Social Mobility (Wales)

Chris Elmore Excerpts

Tuesday 19th December 2017 Westminster Hall

[Chris Elmore (Ogmore) (Lab)]

I beg to move,

That this House has considered social mobility in Wales.

It is a pleasure to serve under your chairmanship, Mrs Moon, in my last debate in the House before the Christmas recess, as you are our constituency and county neighbour.

Social mobility should be at the forefront of political discourse, and in Wales that should be particularly the case. Given our industrial history and the fact that nearly a quarter of all individuals now live in poverty, we are in desperate need of a social mobility revolution to ensure that every child is afforded the same opportunities in life. The widening gulf between classes means that even the brightest and most talented children can struggle in life as a result of their background. It is of deep concern to many in our nation, and until removed it obstructs any pretence that we live in a fair and just society.

We should not forget the progress we have made on this issue. Under the Labour Government, absolute child poverty was cut in half and the fight to cut child poverty further was enshrined in law, only to be scrapped by the coalition Government, who went on to change the definition of child poverty altogether in 2015. It is high time that Ministers tackled the root causes of poverty, rather than moving the goalposts to improve their weak record.

The children who were lifted out of poverty by the Labour Government grew up having led a better childhood, and as a result are more likely to succeed in life. The Labour Government also introduced more than 3,600 Sure Start centres in England and set the ball rolling for Flying Start in Wales. The benefits of Flying Start can be seen in every constituency across Wales. It improves early-years education and helps parents and families in non-working or low-income households through parenting support groups. Across the UK, the Labour Government also increased the number of young people aged 18 to 24 in full-time education by 60%.

[Wayne David (Caerphilly) (Lab)]

In June 2014, the then hon. Member for Torfaen—now Baron Murphy of Torfaen—produced an influential report showing that a student from the Welsh valleys is five times less likely to apply to Oxbridge than a student from Hertfordshire, and is 10 times less likely to receive an offer. Does my hon. Friend think that is a terrible indictment of the lack of social mobility in Wales? Since then, the situation has not improved.

[Chris Elmore]

I wholeheartedly agree. As the only one of three siblings to go to university, I think there is a real issue with social mobility—never mind going to Oxford or Cambridge—and the impact that child poverty has on young people’s opportunities to go on to higher education or even, in some cases, further education.

Education became the greatest tool for advancing social mobility, and the Government would do well to remember that. Labour also introduced the national minimum wage—a fantastic achievement for a number of reasons, not least for its impact on social mobility. Since the foundation of the Welsh Government, much effort has been put into ensuring we make strides to improve equality of opportunity across our nation.

As a result of various initiatives introduced by successive Administrations, unemployment in Wales is falling faster than it is in the UK as a whole, and it continues to be lower than the UK average. Last week, the Welsh Government Cabinet Secretary for Economy and Transport, Ken Skates, launched Wales’s economic action plan, which sets out to deliver a dynamic new relationship between the Government and business as partners for growth. It will ensure that public investment fulfils a social purpose. That new economic contract will require the Welsh Government to support the conditions for growth. In return, businesses seeking direct investment must demonstrate, as a minimum requirement, growth potential; fair work, as defined by the Fair Work Board; and the promotion of health—including a special emphasis on mental health—skills and learning in the workplace. Through such strategies, the Welsh Government are committed to working with business to provide skilled jobs for people across Wales. That is particularly welcome, given the impact of deindustrialisation across Wales.

The UK Government need to take note of that kind of innovative and progressive thinking when starting to take action on social mobility across the United Kingdom. The Government finally announced the start of discussions on a north Wales growth plan, which is a good opportunity for them, as part of their negotiations, to support the communities and industries across the region with a focus on skills and jobs.

There has been considerable investment to close the education attainment gap and improve skill levels, and the Welsh Government are making tremendous efforts to increase the number of apprentices to 100,000 before 2021. To do that, they will increase investment in apprenticeships from £96 million to £111.5 million for 2017-18 alone. On top of that, they are focusing on the early years of children’s lives—the stage when we can have the most impact on improving their health, education and other outcomes later in life. In 2015, the Welsh Government launched a child poverty strategy with five key objectives to tackle the underlying causes of child poverty and provide more equality of opportunity for low-income families across Wales. It includes strategies such as free school meals, the Healthy Child Wales programme, the Business Wales services, the Wales economic growth fund, support for the work of credit unions, the Skills Gateway service, the Lift programme and many more initiatives targeted at enabling individuals from less wealthy backgrounds to access opportunities from an early age.

