(7 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I beg to move,
That this House has considered child poverty.
It is a pleasure to serve under your chairmanship, Mr Davies. Let me share with the House my reasons for tabling this debate. My passion for campaigning against child poverty stems from the reasons why I stood for Parliament. It is a motivation that I know is shared right across this Chamber, because we all serve in politics to change lives. For me, that means that no child in Britain should grow up in poverty. We should not simply accept a situation where luck of birth can hold a person back throughout their lifetime. Those who grow up in poverty are more likely to fall behind in school, less likely to secure a stable job in the future and more likely to suffer from ill health in later life. This debate is about making sure that Britain is a country that gives every child the opportunity of the best start in life.
I want to rebuild a cross-party consensus and to welcome the sentiments expressed by the Prime Minister as she stood on the steps of Downing Street. She signalled a fight against “burning injustice”, with an unambiguous pledge to
“do everything we can to help anybody, whatever your background, to go as far as your talents will take you.”
I agree, because to succeed in the future we must create a country that makes the most of all our talents. That is the task facing all of us in this place. We should be judged by whether we do right by the next generation.
In my Barnsley constituency, more than one in four children grow up in poverty, so I stand here today to give a voice to those 5,114 children. The Minister will know that in her constituency, too, more than one in four children grow up in poverty. Surely we can find common ground on the need for a target to change those alarming figures, so that the children we represent here today can have the brightest possible future.
In Britain today, an average of nine children in a class of 30 grow up in poverty. For those nearly 4 million children, that can mean living in a cold and cramped home, falling behind in school and not being able to join in activities with friends. The Children’s Commission on Poverty empowered young people to share their own experiences of poverty. Over 18 months, the commissioners investigated how poverty affects their peers at school, and I want to give them a voice here today and share some of the findings.
The commissioners were shocked and moved by what they found. Luke, aged 17, said:
“I am surprised that even in the 21st century, children and young people are being subject to the harshest injustice in society even within schooling. This should never be right in one of the world’s richest countries.”
Poverty means children often have to dress differently and therefore stand out. A classmate described the situation:
“I saw some kids that didn’t have blazers or coats in winter and I could see they couldn’t afford it”.
Pupils shared how those in poverty do not all qualify for free school meals if their parents are working. When that is the case, a meal at lunchtime may not always be affordable, a situation that one child describes:
“It depends really on what my mum’s situation is. If I don’t have the money, I normally just wait until I get home [to eat].”
My hon. Friend is doing an excellent job setting out the problem that we sadly still face with child poverty in this country. Is he aware of the work of the holiday hunger campaign? Children who have free school meals during term time have a six-week-long summer holiday where they do not have access to those free school meals, and many of them go hungry. The campaign is doing excellent work.
I am aware of that campaign, which is doing incredibly important work in providing food and nourishment for children during the school holidays. I will be saying a little more about the problem she raises later in my speech.
For those who do receive free school meals, their poverty status can be highlighted by how they are required to buy their lunch with a token, which can hold up the queue as their card is inspected. Those children’s experiences should give us pause, for a renewed focus on child poverty, that understands the experience of those who live it every day.
I am sure the hon. Gentleman will agree that schemes such as we have in Scotland, where all children in primary 1 to primary 3—aged five to seven—are given a free school meal, help get rid of some of the stigma attached to school meals.
I absolutely agree. Just as I am seeking to build a cross-party consensus in the campaign against child poverty, I am seeking to build a consensus in every corner of our country. Again, I will say a little more about that later.
By seeking to understand the experiences of those who live in poverty every day, we can help to build a fairer country—one that delivers the vision set out by the Prime Minister as she took office. Let us be clear: that is now urgent. The Institute for Fiscal Studies projects the biggest increase in relative child poverty in a generation: the number of children growing up in poverty is expected to grow by 50% by 2020.
I am really pleased that my hon. Friend has secured this debate, because it is very easy at Christmas-time for there to be an orgy of consumption and we need to think about the families who are not going to share in that. My hon. Friend is absolutely right about what is coming down the tracks. Does he share my concern that, having dissed the idea of relative poverty, the Government have been trumpeting the fact that relative poverty did not fall in the last five years? More important, does he share my concern that changes made in the Budget by the previous Chancellor after the general election mean that every family in the bottom third of the income distribution is going to be worse off?
I am grateful for my hon. Friend’s intervention. I know that she has a long-standing interest in the subject of child poverty, which I will refer to a bit later in my speech. She raises the issue of poverty being relative, which reminds me of a quote:
“Even if we are not destitute, we still experience poverty if we cannot afford things that society regards as essential. The fact that we do not suffer the conditions of a hundred years ago is irrelevant… So poverty is relative—and those who pretend otherwise are wrong.”
That quote was from David Cameron.
