Food Banks

Danny Kruger Excerpts

Tuesday 19th November 2024 Westminster Hall

[Danny Kruger (East Wiltshire) (Con)]

I congratulate the hon. Member for Aberdeenshire North and Moray East (Seamus Logan) on bringing this debate forward. I am grateful for hon. Members’ helpful contributions, and I am happy to take interventions from hon. Members who were not able to speak if there is time.

Let me first acknowledge that I agree with hon. Members who have pointed out that the existence and extent of poverty in our country is shameful. It is a source of deep shame to our country that so many people are reliant on the charity of others for essentials. Briefly, I pay tribute to the food banks in my constituency and in my former constituency of Devizes, which do such good work. I also previously worked with the Hammersmith and Fulham food bank. I echo the points made by hon. Members about the valuable work of such organisations.

[Lee Pitcher (Doncaster East and the Isle of Axholme) (Lab)]

I have seen extraordinary work and inspiring volunteers at the DN7 food bank, the Isle of Axholme Foodshare Project, Hatfield’s Pre-loved Uniform Bank and the Hygiene Bank Doncaster. Does the hon. Member agree that although their work is amazing, we do not want to see those banks grow on our high streets or even exist in the first place?

[Danny Kruger]

I am grateful for the intervention. I recognise those points and pay tribute to the hon. Member’s food banks too.

Hon. Members have cited some of the facts. It is a fact that the number of parcels handed out by the Trussell Trust doubled in the last Parliament in the light of the covid crisis and the cost of living crisis, but I emphasise that we should not take food bank use as a perfect proxy for poverty, because that data is patchy and affected by the supply of food banks. There is also an important displacement effect. It is not necessarily the case that all the need identified by food banks is new need; that need might formerly have been met by other sources, such as family and friends or other community organisations.

Nevertheless, the profile of food bank use tracks the state of the economy and the level of poverty in our country. We saw it spike during lockdowns, then decline and then spike again with the cost of living crisis. I am afraid that it has not really declined since: 1.4% of households have used a food bank in the last month and 3% in the last year, which are significant numbers.

So what is going on? I echo the point of my right hon. Friend the Member for Salisbury (John Glen) about the complexity of the causes of food bank use, but we recognise the obvious point that it is ultimately down to household income. The “Hunger in the UK” report points out that the main reasons for people having problems with their household income are difficulties with benefits, as many hon. Members have mentioned; the existence of in-work poverty; and the difficulty of gaining well-paid work, particularly for disabled people and carers.

[Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)]

A number of constituents have written to me expressing their struggle to afford food, despite being in work, and that is not an isolated issue. In mid-2022, almost 90% of those referred to food banks in Wales were in work and had such low incomes that they were living in destitution. Does the hon. Member agree that the working poor, created by the last Government, are disgracefully reminiscent of Victorian times?

[Danny Kruger]

I do recognise the extent of the problem of in-work poverty and of people reliant on benefits to sustain their incomes and on additional support from the outside. I do not accept that that was a new phenomenon; in fact, I will come to the last Government’s record in a moment.

[Antonia Bance (Tipton and Wednesbury) (Lab)]

One of the last Government’s best policies was the introduction of a £20 additional uplift to universal credit during the pandemic. It stopped poverty growing in its tracks and showed the impact of increasing access to money—not to be facile—on poverty. Does the hon. Member share my hope that the Government will bring forward their review of universal credit, as promised in the Labour manifesto?

[Danny Kruger]

Yes, indeed; I very much look forward to that review coming along soon.

Many hon. Members have mentioned the record of the last Government. I recognise the extent of low wage growth and in-work poverty that we have seen. If we look at absolute poverty, however, which is the measure that we should ultimately be looking at if we are thinking about the extent of destitution and food poverty, 1 million fewer people are in absolute poverty after housing costs in 2024 than in 2010. That includes 100,000 fewer children, 200,000 fewer pensioners, and 700,000 fewer working-age people, so the last Government made a real impact on absolute poverty. Overall, there are 1 million fewer workless households than in 2010.

