The Minister for Employment (Jo Churchill)
I congratulate the hon. Member for Glasgow South West (Chris Stephens) on securing this important debate on the potential merits of a food poverty strategy. I would like to start by saying that no one wants to see people struggling in our constituencies right across these islands, and I understand fully the passion that drives the contribution on these important subjects. I would like to add my voice to those of the hon. Gentleman and the right hon. Member for Midlothian (Owen Thompson) in extending thanks to all those charities, and more broadly to institutions such as the Church that do lunches and so on. They not only provide food but are part of that cohesive societal network that helps people at times of need.
Food insecurity is highly complex—the hon. Gentleman explained very clearly how complex it is—covering not only my own Department but the Department for Environment, Food and Rural Affairs, the Department of Health and Social Care, the Department for Business and Trade, His Majesty’s Treasury and so on.
The annual statistics on incomes and living standards were published by my Department last month. They cover the year when the war in Ukraine and global supply chain pressures led to exceedingly high inflation, averaging 10% over the year. Food price inflation linked with the consumer prices index peaked during this time, reaching a high of 19.1% in March 2023. Thankfully, however, the latest figures show that it has dropped again, to about 4%, with upward forces bringing the rise in February and March to 0.2%, down from 1.1% since a similar period last year. According to statistics, food bank use during this period has remained relatively stable, although I agree that it is higher than any of us would want.
Since 2022-23, the period covered by these statistics, we have taken firm action to help families on the lowest incomes. We will spend about £306 billion in the coming financial year through the welfare system, including £138 billion on families and those of working age. The Government provided an unprecedented cost of living support package worth £96 billion during 2022-23 and 2023-24, including £20 billion for two rounds of cost of living payments targeted specifically at those who were struggling the most. That helped to shield people from the impact of inflation, preventing some 1.3 million households from falling into absolute poverty after housing costs. Since 2010 the Government have overseen significant falls in poverty, with 1.1 million fewer people in absolute low income after housing costs in 2022-23 than in 2009-10.
I am not suggesting for a minute that things have not been, and are not still, difficult for many. Food poverty is complex, as I have said, and it cannot be tackled through welfare alone. The levers for tackling this issue sit with a number of Government Departments, which is why we are not only working across Government to bring down food inflation, but meeting external anti-poverty stakeholders through our Departments and talking to other Departments about what more we can do. That includes encouraging retailers and those involved in local ecosystems.
Through regular engagement, the Department for Environment, Food and Rural Affairs continues to work with food businesses throughout the supply chain to explore a range of measures that they can take to ensure the availability of affordable food by, for instance, maintaining value ranges, price matching and price freezing. However—the hon. Gentleman would expect me to say this—it is not for the Government to tell retail outlets how to set their food prices, or to tell companies what to do. Retailers have introduced incentives for customers, such as reward cards offering small discounts, and a number of stores are offering meal deals either in-store or in their cafés. As the hon. Gentleman pointed out, many use local or national groups to redistribute food at the end of the working day, and many interact with FareShare, among other charities.
Chris Stephens
A scandalous amount of food is being wasted and going to landfill, and I think we should do something about that. It is not a silver bullet, but will the Minister ask her colleagues in DEFRA to sit down with those of us who care passionately about this subject, and discuss addressing the fact that we have food poverty on one hand and a large amount of food waste on the other?
Jo Churchill
Funnily enough, earlier today I was talking to the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Taunton Deane (Rebecca Pow), about exactly that issue. The hon. Gentleman mentioned that there was no mandate three years ago, and I was discussing how the reporting and so on was going. We know that not only are there the benefits of redistribution for individuals but there is a significant environmental benefit for not putting that food in landfill and creating methane, so arguably there is a double win. When done sensibly, redistribution enables others to do the same as charities such as the Felix Project, which freezes food and makes it available to people.
The economy has turned a corner. Inflation has more than halved and is forecast to fall below 2% in 2024-25, while wages are rising in real terms and have done for the last consecutive nine months. Prices for food and non-alcoholic beverages rose by 12% in the year to March, easing for the 12th consecutive month. However, we recognise the financial challenges that many are still facing, which is why as inflation comes down to the 2% target we are continuing to provide support for the 2024-25 period. This includes uprating working-age benefits by 6.7%, well ahead of the current inflation rate, and uplifting the local housing allowance to the 30th percentile of local rents, which will benefit about 1.6 million private renters by, on average, £800 a year, as the hon. Gentleman indicated, alleviating financial pressures throughout the system for individuals.