I was reflecting on the projection from the Institute for Fiscal Studies of the biggest increase in relative child poverty in a generation, with the number of children growing up in poverty expected to grow by 50% by 2020. The Government have a choice to make and the power to stop that increase happening. Their decisions will shape what kind of country we live in.
Yet what have we recently learned of the Government’s approach from their response to my parliamentary questions? We have learned that the child poverty unit has been closed. Eliminating child poverty is no longer the goal of policy. The Government admit that no money is being directly invested by the Department for Work and Pensions to develop evidence on what early interventions best support children and that a maximum of only seven civil servants support the Government’s Social Mobility Commission. That is not a record that matches the Prime Minister’s rhetoric.
I congratulate my hon. Friend on securing this debate. I am very pleased indeed that it is taking place. There is another aspect of this, which no doubt he will touch on in the course of his speech. This is not just about children living in poverty now and the projected increase of 50%, which is very alarming news, although the Government do not seem to be concerned. It is likely that the children who are growing up in poverty now will themselves have children who will live in poverty, so the problem will continue through successive generations unless firm steps are taken to decrease substantially the number of children living in such conditions.
My hon. Friend speaks with great experience of these matters. He is absolutely right: this is about investing in the future not just of those young people but of our country. By ensuring that young people get the best possible start at the earliest of ages, we ensure the best possible life outcomes not just for them and their families but for us as a society and a country.
Clearly, the reasons why people live in poverty are unique to each individual, but there are shared experiences and similar causes. At the most basic level, it is about families and individuals simply not having enough money to cope with the circumstances in which they find themselves. We cannot be serious about tackling the problem unless we include income in our analysis of child poverty and our policy response. Getting this right will mean that families have greater security in their home and at work, and that all families have an adequate income to avoid poverty and live decent lives.
That a family’s income shapes the quality of childhood is easily understood. Every family wants the very best for their children, and parents often go without to achieve that. Research from the Trussell Trust shows that one in five parents in the UK either skipped meals or relied on friends or family to feed their children last year. Of course, money is not everything—we all know that the most important factors are love and attention—but that does not mean it is nothing. Income is a central factor in meeting children’s needs, and the Government’s forthcoming social mobility Green Paper, a successor to the long-delayed and unpublished life chances strategy, cannot be adequate without addressing child poverty.
Tackling in-work poverty is critical. Two in three children in poverty grow up in a household in which a parent works, so the reality is that work no longer provides a guaranteed route out of poverty. Our response must be to have a wider approach to tackle insecurity at work, to better understand the increase in zero-hours contracts and to deliver a real living wage for more workers. To support people on low incomes, we need to do more to provide opportunities for progression.
Has the hon. Gentleman considered a universal basic income as part of a package of support for those at that end of our society?
The hon. Gentleman tempts me down a road, but I will resist the opportunity to get into that slightly different debate. He may seek to make further points later.
I ask the Government to look at the success being delivered at a local level through programmes such as the Workplace scheme in Newham, which identifies the needs of employers to upskill local residents so they can increase their earnings. Childcare must be more flexible and available when and where parents need it. It is one of the biggest tolls on families’ budgets: the cost of childcare pushes an additional 130,000 children into poverty.
The Government’s forthcoming Green Paper must cover income, child poverty and other structural determinants of children’s chances. It must recognise that childhood is a key stage in everyone’s lifetime, making up a fifth of the average lifespan, so it must be about ensuring a good and nurturing childhood as well as what happens next. I hope the Government will take the opportunity to change course so we do not continue on a path that will see more than 1 million children living in poverty over this decade.
Ever-increasing child poverty is not inevitable; it is the result of political choices. We have seen that before: child poverty rose sharply in the 1980s and peaked in the late 1990s, before falling significantly. The previous Government, who happened to be a Labour Government, showed us how that can be achieved. We should recognise the work of my right hon. Friends the Members for Normanton, Pontefract and Castleford (Yvette Cooper), for East Ham (Stephen Timms) and for Birmingham, Hodge Hill (Liam Byrne), and my hon. Friend the Member for Bishop Auckland (Helen Goodman), who took the Child Poverty Act 2010 through this House.
I congratulate my hon. Friend on securing this very important debate. Will he acknowledge that one of the reasons why the Labour Government were able to maintain progress was the very precise and well tracked measurements and targeting arrangements, which ensured that when policy was not delivering the required outcomes it was possible to take adjusting action and bring things back on track?
My hon. Friend speaks with real authority and experience. I am delighted that she is here to support this debate. She has been incredibly helpful and generous with her time in supporting the work that I have been doing recently. I am very grateful for that point. She is absolutely right. As somebody said to me just the other day, “If it doesn’t get measured, it doesn’t get done.” If we are serious about achieving something, it is important that we set a target.
