Food Banks

Debate between Alex McIntyre and Danny Kruger

Tuesday 19th November 2024 Westminster Hall

[Danny Kruger]

We did not pledge to do it and we did not do it. I think it is important to have universal entitlement to essential benefits, but if there does need to be some means testing, surely it should penalise, or withdraw the payment from, only the wealthiest pensioners, not 90% as is happening under this policy.

The other thing that the Government have done is impose a significant tax on employment through the national insurance rise, which they promised not to do in their manifesto. The cost of that will fall disproportionately on low-paid workers, who will see the impact of that tax in their wage packet.

The Joseph Rowntree Foundation, which is no friend to my party, has pointed out that poverty is due to rise because of the Budget that the Chancellor has introduced. Every household type, except pensioners, will be poorer. Single-parent families will be £1,000 poorer. An average couple with children will be £1,760 poorer. Inequality will be higher. That is all the testament of the Joseph Rowntree Foundation.

The Office for Budget Responsibility points out that real wages will fall and indeed, the Budget has caused the OBR to lower its real wage growth forecast by 0.5%. As the OBR says, the Budget shifts

“real resources out of private households’ incomes in order to devote more resources to public service provision.”

That might indeed be the policy that the Government want to pursue, but the effect will to be to reduce household income, as the OBR acknowledges.

[Alex McIntyre]

Will the shadow Minister acknowledge that the OBR actually said that 90% of households will be better off under this Budget, and it is only the wealthiest 10% of households that will feel the cost, making sure that we are spreading the cost on to those shoulders that can bear it most?

[Danny Kruger]

As I said, I do not think that withdrawing the winter fuel payment from 10 million pensioners reflects a transfer of the burden on to those who can bear it most—nor does imposing a taxation on low-paid jobs.

What shall we do about all this? I am sorry to say that I have not heard enough in the debate about what could and should be done, although I acknowledge that the hon. Member for Aberdeenshire North and Moray East made some suggestions—many of which I agree with, particularly around the importance of having an adequate safety net. I, too, look forward to the universal credit review that the Government are bringing forward, and I strongly agree with the focus on nutrition and empowering communities.

I do not agree with the need for the essentials guarantee, although I respect that campaign. I do not think that transferring responsibility for setting benefit levels to an independent body—essentially, to an unaccountable quango—is the right way to go. The Government should be responsible for that policy, and accountable to Parliament, rather than an independent body.

If we look at the drivers of food bank use as reported in “Hunger in the UK”, we need to improve the benefits system and make it quicker and easier to use. I look forward to seeing how the Government are going to improve pension credit applications to improve winter fuel payment access. We need to drive up wages again; I deprecate the introduction of taxation on wages. We need to grow our jobs market and ensure that it is easier and better for employers to take workers on and promote them—which, I am afraid to say, the Employment Rights Bill that we are anticipating will not do, given that it imposes punitive obligations on employers from day one.

I am conscious that my time is almost up, so let me finish with this point. I praise the flexibility of food banks, and the human relationship that they imply: the hon. Member for Aberdeenshire North and Moray East talked about the powerful sense of community. A quiet revolution happened during the covid pandemic that momentarily offered a better social and economic model in which remarkable innovations, particularly around food and provision to the poorest among our neighbours, were enabled to flourish.

I agree that we want food banks to be redundant, but while we have hardship they can be an important part of the mix. I pay tribute to other innovations such as social supermarkets as well. Lastly, I do not agree with the hon. Member that we need a more central strategy and direction for the household support fund. Its great value is in the innovation that it enables, and the way that it empowers local communities, which he said that he believes in, to ensure that local authorities can take responsibility for supporting their communities. That is an important innovation that was brought in by the last Government, which I supported, and I hope that it will continue.