highest rate of teen pregnancies in the EU.
The reality of the links to poverty is clear: 34% of children in families with just one parent in their home were in poverty in 2008-09—a much higher proportion than the national average, which is 22%—and we know that a family with just one parent is twice as likely to have an income in the bottom 20% as families where there are two parents. We want to create a system that supports families, creates a stable environment for children and improves social mobility. That is why we will work to strengthen families by investing in effective early-years provision, including expanding the availability and accessibility of health visitors, so that all parents have access to expert support and advice in the crucial early days of a child’s life. We will recognise marriage in the tax system, and, as soon as we can we will tackle the couple penalty in tax credits. We will encourage shared parenting from the earliest stages of pregnancy, including the promotion of a system of flexible parental leave. We want to restore aspiration, allowing parents to hope for their children and children to dream for themselves. Education plays a central role in that, and it is the second key area that we wish to address.
Education is vital. We know that people with five or more GCSEs at grades A to C earn more than those without, and they are around 3% more likely to be in work. But we also know that of the 75,000 children who receive free school meals every year, almost half do not get a single grade C at GCSE—more than a thousand classrooms of children each year let down by the system. We have some of the most disadvantaged children in the UK. Of the 6,000 children leaving care every year, only 400 are in higher education by the age of 19. Children in care should be a particular priority for us. Every child should have access to good quality education. Too many of the poorest children are stuck in chaotic classrooms in bad schools, so we will give teachers more power over discipline, bring in a pupil premium and provide extra funding for the poorest children so that they go to the best schools, not the worst.
But we are concerned not only about preventing the next generation falling into a cycle of poverty and worklessness. We also have to deal with the challenges that are there right now. So the third area that we will address is the problem of worklessness and welfare dependency. Each week, if one includes tax credits and child benefits, 12 million working-age households receive benefits at a cost of around £85 billion a year. About 5 million people claim out-of-work benefits, and around half of those have spent at least half of the last 10 years on some form of benefit. We know that many of those on out-of-work benefits cannot work for reasons of health, but many with the right help could get back into work.
At its worst, the current system divides people and assigns support based on the type of benefit claimed rather than need. It fails to recognise people who need extra help and it refuses up-front support, allowing people to become so entrenched in the benefit system that they cannot see a way out. Many Members who represent some of the most challenged communities and talk to those people know that we must help them to break out of the environment in which they live, raising their aspirations and showing them that there is a better way forward.
During the last 10 years, an array of programmes was set up by the last Government. They believed that the answer was to create top-down, closely designed programmes, which they imposed on the system. That did not work, so we will do something different. When we introduce our single work programme next year, it will create an environment in which the support that we offer will be tailored to the needs of individuals, not designed in Whitehall by Ministers and officials. Everyone who can work should get the help and advice that they need to get a job and move into sustainable work. That will be our focus and those who deliver that support will be paid on the basis of the success that they have in delivering that support and getting people into work.
Britain is a nation of opportunity. It must be a nation of opportunity. As we tackle the deficit and get the economy back on its feet—I keep returning to this point—we must ensure that the jobs that are created in the next few years go to those who are in the most need, who can get off benefits and make more of their lives. We cannot make the same mistakes all over again. That is what our welfare reforms are all about.
I want to talk briefly about another group—those on incapacity benefits. More than 2 million people claim incapacity benefits, nearly half of whom have been out of work for the last 12 years. They, in particular, need fresh opportunities. Not all will be able to work, but very many can work, and very many would be much better off in work. All of those who work with people with incapacities and disabilities say that if we can get them into mainstream employment, return them to a normal working life, it will do them a power of good, improving their quality of life and making a real difference to them. That can and will be a big priority for us.
As we design the work programme, we will ensure that we have a system and a structure in place that encourages the people who deliver that programme to provide the specialised, tailored support that we need to steer those people who have been on incapacity benefit for so long down a better path and get them into employment. In particular, we recognise that the most disabled, those who have the biggest challenge in their life, will need additional help and support to get into work. My hon. Friend the Under-Secretary of State for Work and Pensions, the hon. Member for Basingstoke (Maria Miller), will no doubt be talking later about some of the ways in which we hope to deliver the best possible support to those people.
Kate Green
Many disabled people would welcome the opportunity to be in paid employment. What efforts are being made not just to concentrate on supporting them to find suitable work, but to work with employers to ensure that they respond to the particular needs of disabled people in the workplace?