My hon. Friend is absolutely right to refer to the previous Labour Government, who put children first and delivered the biggest improvement in tackling child poverty of any EU nation. In 1997, more children were living in poverty in Britain than in almost any other industrialised nation, but by 2010 we had lifted 1 million children out of poverty. That happened not by accident but because the Government set themselves a target and made achieving it a priority. Investment in higher-quality early years education, childcare and Sure Start centres was expanded fourfold. Support for families was expanded to enable them to enjoy greater control over their lives and greater security in their finances. The tax credit system was introduced and maternity leave was doubled.
We should pay tribute to the leadership of Gordon Brown—I know that will give you particular pleasure, Mr Davies—who legislated for a child poverty target with support from parties across the House. I am reminded of the former Prime Minister’s memorable observation that
“children are 20% of our population but 100% of our future.”
We have a duty to this generation to make progress on addressing child poverty once again, because it should scar our conscience as much as it does our children’s futures.
I genuinely believe that all of us in this Chamber feel that responsibility and want child poverty to fall but, as in life, if the Government want to achieve something, it is useful to set a target. The focus of debate should be what that target is and how it should be met, not the principle of having a target itself. No political party in this House has suggested abolishing all Government targets. As the House of Commons Library noted:
“A target is a clear expression of a policy priority, setting out exactly what the Government wants to have done and by when. Targets let those responsible for delivery know what needs to happen, so that they can plan, monitor and deliver”.
The Library goes on to explain that targets
“allow organisations to be held to account on whether they meet the targets, including by Parliament. They can provide a focus on long-term strategic goals in areas where short-term pressures would otherwise mean that these goals might not be achieved.”
That is why I believe that setting a target can help to realise a common purpose to tackle child poverty that includes communities, employers and government at every level.
My private Member’s Bill provides the House with an opportunity to make that intention clear. It will receive a Second Reading on Friday 3 February and I hope that it earns the support of Government. Parliament has a strong record on working across parties on the issue, most notably in passing the Child Poverty Act 2010, which committed the Government of the day and future ones to take action to eliminate child poverty. With my Bill, I do not seek to be prescriptive about what the target should be. Rather, we should be clear that our goal is that no child should grow up in poverty and that we will measure our progress with a target.
I hope that the Chair has noted my repeated efforts to convey that my private Member’s Bill is not politically motivated. It is too important and too urgent for that. In your constituency, Mr Davies, about one in five children grow up in poverty—3,743 children. Simply put, the present situation is unacceptable and without action what will follow will be worse still. Outside Parliament, consensus is growing that the Government need to do more and quickly.
I take this opportunity to place on record my thanks to those charities and stakeholders that recently attended a round-table event I hosted here in Parliament. We should all recognise the vital work that the sector undertakes every day to help those living in poverty. The Child Poverty Action Group has long campaigned on the issue, and I am proud to have its support for my Bill. Barnardo’s, the Children’s Society, Buttle UK, Gingerbread, the Family and Childcare Trust, Save the Children, the Joseph Rowntree Foundation or JRF, and the Equality Trust all have my profound thanks for their input. I hope that there will be others.
I am happy to meet the Minister or one of her colleagues in the new year to share the extent of support for a target among those who know the most about the issue. It is a concern, however, that the Government have been active in seeking to change how we understand child poverty while also removing a duty to reduce it. The Welfare Reform and Work Act 2016 replaced the reporting obligations of the 2010 Act, bringing in the life chances measures of worklessness and educational attainment. The Child Poverty Commission became the Social Mobility and Child Poverty Commission, and is now just the Social Mobility Commission. In answer to a parliamentary question, we have learned that its crucial work is supported by only seven civil servants, at most, and this week we learned, with some concern, that the child poverty unit has been quietly abolished, without adequate information on that fact being provided to Parliament.
No child poverty target, no child poverty unit, no staff resources and no stated intention to end child poverty—no matter how many children are set to grow up in poverty in the years ahead, we can and must do much better than that. We can see that from projects all over the country, because local communities have not been able to wait for the Government to take action. In my Barnsley constituency, we have a campaign bringing together members of the community and the local council to take action.
As part of the campaign, we asked the public to name just one thing that could make a difference to children locally. Ideas ranged from new requirements to develop affordable housing or to expand childcare, to the great example set by retired teachers lending their expertise to tutor local students. That has informed the ongoing work of Barnsley Council’s anti-poverty board. The campaign brings local partners together to support residents affected by Government spending cuts and welfare reforms. They have been working hard to identify families most in need and to target resources to provide debt advice, information on fuel policy initiatives and healthy eating programmes.
We recently opened a community shop in my constituency. It has agreements with many of the largest food manufacturers in the local area, redistributing good quality surplus products at much more affordable prices.
In a number of boroughs—certainly mine, which has a good deal of child poverty, unfortunately—the provision for nursery education means that we have very good schools for under-fives. Those schools are much appreciated, because many of those who attend come from households with low incomes. Is my hon. Friend aware that so many involved in nursery education have written to us to express deep concern that funding arrangements will so alter in the next two years that some of those nursery schools and classes will have to either close down completely or reduce the number of children attending?
