Social Security Advisory Committee: Winter Fuel Payment

Andy McDonald Excerpts

Tuesday 12th November 2024 Commons Chamber

[Emma Reynolds]

If the hon. Lady looks at the equality analysis, she will see that those with a disability will be disproportionately likely to retain the winter fuel payment. I urge her to have a look at that.

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

I thank my hon. Friend for her response to the urgent question. We had a Budget that did so much good for our country in the face of the most dreadful inheritance, and the Labour Government should be congratulated on that. But pensioners in Middlesbrough and Thornaby East are still looking to the Government to further mitigate the impact of the cut to the winter fuel payment. Much has been done by the elected Mayor Chris Cooke to embrace the issues around the household support fund and so on, but the Social Security Advisory Committee noted that the £1.4 billion was based on an increase of only 5% in pension credit take-up, from 63% to 68%. Could the Minister say what the increase in take-up has been to date, and what further steps she will take to provide yet further mitigations and reduce pensioner poverty?

[Emma Reynolds]

We will announce new statistics at the end of this month. The committee asked about the 5% increase; that assumption is based on what happened when the previous Government took away free TV licences and people had to apply for them. The OBR accepted our assumption.

Winter Fuel Payment

Andy McDonald Excerpts

Tuesday 10th September 2024 Westminster Hall

[Rachael Maskell]

A Labour Government must always protect the poorest in our society.

The total saving for this year—£1.3 billion—is 0.1% of the total Treasury spend. However, when only 1.6 million pensioners not on pension credit need energy support, that drops to 0.04% of the Government’s budget, assuming that all get the top rate of £300, although most will get less. If we add in additional health and care costs, the saving shrinks again.

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

I congratulate my hon. Friend on securing this debate. The Social Fund Winter Fuel Payment Regulations 2024 will take up to £300 per household from two groups of low-income pensioners: those eligible for pension credit who do not claim it and those who are just over the pension cliff edge but still living on very little. As I understand it, pension credit take-up rate is around 63% and, at best, will be around 68%. The saving to the public purse is predicated on that basis, but the savings will be wiped out if everyone eligible for pension credit took it up, which surely should be the goal. Does my hon. Friend agree that this proposal simply does not stack up?

[Rachael Maskell]

My hon. Friend has done the maths, and I think it speaks for itself.

The Chancellor cannot make this just an economic argument, because there is also a humanitarian cost. We need the capacity to find an “escape route”, as the former Chancellor, Ed Balls, stated, because people need a safety net. When Labour’s Gordon Brown came to power, he said he was

“simply not prepared to allow another winter to go by when pensioners are fearful of turning up their heating, even on the coldest winter days”.—[Official Report, 25 November 1997; Vol. 301, c. 780.]

Now, they are fearful. The winter fuel payment covered around a third of people’s bills, but it now covers only 12% to 17%. With the 10% rise in the price cap on 1 October, and without cost of living payments, pensioners are exposed to far greater risk. The average bill is £1,717, but older people are at home more, and more likely to live in homes that are less efficient, so they will pay even more.

--- Later in debate ---

[Andy McDonald]

I wholeheartedly agree that the Minister has inherited the most dreadful legacy from the absent Conservative party. Could she clarify for me the issue of take-up of pension credit? It currently sits at 63%; the ambition is 68%. What would happen to the proposed savings of £1.4 billion if pension credit was successfully rolled out to everybody entitled to it? Would those savings not disappear?

[Emma Reynolds]

The savings we have estimated—£1.4 billion this year and £1.5 billion in the next financial year—take into account a boost in the uptake of pension credit. We are absolutely determined to see an increase in that uptake, so the Secretary of State and I have already engaged with charities and local authorities. The Secretary of State spoke to Age UK and Citizens Advice about how we work together.

Last week was Pension Credit Week of Action. I encourage hon. Members to look at my X, although I know it is not so fashionable with everyone these days, for a video of a visit I did last week precisely to raise awareness of pension credit. Pension credit is not a simple process—we are looking at how to simplify it—but charities such as Age UK and Citizens Advice will help pensioners to go through it online. The online version is much simpler than the paper version, believe it or not, as the paper version has lots of questions that will not be applicable. We are also delivering a major campaign in print and broadcast media, including for people to reach out to retired families, friends and neighbours to urge them to check if they are eligible.

