In-work Poverty

Alison McGovern Excerpts

Wednesday 16th March 2022 Westminster Hall

[Alison McGovern (Wirral South) (Lab)]

It is a pleasure, as ever, to serve under your chairship, Ms Rees.

I thank my hon. Friend the Member for Easington (Grahame Morris) for, and congratulate him on, securing this debate in Westminster Hall. The passionate contributions from all, particularly Opposition Members, have made it clear that this is a crucial discussion. At the heart of the debate is a simple truth: we all want to get on in life. Many of us know the feeling of receiving our first pay packet—that sense of finally releasing our parents from the stress of having to afford us and from that worry about money. There is a feeling of ease—not of great wealth, but of having enough—and that is what we want every person in our country to feel. With hard work, that should be available to all. The truth, however, as we heard in so many countless examples, is that that feeling is not available to everyone.

The hon. Member for Darlington (Peter Gibson) described the simple law of economics that a high number of vacancies increases wages. If that were the case, real wages ought to be shooting up, but they are not. The fact is that economics does not have simple laws—if it did, a lot of economists would be out of work.

Things do not work like that; they are much more problematic. This is the challenge: there is a rocketing number of vacancies, but people are not able to get on in life. That is the problem. The Government themselves know that that is the case. They know we have a problem. They commissioned the in-work progression review by Ruby McGregor-Smith.

[Peter Gibson]

Will the hon. Member give way?

[Alison McGovern]

As I mentioned the hon. Gentleman, I will give way to him.

[Peter Gibson]

As a former employer of a substantial number of people in a very competitive industry, I frequently had to recruit people when demand was greater than the supply available. It was often the case that employers such as myself had to increase wages to make those jobs attractive and to bring people in from other employers. I was speaking from my own experience. Having spoken to employers in my own constituency who have vacancies, I know that they too are increasing their wages to attract people.

[Alison McGovern]

Perhaps the hon. Member could ask those other employers why real wages are not increasing, because that is what the data tells us is happening. Unfortunately, it turns out that the rules of supply and demand are not so simple when an economy has as many problems as those experienced in Britain.

The Government themselves—the hon. Member’s own Government—know that this is a problem. They know that people are stuck in low pay, because they got Ruby McGregor-Smith to investigate and ask why people are simply not able to get on in life, earn a better pay packet and look after their family. She found that there were myriad issues with the cost of childcare and transport, and that people are unable to get the right skills to move on and move up. In certain professions, including care, a culture of low pay means that people are not able to move on and get a well-paid job to look after themselves and their family.

Last February, the Secretary of State told me that she was the reason that the response to Ruby McGregor-Smith’s report was being held up. My first question for the Minister is: when will the Government respond to that report? When will practical steps be taken to help working people get better pay? As the review found, there are myriad reasons why it is not a simple matter of supply and demand. It also showed that single parents have only so many hours in a day, and that if someone lives in a town whose bus service is so chronically bad that it limits their job choices, it is not their fault that they cannot get a better paid job. We need the Government to reply to that report.

My second question to the Minister is time-sensitive. Working people are facing a national insurance rise. If ever there were a time for such a tax rise, it is not now. People are dealing with truly horrific increases in energy bills and other costs. The Government really must rethink this. I want to quote an organisation that has spoken on this issue and on the underlying reason why this tax increase on workers is being brough about. It said:

“There is a large, unjustified and problematic bias against employment and labour incomes”.

That quote comes not from Marxism Today, but from the Institute for Fiscal Studies. The Government must rethink their whole approach to working people and how we make sure that people have decent pay.

To conclude, I want to come back to the point made by the hon. Member for Darlington about the iron law. As I have said to him on several occasions, it is not a matter of simple supply and demand. We only need to look around the economy today in Britain to realise that we can have rocketing vacancies while real pay does not go up. That is what is happening now. I ask myself what could possibly have gone wrong. The economics textbooks say it should work. What could have possibly gotten in the way of working people and a decent income?

Since 2010, the Tories have done the following: presided over a massive increase in zero and short-hours contracts; overseen a pandemic of low pay in key professions such as social care, which has driven chronic staff shortages; put charges on employment tribunals, so that working people find it much harder to get their rights confirmed; put roadblocks and bans in the way of trade unions, so that organising is harder; got rid of Unionlearn, which helped many working people get on; and overseen a labour market with a skills crisis and in which 20% of people have to work below their skill level, making it impossible for them to get on.