My hon. Friend is right to draw our attention to that pressing concern. One of the primary motivations for the debate is to draw attention to the fact that the plight of almost 4 million children in our country is set to get worse, not better. That is a matter of profound concern to all of us. We all believe that child poverty should and must be reduced and that we have a responsibility to work together in order to achieve that stated aim.
Earlier, hon. Members drew attention to projects that seek to provide food for children during the school holidays. The community shop proposal that I mentioned might be of benefit in that and, as I said, one such shop has just opened in my constituency. After agreement with local food manufacturers, the community shop can sell good quality food at affordable prices to people on low incomes, and it can also help local people with other issues that might be holding them back. It can provide advice on financial matters, or train individuals to prepare for job interviews.
The community shop, brilliantly led by John Marren, is only one example—but a good one—of the crucial work going on around the country to support families living on low incomes and in poverty. Lives are changed by such initiatives, in which people come together to speak up for the less fortunate and to share their time and expertise to be good neighbours in the service of others.
I take this opportunity to recognise the efforts in this area of my right hon. Friend the Member for Birkenhead (Frank Field). As hon. Members know, he has a long-standing interest in understanding poverty and remains a powerful advocate. He has championed the Feeding Britain project, which works to reduce food poverty at local level. In the new year I look forward to welcoming Rosie Oglesby, its chief executive, to Barnsley to discuss the matter further.
I have made the point that across the country, in all our nations, we see ongoing work that makes a difference. The Scottish Government are consulting on proposals to establish a Scottish child poverty target. The Welsh Government have a responsibility to report on progress towards achieving their child poverty objectives. In Northern Ireland, the Executive’s child poverty strategy commits them to eradicating child poverty in the future. Those efforts must now be backed by the UK Government.
I shall briefly set out the reasons why the Government should prioritise early years interventions. Too many children are stuck following a path that was set for them in their infancy. The importance of children’s early years in forming their life chances is well understood. The House should note the longstanding contribution of my hon. Friend the Member for Nottingham North (Mr Allen) in campaigning for better early-years provision and conducting an independent review in the previous Parliament.
Today, a child born in a deprived area is likely to die nine years earlier than someone from a wealthier postcode across town. To put that right will require us to bring together Government, campaigners and educationalists to learn from best practice internationally. Theirworld’s 5 for 5 campaign is leading a global effort to do just that, focusing on the five things that shape a child’s basic care: good nutrition; healthcare; learning; play and protection; and, of course, a loving home environment. We should recognise the ongoing work of Theirworld and its president, Sarah Brown. By the time a child reaches the age of five, about 90% of their brain development is complete. We will best tackle the growing gap between the richest and the rest, both in and out of school, by thinking bigger about how to reinvigorate early-years provision through programmes such as Sure Start, rather than by accelerating the cuts we have seen since 2010.
Just as quality teaching makes all the difference in the classroom, a well-skilled nursery workforce led by early-years teachers is proven to help to prevent the poorest children from falling behind. One in five children, and a third of the poorest children, arrive at primary school having fallen behind in the key elements of school-readiness, and we should recognise Save the Children’s campaign to address that. I ask the Minister to lead discussions with colleagues across Government on how every child can benefit from an early education led by qualified early-years teachers.
In my Barnsley constituency, three in five children who attend an independent nursery do not have access to support from a qualified early-years teacher. A child’s education can provide a route out of poverty, building on a foundation that is laid in the early years. That is why I am so proud to champion City Year UK, a charity that empowers young people aged 18 to 25 to serve others in tackling educational inequalities. Through spending a year volunteering in disadvantaged schools, those involved develop lifelong leadership skills and become role models to raise the aspiration of others.
The current evidence demonstrates how the Government are not getting it right—by investing in a new generation of grammar schools, which the evidence shows do not deliver; by not investing enough in building the evidence base for early-years interventions; and by accelerating the closure of Sure Start children’s centres, which work so well. Policies across Government must seek to make a difference to children. Changes to tax and benefits over the next four years will take more than £1 in every £10 from the pockets of the poorest families, and that is why the Government should end the freeze on working-age benefits.
The four-year freeze promises to be the primary driver of increased poverty. Ending it would be not only morally right, particularly with prices at the tills set to rise, but sound economics. Less well-off households spend more of the money they have than better-off ones so, as well as a clear moral case for action on poverty, there is a sound economic one. It is estimated that £1 in every £5 of public spending is associated with poverty, and that that costs the UK taxpayer £78 billion. As well as redirecting public spending, poverty worsens the key economic challenges we face. It lowers productivity and limits spending power, which undermines the strong economy we need for the future. But the human cost is the greatest of all, which is why the Government’s penny wise but pound foolish approach to investing in children must end. Poverty destroys childhoods and limits futures. Stopping that, as the Prime Minister has pledged, should be the defining mission for this and for any Government. In times of profound change, those with privilege and wealth have a security that is not afforded to those without.