We will write to all pensioners about housing benefit; this is a question that one of my hon. Friends asked me yesterday. He had a constituent on housing benefit who was concerned that that would be taken into account as a form of income when the Government looked at his eligibility for pension credit. I confirm that that is not the case: housing benefit is not taken into account with regard to income. Please, I urge pensioners on housing benefit, who will be receiving a letter from the Department, to apply for pension credit.

As a Government, we are looking to merge the administration of housing benefit and pension credit to make that much simpler for people. The previous Government promised they would do that—some years ago, in fact—but were not going to until 2029. We think that that was slow decision making, and we are seeking to do it as soon as is operationally feasible. It is not a simple exercise, but it is something that we should do.

Autumn Statement Resolutions

Andy McDonald Excerpts

Monday 27th November 2023 Commons Chamber

[Andy McDonald (Middlesbrough) (Ind)]

The Government have tried some sleight of hand with this so-called “autumn statement for growth” just as the OBR has revised its projections for the economy downwards. Indeed, the OBR’s figures for the coming years tell a very different story from the Chancellor’s: GDP growth was nil in the three months to September, while the OBR has revised growth for next year down by more than half from 1.8% to 0.7%, for the year after that down from 2.5% to 1.4%, and for 2026 marginally down as well. These figures are cause for alarm, signalling a potential economic downturn. In fact, retail sales are already falling and unemployment is rising. The OBR now forecasts that unemployment will go even higher than previously thought, reaching 4.6% by 2025.

If we have learned anything from the past 13 years of the Tories at the helm of the economy, it is that working people and the most vulnerable in our society are always the ones who are made to pay the price for their damaging decisions. A clear example is the Chancellor’s spin over the cuts to national insurance, which in reality will give back to workers less than a quarter of the £44.6 billion that will be taken away from them in frozen tax thresholds by 2028. As my hon. Friend the Member for Halton (Derek Twigg) advised, the 5% energy price cap rise will impact as well. These national insurance cuts will not do anything to help those earning less than the threshold, who are mostly low-paid, part-time workers and those in the gig economy lacking basic employment rights and protections, and they will disproportionately impact women.

Furthermore, the total absence of additional funding for public services will hit those most in need the hardest. Taking £1.2 billion out of the pockets of disabled people and affecting 700,000 people with a one-third cut in their benefits and increased conditionality, while handing businesses £12 billion in tax giveaways, is totally unconscionable. But it serves as a reminder, if we ever needed one, of whose interests the Conservative party serves. It is not its billionaire backers who will be impacted by the record waiting lists in the NHS, as they all have private healthcare, nor will it be their children whose education is negatively impacted by cuts to school budgets. How can the Government claim to be promoting economic growth when the very fabric of our society is fraying at the seams after more than a decade of crippling austerity?

At the local authority level, as well, we are seeing councils across the country teetering on the brink of collapse. They have enormous holes in their finances. What do we on Teesside get from the Government in response? We get the condescending slur of “holes” of a different variety.

Thanks to the Conservatives’ decision to slash local government funding, along with the disgraceful mismanagement of the previous administration in my town, Middlesbrough Council has been put in the unwelcome position of having to sell its major income-generating assets to try to deliver a balanced budget. While food banks creak under the strain and thousands of children go to school hungry, we have the farce of Members on the Conservative Benches blaming the newly elected Labour administration for clearing up the mess left by others.

Another matter that the Chancellor addressed in his statement that has a major impact on my constituency relates to freeports. The Government have announced their intention to extend the duration of the tax reliefs available in freeports from five to 10 years. The Chancellor explained that this decision was made in part thanks to “tenacious representations” by

“the unstoppable Mayor of Tees Valley”.—[Official Report, 22 November 2023; Vol. 741, c. 332.]

I must say that that description of the Mayor is not incorrect. He has certainly been unstoppable in locking the taxpayer into dreadful deals that set up private investors with all the reward but none of the risk, which is left to the public purse. In the latest edition of Private Eye we are told how the reckless boasting of Lord Houchen regarding the announcement of British Steel setting up an electric arc steel recycling plant on Teesside—on its own land—has left the Chinese-owned company with the British taxpayer over a barrel. Too eager to claim credit for something that has nothing to do with him and to present the deal as done while the company is still in negotiations with the Government over subsidies, he has potentially cost the public purse astronomical amounts of money. Such is the arrogance displayed by the Mayor, his office even put out a video showing him hand-signing a legal agreement with the caption “new electric arc furnace”, although on closer inspection the document turned out to be an old one for a solar farm.

