Intergenerational Fairness

Debate between Lord Jackson of Peterborough and Julian Knight

1st reading: House of Commons
Tuesday 28th February 2017 Commons Chamber

[Mr Stewart Jackson (Peterborough) (Con)]

This has been an excellent debate, which was brilliantly introduced by the right hon. Member for Birkenhead (Frank Field) and has included thoughtful and intelligent contributions from all hon. Members.

This debate is about poverty, wealth, the accretion of assets and life chances. My grandmother, Kathleen Woodman, was one of 13 children born in County Wexford in Ireland. Eleven of those children died of tuberculosis before Kathleen was taken to England in the late ’40s to live out the rest of her life. I mention that because it is impossible not to remember that the reality of life for so many of our fellow citizens for so many hundreds of years was brutal, grinding poverty. We have come an enormous distance. I say to the right hon. Member for Birkenhead that, yes, there is much to be done, but we have done a great deal to right the wrong of the grinding poverty that afflicted so many people over so many years.

It is important to remember that the modern welfare state was debated after Lloyd George’s 1909 people’s Budget, which brought in social insurance, pensions and the pre-Beveridge foundations of the welfare state. For that reason, we ought to recognise that we have gone in the right direction over the years. To use another statistic, it is impossible to believe that 44% of the world lived in absolute poverty as recently as 1980. In 2015, that figure was 9.6%. We have done an enormous amount—through technology, science, innovation and advances in healthcare—to lift the burden of destitution, misery and poverty from our fellow man, and we should accept the importance of that.

I will confine my remarks to the specific issues raised in the report. The debate between the so-called millennials and the baby boomers does not have to be acrimonious and adversarial. None of us can do anything about the societal change inherent in it, which is essentially demographic. The number of over-85s will double in the next 25 years, and that is a fantastic piece of news. As recently as 30 years ago, people worked incredibly hard—often in manual work. They reached 70 and had a few years tending their plants or their budgie, and then they fell off their perch. That was the reality of our life then. People now are richer, happier and healthier, generally speaking, than they have ever been, and that is a good thing.

It is also true to say, though, that we have not always done the right thing in response to that significant demographic change. To go back to the points made by my hon. Friend the Member for North Swindon (Justin Tomlinson), we have made some policy mistakes. We had a fetish in the 1980s and 1990s for university education—academic education. We did not consider the importance of technical and vocational education to young people who were not necessarily academically gifted. We drove the target of 50% of 18-year-olds going to university, which is great if someone goes to Harvard, Oxford or Cambridge, but not if they go to a less prestigious university and end up earning £7.50 an hour in a call centre, with £40,000 of student debt. We have to really consider whether we made the right decision. For instance, we turned polytechnics, which did a great job in providing technical education for young people, into universities. Was that the right thing? We are doing our best now to ameliorate those issues by, for instance, creating university technical colleges and a brilliant apprenticeship programme across the country, but I am not sure that is enough.

Housing is an important issue, and it was raised by the hon. Member for Hornsey and Wood Green (Catherine West)—I think she got her figures the wrong way round, unless Muswell Hill has gone downhill a lot since I last visited it, compared with Wood Green. It is absolutely right to point up the issue of older people, who are, in any case, better off, hoarding capital assets and, particularly in the planning system, preventing younger people from having what they themselves had. When someone who wants to buy a home has to be 37 years of age and to have something like £25,000 for a deposit, that cannot be right, and it distorts the system. We must build more homes, release more land and liberalise the planning system to address the specific issue of housing and intergenerational fairness.

We have to look at the triple lock, and we need a national debate about it. I am indebted to the Resolution Foundation for the paper it produced last year—“Stagnation Generation: the case for renewing the intergenerational contract”—and for the work of Lord Willetts, among a number of people. It is scarcely believable that the Resolution Foundation could say:

“Millennials are at risk of becoming the first ever generation to record lower lifetime earnings than their predecessors”.

That is the political inheritance we are potentially giving to people who are under 30 at the moment.

[Julian Knight (Solihull) (Con)]

Does my hon. Friend therefore agree that we should reform pensions tax relief to enable younger people to save more? Three quarters of pensions tax relief goes to higher earners, who are often older. If we reformed it—moving to, say, 28p or 30p in the pound—lower-income people would have more bang for their buck.

[Mr Jackson]

I absolutely agree. In terms of fairness and social equity, that is an excellent fiscal policy, which we should look at.

As the Select Committee report said, we also need to look at the information gap. We need qualitative and quantitative data on what goes in and comes out across both generations. We need to publish that analysis and study it independently.

We need to look at universal pension benefits, such as the winter fuel allowance. With demographic change, it is inevitable that we need to make sure we marshal our public resources in the best way we can. We need to look at a smoothed earnings link—a nuance in terms of prices-related indexing of benefits to pensioners. Life expectancy is increasing and health outcomes are getting better.