Further, there is additional support for families, including free school meals, which are being claimed by some 2 million of the most disadvantaged pupils; the £40 million that the Department for Education has put into stimulating the breakfast clubs; and healthy food schemes, such as Healthy Start, which provide a nutritional safety net to more than 3 million children. I looked after the Healthy Start policy when I was at the Department of Health and Social Care, getting the uplift to £4.25 a week, so that pregnant women and children over one and under four receive £4.25 every week. For a child under one, it is £8.50 every week. This can be used to buy, or be put towards the cost of, fresh, frozen or tinned fruit and vegetables; fresh, dried and tinned pulses; milk and infant formula. I remember well meeting Daisy, who spoke to me very clearly about the difference it made having fresh produce, as the hon. Gentleman has already mentioned, come into her life and those of her children, and the nutritional benefit it gave them.
For those who still need extra help while inflation continues to fall, we are providing an additional £500 million to enable the extension of the household support fund for a further six months, including funding for the devolved Administrations through the Barnett formula, meaning local authorities in England will receive an additional £421 million to support local people, with the rest being distributed to the other nations. Independent charitable organisations do fantastic work that also helps in this space, whether they are our local churches or organisations providing lunches and community pantry schemes. As the hon. Gentleman mentioned, they all help individuals and families when they are in need.
Chris Stephens
I thank the Minister for giving way again; she is being extremely generous. One concern that has been reported to us is that the Department for Work and Pensions is no longer helping with food bank vouchers. Can she confirm that that is now departmental policy? That would be a very real concern for someone who is in difficulty, having a conversation with a work coach, for example, who is now being denied that food bank voucher or discussing that sort of support that someone in absolute poverty requires.
Jo Churchill
I thank the hon. Gentleman for giving me the opportunity to put to bed completely the idea that there has been any change in our policy. We have always signposted that support. The only thing the DWP has done is brought in a new slip to replace the one used previously. There is no change to the existing policy, but the new slip allows us to improve our existing practices and to comply with our departmental responsibilities under GDPR. Our jobcentres continue to provide customers with guidance to find that additional support, including signposting to emergency food support where appropriate. We stand ready to help people when they are most in need.
The hon. Gentleman mentioned the two-child policy. The latest statistic that we have for households in receipt of universal credit is that the majority of families—some 78%—have fewer than three children. Surely it is right that all families, whether in receipt of universal credit or not, should face the same financial choices when deciding whether to grow their family.
While our actions have shown that we remain committed to a strong welfare safety net—particularly during challenging economic times—we know that the best way we can help is through support to move into work. That approach is based on clear evidence on the role of full-time work in substantially reducing poverty. The latest statistics show that working-age adults in workless households were about seven times more likely to be in absolute poverty after housing costs. Children living in workless households were more than six times more likely to be in absolute poverty after housing costs than those in families where adults work. There are now over 1 million fewer workless households in the UK than in 2010—that is 680,000 fewer children growing up in a home where no one works. That is a cause for some gratitude.
There are more than 900,000 vacancies across the UK, and through our core job centre offer we are firmly supporting people to get into work. We support them with travel costs through the flexible support fund, with face-to-face time with work coaches, and help with interviews. The voluntary in-work progression offer is in all jobcentres across Britain, providing an estimated 1.6 million low-paid workers on universal credit with access to personalised work coaches.
We have also reduced the taper rate from 63p to 55p in the pound. We provide childcare costs, capped at £1,000 for a single child and more than £1,700 a month for larger families. We can even help with the advance.
To ensure that work pays, we have put the national living wage for people aged over 21 up by over 9.8% to £11.44 an hour, as the hon. Member mentioned. That makes sure that people are rewarded for the work they do, and it means an extra £1,800 for someone working full time. We are also providing a tax cut for 27 million people by further reducing the main rate of class 1 national insurance contributions.
Our focus continues to be on providing opportunities for people to be supported and to succeed in work, based on our firm belief that this is a sustainable way of tackling all forms of poverty. At the same time, we understand the challenges that people face, and we will continue to work across Government and party to ensure food security and that the broader welfare system will support those who need it.
Madam Deputy Speaker (Dame Rosie Winterton)
Order. I wish to inform the House that the message to the Commons from the Lords is that the Lords do not insist on their amendment to the Safety of Rwanda (Asylum and Immigration) Bill to which the Commons disagreed.
Question put and agreed to.