Chris Grayling
That is an important point. We must encourage and work with employers, and we should start at home. Whitehall and Government Departments and agencies should be at the forefront of finding the best ways to provide opportunities for people with disabilities, and that will be a priority for my hon. Friend the Under-Secretary. If we do not lead from the front, no one else will, and that is something that we certainly want to see happen.
Miss Anne Begg (Aberdeen South) (Lab)
How will the Minister encourage employers to employ people with mental health problems when the stigma is so great? We have had recent examples of discrimination against people who have disclosed mental health problems.
Chris Grayling
First, I congratulate the hon. Lady on her election to the Chair of the Select Committee on Work and Pensions. My colleagues and I look forward to being grilled by her in the months ahead, but I hope that we will have a constructive relationship. I hope that we can listen openly to the ideas that come from her Committee and that we can work together to make a difference on some of these issues.
I very much agree with the hon. Lady on mental health issues. One thing that I hope will come through the Work programme, where we have established providers with specialist skills working with employers and people who have had mental health challenges in their lives, is that we will have the kind of partnership that will break some of these barriers down. Once a provider starts to work with a group of employers, starts to bring good people to them, and that works well, more doors will be opened. The hon. Lady makes an important point; more than 2 million people are on incapacity benefit and many have supplemental health problems, and they must be looked after in the Work programme and we must ensure that it delivers opportunities for them.
John Cryer (Leyton and Wanstead) (Lab)
Can the Minister explain what the future holds for Remploy?
Chris Grayling
Remploy does some very good work. We have been in office only three weeks, so there is still a lot of work to be done, but we recognise the importance of Remploy. In particular, I pay tribute to Remploy for doing some of the work that the hon. Member for Aberdeen South (Miss Begg) would like to see, such as getting people who have various forms of disability routinely into workplaces alongside members of society as a whole. That is particularly important. I want to see as many people as possible with either mental health problems or physical disabilities in workplaces as a matter of routine, and Remploy’s work in getting more people into work has been extremely valuable.
May I also welcome you to your Chair, Mr Deputy Speaker? This may or may not be your first session, but it is a great pleasure to see you in the Chair today. If you will forgive me, I shall move on quickly and make way, because many Members want to make their maiden speeches.
On pensioner poverty, we are concerned to see that older people enjoy dignity and security in their old age, and that means ensuring that those in work are able to put money aside for their future. We have far too many pensioners living in poverty today, about 1.8 million people, so we need a system that works for our pensioners. We need a fair, decent and simple system that is supported by a vibrant private pensions landscape, too.
As a first step in doing the right thing for our pensioners, we will from April next year restore the earnings link with the basic state pension, and there will be a triple guarantee that pensions will be raised by the higher of earnings, prices or 2.5%. That is a big step forward for state pension provision, and I am very proud to be part of an Administration who intend to deliver that change.
We will also do everything that we can to ease the burden on pension funds, to encourage companies to offer high-quality pensions to their employees and to stop drowning pension funds in the red tape that has been symptomatic of the past 13 years of government. We also need to put people back in control of achieving their retirement aspirations, instead of being reliant purely on the state, and that involves creating the savings culture that my right hon. Friend the Chancellor of the Exchequer has talked about.
We need to address another area—debt, the single biggest challenge facing the UK. This week we have talked extensively about the national challenge that we face, but we should not forget the challenges that individual families face with debt. People in lower-income families are the most vulnerable; they have nothing to fall back on in an emergency; and the debt that they have to take on is twice as expensive as that for most other people because of the risk that they are perceived to represent. Debt creates tensions in families, it can be a disincentive to work and it leads to worry and stress-related illnesses. We will consider ways of alleviating some of the credit and debt challenges that our poorest communities face. That is essential if we are to deal with some of the issues in those communities, and we hope to bring forward thoughts and ideas in due course.
Drug and alcohol misuse and addiction is closely linked to some of the biggest challenges that we face, whether they are social challenges, educational failure, family breakdown, or even crime. Problematic drug and alcohol users are frequently unable to hold down a job or form relationships that do not revolve around their habit, and such addiction can ruin lives and destroy families, often leaving little room for anything else. Poverty and deprivation are a cause and effect of addiction, born out of the fact that 80% of problem drug users are in receipt of benefits, often for many years, with little realistic prospect of finding employment. Addiction in the home can do huge damage to children too, so as we design the work programme’s detail, we will also be mindful of how we address the deep-rooted problems of addiction in our welfare state and our most deprived communities.