In setting out the reasons why child poverty should be prioritised, I have sought to take a constructive approach and find common ground. I have detailed the case for a target to reduce child poverty and highlighted the support of organisations with real experience and expertise. Will the Minister tell us the Government’s position on establishing a child poverty target? We can end child poverty so that every child can realise their potential. That has to be our ambition and it should be a challenge that unites us all. Through that effort, we can provide security, opportunity and hope to those who need it most. If the Prime Minister’s words in Downing Street mean anything—and we will judge this Government by their actions, not their rhetoric—the Government must set a target.
I am very proud to represent Barnsley, and I see at first hand the difference that the Government’s policies make to so many of my constituents. In standing up for them and their futures today, I am reminded of our Barnsley motto, “Spectemur agendo” or “judge us by our actions”. That will be my guiding principle today, as we hear the Minister’s response, and in the coming months. It would be an historic mistake to abandon the battle against child poverty, so let us set ourselves a target and take action.
I am grateful for the opportunity to have considered the important issue of child poverty. All of us who serve in this place do so in order to improve the lives of our constituents and the communities that we represent. However, the reality is that an increasing number of children are living in poverty, and the Institute for Fiscal Studies projects that that will increase by 50% by 2020. In practical terms, that means that nine out of 30 kids in every classroom around the country will be living in poverty.
If hon. Members believe, as I do, that that is not only unacceptable but avoidable, all of us—the Government very much included—have an absolute responsibility and a duty to act. It is in our interests to do so. As I said, there is a clear moral argument for doing so, which is frankly enough in its own right, but there is also a clear economic argument for investing in the future and the next generation of talent. Despite what we have heard from the Minister, the reality is that without a target, a clear strategy or a clear focus on making progress, that simply will not happen. The Government are in an incredibly privileged position; they have the opportunity and the power to act. I hope that they will do so.
Question put and agreed to.
Resolved,
That this House has considered child poverty.
(7 years, 9 months ago)
Commons ChamberThe IFS projects that child poverty will go up by 50% over the course of this Parliament. Why is that?
The IFS’s projections are for the IFS to explain, but I can give the hon. Gentleman the facts: the proportion of people living in relative poverty is near its lowest level for more than 30 years; and, since 2010, 300,000 fewer people, 100,000 fewer working-age adults, and 100,000 fewer children are in poverty. The whole House should welcome those figures.
(7 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I beg to move,
That this House has considered Government plans to restrict tax credits to two children.
It is a pleasure to see you in the Chair, Mr Howarth.
I come to this debate in great frustration. When I first uncovered this issue in the Budget on 8 July last year, I did not expect that I would still be talking about it one year, three months and four days later. Incredibly, unless the Minister can tell me differently this afternoon, the Government are still unable to say exactly how their pernicious and medieval policy will operate.
To set the context, the then Chancellor, the right hon. Member for Tatton (Mr Osborne), outlined in his Budget the Government’s intention to limit the child element of tax credits and universal credits to the first two children in a family. The Budget stated:
“The Department for Work and Pensions and HMRC will develop protections for women who have a third child as the result of rape, or other exceptional circumstances.”
None of the questions asked on the Floor of the House or put directly to Ministers by me or my colleagues over the past year have been answered with a justification or explanation for this fundamentally flawed policy. I want to set out my anger about writing a rape clause into our social security system and about the wider impact of the two-child policy. Neither the rape clause nor the two-child policy is fit for a Government who proclaim their support for families.
Let me deal with the rape clause first. I put on record the public opposition to it from Scottish Women’s Aid, Rape Crisis Scotland, Engender and the more than 10,000 people who signed a petition on the issue. I am deeply upset and disturbed with the attitude that the Government have taken to very vulnerable women and children. No woman should have to prove that she has been raped in order to get tax credits.
I suppose it is not in the spirit of the chummy way in which people in this place like to do things, but I am unapologetic about the way I have spoken out about the meeting I had with the welfare Minister, Lord Freud, back in May. As he is a Member of the House of Lords, I have no opportunity to challenge or question him. I have been to many meetings in my eight years as an opposition local government councillor and in my year in this place, but I have never been so furious. For a Government Minister to open a meeting by saying “I’ve had to learn a lot more about this issue than I really wanted to” is appalling, and to go on to suggest flippantly that women facing the extremes of domestic violence should just flee demonstrates a dangerous ignorance. I hope the Minister will take the opportunity today to dissociate herself from her colleague’s comments. I do not think it is radical to suggest that Government Ministers ought to understand the implications of a policy before they inflict it on some of the most vulnerable people in our society.
