Housing Benefit (Under-occupancy Penalty)

Debate between Ann McKechin and Eilidh Whiteford

Wednesday 27th February 2013 Commons Chamber

[Dr Whiteford]

I want to make a little more progress, because time is wearing on.

The disabled people in adapted homes who are forced to move into the private sector will undoubtedly find it hard to find accessible properties. Landlords in the private sector may also be less than happy about adaptations being made to their property, whether they be handrails, ramps, stair-lifts or bathroom alterations. What an unnecessary waste of public money at a time when local authorities are struggling to meet demand.

[Ann McKechin (Glasgow North) (Lab)]

The hon. Lady is making an excellent speech. She made a very good point about the cost of private rentals compared with social rentals. Is it not time that we started to regulate private rentals in Scotland so that we are not subsidising landlords, which is the route to increases in housing benefit?

[Dr Whiteford]

It is clear that rents in Scotland are not out of control as they are in London. Many of the problems with housing benefit have been fuelled by the vast over-inflation of the rental market in London and the south-east.

It is important that we remember that some of the disabled people who are subject to the bedroom tax are the same people who will lose their disability living allowance when it becomes the personal independence payment or whose support will be reduced significantly, and that some may lose their employment and support allowance, particularly if it is time-limited. Nevertheless, all those people will still have to deal with the same impairment or long-term health condition that they had before, and will still face the same physical, economic, attitudinal and communication barriers when they attempt to access the labour market and get on with their daily lives.

The Government have paid no heed to the cumulative impact of their measures on disabled people—a cumulative impact that will have disastrous consequences for thousands of people.

Female Employment (Scotland)

Debate between Ann McKechin and Eilidh Whiteford

Wednesday 18th January 2012 Westminster Hall

[Ann McKechin (Glasgow North) (Lab)]

As you will be aware, Mr Hood, Scotland has been much in the news during the past couple of weeks, but I will focus on the real world experienced by its citizens and the new challenges that are emerging, rather than fixate on a process story that fascinates only a small minority of our population but looks set to continue for many days, weeks and months to come.

One major feature of the post-war era has been women’s increasing economic power and growing participation in the workplace. Women are better educated than ever, and girls outperform boys at school and their male colleagues at university. They now populate the ranks of middle management. More than 45% of solicitors in the UK now are women, and it is predicted that by 2017, there will be more female doctors than male. Even during the economic downturns of the 1980s and 1990s, female employment levels were not substantially dented, possibly because women dominated many low-paid and part-time jobs, as they still do today.

However, the current economic downturn has created a serious and potentially permanent shift in the jobs market. Not only has it halted women’s progress in the workplace and our economy more generally, but it risks putting it into reverse. We urgently need greater analysis and a determined political will to ensure that women, who make up the majority of our population, do not find their opportunities for advancement crushed.

The problem exists on either side of the border, but regrettably, in some cases, the position in Scotland is worse than overall UK average, as I will highlight. I have been concerned about it for many months. That is why, along with women from business, academia and the trade union movement, I called last year on the Select Committee on Scottish Affairs and committees at Holyrood to carry out specific investigations so that we can examine the issue in further detail.

Although there is an understandable focus on the worryingly high youth unemployment—today’s figures showed the extent of the problem—the number of women claiming unemployment benefits in Scotland increased by more than 15% between November 2010 and the end of 2011, rising from 36,300 to 42,100. By contrast, the male claimant count rose by only 1% during the same period. Our female unemployment rate is now at its highest in more than 23 years. When the Scottish Government were asked in December to comment on those figures, their response was that the rate of female unemployment remained lower than the UK average. Funnily enough, that was their response at the start of last year to the general unemployment rate: that is, until the comparison started to go in the opposite direction, when they stopped mentioning it at all.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

I congratulate the hon. Lady on securing this debate. I only regret that it is such a short opportunity to discuss this extremely important issue. Does she accept that, although there is no complacency in Scotland about any sort of unemployment, the fact that female employment in Scotland has been consistently higher than the UK average must also be taken into consideration? That must be included in the context of understanding why our female unemployment is at the level it is.

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[Ann McKechin]

With respect to the hon. Lady, to a woman in a low-paid job who has just been made redundant, comparative unemployment levels south and north of the border are immaterial; the problem is that she has lost her income. That is complacency and political gamesmanship. People who face job loss require a much better answer.

[Dr Whiteford]

Will the hon. Lady give way?

[Ann McKechin]

I am sorry, but I wish to make progress and give the Minister an opportunity to respond.

The result of this lack of action is now showing in our economy. A TUC report last month showed that long-term unemployment is rising faster in Scotland than in any other nation or region of the UK, and that Scotland has eight of the 10 local authority areas showing the largest percentage increases in long-term unemployment over the past year. Last year, more than 26,000 Scots spent their second Christmas in a row on the dole.