The past decade has been a wasted opportunity for this country. Promise after promise was not kept; hopes and expectations were dashed; and the jobs that were created went to people entering the country from overseas, not those on benefits. The reality is that billions and billions of pounds were spent to relatively little effect. We are determined to ensure that our most deprived communities are not left behind as they were over that decade. We will strive to get people back into work as the economy recovers; we will strive to improve the chances of those people getting a good education; we will work to strengthen families; we will work to break down the barriers between our richest and poorest communities; and we will work to raise the aspirations in those communities.
This is a Government who believe in opportunity, and we will work tirelessly to deliver it for all our citizens.
Helen Goodman
That is the big worry, and if even Government Back Benchers can see it, I hope that Government Front Benchers will take that concern very seriously. As my hon. Friend the Member for Westminster North (Ms Buck) said earlier, the independent Institute for Fiscal Studies also stated that Labour’s tax and benefit reforms have reduced income inequality. If we had maintained the policies that we inherited in 1997, there would have been a much greater degree of income inequality.
The Minister before us this afternoon also overstated his case on worklessness. In fact, the number of people on inactive benefits is now 350,000 lower than the number that we inherited, and the number of lone parents in work has increased substantially from 46 to 58%, because of the positive measures that we took. I hope he does not mind my saying that he will find the problems rather more intractable than he implied in his speech.
We welcome the commitment to restoring the earnings link to pensions, and we are extremely pleased that the Government have decided to maintain the winter fuel allowance and free bus passes, which we introduced. As the Minister said, encouraging a savings culture is obviously important, but Labour Members cannot quite marry that with the halt that seems to have been put on the auto-enrolment programme.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
May I, for the record, ensure that the hon. Lady understands that there is no such halt? We are committed to auto-enrolment, but we are reviewing how it is done within the whole NES—new entrepreneur scholarships—programme.
Helen Goodman
I am grateful to the right hon. Gentleman for that intervention.
The Minister talked about the importance of the problem of debt facing the very poorest people, and the Secretary of State mentioned credit unions in his speech on Tuesday night. The Labour Government introduced a growth fund for credit unions, and we put £86 million into credit unions across the country. I very much hope that the new Government will maintain that level of support in the public spending round that they are going to undertake.
Helen Goodman
I certainly do; my hon. Friend anticipates one of the points that I was going to make.
As I was saying, the omens are not good, and I fear that the rhetoric is not matched by the reality. Only this morning, the independent Chartered Institute of Personnel and Development forecast a rise in unemployment to almost 3 million as public sector workers, mainly women and the low-paid, are thrown on to the dole. In fact, it is difficult to see exactly what the strategy of Her Majesty’s Government is. So far, the two coalition partners can agree on getting rid of the child trust fund and the future jobs fund, but what will be the effect of those cuts? The child trust fund was the first serious attempt to tackle intergenerational poverty by enabling low-income families to build up assets for their children. As the Minister said, it is vital to encourage a culture of savings, and it was designed to do precisely that, but it is going to go.
The coalition Government were also able to agree to cut the future jobs fund, despite the fact that before the election both coalition parties said they would continue it. That means that 80,000 young people will lose their chances of work this year, and perhaps 150,000 next year. The whole reason why we introduced the fund was that we saw the scarring effects of youth unemployment in the 1980s and ’90s. Because we took measures over the past 18 months during the recession, long-term youth unemployment is now one tenth of the level that it was then. However, the coalition parties have clearly learned nothing and care less. One must ask oneself why that is, so let us examine where the cuts in the future jobs fund will fall most heavily—the west midlands, the north-west, Wales and Scotland. The future jobs fund is about real jobs.
Chris Grayling
May I point out to the hon. Lady how proud I am to have many new colleagues on our Benches from the west midlands, the north-west, Wales and so on? Will she confirm to the House that a couple of weeks ago, this Administration announced tens of thousands of new apprenticeships, which are likely to have a much longer-lasting impact on securing proper careers for the future for young people?
