Budget Resolutions and Economic Situation

Cat Smith Excerpts

Thursday 9th July 2015 Commons Chamber

[Cat Smith (Lancaster and Fleetwood) (Lab)]

I shall keep my remarks brief, to allow time for other speakers.

I fully agree with what my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) said about the northern powerhouse.

The so-called living wage is a complete sham. Even the national minimum wage is not enforced in this country, with the TUC estimating that 350,000 workers are already paid below it, so what guarantees do we have that a living wage would be enforced?

I want to focus most of my attention on the changes to tax credits to limit them to two children. It is wrong to punish children by putting them into poverty for being born into families with one or more siblings. I would also like to stress that there are 3,000 children in this country waiting to be adopted. Since baby P, there has been a huge increase in the need for fostering and adoption places. Many of those placements are found in kinship care and often in families who already have children. If the Government insist on going ahead with capping tax credits at two children, will they provide some flexibility and exempt those who choose to adopt or foster one of the 3,000 children who are desperately seeking a home in this country?

This Budget is an attack on the younger generation. Cutting housing benefit for under-21s will particularly affect lesbian, gay, bisexual, and transgender youth, who are more likely to find themselves homeless. Student grants are now gone and have been turned into loans, thereby passing more debt on to some of the poorest students as they graduate and begin life. The fact that the so-called living wage does not apply until age 25 just goes to show that there is little understanding of the fact that someone aged 25 or under still needs a roof over their head and still needs to buy food. All that costs the same as it does for a consumer or renter over the age of 25.

Frankly, this Budget does not work for young people, the north or families. Worst of all, I left the Chamber after the Budget speech thinking that, although I personally will be better off, family members of mine who work in minimum wage jobs and who try to balance the demands of having young families are worse off, and that is wrong.