Wealth Inequality

Debate between Lord Newby and Baroness Hussein-Ece

Wednesday 21st January 2015 Lords Chamber

[Lord Newby]

As the noble Lord will know, in terms of wealth, the largest assets held by most people in the UK are housing assets. The Government have taken a number of steps in terms of taxing high-value housing. There is a lively debate about that in terms of the upcoming election. As for income, I remind him that the top 1% is now paying 28% of all income tax receipts, the highest ever level.

[Baroness Hussein-Ece (LD)]

My Lords, does my noble friend accept that the evidence of growing inequality in society reflects the stagnation in social mobility? British society is becoming more and more unequal and polarised, with fewer opportunities for young people, particularly those from deprived backgrounds, to progress in the 21st century than was the case in the previous century. What steps are the Government taking to address that?

[Lord Newby]

My Lords, I make two principal points. The first is that the increased level of employment means that there are now 390,000 fewer children living in workless households, which sets a very important example in those households about their future life prospects. The other point to bear in mind is that there are now record numbers of people from disadvantaged backgrounds going to university, which, as we know, is one of the best ways of ensuring that people get a good, well paid job.

Economic Inequality

Debate between Lord Newby and Baroness Hussein-Ece

Monday 10th February 2014 Lords Chamber

[Lord Newby]

My Lords, the prior question to that is: why are these changes being made? The answer is that we inherited a completely unsustainable economic circumstance which this Government are putting right.

[Baroness Hussein-Ece (LD)]

My Lords, despite recent efforts there remains a significant youth unemployment gap between black and white youths and some ethnic minorities—45% compared to 19%. While urgent improvements in skills and employability are needed to reduce the remaining structural problems, what more is being done to tackle the racial inequality that appears to be the key underlying factor?

[Lord Newby]

My Lords, one of the key challenges that the Government face is that educational attainment for some ethnic minority groups is lower than for others. That is why the priority being put in by the Government, via the pupil premium, to those schools with a larger than average proportion of children from those backgrounds is so important. Raising their attainment, as well as, as we have heard in an earlier question, putting in place UTCs, will provide much more vocational training, which is one of the key things for helping children from those communities.