Helen Goodman
Of course Members from the coalition parties could be elected in those areas, given that they did not say before the election that they would cut the future jobs fund. They promised that they would continue it, and now they have cut it. That is the problem. I suspect that the Government’s real agenda is to make young people do the same work that they were doing under the future jobs fund, but whereas everybody was paid at least the minimum wage through that fund, under the schemes that the Minister and the Government are proposing they will have to live on benefits. What will that do for poverty levels, and where does it leave the Liberal Democrats’ commitment to raise the minimum wage for people under the age of 24?
It is ironic that the one thing the partners in the coalition really cannot agree about is the role of the family. The Tories want to reintroduce the married couples allowance, but that is one of the few matters on which the coalition agreement allows the Liberal Democrats to abstain. Who will benefit from it? Not the widow, the abandoned mother or the woman who has left her husband because of domestic violence. The Liberal Democrats should have the courage of their convictions, and they should vote against it. It is a wholly regressive and retrograde step. As the Deputy Prime Minister said during the election campaign, it is
“a throwback to the Edwardian era”
and “patronising drivel”.
The Secretary of State, who unfortunately is no longer in his place, revealed on 27 May that he was still looking to the Treasury for an extra £3 billion to reform the benefits system. The coalition agreement states that
“initial investment delivers later savings through lower benefit expenditure…based upon the DEL/AME switch”—
the departmental expenditure limits/annually managed expenditure switch. That is obviously based on the work of the Centre for Social Justice, which we examined in some detail when we took evidence on the Child Poverty Bill. The Secretary of State even seemed to be laying his job on the line later on 27 May when he said that he had not taken the job to be a “cheeseparer”, and stated:
“If somebody tells me I have to do something different then I won’t be here any longer.”
I suspect that the Chancellor of the Exchequer may be telling him to do something different right now, because he says that tackling the deficit is the priority. If Ministers in the Department for Work and Pensions can persuade the Treasury that the extra £3 billion is the goose that will lay the golden egg, we shall be extremely surprised.
A further complication in trying to tease out the Government’s strategy is that No. 10 has appointed my right hon. Friend the Member for Birkenhead (Mr Field). We have not yet seen his terms of reference—I do not know whether they are to think the unthinkable—but there seems to be something strangely familiar about the situation. Last Saturday The Guardian said that he was going to look again at the definition of poverty. That really would be unthinkable. What is the point of it?
The Parliamentary Under-Secretary of State for Work and Pensions (Maria Miller)
I warmly welcome you to the Chair, Mr. Deputy Speaker. I was a firm supporter of yours in the recent elections. I also warmly welcome the hon. Member for Bristol East (Kerry McCarthy) to her position. She has been sitting in the Whips Office for a number of years now, and I am sure that standing at the Dispatch Box beats that any day of the week. I congratulate those hon. Members who have made their maiden speeches today, which I will come to in a bit more detail later.
First, I want to pick up on some of the points made by the hon. Lady in her closing comments. The Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), began the debate with the bleak picture of poverty that the country faces. Despite record levels of spending on benefits in the last 13 years, we have more working-age adults living in relative poverty than ever before. The hon. Lady said that the Labour Government acted to tackle poverty, but I am afraid that her rhetoric does not match the facts. Income inequality is at its highest since records began, and a higher proportion of children grow up in workless households in the UK than in any other EU country. That is a damning indictment of the previous Government’s legacy, a legacy that I am afraid was absent from the opening comments of the hon. Member for Bishop Auckland (Helen Goodman). The facts could not be clearer. The tired old ways of continually throwing money at the problem, no matter how deeply entrenched or seemingly intractable, lie discredited.
Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)
I welcome the hon. Lady to her position. I am sure that she will do some very important work in the Department. Will she confirm that the number of children living in workless households has fallen significantly since 1997, having previously risen substantially?
Maria Miller
The shadow Secretary of State fails to point out that the previous Government completely failed to tackle the level of poverty in this country in the way that they set out that they would, and they did not hit their child poverty targets. They have left us to put in place a firm strategy to address that issue. The right hon. Lady should not be too selective with her facts.
It could not be clearer that we need fresh ideas if we are to reverse the dreadful situation that we face; and it could not be clearer that, if new approaches to tackling poverty are to have any effect, they require new, clear thinking. That is exactly what our coalition Government are able to offer: a new vision and a new strategy to tackle the root causes of poverty. Family breakdown, educational failure, addiction, debt, worklessness and economic dependency are the pathways to poverty and the underlying problems that can lead to a lifetime—even generations—of worklessness and welfare dependency.