This sums up how the Conservative party operates: all smoke and mirrors, when behind the façade its decisions only leave the British public worse off, much like this tawdry “autumn statement for growth”. The Home Secretary really let the Tory party mask slip with his foul-mouthed outburst last week, but he and his colleagues should be in no doubt that the people of Teesside and people across the country have long memories and will let their voices be heard at the ballot box as soon as they get their chance.

[Several hon. Members rose—]

Oral Answers to Questions

Andy McDonald Excerpts

Monday 4th September 2023 Commons Chamber

[Kate Osborne (Jarrow) (Lab)]

2. What assessment his Department has made of the effectiveness of its policies on reducing regional inequalities in employment.

[Andy McDonald (Middlesbrough) (Lab)]

7. What assessment his Department has made of the effectiveness of its policies on reducing regional inequalities in employment.

--- Later in debate ---

[Mel Stride]

I have no problem at all with defending the Government’s record on employment. There are now nearly 4 million more people in employment than there were in 2010, including about 2 million more women, and unemployment across the country, including in the north, is at a near-historic low.

[Andy McDonald]

In his blog today on ConservativeHome, Lord Ashcroft says:

“On the cost of living, two thirds of voters...thought the Government could do more to help but was choosing not to.”

Given the regional disparity in earnings, does the Secretary of State accept that the roll-out of fair pay agreements providing sectoral minimum terms, as outlined in Labour’s “A New Deal for Working People”, would not only boost the economy but address the blight of in-work poverty and insecure work that is having an impact on so many households in my constituency and throughout the country?

[Mel Stride]

The hon. Gentleman raises the issue of support during the cost of living squeeze that we are experiencing. My Department has been responsible for distributing millions of payments to the most vulnerable people, including £900 in total to 8 million low-income households, £150 to 6 million disabled people and the £300 payment to pensioners. On the question of work, we put up the national living wage by over 9% to £10.42 this April.

Oral Answers to Questions

Andy McDonald Excerpts

Monday 5th December 2022 Commons Chamber

[Tom Pursglove]

I am grateful to my right hon. Friend for asking about that. It is right that we work across Government to identify priority areas where we can deliver meaningful change and progress for disabled people to improve their lives. That is what that action plan will do. We will be drawing up ideas, consulting on them, and then getting on delivering them. I look forward to hearing his views as we take that work forward.

[Andy McDonald (Middlesbrough) (Lab)]

T8. My constituent, Brandon, was medically discharged from the armed forces in 2020 after serving six years. He sustained a number of physical injuries and mental health consequences, but the DWP is failing to adhere to the armed forces covenant and to recognise the Ministry of Defence’s medical assessment for universal credit purposes, or to recognise the assessment of Combat Stress for personal independence payment purposes. Will the Minister consider his case and take the appropriate action to address those deficits?

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

I thank the hon. Gentleman for raising that matter and it is a concern. There are 11 armed forces leaders and 50 champions across the DWP. I would be very happy to look at this particular case, if he were able to raise it directly with me.

Draft Biocidal Products (Health and Safety) (Amendment) Regulations 2022

Andy McDonald Excerpts

Wednesday 23rd November 2022 General Committees

[Mims Davies]

I have many notes. I thank the hon. Member for Lewisham, Deptford for her questions and the spirit of them—I am being passed even more notes, so I feel pretty sure that I can answer most of her questions.

Let us start with the most important issue: resourcing and funding. The HSE has already increased the number of staff working on chemicals regulation by around 40% from 256 in March 2020 to 355 in March 2022, with further significant recruitment planned over the next two to three years, which I hope answers the question raised by the hon. Member for Birmingham, Hall Green. That reflects the need for increased resources for the HSE’s post-EU exit responsibilities.

Likewise, the total budget for the HSE’s chemicals regulation division has grown by 39% from £22.4 million to £31.2 million between 2018-19 and 2022-23. It was always anticipated that it would take several years to reach full operating capacity following Brexit, due to the need to recruit and train large numbers of new staff in specialist disciplines required for chemicals regulation.