Sadly, it is likely that the rate of female unemployment in Scotland will increase. Women hold about two thirds of jobs in the public sector, and job reductions north of the border are occurring somewhat later than in England. Unfortunately, 2012 looks likely to be a bleak year for everyone, regardless of where in the United Kingdom they live. There are still substantial job cuts to come in the public sector, where women dominate. TUC analysis shows that an estimated 70,225 public sector jobs in Scotland will be cut between now and 2017.

[Dr Whiteford]

I am grateful to the hon. Lady for giving way and conscious of her time. Will she at least acknowledge that, given the concentration of women in low-paid jobs in Scotland, and the dominance of women in the public sector, the single best thing that has happened has been the introduction of a living wage in those parts of Scotland’s public sector for which the Scottish Government are responsible? That living wage, and a guaranteed pay increase for people on low wages in Scotland, will benefit women disproportionately.

[Ann McKechin]

I certainly agree that the living wage is an excellent way to address issues of low pay. That is why I am delighted that Glasgow city council led the way on that matter. I note that qualification, but it is regrettable that the Scottish Government have not insisted that all employees of local authorities and public agencies in Scotland—not just civil servants, who are by far the minority of public servants in Scotland—also be paid a living wage if they are on low salaries.

There is more evidence that, unlike in previous recessions, men are now more willing to take on part-time work, which again has historically been female-dominated, or work in sectors such as retail and caring. The Scottish Trades Union Congress pointed out the growing problem of under-employment in a comprehensive study in September. It estimates that, in Scotland, more than 17% of the working-age population are either unemployed or under-employed: that is, working part-time but seeking full-time employment. That equates to more than 460,000 Scots who are currently unable to access the quality full-time work opportunities necessary to provide a decent standard of living for themselves and their families. The STUC’s latest analysis for December increased that figure to more than 500,000. More and more Scots must rely for lengthy periods on a string of temporary contracts, agency work and the much-abused zero hours contracts. Such working arrangements form an increasing slice of low-paid work in which, again, women are the clear majority.

Both the UK and Scottish Governments are obliged by the Equality Act 2010, passed by the last Labour Government, to give due consideration to the implications for gender equality of their policies. So far, the lack of rigorous gender impact assessment of the many complex changes made over the last year has pushed many women into substantial economic hardship. The Institute for Fiscal Studies report commissioned by the Fawcett Society last July revealed that, overall, single female households will be significantly harder hit during 2010-2015, in terms of net income loss, than their male equivalents, largely because more than 92% of lone parents in this country are women. Although the female rate of unemployment is still lower than the male rate, the impact of female unemployment can often be more considerable. For example, it has more effect on children living in single-parent households.

An analysis of the June 2010 Budget by the House of Commons Library found that women will pay roughly 72% of the net cost of the changes in taxes, benefits and tax credits set out in the Budget. The subsequent comprehensive spending reviews in 2010 and 2011 ushered in further cuts and welfare reforms that have shifted yet more of the burden on to women and families. Of the £18.3 billion a year raised through net direct tax, pay and pension changes since the 2010 election, £13.2 billion comes from women. The Institute for Fiscal Studies has calculated that, as a direct result of the UK Government’s tax and benefit changes, the average family of four will see a deduction in their income of £1,250 per annum by 2015.

Both Governments accept the argument that good-quality and affordable child care is key to allowing many women to fully access the jobs market. It should be a matter for serious concern that Scotland has the highest child care costs in the United Kingdom, and the UK Government have compounded the problem by cutting the proportion of child care costs that are covered for families eligible for working tax credit from 80% to 70%. Research published by Aviva last summer shows that, already, thousands of women have left the workplace to look after families because work is increasingly considered to be uneconomical.

In November, The Scotsman reported that the number of Scottish youngsters attending child care services has fallen after a quarter of registered crèches closed in two years. A number of holiday play schemes, out-of-school clubs, play groups and children and family centres have also shut their doors, as cuts to public services hit harder. In October, the Scottish Government launched a new fund for child care projects, but £1.5 million over three years for the whole country is grossly inadequate if we are serious about our children’s future and the ability of their mothers to work their families out of poverty.

As well as the failure to assess the impact of current policies on women over the next few years, there is also an urgent need to assess where women will be in any new economy.

Scotland (Poverty)

Debate between Ann McKechin and Eilidh Whiteford

Wednesday 30th November 2011 Westminster Hall

[Ann McKechin]

My right hon. Friend is absolutely correct—that is a point I am about to make. I, too, represent an area that has a university community, and we continually have difficulties about multi-occupancy. Again, the UK Government have completely failed to consider new regulations put in place as a result of legislation that has gone through the Scottish Parliament.

