Social Security and Pensions

Apsana Begum Excerpts

Monday 7th February 2022 Commons Chamber

[Apsana Begum (Poplar and Limehouse) (Lab)]

I must be completely frank: I find it astonishing that these regulations will implement a whopping real-terms cut in some benefits and pensions, given that inflation is already 5.4% and the Bank of England forecast is for 7.25% in April 2022. Let me put it simply: the Government are knowingly—yes, knowingly—going to drive more and more families, children, pensioners, and some of the most vulnerable people in our society into desperation and poverty. A letter signed by the Child Poverty Action Group, the Joseph Rowntree Foundation, the Trussell Trust and the End Child Poverty coalition, among others, states:

“There has long been a profound mismatch between what those with a low income have, and what they need to get by .”

In my constituency, which suffers from one of the highest rates of child poverty in the entire country, this mismatch comes as too many are already struggling to heat their homes or put food on the table. For example, 7,300 children in Poplar and Limehouse were in absolute poverty in 2019-20, which is 973 more than in 2014-15.

Astonishingly, these orders come just as we had last Thursday’s announcement of an increase in the energy price cap, signalling that a quarter of UK households will be pushed into fuel poverty. The impact of the cost of living crisis on people across the country is truly harrowing and it is a shameful indictment on any civilised society. Of course, this is set against the brutal backdrop of a decade of Conservative austerity. Across the UK there is a real sense of despair in workplaces, fuelled by desperate situations. As we speak, porters, security staff, catering, and reception staff, are on strike outside St Barts Hospital, and the Royal London and Whipps Cross, fighting for the simple right to having a wage they can actually live on. This strike is a part of a growing wave of pay struggles, from bus drivers, airport ground crew, drivers, railway cleaners, warehouse workers and so on. These people worked hard during the pandemic to keep everything going and were placed at the greatest risk. They do not need lectures on exercising pay restraint, because they understand what pay restraint means, as they live it and breathe it. They are forced to see their families go without, despite their working long hours and in difficult situations. We must not stand by and watch people go under while this Government continue to both foster and scapegoat hardship, by continuing to pursue measures to arbitrarily limit welfare spending, as per the welfare cap, which was re-affirmed earlier this year.

A comprehensive rescue package is needed: winter fuel payments could be doubled; the £20 cut in universal credit be reinstated immediately; VAT on household bills could be scrapped; and energy companies could be taken into public ownership to ensure that rather than profits being siphoned off, money is spent on reducing bills for consumers. We must be very clear that those with the broadest shoulders and the deepest pockets must pay their fair share. Why should working people have to pay for the failures of the energy market and the total shambles of Government policy? The challenges we face today do not come out of the blue. There is a reason that a key component of Labour’s 2019 manifesto was its green new deal, driven by public ownership of the energy sector and making sure we have value for money for the taxpayer. We have long needed systemic change. Clearly, the energy market does not work; it is not able or willing to deliver clean green energy at low prices for households. Public ownership of energy is common sense and evidence-based policy making. In the long run, it is the only way out of being held hostage by the oil and gas industry’s profiteering and destruction of our planet.

It has long been time that people should be put first, ahead of ideological commitments to the market and a dogmatic opposition to public ownership. These orders are an attack on my constituents and their way of life, and I will oppose them with all my breath and strength, because, ultimately, cutting benefits and pensions today is a political choice. Fuel poverty is a political choice and hunger is a political choice, just as austerity has been, and is always going to be, a political choice. They are all choices to prioritise profit over people, made by a callous Government and inflicted brutally on our communities. They are all choices we must resist.