Social Mobility

Debate between Catherine McKinnell and Lucy Powell

Tuesday 11th July 2017 Westminster Hall

[Lucy Powell]

I am happy to accept that point, which the report talks about more broadly, but challenges remain. There are some warning signs on the horizon and we should be careful that we do not end up taking a backward step in this important area.

The Social Mobility Commission has found that the generational divide is yawning. Over the past 20 years, poverty among pensioners has halved and their income today, on average, exceeds that of working adults. Meanwhile, young people’s earnings have fallen. That cannot continue. It is no wonder that we saw a huge upsurge of anger, activism and engagement from younger voters at the general election. The wealth and income divide has also become much wider over the past 20 years, with top pay increasing much faster than the incomes of lower earners. In 1998 the highest earners were paid 47 times that of the lowest. By 2015 the highest earners were paid 128 times more than the lowest. Gaps in wealth have also grown exponentially, with home ownership and house price inflation benefiting the lucky few who already own their home. It is not just about the economic price we pay for these failings; as a society, these divisions are causing unrest, anger and resentment. That is leading to political volatility and, arguably, the rise of populism.

Those are just some of the reasons why the social mobility agenda is so important. It needs to be not only at the heart of all Government policy, but a national mission for our country. Successive Prime Ministers—Tony Blair, Gordon Brown, David Cameron and our current Prime Minister—have spoken a great deal about social mobility. Most recently, the current Prime Minister spoke about the “burning injustices” of our society. However, the Government’s approach, while making progress in some areas, has not matched the rhetoric and has been piecemeal and disconnected.

Let us look at what could be done about social mobility. There are many recommendations in the Social Mobility Commission report and from the Sutton Trust, Teach First and many others. Recommendations should not be limited to education policy—far from it. Every Budget, every Bill and every policy should be judged against whether it tackles inequalities and boosts social mobility for everybody, everywhere. There needs to be a single cross-departmental plan to deliver social mobility.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

I congratulate my hon. Friend on securing the debate and making an excellent opening speech. We know that the challenge with social mobility begins in childhood. An estimated 3,300 children in my constituency are living in households with problem debt. One suggestion has been to give a breathing space to families facing problem debt by giving them 12 months to try to get back on their feet. Does she agree that that is one step the Government could take to make a big difference to families getting themselves out of problem debt?