It is not that we have not done a good job, with automatic enrolment, changes in tax allowances, the national living wage, record employment of 74.6%, apprenticeships, and real incomes now rising by 2.6%. As we have heard, the number of those not in education, employment or training is reducing. Youth unemployment in my constituency has seen one of the biggest falls in any constituency in England—about 70%. Work means wealth. Work is the biggest determinant of getting out of poverty. Albeit that it might be low-paid and low-skilled work at the beginning, it is the No. 1 determinant of breaking the cycle of intergenerational welfare dependency. It is hugely impressive that the Government have taken 865,000 people out of workless households since 2010, although obviously they need to do more.

Before I conclude, may I be a little disobliging to the Scottish National party? The hon. Member for Motherwell and Wishaw (Marion Fellows), who is an excellent representative of her constituency, was rather churlish in the partisan point that she made. If we are talking about ideology, perhaps she can explain the £2,000 gap per head in public expenditure as a result of the Barnett formula, as between my constituents and hers. I will leave that in the air for her to think about.

My hon. Friend the Member for Weston-super-Mare (John Penrose) made a superb speech. In fact, we do not have an approach where we just put money in a biscuit tin and take it out when we are 68 or 70—we have a pay-as-you-go system. We must have a national consensus and a proper debate on this issue, because we cannot kick it into the long grass any longer. As I said at the beginning, grinding poverty, destitution, ill health and hidden mental illness are all things that we never want to go back to. The system we have is a price we are paying for a civilised society.

Homelessness

Debate between Lord Jackson of Peterborough and Julian Knight

Wednesday 14th December 2016 Commons Chamber

[Julian Knight (Solihull) (Con)]

It is a great pleasure to follow the hon. Member for Dewsbury (Paula Sherriff). She is doing fantastic work in the area of tampons and provision for the homeless.

As a member of the Communities and Local Government Committee, I have seen for myself the challenges of homelessness. Nobody should have to live on the streets. Not only do too many do so, but many more are only one or two missed paycheques from joining them, and that is a real point in our society: there is so little buffer. So few people have savings in place, and so many of us are captured by debt. People find themselves in rental arrears with county court judgments and other factors that stop them getting further tenancy agreements. That blights the lives of thousands of people across this country.

My hon. Friend the Minister made a very brave speech, in which he said that there were failings, and that the figure for rough sleeping is not good enough in this country, in this economy at this time. That was very brave, in the face of a poised but also very political speech by the right hon. Member for Wentworth and Dearne (John Healey). I congratulate the Minister. His point stands, but I genuinely believe that there is a step change going on right now. Many of the statistics that have been mentioned in this debate—I will not rehash them—show that there is this step change. We need to work together, and, as the hon. Member for Westminster North (Ms Buck) said, we need interconnectivity. People need to stop working in silos and we need to think from start to finish.

[Mr Stewart Jackson (Peterborough) (Con)]

Does my hon. Friend agree that it is important that local authorities work together with the Local Government Association to tackle the pernicious practice—born of desperation—of local authorities shuttling their homeless people round the country to other local authorities, sometimes in the hands of rapacious private landlords who use housing benefit regulations loopholes to get more money? That sometimes means serving section 21 notices on existing tenants.

[Julian Knight]

That is a good point. I know for a fact that that occurs in my hon. Friend’s constituency, and he has seen the dramatic effects of moving people in that way.

The clearest example of the Government’s determination to tackle rough sleeping is the decision to support the Homelessness Reduction Bill, which was introduced by my hon. Friend the Member for Harrow East (Bob Blackman). It was drawn up by colleagues on the CLG Committee and based on our independent research and findings. The Bill would mandate councils to provide 56 days of support to homeless individuals, and to make sure that other services refer people who are at risk of homelessness to the council’s housing team. Most importantly, the Bill would require local authorities to help at-risk individuals to find accommodation before they end up on the streets—not no second night sleeping out, but no first night sleeping out. Such early intervention is crucial to tackling these problems before the costs, both financial and human, start to mount.

Although my patch, Solihull, aims to provide a high-quality response to the needs of those who are already on the streets, prevention has become the central focus of the borough’s homelessness strategy in recent times. The council and partners co-operate to identify and assist vulnerable households, members of which are in immediate danger of becoming homeless. I am pleased to report that our council has passed the first stage in achieving the gold standard for homelessness and housing advice services, and it has pledged not to rest until it reaches that goal and can guarantee Solihull residents the support services that they deserve and increasingly need. As my hon. Friend the Member for Colchester (Will Quince) has mentioned, there is a lot of hidden homelessness—sofa-surfing, and so on—even in seemingly well-to-do areas.

Unfortunately, the high standard of care for which Solihull aims is not universal. Earlier this month, many of my constituents and I were shocked to hear of a young man freezing to death in neighbouring Birmingham, as mentioned by the hon. Member for Birmingham, Erdington (Jack Dromey). I hope and believe that the Homelessness Reduction Bill will help to focus minds on the human costs of homelessness and guide local authorities towards effective policies that are preventive where possible, and remedial where necessary.

Enacting the Homelessness Reduction Bill would be a great step towards tackling homelessness in the best way: by preventing people from becoming homeless in the first place. That it was drawn up, unusually, by a Select Committee demonstrates the depth of concern inside and outside the House. The Government, Opposition parties and the country need to rise to that challenge together, and the Government’s support for the Bill is proof that they share that ambition.