Rishi Sunak has put taxes up more times in two years than Gordon Brown did in 10 years, and he is landing working people with a devastating tax rise at the worst possible time. We have seen child poverty rise and food bank use explode, and 1 million experienced destitution in 2019. That is the problem. It has been a decade of doom for people trying to get on in life—a Labour Government is required.

--- Later in debate ---

[David Rutley]

I understand the hon. Gentleman’s point, but as a member of the Work and Pensions Committee he will also realise that we are experiencing record levels of fraud, and we are absolutely determined to bear down on that. We need to get the balance right, because it is taxpayers’ money that we are talking about.

[Alison McGovern]

Just to remind the Minister, when will the Government respond to the in-work progression report?

[David Rutley]

Of course, we recognise that we need to do more on in-work progression. The hon. Member is right to highlight that and we will respond shortly, and the response will be important. We are already taking action in this area, and I did not focus on that today because it was focused on in a previous debate. The hon. Member for North Ayrshire and Arran (Patricia Gibson) wanted to know what we were doing differently on progression, and I confirmed then and confirm now that we are working to put in place progression champions across the country who will make connections between employers, local authorities and skills providers and help more people to progress in work, which all of us across this Chamber want to achieve.

I believe passionately that we need to help people to see the opportunities before them and realise their potential. The plan for jobs helps people into work and also provides lots of mechanisms to enable people to progress in work. The progression work coaches will be a vital tool to help with that agenda. We know there is more to be done, and we are working hard to deliver on it.

Oral Answers to Questions

Alison McGovern Excerpts

Monday 7th February 2022 Commons Chamber

[Dr Coffey]

As my hon. Friend is my neighbour, I am conscious of the opportunities in his constituency thanks to the Government investment, alongside that of private investors, in our progress to net zero. I do not agree with him that we need to reshape student finance in such a way; that is not the purpose of universal credit, and only a limited number of people can undertake that training. I assure him that Train and Progress, which I mentioned, the lifetime skills guarantee and the opening up of access, as well as apprenticeships to get into a sector in the first place, are better ways to make sure that we help people to get on in work.

[Alison McGovern (Wirral South) (Lab)]

I similarly associate myself and all my colleagues with your remarks before questions, Mr Speaker.

The Government know that, as the hon. Member for Waveney (Peter Aldous) suggests, there is a problem with progression out of low pay, because they commissioned the Ruby McGregor-Smith review, which reported in July last year. In January this year, the Under-Secretary of State for Work and Pensions, the hon. Member for Mid Sussex (Mims Davies), told me that the Government would publish their response “shortly”. Meanwhile, kickstart has failed to deliver and, as the journalist Ed Conway pointed out this afternoon, in the past year the average house has earned more than the average 18 to 29-year-old in this country. That is a disgrace. Will the Secretary of State announce today when she will at last publish the Government’s response to the Ruby McGregor-Smith review of low pay? Will she say how the Government propose to make progress on two key issues that the review identified: public transport and childcare?

[Dr Coffey]

I reject the hon. Lady’s assertion that kickstart is not working. More than 130,000 young people have now had access to a proper job in which they have gained employability skills, so it has been an effective response. At the same time, she will be aware that there are more people in work on payroll than there were before the pandemic. People are making good progress in that regard.

The review is important. I will be candid and say that I am the person who has held it up, because I want to make sure we have got all the questions answered as best we can. Meanwhile, we continue to work across Government on some of the hurdles that people are trying to get over, such as childcare and similar issues. I hope that the response will be published shortly.

British Sign Language Bill

Alison McGovern Excerpts

Friday 28th January 2022 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

How wonderful that you are in the Chair, Madam Deputy Speaker, as you represent Doncaster School for the Deaf, which is one of the oldest deaf schools in the country since 1829. How wonderful to be here to speak on the Bill on behalf of the Opposition with my hon. Friend the Member for West Lancashire (Rosie Cooper). As she said, she is not famed for her patience, but she is famed for her determination. How wonderful, too, to have been one of the Merseyside kids who learned to finger spell, as I did in the early 1990s. Until today, I never realised that I had her to thank for it.