Recently, it was announced that there will be a fresh approach to improving prosperity in the south Wales valleys, led by the Cabinet Secretary for Local Government and Public Services, Alun Davies, and driven by his ministerial taskforce. It will ensure that no communities are left behind. The “Our Valley, Our Future” plan will foster good- quality jobs, better public services and community cohesion in some of our poorest towns and villages.

[The Parliamentary Under-Secretary of State for Wales (Guto Bebb)]

On the hon. Gentleman’s point about the Welsh Government’s new policy, will he confirm that it will be a more effective use of public money than the £500 million that was wasted on Communities First?

--- Later in debate ---

[Chris Elmore]

I do not think for one second that Communities First funding was wasted. In fact, as a county councillor, I did work through some of the Communities First schemes in my county. Communities First has had positive outcomes across Wales. The Welsh Government have admitted that they now want to review how that funding will move forward, but the Minister cannot say that investing in our communities is a waste of money. It is nice to know what the Tories think of investing in communities up and down Wales.

We face real and deep challenges, but it is positive that Welsh Government Ministers are genuinely committed to addressing these complex societal issues. There are social mobility problems for us to reverse, but we should not forget that progress has been made. Unfortunately, that progress is grinding to a halt as a result of UK Government policy. The Welsh Government are working hard to increase prosperity and to help people out of poverty, but a continued agenda of cuts from Westminster and the severity of UK Government austerity is putting progress at risk. It is not simply that there is inaction on improving social mobility; there is an agenda that is taking us backwards.

According to the Institute for Fiscal Studies, 37% of children in the UK will be in relative poverty by 2022, which represents a reversal of all progress made in the past 20 years. On top of that, Shelter said that 128,000 children will wake up homeless in Britain on Christmas day. That fact alone should bring shame on the Government. If children grow up homeless or in poverty, their chances of success in life are greatly reduced, which puts a roadblock in the way of social mobility. Unfortunately, the Government in Westminster have shown no intention of focusing on social mobility and improving equality of opportunity.

Wales’s Children’s Commissioner and her three UK counterparts recently called on the Government to take action on the roll-out of universal credit, which is plunging the poorest children into poverty and will surely leave lasting marks on their life chances. Unfortunately, the rampant roll-out of universal credit is not the only Government policy that has led to children being plunged back into poverty. The bedroom tax, cuts to tax credits and the knock-on effects of cuts to Welsh Government block grants, which are leading to cuts in children’s services and youth services across the board, are having a detrimental impact on children’s life chances. If the Government carry on with their dogmatic cuts agenda, the impact on young people, and in turn social mobility, risks leaving a generation behind. Each of those policies is hitting children hard. As a result, one in three children in the UK is now growing up in poverty, and more than 1 million people are reliant on food banks.

The “Good Childhood” report published in August 2017 by the Children’s Society highlighted the fact that children and young people’s happiness is in decline, which has implications for attainment and social mobility. I am sure I do not need to remind Members that only a few weeks ago Alan Milburn and the entire board of the Government’s social mobility commission resigned in protest at the issue being “an afterthought”.

[Susan Elan Jones (Clwyd South) (Lab)]

Will my hon. Friend confirm that the resignation—I agree that it was hugely significant—included a former Conservative Cabinet Minister, Gillian Shephard? Social mobility is not a partisan issue; it is something we all need to be worried about if we care about the future of our countries of Wales and Britain.

[Chris Elmore]

My hon. Friend is absolutely right. The baroness in question is a former Secretary of State for Education and Employment. When a Conservative of that stature says, “This is not acceptable,” and that social mobility is now “an afterthought”, it is hugely concerning, so that mass resignation was worrying.

The commission’s “State of the nation” report and its focus on Wales are what I would like to draw to the attention of Members. The commission found that the percentage of individuals living in poverty in Wales is higher than in all regions of Great Britain except London and the west midlands, and that 26% of people earn an income below the living wage. Much of that seems to be due to the UK Government’s implementation of a public sector pay cap in Wales, which has denied our hard-working public sector employees a fair pay increase in seven years.