It is an honour to be the Minister responsible for the HSE. The depth of work it does across covid and all sectors is a joy to behold and learn from, with its cost recovery scheme and the way that it works. One of its recruitment plans is to grow and progress more of its own people, which I very much welcome.

[Andy McDonald (Middlesbrough) (Lab)]

Given what the Minister just said, does she see it as a matter of regret that we have lost over 400 HSE inspectors since 2010? During the covid crisis, their roles had to be adopted by debt collectors, who were performing their functions by inspecting premises and carrying out tick-box exercises in their stead.

[Mims Davies]

I thank the hon. Gentleman for that point. In the time that I have been working with the HSE as a Minister, whether on visits to Derbyshire or to Bootle, I have been really impressed with its ingenuity and the way it has got people to come into the sector, grown its local workforce and given people opportunities. It is brilliant at bringing people in and training them. If he is saying that we welcome people from all walks of life to come into this growing sector, we are on the same page.

[Mims Davies]

My right hon. Friend is right to talk about learning and development within the business, which is really important. In my engagement with and visits to the HSE, it has been very clear about that, but it also has many people in the field and around the country who balance working from home with working from the base where they deliver their processes. It is a mixed picture, but I am happy to look at that point and raise it with management.

The HSE’s chemicals regulation division has reached full capacity and will be in a position to meet the usual timescales set out in the legislation, but it is important to bring this measure to the House, to give us the time to achieve this recruitment and, ultimately, make sure that this area is safe and works. I hope that reassures hon. Members.

The hon. Member for Lewisham, Deptford asked why we have to do this and whether we envisaged the timetables. The changes will ensure that regulatory deadlines provide sufficient time for the HSE to clear the backlog of applications, and will give legal certainty to the affected businesses, whose products, vitally, will be able to remain on the market while their applications are, rightfully, assessed.

The active substances will be reviewed by the HSE, and the legislation allowing flexibility and timeliness should be welcome. I reassure hon. Members that the work to review the programme is in development. The HSE will continue to communicate and engage with stakeholders on its work in due course. It has already started work on evaluating the active substance applications, which fall outside the formal review programme.

There was a question about how the businesses will be notified about applications. Businesses have been notified and have submitted more than 400 biocidal product applications. That includes new applications, changes to existing authorisations and renewals, while 250 are complex new applications, which require the most resources. Compared with the EU workload, that represents about 70% more than anticipated, but I strongly believe that the HSE can withstand that. I thank the hon. Member for Lewisham, Deptford for making those points.

I have covered the staffing measures. On the long-standing transition arrangements that allow the biocidal products to stay on the market until their applications are assessed, most affected products have previously been on the market for many years, and in most cases in the EU as well. I reassure colleagues that this is nothing for us to worry about. The HSE has the experts, and the draft regulations will allow it to do its work and to monitor as it can and should.

The HSE has a process for monitoring international scientific information of relevance to UK active substances and products, including the EU assessments. Should new evidence emerge, the HSE will again work with any relevant regulatory agencies and take any suitable action as a result.

[Andy McDonald]

The Minister is being generous in giving way. Given the commitments she has made this afternoon, is she able to give any indication to the Committee as to the increase in the HSE’s budget following the autumn statement? It has an awful lot more work to do.

[Mims Davies]

I am happy to write to the hon. Gentleman about the budget. I have information about the staffing that I can give him, but I point to the cost recovery in this area. The HSE is exemplary on that. I am happy to write to him with more detail, if that is helpful.

I want to cover data; forgive me, I have so many notes here, I cannot find the bit on data. Here we go—so many bits of paper! I hope hon. Members appreciate that this is a technical instrument and it is important that we get it right. I would rather give more detail and data than less.

The HSE’s assessment of biocidal products remains based primarily on the data submitted by the businesses. They have to act for the authorisation in place for their products on the market. The businesses can continue to do that without access to the EU databases. That is not under threat. The risks of loss of access to the EU databases are being considered as part of HSE’s work to manage biocide authorisations taking into account the loss of access to EU databases, but HSE’s long-term objective is to develop solutions that will allow the authorisation processes to work without disruption, so that no risks materialise.