The stories that my hon. Friend tells of her mum and dad echo across this country, in which working-class talent has too often been written off because of a loss not on their part, but as part of a structural flaw in our society. Every step, like today, on the journey towards equality offers us all a better hope of using all our talents not just for individual gain, but in service of our wonderful country.

I want to pay tribute, as so many Members across the House have, to all those who have campaigned long and hard for a British Sign Language Bill that would provide the legal recognition that the language deserves. I say to all those who have led campaigns up and down the country, right across the United Kingdom, that their potential success, which we begin today, is a credit to their work. I know that all Members join me in that thanks and celebration. At the last two general elections, the Labour party manifesto committed to legislating for a BSL Act and to giving the legal recognition that the language deserves, and we are very pleased that the Government are backing the Bill today.

All too often, as we have heard, deaf people and BSL users are not provided with the support that they need. Throughout society, we impose far too many barriers on the use of British Sign Language that need not be there. As a result, the deaf community live with worse outcomes and life chances that could be so much better. That includes the failure to provide the correct support in schools, which harms children’s outcomes, or the inability of NHS services to provide qualified and registered BSL interpreters at appointments. That means, as we have heard so often, that people are put in situations that they do not want to be in, where family and friends have to act as an interpreter, which is just not appropriate, or people leave appointments unclear about a diagnosis or how they should take their medication. Those clear examples demonstrate why the Bill matters.

Legal recognition can be a powerful moment to raise the status of British Sign Language across the UK, but the Bill can do much more than that. The Opposition fully support the mechanisms in the Bill to publish guidance to Government Departments and public bodies and give them clear, objective standards.

I will not say much more except to agree with the many and good contributions that have been made. It would be great if the Minister said a bit about how the Government will implement the Bill. I know that many in the deaf community will want to hear her say how she will continue her work with them to make this the beginning of a journey that will fundamentally change our country.

The Bill commits Departments to review their implementation of the guidance as set out in the Bill, and it would be great if the Minister also confirmed some details about publishing that so that we can see the path ahead and, as has been mentioned, how it will interact with the national disability strategy. We also want to see the Bill progress swiftly through Committee and make progress in Parliament without delay—[Interruption.] The Secretary of State is nodding and I thank her for it. People outside this House will see our joint determination on this issue.

I pay tribute to my hon. Friends the Members for Nottingham South (Lilian Greenwood) and for West Ham (Ms Brown), who made excellent contributions from the Opposition side of the House, and to all the Members who have joined together today to send a message about the change that we want to see. I want to say how proud we are of the deaf community for winning this fight and for the journey that our country will go on.

I say, lastly, to my hon. Friend the Member for West Lancashire that Merseyside today is very proud of her. Atheist though I am, I cannot comment on the Almighty, but I can say that all kinds of Scousers, plastic and otherwise —that is, people from Birkenhead—are exceedingly proud of her. I know that if her mum and dad were in the Public Gallery right now looking down on her, they simply could not be more proud. Let her example spur on every single campaigner for equality in our country. Sometimes progress happens; this is what it looks like.

Cost of Living

Alison McGovern Excerpts

Tuesday 25th January 2022 Westminster Hall

[Alison McGovern (Wirral South) (Lab)]

It is a pleasure to serve under your chairship in this important debate, Mrs Cummins, and I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on having secured it. It is a fairly obvious truth that there are things that really matter to our country, and the subject of today’s debate is one of them. There are also things that are embarrassing and we wish we did not have to talk about, and frankly the sorry state of Downing Street is one of those, so I am glad to be here in this debate, talking about something that really matters.

The cost of living crisis that we are facing is going to come to a crunch this year, but let us be honest: it has been a problem for the past decade. When a country has had slow or no growth for a decade, and when wages are held down while prices rise, that will cause a problem for the vast majority of families in that country. Those who are in the worst financial situations face the indignity of having a food bank parcel where their shopping should be, unlike every other normal family in this country. It is outrageous that 2.5 million of our fellow citizens, including half a million children, are in that position. That is not the product of events that have happened in the global markets in recent times; it is the product of 10 years of lost economic growth, and 10 years of lost progress on tackling poverty in this country. That is why we are here today.

