Welfare Reform and Work Bill

Earl of Listowel Excerpts

Wednesday 9th December 2015 Lords Chamber

[Baroness Manzoor (LD)]

My Lords, I shall speak to Amendments 24, 26 and 46, to which I have added my name along with those of the noble Baroness, Lady Lister, and my noble friend Lord Kirkwood of Kirkhope. Amendment 24 clarifies what we mean by children in low-income households where one or both parents are in work. Amendment 26 builds on Amendment 24 and inserts “low income” and “in work” for further clarity.

The Bill repeals the Child Poverty Act 2010 and the requirement for the Secretary of State to develop a strategy for tackling child poverty. That is really worrying, because poverty is a cost that the UK cannot afford. It wastes people’s potential, drains public finances and hampers economic growth. The new definition risks underestimating the rise in in-work poverty, downplaying income and obscuring families’ ability to pay for decent housing. Moreover, as we all know and heard again in the first Committee sitting, such children are more likely to suffer from poor health, do worse at school, be jobless in future and die earlier.

I agree with the Joseph Rowntree Foundation, which believes that income measures should better account for household costs by including analysis of income after essential costs such as childcare and housing costs are removed—particularly given how high housing costs are in cities such as London. I agree that that would support a much more dynamic picture of the living standards of UK households. Will the Minister consider bringing forward government amendments to develop and publish a life chances strategy that retains some income-related measures in the basket of measures we already have—given, in particular, that the Government intend to retain the HBAI reporting measures? I cannot see why those could not be added, because they are going to be collated anyway, but it would be good to have them on the face of the Bill.

[The Earl of Listowel (CB)]

My Lords, I rise to speak to my Amendment 25 in this group. Before I do so, I apologise to your Lordships for my overenthusiasm on Monday in Committee. I am afraid that I spoke too often and at too great a length, and therefore contributed substantially to the delay that day. I will seek to be shorter today. I have an amendment in this group and two or three in the next group, so please bear with me.

Amendment 25 would reintroduce into the Bill the four measures of child poverty that were introduced in the Child Poverty Act 2010. I listened to what the noble Lord, Lord Kirkwood, said, and regret with him that so much of that Act is being taken away by the Bill. I am concerned that this is a pattern one sees over the years: one Government come in and often undo the good work of the preceding Government. I am attracted to the approach Finland took towards its education system. Some years ago it began to be concerned about the quality of its education system, and a cross-party consensus was built that what was most important was to recruit and retain the best teachers and raise their status. Some 15 years down the line, it has the best-performing education system in the world. Therefore, in these important issues there is a lot to be said for building on the best of what is produced by whatever Government and not simply taking away what was put in place before.

The first time I met the noble Lord, Lord Freud, he was just publishing or launching his report for the Labour Government into improving employment. He has a very single-minded and focused passion to get more people in this country into work and is a supreme advocate of the value and importance of work not only to the nation and its economy but to its individual citizens. It was my privilege to work with the noble Lord, Lord Nash, on the education legislation coming through, and he in his turn is very focused on improving education incomes, principally through developing more academies. I pay tribute to the huge success the Government have had in getting more of our people into work in this difficult time. I make these points because I hope that the Minister might be prepared to be broad-minded and embrace other approaches which might help him to achieve the outcomes he wishes to achieve.

I read with great interest the speech of the Prime Minister, David Cameron, to his party conference, when he spoke about the importance of social justice and social mobility and in particular about looked-after children and improving their outcomes. I suggest that the Government may be missing a trick here. Yes—more work and improving educational outcomes are important. However, a very important contribution to both of those is to address income poverty. A child attending school who has not eaten the night before or had breakfast may well find it hard to do well at school. If there is not the transport to enable families to see each other and keep connections, they may well suffer from isolation or mental ill health and the family can decline. If these measures were reinstated in the Bill, that would help the Government with regard to their aims on social mobility.

The Minister may wish to refer to the letter from the Children’s Commissioners for the UK, which was copied to me. The Children’s Commissioners of the UK—for England, Wales, Northern Ireland and Scotland—wrote to the Minister supporting this amendment on reintroducing the measuring of child poverty, and they made a very powerful case. I look forward to the Minister’s response and I hope that he can be sympathetic. From our previous discussions, and from listening to his response at Second Reading, I have the sense that he is strongly opposed to these proposals but I hope that perhaps, on reflection, he might be able to see that this will enrich and support what he proposes and not be a hindrance to it.