Children being born of rape is not something that tends to happen because a rapist jumps out of the bushes and attacks a woman, as awful as that very rare circumstance is. Rape happens when women are so vulnerable and so powerless that they are in fear for their lives. Rape happens as the result of control in relationships. Rape happens in marriage. If a woman is in such a relationship, she is not going to nip down to her local jobcentre and report to a Government official that her child was born as the result of rape. For a start, with the single household payment in universal credit, she is not going to see the money in any case; it will go straight to her partner and he will know what she has done. Nor will she want to go through a third-party reporting mechanism, as suggested by Lord Freud. She will not want to tell her family GP. If the family are not known to the social work system, she will probably not want to alert social workers. She might not yet have sought the support of her local Women’s Aid or of other sources of assistance. She will almost certainly not want to contact the police just for the tax credits.
There is no clear statement from the Government on how their policy will operate. Once the rape is disclosed, what burden of proof will be acceptable to Her Majesty’ Revenue and Customs and the Department for Work and Pensions? After all, they are not organisations known for taking people at their word. What will the time limit be? Once a woman has left an abusive relationship and is in a position of safety, will she be able to make a claim retrospectively? Can that claim be backdated? For how long? If a woman needs to claim tax credits at a later stage in her life, because that is the nature of tax credits, will she need to trawl through her sexual history to identify that one of her children was conceived by rape?
How will a claim be recorded? I cannot conceive of a way of doing that that would not be hugely stigmatising both for the woman and for the child. Lord Freud suggested to me that it might take the form of a letter that a woman would have to retain in her records at home. I cannot imagine the distress caused if somebody else in the family came across that letter at a later stage. Alternatively, will the information have to be held on the woman’s records with DWP and HMRC? Will staff have access to it? Which staff? Will they receive appropriate training? The Public and Commercial Services Union has come out against the policy because of the difficult position it would put its members in.
Tax credits may be required at different stages in a woman’s life; would her claim be flagged up on any further occasion when a claim was made, or would she have to declare it on each separate occasion and relive that abuse again and again? Asking a woman to recount such abuse, perhaps on multiple occasions, to different officials is not protection in any sense of the word. The Government are not protecting any woman, or indeed any child, with this policy. In her heart of hearts, does the Minister believe that putting women through such trauma and humiliation is worth it? The rape clause must be scrapped.
I will not be content, though, with solely removing the rape clause, because doing that would offer no protection to families either. The two-child policy must go too. Women’s Aid, the Child Poverty Action Group and the StepChange debt charity all believe that the policy runs counter to the Government’s much-vaunted family test and produces a perverse incentive for families to separate or for single parents to forgo entering new relationships.
The Government have stated that twins and multiple births will also be protected, but I have discovered that that is true only if the twins come after a single birth. According to the Government, people who have twins first have had their lot. That is despicable.
The letter I received from the Chief Secretary to the Treasury on 30 September stated that the Government’s intention was that
“all families—those in receipt of benefits and those supporting themselves solely through work—will be faced with the same sorts of financial considerations when making decisions about having more children”.
Aside from sounding as if it has come from some kind of totalitarian regime, that statement is absolute nonsense. Quite evidently, not all families start from the same point, but all families are valuable and worthy of support. The state has a duty to protect the most vulnerable among us.
The Chief Secretary to the Treasury is also quite wrong in his assumptions about those claiming tax credits. Some 63% of families who currently receive tax credits for a third or a subsequent child are in work. They are the very “just managing” families that the Prime Minister referred to on the doorstep of Downing Street. Will she make good on her commitment through deeds and not just warm words? Pursuing the two-child policy would pull the rug from underneath the very families she claims to want to protect.
The two-child policy is completely disproportionate. The Child Poverty Action Group notes that 42% of those who claim child tax credits have only one child, 36% have two children, 16% have three children and only 7% have four or more children. The policy will have a devastating impact on those families and their income but a very limited effect on Treasury coffers.
The Chief Secretary to the Treasury’s claim about people
“making decisions about having more children”
fails to recognise that perhaps when a family had their children, they were well able to afford them. I also doubt that many families make life decisions solely on the basis of their future tax credit income. Is this the thin end of the wedge from the Government? Life is not that simple. It could take only sudden illness, the death of a partner or changes to circumstances that could not reasonably have been foreseen to plunge a family into a situation in which they might need to claim tax credits. The third child that we are speaking of already exists and needs to be cared for. The extra support that tax credits provide could make the difference that gives that family enough food to eat or the ability to pay their bills. Providing for people in such situations is the very essence of why social security exists.
Evidence that I have received from StepChange demonstrates that if the two-child policy were applied to their current clients who have three or more children, 90% of those families would have absolutely no money left at the end of the month. The charity fears that, faced with mounting bills, unexpected everyday expenses and other commitments, those families will become extremely vulnerable to going into unmanageable debt. The cost of the bankruptcies that will follow will then end up being passed on to the state. StepChange’s research says that the average client that it deals with would be £327 worse off per month under the Government’s plans.