[Jim Shannon]

As we look at the rise of referrals to food banks, it is important to note that a different category is increasing: those in the middle class are also squeezed now. We are finding that more and more people are under the cosh of prices. We all know how important the role of food banks is, but the Government have to recognise that this crisis is greater than it ever was before.

[Alison McGovern]

I thank the hon. Member for his intervention, and to a degree, I agree with him: any of us could end up needing to go to a food bank. This can happen to any of us, but important though food banks have become, I want a Government that seek to end the need for them. Is that too much to ask? Do we just have to accept food banks as a permanent feature of our country now, or might we one day have a Government that set out to end the need for them?

As much as I agree with some of the points made by colleagues from the SNP, I have to challenge them. How are they going to meet their own goal set in 2017 of child poverty reduction? It was made without qualification. We all want to see an end to child poverty and therefore it is important that that goal is met. I feel strongly that the Tories in Westminster made the wrong choice in getting rid of Labour’s national goal to end child poverty and wiping the Child Poverty Act 2010 from the statute book. It is equally important that those who have made commitments to the people of Scotland stick to them.

[Marion Fellows]

The way the Scottish Government will do this is through independence and the control of our own economic levers—it is as simple as that. We make commitments and we hope to be able to achieve them, because then we can do things the way they should be done and in the way that is best for people in Scotland.

[Alison McGovern]

I look forward to hearing how that is going to work. I think the way to tackle poverty everywhere in the United Kingdom is through co-operation and the use of the redistributive force of the United Kingdom Treasury. Members rightly mention the bad impact of the botched Brexit deal on our country’s economic fortunes. I would hate to see any part of our country go through the same thing with the loss of access to the United Kingdom single market, so I look forward to hearing more in future debates about how that will work.

I turn to the UK Government and the issue of inflation. Members have mentioned that the headline inflation rate in no way represents the specific forces of inflation that are faced by those with the least. I think people who suffer poverty must be some of the finest economists in the country, because they are able to monitor prices and make every penny they have stretch further when they need to. The Government should take some responsibility here. What has the Minister asked of the Office for National Statistics, in respect of its measuring and reporting, so that we can know exactly what situation is faced by the people who have the least in this country?

I point the Minister to the comments of the chief executive of Iceland, who says that he is losing customers not to his competitors but to food banks. That should tell the Minister that we really do have a problem with prices in this country that cannot simply be understood from the headline rate of inflation.

Secondly, on work, does the Minister accept that whatever the intention of a jobs plan that set aside £9 billion for a job retention grant that was then cancelled; whatever the intention of a jobs plan that had a kickstart programme that was supposed to get jobs for 250,000 of our young people but failed to do so; and whatever the intention of a jobs plan that was supposed to bring older people back to the workforce, given the level of vacancies in our country now, that jobs plan was a failure?

Does he further accept that when it comes to people’s wages—the other side of the cost of living crisis—a crucial part of the problem is that people have too little choice about the job they do? The OBR says that one in five people is working below their skill level. They could get a better job, but they have not. The Government have much more to do to improve people’s prospects at work. I would bet the Minister agrees that the best route out of poverty is work. Why do we have a Tory Government that are failing to get people jobs that can pay for their bills and shopping? It is an outrageous situation.

Finally, I turn to some of the other ways in which people need help. If we think about people’s ability to earn more, some of the things that are holding them back are those facts about our economy that we have known about for far too long. The childcare system in this country is expensive and complicated. What steps has the Minister taken to simplify it? People trying to make ends meet on a lone parent’s income, for example, are limited by the cost of childcare and whether it is available at all. I think again of the one in five people who work below their skill level. A lot of them have caring responsibilities for children or older relatives and cannot work longer hours in their jobs because they do not have care support. What conversations has the Minister had about solving that?

I also want to mention the simple fact that in too many parts of our country it is hard to get around on public transport. The price of buses has gone through the roof in recent years, and in some parts of the country people cannot travel to a job because there is no public transport. Yes, the price of motoring has gone up, but it is hard to get a better job if someone relies on public transport in areas that have too little.

It would be remiss of me not to mention the fact that too few people are members of trade unions in this country, and that limits their ability to bargain for better wages.