I hope that I have covered most of the questions put to me. I welcome the Committee considering the draft regulations. I reiterate that the statutory instrument is a technical change only and that there are no policy changes. It relates to biocidal products that are used to control harmful organisms, including disinfectants, insecticides and rodenticides—products that have important roles in protecting human health and critical infrastructure. The instrument will therefore allow us to ensure that the legal supply of such products is not impacted in the long term.

The draft instrument provides important additional time for the HSE to complete biocide authorisations while applications are addressed, and extends the relevant deadlines by a one-off period—I stress the “one-off”—of five years after the regulations come into force, by which time the HSE forecasts that the authorisations will have been cleared. After that, it will return to the normal processing times set out in legislation.

I remind the Committee that no cost to businesses arises from the changes made in this draft statutory instrument. Importantly, it provides legal certainty that, where biocidal products are already on market in Great Britain waiting for an authorisation decision, they can continue to be used and supplied. That will ensure that suppliers of biocides are treated fairly and that there is no disruption to the legal supply of essential biocidal products while the backlog of applications is cleared.

The draft regulations provide a transitional measure to supplement the existing Great Britain biocidal products regulation or GB BPR, bringing over the last elements of pre-EU exit regulation. That change ensures that a certain type of biocidal product authorisation application, namely same product applications, can be treated in an identical way to other applications. Again, that has no impact on businesses and is a technical correction to ensure the biocide regime is now fully functioning as intended.

To conclude, the draft instrument will provide the necessary extension to the legal deadlines to enable HSE to process affected biocidal product authorisation applications. That will provide legal certainty to businesses that biocidal products on the market awaiting their application to be processed can remain there. In turn, biocidal products essential to the functioning of society can continue to be made available and used appropriately.

Question put and agreed to.

Draft Chemicals (Health and Safety) Trade and Miscellaneous Amendments Regulations 2022

Andy McDonald Excerpts

Wednesday 7th September 2022 General Committees

[The Parliamentary Under-Secretary of State for Work and Pensions (Julie Marson)]

I beg to move,

That the Committee has considered the draft Chemicals (Health and Safety) Trade and Miscellaneous Amendments Regulations 2022.

It is a pleasure to serve under your chairmanship, Dr Huq. I am conscious that I may not be the Minister that Committee members were expecting, and I congratulate the new Secretary of State for Work and Pensions, the hon. Member for Norwich North (Chloe Smith) on her appointment.

This draft statutory instrument was laid before Parliament on 23 June. As part of this Government’s ambitious international trade agenda, the United Kingdom signed a free trade agreement last year with European economic area and European Free Trade Association countries, such as Iceland, Liechtenstein and Norway. The agreement included a chemical annex as part of the technical barriers to trade provisions, which committed both parties to co-operate in the field of chemicals regulation. The draft statutory instrument makes a provision for this chemical annex, so that the Health and Safety Executive can share information on chemicals that it holds, such as individual regulatory substance evaluations and risk assessments with the authorities in those countries.

The SI also allows the UK authorities to use information received from EEA and EFTA countries to help ensure protection in the areas of health and safety, the environment and consumers. The sharing of information will promote greater transparency and understanding of our respective regulatory approaches and of chemicals safety. It will also help to create a greater understanding of the decision-making processes in the UK, which will build trust and confidence with the EEA and EFTA countries, enhancing the robustness of decision making and therefore reduce regulatory costs for UK businesses wishing to place chemical products on the market in EEA and EFTA countries.

The SI also corrects three minor outstanding deficiencies in retained chemicals law relating to leaving the EU, to ensure that the chemicals regime continues to operate effectively and to remove references to the EU in relevant pieces of legislation. There are no policy changes or changes to duties. As the instrument is so technical, I am sure that a brief summary of the changes will be welcomed.

The first of the three retained regulations to be amended is the GB biocidal products regulation, which governs the placing on the market and use of products that contain chemicals that protect humans, animals, materials or articles against harmful organisms such as pests or bacteria. It is in place to ensure that those chemicals are safe for humans, animals and the environment, while improving the functioning of the biocidal products market. The market covers a wide range of products such as wood preservatives, insecticides such as wasp spray and anti-fouling paint to remove barnacles on boats.

Secondly, the GB classification, labelling and packaging of substances and mixtures regulation ensures that the hazardous intrinsic properties of chemicals are properly identified and effectively communicated to those throughout the supply chain, including to the point of use, partly through standardised hazard pictograms and warning phrases associated with specific hazards, such as explosivity, acute toxicity or carcinogenicity.