The policy also has very serious equalities implications, which the Government have not addressed at any stage. Concerns have been expressed to me by the Interlink Foundation, which represents the Orthodox Jewish community and which strongly believes that the policy will perpetuate disincentives to work for families with three or more children, as any additional earnings would reduce their entitlements. It will also make it impossible to achieve the Government’s aim of being better off in work. Interlink points out the substantial differential impact on religious communities, where reproduction, use of contraception and family size can be determined by beliefs and prevailing cultures, which the Government do not appear to have taken into account. According to Interlink’s figures, 52% of Jewish families have three or more children. For the Muslim community, the proportion is 60%. That stands in stark contrast to the population as a whole, out of which only 30% of families have three or more children. I am shocked that the Government have not addressed such a clear equalities issue.
It has been said by no less than the former Prime Minister—perhaps the Minister will repeat these claims today—that I am endlessly whinging, and that the Scottish Government now have the powers to deal with this issue. Those who say that are being extremely misleading, and also unfair to women and children in the rest of the UK, with whom I express my solidarity. The powers being transferred by the UK Government do not allow us in Scotland to set the eligibility criteria for child tax credits. Tax credits are a reserved benefit, and our Government in Scotland should not have to pay for the UK Government’s regressive policies. We have already spent £55 million on mitigating the hated bedroom tax. I would rather see the Scottish Government making positive choices, with all the powers of a normal Parliament, supporting families and lifting people out of poverty.
The hon. Lady is making a powerful speech and I very much agree with the argument she is advancing. I am pleased that she mentioned the Child Poverty Action Group; I pay tribute to the work it is doing on this matter. Does she agree that if the Government are determined to pursue such a punitive policy, at the very least they should publish an analysis of its impact on child poverty levels?
I absolutely agree. The United Nations suggests that impact assessments should be carried out on policies that affect children. Such an assessment appears not to exist for this policy.
The Scottish Government can provide top-up benefits where someone is already eligible, but not where they are not. There is also a gap: the two-child policy and the rape clause come into force early next year, but it is unlikely that the full range of social security powers will be operational in Scotland until 2018.
I shall conclude by speaking briefly about our obligations to protect and support children. I contend that the limiting of the child element of tax credits and universal credit to the first two children in a family runs counter to our obligations under the United Nations convention on the rights of the child. We are obliged by article 2 of the UNCRC not to discriminate on the basis of birth, but the two-child policy clearly does so, by apportioning value according to when the child was born into a family. We are obliged under article 3 to make the best interests of the child a primary consideration, but the two-child policy and the rape clause stigmatise, and say that the Government do not value all children equally. They also limit working parents’ ability to feed and care for the children they already have. We are obliged under articles 26 and 27 to provide access to social security and an adequate standard of living, to assist parents in the bringing up of their children. The two-child limit completely undermines that right.
The UN Committee on the Rights of the Child and the UN Committee on Economic, Social and Cultural Rights have both recently investigated the UK for its approach to welfare reform and highlighted in very strong terms their concerns about the Government’s austerity agenda and the cuts to tax credits that have already happened. In its July report, the UN Committee on the Rights of the Child stated that it was
“seriously concerned that…Recent amendments to the Tax Credits Act (2002), the Welfare Reform Act (2012) and the Welfare Reform and Work Act (2016) have limited the entitlement to child tax credits and social…regardless of the needs of the households”.
That is absolutely appalling. In their report to the UNCRC, the UK’s Children’s Commissioners said that
“measures should not discriminate against children from particular groups for example children of lone parents, children with disabilities or children from large families.”
The rape clause and the two-child policy do discriminate in those ways.
The two-child policy and the rape clause fundamentally punish families for the circumstances they are in— circumstances that may be beyond their control and in which children already exist. I urge the Minister and the Government to act in the best interests of children, as our international commitments make clear they must. I urge them to stand up for the most vulnerable in our society. Families in situations of poverty, who are working hard and doing their best, are extremely vulnerable. Women who have been raped are extraordinarily vulnerable. The Government need to think incredibly carefully about how they wish to pursue these policies, if they wish to pursue them at all. I call on the Government to protect the “just managing”—those people they say they value and wish to support—and to scrap the abhorrent rape clause and the pernicious and discriminatory two-child policy.
It is a pleasure to serve under your chairmanship, Mr Howarth. I congratulate the hon. Member for Glasgow Central (Alison Thewliss) on securing the debate. She is right to point out that she has been determined in her pursuit of this policy. She has certainly taken every opportunity to raise the matter with Ministers. I wish, though, to put on the record my support for my noble Friend Lord Freud, who has worked tirelessly on this matter. I entirely reject the hon. Lady’s portrayal of him, and believe that she has deliberately given an inaccurate and misleading account of a private meeting.
This debate explores the limitation of tax credits to two children, which was legislated for under the Welfare Reform and Work Act 2016. I know that the hon. Lady has a strong interest in this topic, and that it is something she has raised in the past. I welcome the opportunity to set out the purpose of the policy. In so doing, I hope that I can allay many of her concerns and particularly underline that we are absolutely committed to ensuring fairness for all families.