[Neil Gray (Airdrie and Shotts) (SNP)]

I congratulate the hon. Gentleman on his speech. Much of what he is saying about Wales applies to Scotland. With reference to the public sector pay cap, he will share my appetite to see it lifted throughout the UK so that the worst decade for wage growth in 210 years can finally come to an end.

[Chris Elmore]

I agree. The Royal College of Nursing, Unison, GMB and the trade unions across the public sector have all said that they expect the UK Government to raise the cap—or to scrap the cap, to borrow the hashtag on Twitter—because they do not see it as the responsibility of the Administrations in Edinburgh, Cardiff and Belfast to scrap it. I am aware that the Scottish Government have introduced some changes, but those should not be at the cost of other public services. I agree with the hon. Gentleman that the emphasis is on the UK Government to step up and to give public sector workers a pay rise.

There is also reason to be concerned about higher education figures in Wales: the entry rate is 37.5%, compared with 42.5% in England. Such matters are being addressed by the Welsh Government, but with a UK Government reluctant to concede the scale of the problem and offer appropriate funding, the problems come as little surprise.

At Bridgend College in my constituency—and in yours, Mrs Moon—at the Pencoed campus in Ogmore, a huge amount of work has been done to encourage people into higher and further education. I have met truly inspiring students, many of whom are the first in their family to stay in education beyond the age of 16, and some of whom now have aspirations to study at university, including Oxford, Cambridge and beyond—to go back to the intervention of my hon. Friend the Member for Caerphilly (Wayne David). Thanks to the Welsh Government, Wales will soon have the most generous student finance support package in the UK, helping more people from all backgrounds to reach their full potential.

Each week, as Members, we see the true lack of social mobility as we help vulnerable people through our surgeries and casework, and all the while there are more billionaires in the UK than ever before. I have no problem with success or business; I have a problem with the widening inequality between the poorest and the richest across this country. The situation could be addressed via an increase in the block grant and, if the Minister talks about the floor or whatever, the reality is that all those things can be implemented—but the Barnett formula needs to be reviewed and changed. In case he wishes to remind me, I am well aware that throughout the 13 years of Labour government the formula was not reviewed, but I make the point strongly that in every single year of a Labour Government the block grant was increased, only to be cut and cut by the current Government.

[Guto Bebb]

Will the hon. Gentleman give way?

[Chris Elmore]

I have nearly finished my speech, but I am sure the Minister can come back on this in his response to the debate.

If the Government here in Westminster were to reassess their block grant to the Welsh Government, that could open up opportunities to create more targeted and direct support to tackle poverty and increase social mobility. In real terms, the Welsh Government budget will be 5% lower in 2019-20 than it was in 2010-11. Cuts have consequences and we can see the impact of austerity in each and every one of our communities, no matter which party we represent in the House.

We should remember that progress has been made, and I have been fortunate enough to see the benefits in my community. Unfortunately, across Wales it is still overwhelmingly the case that a person’s opportunities in life are determined by their background. I sincerely hope that the UK Government will give consideration to the obstacles in the path of social mobility in Wales and act to make it easier for everyone in life to succeed, regardless of who they are and where they come from.

--- Later in debate ---

[Chris Elmore]

I want to start by thanking hon. Members for their contributions, including my hon. Friend the Member for Islwyn (Chris Evans) for his passionate speech and my hon. Friends the Members for Ellesmere Port and Neston (Justin Madders), for Cardiff North (Anna McMorrin), for Caerphilly (Wayne David), for Clwyd South (Susan Elan Jones) and for Torfaen (Nick Thomas-Symonds), as well as the hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts).

In the spirit of consensus in the room on the need to tackle social mobility in Wales, I thank the Minister for what he said. Although he made the odd political dig, which of course he is not famous for, he knows there is more to do at all levels of government, including local government, which must play a part in the Welsh and UK context.

I thank Members for their contributions. I look forward to UK Government Ministers trying to address the issues of social mobility under the functions that are still reserved to the UK Government, while we continue on all sides to try to improve and be aspirational for our young people in our constituencies up and down Wales.

Question put and agreed to.

That this House has considered social mobility in Wales.