The third amendment is to the GB prior informed consent regulation, which implements the UK’s obligations under the international Rotterdam convention and requires exports of listed chemicals to be notified to the importing country. For some chemicals, the consent of the importing country must be obtained before export can proceed.

In addition, this SI makes minor technical amendments to several pieces of EU-derived domestic legislation. The provisions for CLP, BPR and PIC, which I have just mentioned, were brought into GB law from EU law. However, during the process, some EU references within the legislation were not removed, so the SI will ensure those references are removed so that CLP, BPR and PIC work as domestic legislation in Great Britain.

[Andy McDonald (Middlesbrough) (Lab)]

I was not intending to speak, but, just from listening to what the Minister has had to say, does it not occur to her that we, as the authors of the REACH—registration, evaluation, authorisation and restriction of chemicals—regulations in the first instance, have now spent all of this time rewriting things to simply delete references to the EU regulations, and barriers now exist? Has she made any assessment of the cost incurred in trying to make this transition—the cost to businesses in my constituency, who are heavily dependent on engaging with the European Union—and what the fall-off in trade has been? Has any assessment been made?

[Julie Marson]

I thank the hon. Gentleman for his question. I would just point out that REACH is a completely different issue. That is covered by the Department for Environment, Food & Rural Affairs. I take his point about the changes that have ensued from the changes in bringing EU law into UK law, but I would emphasise to his question that there are no costs involved in this SI—in these changes to UK businesses. In fact, this is about moving barriers to trade through replicating EU trade agreements with other countries, so it is actually working to remove costs and trade barriers.

Oral Answers to Questions

Andy McDonald Excerpts

Monday 21st March 2022 Commons Chamber

[Mims Davies]

I am going to try, Mr Speaker.

That may be a devolved issue, but I would point out that many employers in Wales have been putting on transportation to bring workers in. That has been happening particularly in Ynys Môn—in Anglesey—to support production there. Working with the jobcentre to put on suitable transport makes a difference in getting people into work too.

[Andy McDonald (Middlesbrough) (Lab)]

T7. Pensions and benefits have been uprated by 3.1%, whereas inflation is set to be 6.2%, or 8% if The Daily Telegraph has got it right. That means that pensioners and benefits recipients will not be able to pay for the most basic essentials. How can the Minister look people in the eye when the Government have inflicted yet another real-terms cut?

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

The factual matter is that the state pension has increased by in excess of 5% over the past two years. There is also £5 billion-worth of pension credit—I encourage the hon. Gentleman to get his vulnerable constituents to apply for that—and the Chancellor’s £9.1 billion package for energy bills. I also encourage the hon. Gentleman to get his constituents to apply to the local authority fund.

In-work Poverty

Andy McDonald Excerpts

Wednesday 16th March 2022 Westminster Hall

[Andy McDonald (Middlesbrough) (Lab)]

It is a delight to see you in the Chair, Ms Rees. I thank my hon. Friend the Member for Easington (Grahame Morris) for securing the debate.

If anything proves how broken the current economic model is, it is the extent of in-work poverty—it does just that. I have listened carefully to the remarks from Government Members. You would not think, Ms Rees, that they have been in power for 12 years. The hon. Member for Darlington (Peter Gibson) talks about work being the best route out of poverty. Are cleaners not entitled to a decent wage? Are security staff who keep our hospital staff and patients safe not entitled to a dignified life? Are care workers not entitled to the decency of a wage that they can live on? Are the shopworkers who we applauded not entitled to be able to make ends meet? Or have people got to leave those jobs and get “better” ones? What an indictment it is on this Government that they say such a thing.

It is a fact that one in six working families is now in poverty—a record high. It puts paid to all the Tories’ boasts of job creation when the jobs that they are creating still confine people to destitution. The latest employment figures, published by the ONS yesterday, show that real wages dropped by 1.5% over the past year. That is the worst fall in real pay for eight years.

This is clearly a situation that the Government are actively pursuing. The motion they passed last month—effectively cutting pensions and social security payments by 3% to 4% in real terms—along with their slashing of the universal credit uplift, the rise of the energy price cap and the increase in national insurance contributions all point to the simple conclusion that this Government are knowingly pushing more and more families into circumstances where they have to choose between staying warm and putting food on the table.

