Welfare Cap

John McDonnell Excerpts

Wednesday 29th January 2025 Commons Chamber

[John McDonnell (Hayes and Harlington) (Ind)]

I hope that the Government will consider completely scrapping this debate in future years, because it has become farcical. The right hon. Member for Islington North (Jeremy Corbyn) will remember that the welfare cap was introduced because of the Dutch auction that was going on in this Chamber about who could be more brutal on the poor. The welfare cap was part of that period of debate, in which anyone claiming benefits was allegedly a welfare benefit scrounger who was not willing to work for a living. That was the atmosphere that was engendered in this Chamber. At that stage, to be frank, it was deeply worrying. In many ways, humanity almost left the Chamber.

The farcical nature of the debate is that, having introduced the cap, Minister after Minister would have to come back each year and report that the cap had been breached, because more expenditure had been forced on the Government as a result of the increasing levels of poverty. I suppose that it at least gives Members the opportunity to have some discretion over issues of poverty.

May I suggest to those on the Labour Front Bench that they should remove the cap, because it has become a farcical exercise? If we are to have a debate on poverty, there should be an annual report by the Labour Government on the poverty strategy that they are now developing. I believe that the commission established by the Labour party is now working, and it would be so much better if we had a report and did not have the farcical pantomime that we have today.

[Alison McGovern]

I thank the right hon. Gentleman for allowing me to intervene briefly to say that the child poverty taskforce’s work is ongoing, and that it regularly engages with parliamentarians and others to update them. I know that many parliamentarians have been pleased to involve themselves in that work, given the importance of tackling child poverty.

[John McDonnell]

That is a really helpful response, but it does not respond to the fact that if we are to have a focus on poverty, rather than a debate on the welfare cap, which is breached on virtually an annual basis, it might be better to have a debate on the Government’s strategy to tackle poverty overall. Then we could have a proper discussion, and even a debate with a motion that could be amended where we want to see improvements. That is what I want to get on to now.

I hope that people have seen today’s Joseph Rowntree Foundation report on overall poverty, which reflects what most of us know and experience in our constituencies. It is shatteringly depressing, to be frank, because it does not show any improvement over the last few decades. The hon. Member for Faversham and Mid Kent (Helen Whately) mentioned that the Tory Government introduced this measure when they came into power. It was during the period of austerity, and it is worth reflecting on what that meant.

The London School of Economics’ report and other independent reports say that 140,000 people lost their lives as a result of austerity; others have estimated that the figure could be up to 300,000. In part, that was because of the grinding poverty that was imposed on people, as reflected in all our constituencies—we saw it. I remember a time when there were no food banks in any of our constituencies, because they were not necessary, but now they are, as a result of 14 years of austerity.

If we are to have a proper debate on poverty, we need to highlight as individual constituency MPs where we think the Government should be going, so I will briefly do so on the basis of what we have seen in the Joseph Rowntree Foundation report. I always cite the overall figures: we have 15 million people living in poverty, including 5 million children. I think the Joseph Rowntree Foundation report says that there are 4 million people living in deep poverty, and nearly 4 million in destitution.

The statistic that always shocks me is that 1 million children are in destitution. I never thought we would use the word “destitution” again in our society; I always thought we would improve year by year and lift people out of poverty. I never thought that children would live in poverty in the way that some of my generation did.

There are groups that clearly need to be on the agenda, and my hon. Friend the Minister has mentioned some of them, thank goodness. I chair a group of unpaid carers, of whom there are 5 million in this country. If an unpaid carer is looking after a disabled member of their family, it is almost inevitable that they will be living in poverty, unless we face up to the central demand of unpaid carers, which is to address their income. It is not just about how much they can earn, which the Government have looked at recently; it is about the carer’s allowance being at such a level that people cannot survive on it.

Looking at the report with regard to families with children living in poverty, I cannot at the moment see a faster way of getting children out of poverty than scrapping the two-child limit. I am hoping that will be on the agenda as a priority when the Child Poverty Action Group reports to Parliament.

The Joseph Rowntree Foundation has identified that the poverty rate among disabled people is now 30%. The Government are about to consult again on the work capability assessment reforms because they lost in court to Ellen Clifford two weeks ago. I am pleased that the Government lost in court, to be frank. The basis of that decision was the lack of consultation on the previous Government’s reforms. I do not understand why our Government continued the appeal within the court, but they did. They have now lost and have been forced to bring forward their consultations on the reform of the work capability assessment.

I am hoping that those reforms will be done in co-production with disabled people—on the basis of the disability groups’ principle, “nothing about us without us”. My fear is that an overhanging £3 billion-worth of savings is required from the DWP on this issue. If that results in cuts to individual benefits, I think there will be uproar within our communities and across this House. What is also interesting in the Joseph Rowntree Foundation report is that the poverty rate among people who are suffering long-term health conditions is 50%. The work that the Department of Health will now do in walk-in advice surgeries, for example, and the focus on mental health, will be key.

The household benefit cap overall is iniquitous. It forces families into poverty, particularly in places such as London, because of the high rents that are hitting people. According to the Joseph Rowntree report, the poverty rate among renters in social housing is 44% and in the private rented sector it is 35%. The Government’s refusal to accept the amendment to introduce rent controls, which was tabled by a number of Labour Members, was extremely disappointing. The Government could at least devolve that power to the individual Mayors so that they can represent their communities and introduce rent controls where necessary. I believe that Sadiq Khan has expressed his support for that power to be devolved. With rent controls, we could tackle the housing crisis that we face within our constituencies.

When we talk about poverty, we need to come forward with an agenda that will tackle it at pace, and I do not think that, in our discussions in the future, a welfare benefits cap in any form will assist in bringing forward the reforms that our constituents so desperately need.