The Labour party has put forward some simple, compelling and obvious ways in which the Government could take steps today to tackle the cost of living crisis. Whether it is cutting VAT on fuel or extending the warm home grant through a windfall tax on oil and gas, we know there are steps that we can take now. However, I want to hear from the Minister about the bigger structural changes that we need to fundamentally shift our economy so that every family in this country can truly make ends meet.

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

It is a pleasure to serve under your chairmanship today, Mrs Cummins, and to see your wonderful smiling face. I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on securing the debate. It has been a lively one on important issues, but it was brightened up by the wonderful tie of my hon. Friend the Member for St Ives (Derek Thomas).

The Government are taking the present challenges of those on low incomes very seriously. The pandemic has been challenging for many people. We acted quickly to put in place unprecedented levels of support during this period, as has been highlighted by some Members today. After yesterday’s debate, it feels a little like groundhog day discussing these issues today, but they are important. As was highlighted yesterday, given the current cost-of-living challenges, we in the Government are actively working on the best way to build on the existing support that is available. I hope that will reassure the hon. Members for Strangford (Jim Shannon) and for East Londonderry (Mr Campbell), who raised points on this, as well as my hon. Friend the Member for St Ives.

Since the pandemic started, we have spent more than £400 billion on protecting people’s jobs and livelihoods and supporting businesses and public services. There has been unprecedented welfare support. Universal credit has stood up to the challenge of covid-19, providing a vital safety net for 6 million people. We must thank the hard-working staff at the Department for Work and Pensions, including the thousands of work coaches across all our constituencies, who worked tirelessly to ensure that the benefits system did its job. Many of them are the pandemic’s unsung heroes. I hope that we make an extra effort to thank them when we perform our constituency duties over the weeks ahead, if we have not done so already.

[Alison McGovern]

I just want to add that whatever the policy disagreements between our parties, I agree wholeheartedly that those who work for the DWP, particularly on the frontline, deserve all our thanks.

[David Rutley]

I am grateful for that comment. The hon. Lady did not have to say that; I know her well enough to know that she feels that way. We have differences over policy, but we know we have very dedicated public servants in the UK and Scottish Governments who are committed to addressing the issues, and we are grateful for their work.

It is also important to highlight the fact that our successful vaccine programme is providing us with the protection to fight the virus in all its forms. Although we need to remain cautious, the latest labour market statistics show that time and again we have made positive decisions during the pandemic. As we have shown throughout the pandemic, the Government will do what it takes to support people who are struggling financially. Supporting vulnerable people in our society is of paramount importance to me, our Secretary of State and the Government.

The proportion of Government spending that goes on welfare reflects a strong commitment to the poorest in society. This year, we will invest more than £250 billion through the welfare system, including £110 billion on people of working age. That rightly provides an important safety net. We also take notice of the clear evidence that work, particularly where it is full time, plays an essential role in reducing the risk of poverty. With our economic recovery continuing, it is right to focus our attention on getting people back into work.

The latest job figures tell a positive story. A record number of people are now in payroll employment in the UK, with 23,000 people added to the payroll in Scotland in December alone. The UK has a buoyant labour market, with 1.25 million vacancies. That figure is has increased by 33,000, or 2.7%, on the month, and by 462,000, or 58.9%, since the start of the pandemic, offering people opportunities to secure a job, progress in work and increase their earnings. Current estimates show that the number of online job adverts in Scotland alone has risen by 13.3% since the start of the pandemic. To help people take advantage of those vacancies, our extended multibillion-pound plan for jobs will help people across the UK find work and boost their wages and prospects.

The hon. Member for Wirral South (Alison McGovern) will probably shake her head at this point, but we are making real progress. We have opened 150 temporary job centres; I had the honour of opening the most recent one in Macclesfield last Friday. We have recruited 13,500 work coaches. They make a difference because they care about individuals, often meeting them face-to-face—increasingly so as we come out of the pandemic. There are 1,200 extra work coaches in Scotland, helping with this vital task.

We are also investing in our young people through the kickstart scheme: 112,000 young people have started a life-changing six-month work placement, and 10,000 of those starts were in Scotland.

[Alison McGovern]

It was supposed to be 250,000 by now. Given what the Minister just said, what accounts for the gap?