Just as with the coalition Government’s austerity programme after the financial crash, we hear from this Tory Government that it is those in most need who will have to bear the biggest brunt of the fallout of the covid crisis, and now the illegal and atrocious Russian invasion of Ukraine. The Government’s argument is that the cost of living crisis is a sacrifice that must be made to oppose Putin’s actions—it is nonsense and must be called out. Poverty is a political choice, and the Government are choosing for that sacrifice to be made by working people instead of the wealthy. In fact, despite the ongoing crises, billionaires have never had it so good.

[Grahame Morris]

Would my hon. Friend comment on the level of profits being generated by the energy distribution companies for gas and electricity, and what alternatives there are in windfall taxes on those companies?

[Andy McDonald]

My hon. Friend makes a pertinent point. Those transmission companies are enjoying a scandalous rise in profits; if ever a case was made for public ownership of the transmission of energy, that is it. The time is absolutely now.

There are also a number of longstanding factors that have caused the spiralling levels of in-work poverty. Above all is the fact that the so-called national living wage of £8.91 an hour is significantly below a wage that people can actually survive on. I have said it time and again: we need to raise the minimum wage to a level that allows people to live fully flourishing lives, not just get by. The planned rise to £9.50 an hour next month simply will not cut it. In the midst of a cost of living crisis, with inflation soaring, the national minimum wage is nothing but a poverty wage. The time is right for a £15 an hour minimum wage—in fact, it is way overdue.

Different categories of workers are going to work with different types of employment rights. We need to consolidate those categories into a single status of worker so that people have the same full employment rights from day one. I am pleased to have introduced to this House the Status of Workers Bill, which was guided through the other place by my noble Friend Lord Hendy. I implore the Minister to allow the Bill the necessary time to pass through this House, so that it can make the fundamental change to workers’ rights that could do so much to turn the tide of in-work poverty.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

It is an honour to serve with you in the Chair, Ms Rees. I congratulate the hon. Member for Easington (Grahame Morris) on securing the debate. I recall having had a similar debate with a similar cast list recently, so some of the arguments are familiar but some have been amplified. I take all of them seriously and will endeavour to answer some of the questions. No doubt others will be addressed separately, but I look forward to responding to them. Like the hon. Member, who is very kind, I wish the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies) a speedy recovery and return to good health. She would have been keen to be here had she had been able to.

Prior to this debate, I had just come out of a meeting with Communities that Work, a group of housing associations that help people into work and to progress in employment. I am grateful for the work it is doing. One of the participants was Helen Johnson, a livin futures manager at Livin Housing in the north-east, who is doing great work in Country Durham. Despite party political differences and different views on policy, we can all applaud the work those people are doing to help literally thousands of people—in this case, tenants—to achieve their potential in employment opportunities. I congratulate them on that work. All hon. Members present want to see everybody have the opportunity to progress in work, improve their earnings and realise their potential.

[Andy McDonald]

We hear with unerring regularity the mantra that the only way for someone to progress and live a good and flourishing life is to progress out of their current job. It will then be occupied by somebody else, who will be paid a low wage. Where is the dignity or decency in that philosophy, which does not have regard for the people doing the key jobs we applauded all the way through the pandemic?

[David Rutley]

I understand the hon. Member’s point, and that is why we have taken steps in that direction. I was going to come on to that in my speech, but I will come to it now. The national living wage, which we have already talked about, is projected to increase to £10, and other steps are being taken. [Interruption.] If the hon. Member for Easington would have the courtesy to let me respond. He raised that question earlier in the debate. Another important point is that policies, such as the increase in work allowances and the reduction in the taper rate for people on universal credit, are helping people in work to progress, do better and flourish.

We have already seen the creation of exiting job opportunities in the north-east, including through the industrial zone at the UK’s largest freeport, Teesworks, which is expected to create 20,000 jobs. Many of them are in green energy, establishing literally a green industry revolution in a region that many hon. Members participating in the debate represent. We should not forget that 6,000 jobs will be created as a result of Nissan’s plans for the UK’s first large-scale battery factory, as part of a £1 billion electric vehicle hub in Sunderland. That is alongside Stockton being on the frontline in the battle against covid, with the Novavax vaccine being made in Billingham later this year.