[Baroness Blackstone (Lab)]

My Lords, I apologise that I was not able to speak at Second Reading. Had I done so, I would have focused in particular on the measurement of child poverty. I passionately believe that any Government who are concerned about this issue need to know what its extent is, and whether it is going up or down. Therefore, why on earth abandon the long-established measurements that have been adopted, not only in this country but by many other bodies such as the OECD and the World Bank? It is an internationally recognised approach to the measurement of poverty. I support the amendments in this group and very much support the arguments made by my noble friend Lady Lister and the noble Lord, Lord Kirkwood, and those of the other two speakers who have already contributed.

I begin by asking the Minister why the Government have wilfully ignored the responses to the consultation launched by the coalition Government, of which the Conservative Party was the leading partner. I want to quote from a Child Poverty Action Group document which sets out the responses to that consultation—I think that they became public as a result of a freedom of information request. Some 97% of respondents believed that all the targets under the Child Poverty Act 2010 ought to be retained. Only 8% of respondents believed that new measures were needed to replace the current ones. Some 90% of respondents believed that income should be included in a measure of poverty, and only 1% believed that it should not be included. Some 97% of respondents believed that income is an important or very important dimension of poverty. In responses to a consultation document, you rarely get such enormously high proportions wishing to continue with something whose abolition the Government are consulting on, so I would like the Minister to say why the Government have ignored those responses. As I said earlier, the measures are based on very extensive work, and the Royal Statistical Society has always described them as the product of very valid social science procedures. I have already stressed their international aspect and their comparability with what is happening in other countries. That is my first question to the Minister.

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[Baroness Lister of Burtersett]

Given what the Minister just said, will he now accept the case for keeping the income measures in the Bill even if he abandons the targets? As my noble friend said, the argument has really been purely about targets. I thought targets were quite helpful for the same reason as the noble Lord—my noble friend—Lord Kirkwood, but if that is what frightens the Government and there is really not much difference between us, then okay. What is stopping the Government keeping the measures supported by 99% or whatever of the scientific community that responded to their earlier consultation on child poverty that they seem to have completely ignored?

[The Earl of Listowel]

Before the Minister replies, it might be helpful to remind him that the amendment on targets is in the next group. I quite understand why he might choose to address it here but the amendment he is addressing that I and my noble friend tabled is simply about the measurement. I think the noble Lord, Lord Kirkwood, began the argument on targets but my amendment was intended to be strictly on the measurements.

[Lord Freud]

In practice, that is not the case. There are two sets of amendments in this group and Amendment 46 from the Opposition deals with the targets so I must deal with both issues. That is what I have been trying to do. I hear around the Chamber that more noble Lords are concerned about measures than targets.

In reality, there is only one word between us: statutory. I made a commitment that we will go on publishing HBAI and that is a protected position. Let me just explain how that works. The HBAI is a national statistic. That means that it complies with the code of practice for official statistics, which states that it must be produced independently of political influence. Any changes to HBAI in future would therefore be made only following the judgment of the head of profession for statistics in the Department for Work and Pensions. Any such changes would be subject to formal consultation with users, as required under the code of practice for official statistics. I think I am on reasonably safe ground in assuring noble Lords that we currently gather HBAI with a full documentary analysis. Like the noble Baroness, Lady Lister, I have that on paper in front of me or on my shelf. That has on it not only the Excel tables but also a clear commentary. By implication, I am saying that that will go on being published in a similar format.

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[Lord Freud]

I think the noble Baroness, Lady Lister, will support me here but my memory is that the material deprivation figures are in the HBAI statistics. She nods that that is the case, so I can confirm that.

I shall summarise briefly. I am not in a position to give noble Lords the one word they want, but hope I have indicated that the measures will be available to see what is happening to relative child poverty. I am convinced that it is our new life chances measures—the measures rejected six years ago by the noble Lord, Lord McKenzie, which focus on the key drivers of worklessness and educational attainment—that will make the biggest difference to children, and that these amendments, were they on a statutory basis, would dilute that focus. We want to focus on the measures that make a real difference to children’s lives. I therefore invite the noble Baroness to withdraw her amendment.

[The Earl of Listowel]

I am grateful to the noble Lord, and, in particular, to the noble Baroness, Lady Stroud, for raising the questions that she did. As I said earlier, I am particularly concerned about the life chances of care-experienced adults and young people leaving care. In earlier debates the Minister assured me that there were strategies, and I know that there are many welcome investments, in terms of statute and finance, to improve outcomes for care leavers and care-experienced adults. However, the latest figures on 19 year-olds coming out of care who are not in employment, education or training are the worst for many years. Only 6% of young people leaving care are going on to university, compared with 40% in the general population. Despite massive investment by this and previous Governments in improving educational and work outcomes for young people leaving care, it is still not being as effective as one might wish. I think that what is being done is very good, but there needs to be a lot more work.