[David Rutley]

There are more vacancies available, and we are encouraging people to take them up across the country, in Scotland as well. The scheme has seen real success in turning people’s lives around. There are further opportunities in the months ahead for people to get involved with that important programme.

It does not stop there, because we want to ensure that we help address some of the gaps in the workforce that were highlighted yesterday: in hospitality, health and social care, and technology. Sector-based work academies help people to get new skills and a guaranteed job interview at the end of their placement.

I also recognise, along with many others here, the immense value that older workers bring to the workforce. That is why the DWP is providing specific funding for that cohort. There is funding available for the over-50s to get tailored Jobcentre Plus support, to help them find work and build on skills to get into the workforce.

In addition, to support those jobseekers who are out of work for 12 months or more, our Restart scheme provides intensive support to help claimants in England and Wales find jobs in their local area, which I am sure will be welcomed across the Chamber today. Through regular contact with all participants, providers will develop a strong understanding of the individual’s employment history, skills, aspirations and support needs to help each one succeed. That will break down the employment barriers holding claimants back from finding work.

I remind hon. Members that the DWP is focused on helping people to increase their income by progressing in work. We often talk about the importance of getting people into work, but we are equally committed to helping people progress in work and move ahead with their career aspirations. We will shortly respond to Baroness McGregor-Smith’s report on in-work progression and set out our approach. I hope that will be welcomed by the hon. Member for Motherwell and Wishaw (Marion Fellows), who was concerned about that issue.

Universal credit incentivises work as part of its design. With that in mind, we have gone further to make work pay, as has been referred to, by cutting universal credit taper rates from 63% to 55%, and increasing universal credit work allowances by £500 a year. That is essentially a tax cut for the lowest paid in society, worth around £2.2 billion in 2022-23. That means that 1.9 million households will keep, on average, around an extra £1,000 a year. In addition, from April 2022, we will boost the national living wage by 6.6% to £9.50, which is ahead of inflation and worth another £1,000 each year to workers on the lowest pay.

Oral Answers to Questions

Alison McGovern Excerpts

Monday 13th December 2021 Commons Chamber

[Mr Speaker]

We now welcome the shadow Minister to her new post. I call Alison McGovern.

[Alison McGovern (Wirral South) (Lab)]

Thank you, Mr Speaker. People across the country who have had a really hard time at work in the past year need DWP Ministers focused on their jobs. It will not have escaped your notice that it was reported over the weekend that the DWP has joined the last Christmas naughty list of Whitehall lock-ins during lockdown, but it is not me the Secretary of State should be apologising to—it is the more than 100,000 young people who will not be helped by the time the underperforming kickstart scheme comes to a close before Christmas. So may I ask the Minister: when kickstart comes to a halt and thousands of young people still need help, what then?

[Mims Davies]

I thank the hon. Lady for her question and welcome her to her post. I know that she has a strong interest in young people in every constituency doing as well as they can. Kickstart has not underperformed. Let us be honest: more than 112,000 young people have joined the programme. Of course, when we created the programme, we expected an unemployment level of perhaps 12%; it is just over 4%. Let us focus on the outcomes for those young people, which we are tracking carefully. We are linking up with the Department for Education to ensure that the traineeships and apprenticeships are there.

I know that visiting her jobcentre is on the hon. Lady’s to-do list. When she does so, I am sure she will hear amazing stories about what is happening to young people locally.

Universal Credit and Working Tax Credit

Alison McGovern Excerpts

Monday 18th January 2021 Commons Chamber

[Alison McGovern (Wirral South) (Lab) [V]]

The best reason to shut down food banks that I ever heard was given to me by a woman who ended up starting her own food co-operative—a mum of four. Following the Osborne benefit cuts, money was just too tight. She was advised to go to the local food bank, but when she got there, she sat outside and cried. She could not go in; she just could not do it. That is why no one in our country should have to beg for food, and why there has been public outrage about child hunger during this crisis. It is wrong.

