(7 years, 9 months ago)
Commons ChamberMy right hon. Friend puts his finger on the nub of the problem. Many families, including, as we have heard, those in work, are increasingly struggling to make ends meet. This debate is about how we can provide support to those families.
As someone who grew up in a family rich in love but not in money, I welcome the hon. Gentleman bringing the Bill to the Floor of the House. I sometimes comment that we hear from Labour anger but no alternatives, so it is welcome to see solid proposals backing up his speech.
I am grateful to the hon. Gentleman for that helpful intervention, and I hope that in just a moment he will hear from me a few more alternative proposals.
A target would provide a strong foundation for a wider approach matching the complexity of the causes of poverty today. I will briefly set out the proposals in my Bill. It asks the Government to consult the Social Mobility and Child Poverty Commission to decide the date by which the target should be met. It is not prescriptive about all the measures the target should include. Rather, it would require the Secretary of State to bring forward a proposal which would allow for a range of measures to be considered, including the Government’s favoured indicators—of children living in workless households and educational attainment at age 16.
I am clear, however, that reference should be made to the four established measures of poverty based on income, because that is a central factor in meeting children’s needs. These income measures have enjoyed cross-party support and their recording was placed on a statutory footing by the coalition. Of course, as the hon. Gentleman just alluded to, money is not everything, but that does not mean that it is nothing, and a target should recognise that.
In order to ensure accountability, the Bill would require the Government to lay before Parliament a child poverty strategy setting out the measures they will take to meet the target.
My hon. Friend is absolutely right. We need to invest in our future as a country.
The Joseph Rowntree Foundation estimates, on the basis of its research, that the annual cost of poverty to the public purse comes to £78 billion. That is why it is penny wise but pound foolish to cut investment in early years intervention.
I shall make a bit of progress, if I may.
I note with some concern that House of Commons Library analysis shows that investment in Sure Start children’s centres has halved since 2010. As a result, more than 300 local centres have closed. The social challenges of poverty—gaps between the richest and the rest of our society in our schools, and poor health—come with economic costs.
As well as redirecting public spending, poverty makes it harder to achieve the productivity gains that workers and the economy desperately need. This matters because for too many families work no longer pays. Two thirds of children in poverty grow up in a home where at least one parent works. While the Government rightly highlight the role that work can play in moving people out of poverty, taking a comprehensive approach requires action to support those trapped on low incomes, so that they can progress into better paid jobs. Four in five of those who enter low-paid work remain low paid 10 years later.
The Government’s upcoming industrial strategy can take two steps to support those workers. It should feature a plan to support low wage industries, and Government can also play a role by bringing together employers and trade unions to focus on raising productivity, which is the key to increasing pay. Localised pay commissions could also play a role in areas dominated by low pay. By taking action now on low pay, we can recognise the realities of the modern world of work for so many, and in doing so reduce child poverty.
There is vital work under way across the country to support families who have hit hard times. In my Barnsley constituency, the local anti-poverty board, led by Councillor Jenny Platts, brings together local partners to support residents. They identify those families most in need, then target resources to provide debt advice, information on fuel poverty initiatives and healthy eating programmes. Despite that local effort, more than one in four children in Barnsley grow up in poverty, so today I stand here to give a voice to those 5,114 children.
I want to take this opportunity to place on record my thanks to the Child Poverty Action Group, which has long campaigned on this issue. I am very proud to have its support for my Bill. I also thank the parliamentary Clerks and the many stakeholders who have lent support through this process.