Thursday 17th June 2021

(3 years, 5 months ago)

Lords Chamber
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Baroness Sherlock Portrait Baroness Sherlock (Lab) [V]
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My Lords, I am grateful to my noble friend Lady Morris for creating the space for us to have this debate and for her fantastic introduction to it.

I want to take a step back and talk about child poverty. There is a wealth of evidence of the lifelong impact on an individual of living in poverty as a child. If the Government are serious about levelling up opportunities for children, it is crucial that they act to address child poverty now.

The UK went into the pandemic with unacceptably high levels of child poverty. The latest official figures show that, in 2019-20, 4.3 million children lived in families in relative poverty, which is the globally recognised measure. That is a rise of 200,000 in a year and is up 500,000 over five years—and this is before Covid struck. Do the Government have a plan to reduce child poverty?

If they are serious about levelling up, what are they doing to track and address local variations in child poverty? The official poverty statistics are national. The Government use their own dataset—Children in Low Income Families—to estimate how many children are in relative poverty in different areas, but that does not capture housing costs, which vary hugely by region.

Some interesting new research has tackled this. The End Child Poverty coalition recently released the findings of a new dataset produced for it by the Centre for Research in Social Policy at Loughborough University. It used the Government’s local figures but worked back in data on housing costs to look at the effect on poverty rates of higher or lower housing costs in each area.

The results were striking. In nine constituencies in London and Birmingham, the majority of children were below the poverty line last year once housing costs were taken into account. In the north-east, where I live, the child poverty rate is now 37%. In five years, it has gone up by a third, moving the north-east from just below the UK average to the second highest of any region after London. The report concluded:

“This pattern suggests that child poverty is growing at an alarming rate across the urban areas of the North East, whereas the greatest changes elsewhere are more localised.”


What is the Minister’s response to this?

Secondly, on working poverty, the Queen’s Speech briefing document said:

“This Government champions the principle of work as the best route out of poverty and towards financial independence.”


Of course, the problem with that is that poverty among working households has never been higher. In modern Britain, getting into work is no guarantee that you will get out of poverty. Sadly, declaring that you believe something does not make it so.

A recent IPPR report showed how bad things are. It says that working poverty

“has hit a record high … of 17.4 per cent … Couple households with one full-time earner now have a poverty rate of 31 per cent”.

One significant—and bad—shift is that families where one partner works full-time and the other part-time are increasingly being pulled into poverty, and even households with two full-time workers are at a growing risk of being pulled into poverty. Further, big families have really taken a hit. The report states:

“Working poverty rates among families with three or more children have reached”


42%. This will not do.

The IPPR highlights the need to deal with high housing and childcare costs, as well as to “make work pay”. Sadly, however, government action has been going in the opposite direction by slashing work allowances in universal credit, cutting the value of most working-age benefits and, frankly, making a right mess of childcare support. I passionately believe in the need to level up opportunities for all children, but that will never happen until we ensure that families have an adequate and reliable household income.

What of inequality? The Government’s own Social Mobility Commission surveyed people and found that nearly six in 10 believe that the pandemic has increased the gulf between social classes. The commission also points to the growing evidence that those from the most disadvantaged backgrounds are being affected most by the pandemic. Young people from the poorest backgrounds are losing their jobs while families are trapped in cramped housing and children from disadvantaged families are failing at school. The commission stated:

“Two-thirds (64%) of the population say that those who are ‘just about managing’ are not getting enough support from the government.”


Moreover, the regional differences were marked. The survey found:

“Only 31% of people in the north-east believe opportunities to progress in their area are ‘good’, compared to 74% in London.”


I am sure that the Minister wants to level up but, really, the Government as a whole will be serious about levelling up only when they take action to tackle the scourge of child poverty in our country. I urge the Government to make it a priority, as the last Labour Government did. If you will the ends, you must will the means as well. Fine words butter no parsnips.