However, today’s debate is not about Marcus Rashford’s child food poverty campaign; it is not about scrappy food parcels, or whether a child ought to be able to survive for two weeks on dry pasta and a loaf of white bread. Today’s debate is a result of what happens if we ask ourselves why that campaign exists at all. It is a result of daring to ask the bigger question: “Why do we have food banks in our country?” If we ask ourselves what the cause of poverty is, we reach the following conclusion: too many people have jobs that pay too little, or for family reasons cannot work enough to pay for the necessities of life. This trend has been exacerbated greatly by the covid-19 pandemic, but it was set from 2010 onwards. Rising self-employment and uncertain, often low, income have undermined our battle against low pay; covid has made this 100 times worse, and many of those facing poverty are families with only one wage coming in, or where disability affects work prospects. That is why the social security system needs to support them, and make sure the indignity of food banks is no more.

What is the truth about social security today, and why does it fail to protect? Child benefit—the most dependable, easy-to-process family support—was cut in real terms by 22% from 2010 to the end of the decade. Proportionally, that was the largest welfare cut of all, and it fell on our children, meaning that all families with children have been squeezed for a decade. For those in low-paid work, the consequences have been severe, as we have heard from other Members. That is why we should welcome the extra money for families in this crisis, which went some way towards addressing the problems created over the past 10 years. I want the Government to go much further now, with no third or fourth child being sent the message by our country that the state does not care about them. Every child should be invested in through child benefit, and should never have to see their parents in distress because of an enforced visit to a food bank.

The contribution principle that Beveridge set up in our social security system is being undermined. We pay in when we are able and we take out when we need, but a generation is now being robbed of that promise. If the Minister does not know this, let me tell him that the anxieties we face in childhood echo on through our lives; they never leave us. That is why protecting our children is always the right thing to do.

Oral Answers to Questions

Alison McGovern Excerpts

Monday 19th October 2020 Commons Chamber

[Dr Coffey]

There are multiple questions there. My right hon. Friend the Chancellor has already responded by introducing the new job support scheme, which he updated for particular sectors, thinking of tier 3 in England, to extend even further the furlough scheme. It is clear that this Government are doing what is needed. In terms of the other things that the hon. Gentleman mentions, he will be aware that I continue to have regular discussions with my Treasury colleagues on the best way that we can help to support people during this pandemic.

[Alison McGovern (Wirral South) (Lab)]

What recent assessment she has made of the effect of the covid-19 outbreak on levels of child poverty.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

This Government’s unprecedented support package has supported the poorest working households the most, with Her Majesty’s Treasury’s analysis showing that the poorest 10% of working households have seen no income reduction, owing to the fast action taken by this Government in responding to the pandemic, including a £9.3 billion injection into the welfare system.

[Alison McGovern]

The problem with the Minister’s answer is that this crisis is only revealing problems with policies that we knew were there already. Members of this House are against it; members of faith communities are against it; leading charities are against it; and now Marcus Rashford is campaigning against it. So what is the Minister going to do to end the two-child policy for universal credit once and for all?

[Will Quince]

The two-child policy in universal credit is one of fundamental fairness, and it means that those who are in receipt of benefits should be in the same position as those who are not. I am not a particular football fan, but I certainly know Marcus Rashford’s name now, and I congratulate him on his MBE. We welcome the establishment of the taskforce and will carefully consider its recommendations as we approach the spending review.

Oral Answers to Questions

Alison McGovern Excerpts

Monday 9th March 2020 Commons Chamber

[Justin Tomlinson]

We strive for 100% accuracy with high quality, objective, fair and accurate assessments. All our assessors are health professionals and experts in understanding the effects of a health condition on an individual’s daily life. They are occupational therapists, level one nurses, physiotherapists, paramedics or doctors with at least two years’ experience. We continue to monitor performance, share best practice, and work with claimants, stakeholders and charities to improve training and guidance.

[Alison McGovern (Wirral South) (Lab)]

T10. The Health Secretary has said that changes will be made to provide financial support to workers currently ineligible for statutory sick pay. Will the Minister confirm that those changes will include emergency legislation to remove the £118-a-week threshold that currently excludes 1.8 million low-paid workers from receiving sick pay—a measure supported by both the TUC and the Confederation of British Industry?

[Dr Coffey]

The hon. Lady will be aware that the £118 a week is an average over eight weeks, and it will swing about whether people are eligible or not. I have tried to make it clear to the House, reinforcing the comments of my right hon. Friend the Prime Minister, the Chancellor and the Health Secretary, that people who are working will not be penalised because they cannot work in this regard. We continue to work across Government to bring forward the necessary legislation or other changes required.