Many local authorities and social landlords have progressively moved away from multi-occupancy lets due to problems with management and its unpopularity with other tenants and communities. In Angus, the difference between the rental level for a one-bedroom home and a shared home rate is £20.77 a week. For people who are unlucky enough to live in rural Aberdeenshire, it is £49.61 a week, because they are sitting in the midst of an oil economy, with rentals to match. Inevitably, people will be pushed into our cities, regardless of where their job is, in a desperate effort to find accommodation.

As I have mentioned, the UK Government have given no thought as to how local communities may feel about the expansion of multi-occupancy housing in their areas. I know from experience in my constituency that there have been examples of the dumping of people in bed-and-breakfast accommodation from other local authority areas, because those areas had no or very few such places available. I can only imagine where all those hundreds of people in north Ayrshire, for example, will have to go—I think that most of them will end up in Glasgow.

[Dr Whiteford]

The hon. Lady is making some important points about the housing situation. Will she reflect on the situation for pensioners who might also be affected by the under-occupancy rules that are coming in and the fact that suitable one-bedroom properties are simply not available, particularly those on a flat level for people with mobility issues?

[Ann McKechin]

The hon. Lady makes a good point. I know that that matter is not currently covered in the regulations proposed by the Government. However, should there be any further expansion, we would be looking at something close to a total collapse of social housing, because of the sheer numbers of people, particularly pensioners, who are living alone in properties with two or more bedrooms.

One change due in 2013 is that housing benefit will be restricted for working-age claimants in the social rented sector to those who are occupying a larger property than their household size. Do the Government know how many will be impacted by that change? Why do I bother to ask them, because they have no desire to find out?

It has been estimated from the family resources survey that Scotland-wide there are approximately 100,000 households in the social rented sector in receipt of housing benefit where the accommodation is currently under-occupied. We do not, however, know how many of those are rented to retired tenants compared with those of working age. Glasgow Housing Association, which is Scotland’s largest social landlord, has estimated that roughly 13% of their entire housing stock will be affected by just that one change alone. That represents thousands of tenants in just one city in our country.

Such a change may occur simply because an adult child leaves home, even if the family still have children of school age. A family may be forced to move out of a property that they have lived in for many years and in some instances to move many miles from the community in which they are settled—or they might fall into rent arrears, or they could just eat less, or they could not heat their home. That is the reality of the real choices that thousands of low-income families will now face.

Scotland Bill

Debate between Ann McKechin and Eilidh Whiteford

Tuesday 21st June 2011 Commons Chamber

[Ann McKechin]

My hon. Friend raises an interesting point about the issues that the Scottish Government have decided not to speak about. They did not come down here to speak to Ministers about the cuts in the welfare reform that will impact particularly heavily on women. They did not come down here to talk about the crisis in our care homes as a result of the imminent collapse of Southern Cross, which affects elderly people and their families right across the country. They did not come down to talk about the increase in the pension age, which will impact on women in particular. My hon. Friend is right that when it comes to issues that affect tens of thousands of people and women in particular, who make up the majority of the Scottish population, the SNP is sadly silent.

[Dr Whiteford]

The last time I looked, welfare reform and pensions were matters reserved to this House. I certainly contributed to the debates on those matters in this House, and the last time I looked I was a woman. It is sad that when we discussed the uprating proposals in the Pensions Bill, most Labour Members, with a few honourable exceptions, sat on their hands. It was left to just a few of us on the Opposition Benches to oppose the increases proposed by the Government.

[Ann McKechin]

I do not discredit the hon. Lady for making strong statements in this Chamber. However, I find it extraordinary that the First Minister, who feels that he can speak about any issue that impacts on Scotland and who has more powers, does not take the opportunity to speak about the issues that matter to ordinary people in Scotland every day of the week.

I will return to the Bill, as I am sure you would wish, Madam Deputy Speaker.

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[Ann McKechin]

I can understand my hon. Friend’s frustration. It is disappointing that the SNP has not taken the opportunity this evening to provide an explanation and analysis of why they think the change would be helpful.

[Dr Whiteford]

Will the hon. Lady give way?

[Ann McKechin]

I would like to continue this point.

Does the SNP believe that a further tax cut for banks, which pay the majority of corporation tax in Scotland, is a progressive policy? Does it believe that there should be a shift from corporation tax to personal income taxation, as has been the case in Switzerland, for example?

[Ann McKechin]

Actually, there has been very little increase in growth in Switzerland. There is no direct correlation, and the evidence is weak.

As I have said previously, and as a report that came out this week clearly indicated, many different levers of economic growth are already in the hands of the Scottish Government, but they have either chosen not to use them at all, or when they have chosen to use them it has had a detrimental effect as well as sometimes having advantages.

[Dr Whiteford]

rose—

[Ann McKechin]

The Scottish Government have to make those choices, and like my hon. Friend the Member for East Lothian (Fiona O'Donnell), I would like to get on with the businesses of discussing how they are going to use their powers, what they intend to do with them and how they will benefit people. Instead, the SNP has obsessed over process for an indeterminate period. [Interruption.]