(1 year, 6 months ago)
Lords ChamberWe are certainly aware of the severe difficulties in some cases that households are experiencing. Our way of dealing with this—we are aware of the report, as I said earlier—is that, following the Autumn Statement announcement, measures directly aimed at helping households with cost of living pressures in the coming year 2023-24 are now better targeted to low-income households. Support provided from the £3,000 EPG and cost of living payment is on average more generous for households in the bottom four income deciles than our £2,500 cap alone.
My Lords, could the Minister remind the House what the point of the two-child limit is and what its impact is on the provision of essentials?
(3 years, 8 months ago)
Lords ChamberThe £20 uplift in universal credit has done an outstanding job. The Chancellor put it in place in a temporary way, and I guess tomorrow we will find out the intentions for the future. But please be assured that I am very happy to go back to the Chancellor and share the views of the noble Baroness and many others who have made that point.
My Lords, I congratulate the Government on what they have done in this respect in supporting so many vulnerable people during the pandemic. However, does the Minister agree that the danger of the cut that taking away the £20 a week would be is that the Government would get a short-term saving, but would pay far more in the longer term because of some of the social costs? Given the number of people we see using food banks in my diocese and around the country—including working people—and the number of children in poverty and likely to go deeper into it, the remedial costs of supporting them into the longer-term future will far outweigh anything paid now.
The right reverend Prelate makes an important point. The £20 uplift has made a significant difference and, like the noble Baroness, Lady Sherlock, he has outlined some of the impacts that would happen should that be stopped. I am terribly sorry, and I wish it were not the case, but I do not have the Chancellor’s ability to make a commitment today.
(5 years, 4 months ago)
Lords ChamberMy Lords, I believe in equality. Some of the rapporteur’s recommendations show a rather myopic understanding of universal credit. When I broached the subject of this report while representing Her Majesty’s Government at the UN last week, it was clear that everyone who knew about it was keen to distance themselves from it, preferring to compliment this Government on, “Groundbreaking, exemplary and world-leading policies in the area of work and pensions.”
My Lords, if the success is so great, why are so many schools in my diocese having to feed children, and why does almost every parish contribute to food banks?
My Lords, we have done an enormous amount to tackle poverty since we came into government. We have invested huge sums of additional money into developing a welfare system that encourages people into work and supports them in work and with progression in their jobs, so that they can better provide, because we know that the best way to get out of poverty and save children from it is to work. As the IFS said today:
“Absolute poverty remains at its lowest ever level”.
(7 years, 3 months ago)
Lords ChamberMy Lords, we are working on our strategy for childcare because we understand that, if we are to have people in work, we have to have the right system in place supporting childcare that works for everyone. I know that colleagues across government are looking at this at the moment, improving on the support for young families that we already have. The reality is that we want to focus on prevention through getting more people into work, because we know that that increases people’s confidence and their health and well-being, and all that impacts on the child and their future levels of attainment and well-being.
My Lords, does the Minister agree that there is a problem here, in that we want to applaud the employment figures released today but, at the same time, we need to recognise that it is people in employment who are using our food banks, where the numbers have rocketed in the last few years? Therefore, the simple statement that we applaud the rise in employment disguises a deeper problem.
I entirely agree with the right reverend Prelate that it is not a question of just making statements; it is more about making sure that we do the right things from the bottom up. We have to take on board the fact that we continue to spend over £90 billion a year on benefits for people of working age but that targets to put more into that area have not worked in the past. The reality is that we know that children in families where no one works are significantly more disadvantaged and achieve poorer outcomes, and it is right that we focus on improving the long-term outcomes for those children. Improving Lives: Helping Workless Families provides a framework for a continued focus on tackling worklessness. For those in work, we have introduced major reforms to make work pay, and we are introducing universal credit to strengthen incentives for parents to move into and progress in work.
(7 years, 12 months ago)
Lords ChamberMy Lords, we have heard a number of impressive figures and statistics this evening. It seems to me that the principle underlying all this is that you can save money with one hand but you will pay it out with another. According to End Child Poverty statistics released this month, we have 3.5 million children living in poverty in the United Kingdom in the 21st century. In some regions, up to 47% of children are living in poverty. In my own diocese, in the Bradford local authority area, 32.7% of children are living in poverty after housing costs. The national average is 29%. In Leeds Central, it is 41.8%. If children are living in housing and food poverty—as we know they are from food banks and all the other stuff we see on the ground in our cities, towns and rural areas—then we will end up paying out through the National Health Service and in other ways for the consequences of what children do not have at present.
Could the Government see their way to reducing the impact of this change on children by excluding children’s benefits from the cap, so that families always receive a basic income to spend on their children’s needs? Secondly, could the Government reverse the reductions to in-work allowances under universal credit in order to incentivise moving into work through the provision of better in-work financial support, recognising that much of the poverty we see around us involves those who are in work? I support the Motion to Regret.
My Lords, I thank my noble friend Lord Kirkwood of Kirkhope for moving this regret Motion. He has raised a very specific issue about the need for additional support to be made available to help those affected by the cap to find work. But, as we have heard, the issue is broader than this. The Government need to get to the heart of the problem, which previous speakers have identified, which is that they have not been building enough new homes, and as a consequence prices have been rising steeply, whether for owner occupation or for rent.
Crucially, the Government’s emphasis on subsidising owner occupation has left the social rented sector seriously short of funding and therefore of supply. Those who cannot afford to buy are increasingly forced into the private rented sector, with its high rents in most parts of the country. We heard from the noble Lord, Lord Best, about the implications for the private rented sector and the likelihood that the availability of homes in the private rented sector will decline for those who are on housing benefit.
Building more homes will help to hold down rents, which in return can reduce the Government’s revenue costs in terms of housing benefit. I understand that there is to be a White Paper on housing supply shortly. That is welcome, but can the Minister confirm whether the purpose of that White Paper is to address the lack of social rented accommodation? Might it also address the absurdity of calling a home “affordable” when for many people such homes are nothing of the kind?
Meanwhile, the impact on homelessness of lowering the cap could be severe. The Government are already committed, as we have heard, to supporting the Homelessness Reduction Bill, but their support for the Bill seems to sit oddly with this cap, which will actually increase homelessness. We have heard a whole set of disturbing figures, from the right reverend Prelate the Bishop of Leeds and others. I understand that Shelter has estimated that there will be more than 120,000 children in temporary accommodation at Christmas. I find that disturbing. Also disturbing is the fact that since the original cap was introduced, around 70% of those affected have not found work. So doubling the number subject to the cap and worsening it for those already subject to it means that many more people who are already poor are going to be made poorer.
When the Prime Minister took office, she declared that his was a Government for all the people. But this is a dubious claim when poor people are being made poorer. The Government must show that they are prepared to invest further in helping people back into work, at decent rates of pay, thus overcoming the barriers so many can face daily in their attempts to do so. If the Government do not do that, they are simply widening social and financial inequalities in our country, which is unacceptable.