The welfare reforms that the Government have introduced are about much more than simply money. Our reforms seek to bring about a positive change in our nation. They are about putting welfare spending on a sustainable footing, but it is important to do that in a way that protects the most vulnerable. As the Prime Minister herself has said, we will fight against the injustices we see in our society.
The current benefits structure, which adjusts automatically to family size, is unsustainable, and it is not fair to the taxpayer or to families who support themselves solely through work and necessarily make difficult choices. That is why we have announced that, from 6 April 2017, families with third and subsequent children born after that date will no longer be able to claim additional support through child tax credit and universal credit. The policy will also apply to future new universal credit claims from families with more than two children.
Is the Minister prepared to commit today to publishing an analysis of the likely impact of the policy on child poverty levels?
I shall address the impacts of the policy later in my speech.
The Government believe that the policy strikes the right balance between protecting the vulnerable, such as by retaining extra support for families with disabled children, and encouraging families who receive tax credits to make the same financial decisions about the number of children they can afford to support as those families who support themselves solely through work do. Parents will continue to receive help with the cost of raising children through the payment of child benefit, which will continue to be paid regardless of family size.
(11 years, 1 month ago)
Commons ChamberMy hon. Friend makes an important point. We ask claimants when we send out ESA50 forms to contact GPs and consultants so that we get the right medical information to help our decision makers reach the right outcome. I encourage GPs and others to take more time to send in the returns quickly so that we have the best information possible to make those decisions.
T7. The pensions Minister knows that I have been in regular contact with the Pensions Regulator regarding the Carrington Wire pension fund. He also knows that I am grateful for his support in addressing concerns about the ability of some foreign-based multinational companies to renege on their pensions responsibilities to UK pension holders. What progress are the Government making on addressing that important issue?
I am grateful to the hon. Gentleman and pay tribute to his assiduous work on behalf of his constituents in that case. I hope that this afternoon he was able to have a telephone conversation with the Pensions Regulator to discuss it. In general terms, the Pensions Regulator has powers to act overseas, as in the 2007 Sea Containers case and the 2011 Great Lakes case. I am happy to continue working with the hon. Gentleman on the issue.
(11 years, 8 months ago)
Commons ChamberVulnerable tenants will be defined as they always have been, as people who for various specific reasons are unable to cope. All those people will be considered carefully and all the mechanisms that we are putting in place—this is the point that makes universal credit different—mean that by ensuring that we identify those who have difficulties, we can get to them and sort out their problems rather than just dealing with the symptoms, such as their being unable to make their payments. We need to deal with why they are in debt, what is happening to their families and whether, say, the family is drug addicted and start to put those problems right before they crash out of work later on.
T7. The DWP recently published an evaluation that confirmed a net benefit of £7,750 per participant from the future jobs fund, a scheme that originated in my constituency. That can be set alongside Barnsley college’s successful sector-based work academy, which is already demonstrating its effectiveness in getting long-term unemployed adults into work. Does the Minister understand why, when it comes to reducing long-term unemployment, my constituents have more faith in those schemes, which originated in Barnsley, than they do in the Work programme, which came from his Department?
The hon. Gentleman should reflect on the fact that the sector-based work academy is part of the Youth Contract. It is effective and is an idea put forward by this Government. I am pleased that it is working well in Barnsley. The other thing in the Youth Contract that is working well is work experience, which is as effective as the future jobs fund but 20 times cheaper. The Government can demonstrate that we are giving help to get people into work, and are giving much better value to the taxpayer.
(11 years, 9 months ago)
Commons Chamber1. What steps he is taking to ensure that foreign conglomerates carry out their responsibilities to UK pension-holders.
As this is the first session of DWP questions since the announcement of the untimely death of Malcolm Wicks, I hope that you will allow me, Mr. Speaker, to place on record, on behalf of the whole ministerial team, our appreciation of Malcolm and all that he contributed to our debates on pensions and welfare.
The Pensions Regulator has “anti-avoidance” powers to take action against employers when they have acted to avoid supporting the scheme. That includes taking action in foreign jurisdictions when necessary. For example, four financial support directions were issued last year against companies in north America in the Nortel case.
I thank the Minister for his response, and for meeting my constituent Alan Hunton and me to discuss the matter. He is aware of my concern about foreign companies that have purchased and asset-stripped businesses in the United Kingdom. In some cases, those firms have discarded their pension responsibilities in such a way as to endanger the pensions to which their employees are entitled. Will the Minister explain how he is working with the Pensions Regulator, and with his colleagues in the Government, to curtail such predatory behaviour?
This is indeed an important issue. I can assure the hon. Gentleman that the Pensions Regulator has engaged during the last 12 months, and continues to engage, with more than 1,100 schemes that are linked to overseas employers. Between April 2010 and August 2012, it has exercised its powers on at least 10 occasions in relation to such schemes.