Then there are the young people on the edge of care, who do not reach the threshold. There are many more young people and children in need, who will have even worse educational and work outcomes. That is relevant to this debate, because what happens to these young people as they become adults, when they have such low educational qualifications that they cannot get on to apprenticeship schemes, have very little prospect of getting work and are likely to remain uneducated? One should always remember that many of them do do better in later life; because of early trauma, it takes them time to catch up. This large group may not be as susceptible to the incentives to work, or go on to further education, that the Minister is talking about. They might be particularly helped by measures of this kind, which focus on those in long-term poverty, and which would keep Parliament’s mind on them and how they are doing. I hope that that makes sense to the Minister. He might like to write to me if he cannot respond now.

[Lord Freud]

I will write, because the issues that the noble Earl raises are genuinely important and difficult. We are all struggling with them. As we develop the life chances suite, we need to bear in mind the particular problems for those people, because as a group they have much poorer outcomes than they should.

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I hope that the Minister will agree with what I have said—I do not think that there is anything controversial in what I have said about life chances—and that he might be willing, for once, to take away this amendment and consider it before Report, because I believe that it is helpful to the Government’s own cause. I believe that he would find widespread support for such a move, and it would show that the Government are willing to listen. I beg to move.

[The Earl of Listowel]

My Lords, I rise to speak to my Amendments 32, 33 and 49 in this grouping. Before doing so, I am prompted by what the noble Baroness, Lady Lister, has just said to reflect for a moment on what the Government have done to improve life chances for children—I should like to say something positive before I am critical. The coalition Government reduced the number of children in prison by 2,000—from 3,000 to 1,000—in three years. Of course, once a child is in custody, it is very much more likely that he will return to custody, so I pay tribute to the Government and to the Liberal Democrat party for that contribution to improving children’s life chances.

My Amendment 32 would place a duty on the Secretary of State to produce a report on child poverty and life chances, and it would oblige him or her to produce a strategy in those two areas. There is a duty under the Child Poverty Act to produce a strategy of this kind every three years. As we have just heard, there is not one for life chances in the Bill, so this is an opportunity to produce a strategy for both.

I sense that the Government are very resistant to the notion of strategies altogether. I think that, generally, they prefer a bottom-up to a top-down approach, which is positive in many ways. One sees that in so many areas, but there are difficulties with it—for instance, in the education system. Two weeks ago, I visited a remarkable school, the King Solomon Academy, in Marylebone, which has the highest academic attainment in the non-selective state area. It is in a pretty deprived area of London, and it shows how effective academies can be. However, the teachers there complained to me that the Government are not ensuring that sufficient high-quality teachers are being developed to service the school. The Chief Inspector of Schools has recently voiced concerns about the supply of teachers. It is important to choose the right time, but there are times when a strategy is needed, and one might say that teaching is an example.

A housing Bill is shortly to arrive in this House, and it would be very helpful when considering it to have a strategy from the Government on life chances and child poverty—which would of course also refer to homelessness and family accommodation—so we can see whether that Bill is consistent with that strategy. Unfortunately, we do not have such a strategy, so we will be unable to check that Bill against it. I therefore hope that the Minister can give a positive response to this amendment.

The Minister has already responded very helpfully to my Amendment 33, on a target for eradicating child poverty. I think enough has already been said on the notion of targets.

My Amendment 49 would put a duty on local authorities to produce a similar child poverty and life chances strategy. According to a report from the Child Poverty Action Group, where such strategies are well embedded in local authorities, they prove very effective. The Government have a policy of localism: more and more responsibility is being passed to local authorities, and if we are to adopt such an approach, it is very important that local authorities have such a strategy. Funding for local authorities has been cut by some 35% in the past five years, and there will be a similar cut over the next five years. They have all sorts of competing priorities. If they have a strategy in this area, they are more likely to prioritise it. I hope the Minister can give a sympathetic response to these amendments, and I look forward to his reply.

[Baroness Grey-Thompson]

I shall speak to Amendments 32 and 33, which are in my name. It is essential to have a strategy—if the Government are really serious about changing life chances, it makes no sense to me not to include one. Reporting is useful but we need more than that; it does not move the discussion on. There is much to applaud in the Government’s vision, especially concerning disabled people, but we have an opportunity to create a combined child poverty and life chances strategy.

I do not often look back, but by way of context I refer to my previous career as an athlete. If you are serious about winning, you have a training plan or a strategy to achieve success—you do not just randomly train and hope you will get to the finish line. If we are serious about child poverty, a strategy makes sense. Even if we have to be sensible and re-evaluate the targets to set something realistic and achievable, what I do know is that, without a strategy, we have no chance of eradicating child poverty.