Maria Miller
I am sorry, but I cannot. I hope that the hon. Lady will forgive me, but I need to comment on a number of maiden speeches.
As my right hon. Friend the Minister said, such a multi-faceted problem demands an holistic solution, and many contributors echoed that point. The problem requires supporting families in order to give children the right start at home and in education; it requires the reform of our welfare system, by simplifying it and removing disincentives to work; it requires supporting disabled people effectively to give those who need it the specialist support that will help to prepare them for work; it requires supporting a savings culture, helping those who try to get back on their feet and encouraging families to take responsibility for their debt; and it requires all of us throughout all Departments, the Government and the House to work together.
Before I pick up on today’s maiden speeches, I shall draw the House’s attention to a couple of other contributions. I am sure that the shadow Minister, the hon. Member for Bishop Auckland did not mean to sound complacent about Labour’s record on poverty, but she did, and she needs to think about that if she is to rebuild Labour’s credibility in the eyes of the country. She picked up on several issues, including the future jobs fund and free school meals, on which I should like to give her some clarity.
All pupils who currently qualify for free school meals will continue to be eligible, and we will continue with pilots in Newham, Durham and Wolverhampton to see whether there is a robust case for extending free school meals. Taxpayers would expect us to do that. On the future jobs fund, recent statistics show that only 9,000 out of the 25,000 jobs that were promised are being delivered. The Government want long-term job opportunities and sustained employment, and that is why we are putting our faith in 50,000 new apprenticeships and the Work programme that will help to fill that gap.
The hon. Member for Aberdeen South (Miss Begg) made an important contribution to the debate, and I congratulate her on her new role as Chairman of the Work and Pensions Committee. I look forward—at least I think I do—to having detailed conversations with her, including in the Committee’s sittings, I am sure. I would have liked to pick up on some of the issues that she raised, and particularly on Sure Start and its effectiveness, but I fear that time does not allow me. Suffice to say, I hope that she will look at the Office for National Statistics data on Sure Start and, in particular, at how we can make that programme much more effective at tackling poverty.
The right hon. Member for Birkenhead (Mr Field), who is not in his place because of a prior engagement, spoke with great authority about the importance of the non-financial support that we give children and families who live in the most difficult circumstances, and I look forward to his independent report and the contribution that he will undoubtedly make to this debate in the coming months.
The maiden speeches were, in the great tradition of this House, independent and spirited. My hon. Friend the Member for Brigg and Goole (Andrew Percy) spoke powerfully about the importance of supporting excluded children. He also stressed the fact that he will be an independent-minded Member, and I am sure that the Whips will have taken special note of that.
The hon. Member for Leicester West (Liz Kendall) spoke about her co-operative roots and the pride that she has in her community and, particularly, its multicultural heritage. My hon. Friend the Member for West Worcestershire (Harriett Baldwin) paid tribute to Sir Michael Spicer, and I echo the tribute that she paid to a man who made a great contribution to the House. She also noted the damage that has been done to the pensions industry over the past decade, and I am sure that, with her considerable financial expertise, she will contribute to the coalition Government’s work on that.
The hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Gregg McClymont) has the prize for the constituency name that is most likely to stump Ministers, and he will forgive me if I did not pronounce it very well. My hon. Friend the Member for Burton (Andrew Griffiths) made a very humorous contribution to the debate and drew on the colourful characters who have previously represented his part of the country, as well as discussing its brewing heritage; I think that perhaps the two things are not unconnected.
I know how highly regarded my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) already is in her constituency, because I have been there and visited her local Sure Start centres. Its residents have a great Member of Parliament in her. My hon. Friend the Member for Warrington South (David Mowat) spoke of famous past residents, including Lewis Carroll. He referred to Alice in his quote from Lewis Carroll’s work. I would perhaps have referred to the Mad Hatter’s tea party, because it can often feel like that in this place; he will know what I mean shortly, I am sure.
The contribution by the hon. Member for Leyton and Wanstead (John Cryer) challenged the House’s tradition of listening in silence to maiden speeches. I apologise if I joined some other Members in exclaiming at some of the things that he said. I will not pick up on those points in detail now, but perhaps we can talk in the Tea Room.
My hon. Friend the Member for Corby (Ms Bagshawe) made a fluid and assured speech in which she drew the House’s attention to the excellent support that forces families receive in the United States through the Veterans Administration. I am sure that my right hon. and hon. Friends who deal with defence issues will study her comments closely. The hon. Member for Makerfield (Yvonne Fovargue) spoke of the grit and determination of her constituents. I am sure that the House will benefit from her 23 years’ experience of working in a citizens advice bureau.