Women’s Changed State Pension Age: Compensation

John McDonnell Excerpts

Wednesday 15th January 2025 Westminster Hall

[John McDonnell (Hayes and Harlington) (Ind)]

I certainly will, Dr Murrison. I welcome the Minister to his position. I am so pleased that he has been given such an easy policy to resolve as his first task.

Reference has been made to the 2019 manifesto commitment, so let me briefly set it out:

“Under the Tories, 400,000 pensioners have been pushed into poverty and a generation of women born in the 1950s have had their pension age changed without fair notification. This betrayal left millions of women with no time to make alternative plans—with sometimes devastating personal consequences. Labour recognises this injustice, and will work with these women to design a system of recompense for the losses and insecurity they have suffered.”

We did that on the basis that those women had paid into the system and been given a date to retire, but had not been given adequate notice. As a result, their life plans were changed dramatically and they suffered consequences. We co-produced a scheme that was expensive—I accept that—and that was going to pay out over a five-year period, but it would have meant that we resolved the matter once and for all. We were not elected, and that scheme never went forward.

When I saw the ombudsman’s investigation, I thought that at least something would be done. When the ombudsman’s report came out, I was not satisfied with it, but I thought it was at least something. Not having that implemented has crushed people; it has crushed their confidence in the system. I say to my own party, which is now in government, that we need the Government to sit down with the ’50s WASPI women and, if necessary, to either implement this scheme or mediate for an alternative, but we need action.

I say to the Minister that this issue is not going away. We are not going away. The women are not going away although, tragically, some of them are dying. This campaign will go on until we secure justice.

“Get Britain Working” White Paper

John McDonnell Excerpts

Tuesday 26th November 2024 Commons Chamber

[Liz Kendall]

I thank the hon. Gentleman for his question. Northern Ireland has one of the highest rates of economic inactivity in the United Kingdom, which is a real concern for me, and, I am sure, for him. I have already spoken to the Minister responsible. There are things happening in Northern Ireland that we can look at to see whether there are lessons that could be learned for elsewhere in the country. We will always work closely with the devolved Administrations to ensure that our plans match people’s needs in every part of the country, because that is what his constituents and the country as a whole deserve.

[John McDonnell (Hayes and Harlington) (Ind)]

Given the empty Opposition Benches, it looks like the Conservative party has adopted a policy of a three or two-day week to tackle the unemployment problem. I refer to my entry in the Register of Members’ Financial Interests as chair of the Public and Commercial Services Union parliamentary group. From the tone taken and the statement given today, my understanding is that the Government acknowledge that it will be support, not sanctions, that will tackle this issue overall, and that that support will come from new employment centres in our constituencies, staffed by fully trained, motivated and well-paid staff. The Secretary of State mentioned meeting businesses and mayors. May I ask that she also meets the trade unions? The PCS parliamentary group would welcome a meeting with her to talk through the roll-out of this programme, which will benefit both the staff and the recipients of their services.

[Liz Kendall]

I thank my right hon. Friend for his question. Our 16,000 work coaches and other frontline jobcentre staff are our biggest asset. Some have worked for the DWP for 25 or 30 years, because they care about their communities. They have been stifled by a system that had an overwhelming focus on monitoring and administering benefits. They know what their local areas want and need. I spoke to the head of the TUC yesterday about our plans. I am sure that either the Minister for Employment or I would be very happy to meet the PCS to talk about how we take these plans forward.

Social Security

John McDonnell Excerpts

Tuesday 10th September 2024 Commons Chamber

[John McDonnell (Hayes and Harlington) (Ind)]

When an issue such as this has been so heavily whipped, it is very difficult. I have not the eloquence to persuade people to vote another way, to be honest. I just want to make this as a personal statement, so that my constituents know why I am voting the way that I will today.

I agree with the Government on so many points on this issue. First, this is the most toxic inheritance that any Government have ever had. I did a report last September that said that between 2010 and now we have lost £80 billion, not £20 billion. On the £20 billion black hole, we sat here and listened to a Government making commitments that they knew they would never have to fulfil, because they knew they were going out of power. I agree with the Prime Minister and the Chancellor of the Exchequer that we must ensure financial stability and that our income matches our expenditure. I agree with the Prime Minister on the principle, and always have, that any burden should be placed on those with the broadest shoulders. This is where I disagree: the heaviest burden is not being placed on those with the broadest shoulders but on some of the poorest.

Large numbers of my constituents do not claim pension credit, and I will be out there like everyone else trying to persuade them to apply, but a lot of my voluntary organisations have been savaged by a Tory council. We do not even have the advice mechanisms left. I think that, at best, we can get to 70% or maybe 75%, but one in four will not be able to claim that benefit. I have large numbers of people who, for example, worked at the airport and got a little pension at the end, and they will be tipped into not qualifying. They are living in accommodation that those on the Opposition Benches provided, which is squalor, to be frank—they are living in not insulated, freezing accommodation. They are the ones at risk, as the hon. Member for Sleaford and North Hykeham (Dr Johnson) said, of going to hospital and not even surviving.

We are in an unnecessary position, because there is so much else we could do. We do not need to put the burden on the poorest. We need to make sure that those who can afford it pay. That means redistributive tax measures, equalising capital gains tax, tackling the corporate tax relief issues that we must confront, and making sure that the City pays its way in financial transactions. We do not have to be here. I hope that people learn the lesson as we move towards this Budget not to put us on this position again, where we take a decision based on, I believe, misjudgment. It certainly flies against everything I believe in as a Labour MP about tackling inequality and poverty in our society. I was not elected to impoverish my constituents and put them in this hardship. I regret voting for a motion put forward by these characters in the Opposition, but I will have to because there is no other mechanism. I want to look at my people back in Hayes in the face and say that I did the right thing.