Opportunities abound in the north-east. Of course, we need to go further. I am disappointed that we are not hearing about these opportunities. So often we recognise that there are challenges, but there are also opportunities, and this Government are working hard to create them.

Regional Inequalities: Child Poverty

Andy McDonald Excerpts

Wednesday 2nd March 2022 Westminster Hall

[Andy McDonald (Middlesbrough) (Lab)]

It is a pleasure to see you in the Chair, Dr Huq. I thank my hon. Friend the Member for Blaydon (Liz Twist) for securing this debate. Sadly, during the last 12 years of Tory Governments, the squeeze on wages has meant that in-work poverty has hit new highs, with one in six working households below the poverty line. That has meant that, in my hometown and constituency of Middlesbrough, over the past five years alone, relative child poverty levels have almost doubled, and two out of five children now live in households with an income below the poverty line.

Those in need are now set to be hit by the Tories’ cruel and callous slashing of universal credit, along with their plans to raise national insurance contributions. All the while, the cost of living crisis is shooting up, thanks, in part, to the Government’s catastrophic mishandling of the fuel crisis.

We know that we are one of the most unequal countries in Europe. We have pockets of incredible wealth and of shameful poverty and marginalisation. That is undoubtedly a regional issue, but inequalities also exist within our regions, with obscene levels of wealth alongside destitution. That inequality has widened under this Tory Government. They have frozen pay and benefits while billionaires—Russians included—have flourished.

Shared prosperity funds, towns funds and future high street funds will not do what is fundamentally necessary to close the gap of regional inequality, which is to return power and resources to the communities where they rightly belong. The Tory trick of creating competitions for communities, pitting them against each other for central Government funding, must be exposed as the divisive pork-barrel politics that it really is.

The hon. Member for Darlington (Peter Gibson) talked about making work pay. Okay, let’s do that. If we are really serious about giving workers the security, prosperity and respect that they rightly deserve, then we must have a plan to make it happen. We in the Opposition do. To begin with, we would not increase taxes for working people or cut universal credit. Instead, we would bring in a windfall tax on the oil and gas giants to help with the rising bills. We would give Britain a pay rise and deliver a new contract for the British people.

[Peter Gibson]

The hon. Gentleman is making some important points. As for giving things back to communities, he knows, as I do, that our region, Tees Valley, has had devolution, and our Tory Mayor is delivering jobs and opportunities for our region. The hon. Gentleman talks about the opportunity to serve a windfall tax on energy companies; that windfall tax would prevent those oil and gas companies from investing in and transitioning to the renewables that we so desperately need.

[Andy McDonald]

Well, if that was actually going to happen, the Tory Tees Valley Mayor would have no hesitation in bringing the trade unions into the conversation to ensure that they had good, secure, unionised, well-paid jobs. However, he refuses to do so.

As I was saying, that is why I was so honoured to work with our trade unions chairing our power in the workplace taskforce and produce our party’s Green Paper, “a new deal for working people”. I am delighted that that has been adopted as party policy, because that would mean that we would be raising pay for all, ending the scourge of in-work poverty, and delivering a social security system that provides a safety net for all with decent sick pay.

We would use public procurement for supporting good work, as our wonderful Welsh Labour Government are doing in Cardiff. We would empower workers to act as a collective to secure better terms and conditions. We would establish fair pay agreements, recognised in law, providing a floor across industries and sectors—think about the care workers. We would create a single status of workers and put an end to all the variations thereon, including bogus self-employment, and give all workers day-one rights on the job. We would strengthen the rights of the employed and self-employed, letting working people have a secure, stable income on which to build a good life. We would ban zero-hours contracts and outlaw the tactics of fire and rehire, and so much more. Lastly, we would repeal the trade union legislation, to enable our trade unions to bargain for their members.

We are at a crossroads; we can either return to the status quo of outsourcing, privatisation, exploitation, and extraction of value, which will only extend regional inequality and child poverty, or we can take a different path: one that will deliver for our people, truly bringing an end to the scourge of child poverty and regional inequalities. Poverty is a political choice; let us choose to eradicate it.

--- Later in debate ---

[Siobhain McDonagh]

Will the Minister give way?

[Andy McDonald]

Will the Minister give way?