Turning to my hon. Friend the Member for Kingswood (Chris Skidmore), I clearly remember his moment of victory on general election night—it was something that stood out. In his maiden speech, the House caught a glimpse of the intellectual, analytical and, above all, compassionate approach that he will have to his job. The hon. Member for Erith and Thamesmead (Teresa Pearce) reminded us that her constituency is the birthplace of the Arsenal football team. I will remind my sons of that, as they are great fans.
My hon. Friend the Member for Warwick and Leamington (Chris White) gave us a thoughtful account of his feelings about poverty and the fact that it affects all parts of the country in many different ways. The hon. Member for Wigan (Lisa Nandy) spoke movingly about the working poor and the role of Sure Start. She also mentioned the future jobs fund. I would merely say to her that under that programme 100,000 jobs have been granted to the successful bidders.
My hon. Friend the Member for Mid Derbyshire (Pauline Latham) drew our attention to the fact that hers is a new constituency, and I know that it will benefit from her extensive experience. She spoke movingly about opening the eyes of the next generation in her constituency to poverty in Africa; that is something that will have helped them.
My hon. Friend the Member for North Swindon (Justin Tomlinson) talked about his bit of Swindon being the new Disneyland. He also said that Swindon is famous for roundabouts. Speaking as the Member of Parliament for Basingstoke, I think that we are more famous for roundabouts—I will challenge him on that one.
My hon. Friend the Member for Calder Valley (Craig Whittaker) spoke with pride and passion about the part of the country that he represents, and reminded the House that we all have to improve the life chances of looked-after children. My hon. Friend the Member for Brentford and Isleworth (Mary Macleod) reminded us that her part of the world is the new silicon valley of west London. Importantly, she pointed out that she will put country before party, in the best spirit of this coalition Government.
My hon. Friend the Member for Bury North (Mr Nuttall) was getting us all booking our holidays to Bury this summer when he talked about the wonderful part of the country that he represents. My hon. Friend the Member for Nuneaton (Mr Jones) reminded us that he represents the home town of the late Larry Grayson. He also spoke movingly about the role that inter-generational poverty can have in the context of this debate.
I very much welcome my hon. Friend the Member for Devizes (Claire Perry) to the House. I know that she will contribute greatly to the work of this place. She will be a dedicated and effective voice for us, drawing on her extensive experience before coming here.
My neighbour, my hon. Friend the Member for Meon Valley (George Hollingbery), reminded us where his constituency is and also of the importance of the entrepreneurial spirit in Hampshire, which is alive and well among the backyard brewers of his constituency. We were all pleased to hear that.
Last but absolutely by no means least, I think the House will agree that my hon. Friend the Member for Erewash (Jessica Lee) spoke eloquently about the history and heritage of her constituency. I reassure her that football shorts would not really be in the dress code of this place—well, not at the moment. Maybe we are far too conservative in such things and should change that.
This has been an important debate. It was important that we put the issue of poverty before the House early on in this Parliament to explain how we as a Government will tackle it. Members have heard in the comments of the Minister of State, my right hon. Friend the Member for Epsom and Ewell, and myself about this Government’s commitment to tackling poverty throughout the country. Poverty comes with a host of other problems that have a visible and measurable effect on families across the country. If we fail to address those challenges, we will fail many of those families and their children.
Opposition Members who contributed to the debate of course tried to explain what they feel the previous Government achieved, but they also have to listen carefully to what is said about the areas in which they did not make progress. If we are trying to draw together a more consensual Government who build together for a future of success, we need to ensure that we work together on matters such as this. Through the newly established Cabinet Committee that will consider these issues, we will draw up a child poverty strategy in line with the Child Poverty Act 2010. I hope that Opposition Members will be able to contribute to that strategy so that it enjoys the support of all Members.
We must take steps to deal with the underlying problems that have made poverty such a corrosive issue in this country for too many years. Through radical welfare reform, we will reinforce fairness and encourage responsibility, and I believe that we will start to build a stronger community for a better Britain. I hope that hon. Members on both sides of the House can come together to deliver that.
Question put and agreed to.
Resolved,
That this House has considered the matter of tackling poverty in the UK.