Much of that impact was driven by the introduction of universal credit. Those of us who worked in the social sector before 2010 might remember the labyrinthine complexity and the perverse incentives that were created by the mess of the benefit system that we inherited in 2010, which we rationalised and improved. It is also worth mentioning the enormous £100 billion cost of living package that the last Government put together in the light of the energy shock.

Let us turn to what this Government are doing. The most significant policy that they have announced so far on poverty is the withdrawal of the winter fuel payment. Some 10 million pensioners will be denied that essential benefit, including 70% of disabled pensioners. That is surely not a record that hon. Members are proud of.

[Sam Carling]

The shadow Minister has made a point about the Government’s difficult decision to withdraw the winter fuel payment. If he feels so strongly about it, why did his party pledge to do it in 2017?

[Danny Kruger]

We did not pledge to do it and we did not do it. I think it is important to have universal entitlement to essential benefits, but if there does need to be some means testing, surely it should penalise, or withdraw the payment from, only the wealthiest pensioners, not 90% as is happening under this policy.

The other thing that the Government have done is impose a significant tax on employment through the national insurance rise, which they promised not to do in their manifesto. The cost of that will fall disproportionately on low-paid workers, who will see the impact of that tax in their wage packet.

The Joseph Rowntree Foundation, which is no friend to my party, has pointed out that poverty is due to rise because of the Budget that the Chancellor has introduced. Every household type, except pensioners, will be poorer. Single-parent families will be £1,000 poorer. An average couple with children will be £1,760 poorer. Inequality will be higher. That is all the testament of the Joseph Rowntree Foundation.

The Office for Budget Responsibility points out that real wages will fall and indeed, the Budget has caused the OBR to lower its real wage growth forecast by 0.5%. As the OBR says, the Budget shifts

“real resources out of private households’ incomes in order to devote more resources to public service provision.”

That might indeed be the policy that the Government want to pursue, but the effect will to be to reduce household income, as the OBR acknowledges.

[Alex McIntyre]

Will the shadow Minister acknowledge that the OBR actually said that 90% of households will be better off under this Budget, and it is only the wealthiest 10% of households that will feel the cost, making sure that we are spreading the cost on to those shoulders that can bear it most?

[Danny Kruger]

As I said, I do not think that withdrawing the winter fuel payment from 10 million pensioners reflects a transfer of the burden on to those who can bear it most—nor does imposing a taxation on low-paid jobs.

What shall we do about all this? I am sorry to say that I have not heard enough in the debate about what could and should be done, although I acknowledge that the hon. Member for Aberdeenshire North and Moray East made some suggestions—many of which I agree with, particularly around the importance of having an adequate safety net. I, too, look forward to the universal credit review that the Government are bringing forward, and I strongly agree with the focus on nutrition and empowering communities.

I do not agree with the need for the essentials guarantee, although I respect that campaign. I do not think that transferring responsibility for setting benefit levels to an independent body—essentially, to an unaccountable quango—is the right way to go. The Government should be responsible for that policy, and accountable to Parliament, rather than an independent body.

If we look at the drivers of food bank use as reported in “Hunger in the UK”, we need to improve the benefits system and make it quicker and easier to use. I look forward to seeing how the Government are going to improve pension credit applications to improve winter fuel payment access. We need to drive up wages again; I deprecate the introduction of taxation on wages. We need to grow our jobs market and ensure that it is easier and better for employers to take workers on and promote them—which, I am afraid to say, the Employment Rights Bill that we are anticipating will not do, given that it imposes punitive obligations on employers from day one.

I am conscious that my time is almost up, so let me finish with this point. I praise the flexibility of food banks, and the human relationship that they imply: the hon. Member for Aberdeenshire North and Moray East talked about the powerful sense of community. A quiet revolution happened during the covid pandemic that momentarily offered a better social and economic model in which remarkable innovations, particularly around food and provision to the poorest among our neighbours, were enabled to flourish.

I agree that we want food banks to be redundant, but while we have hardship they can be an important part of the mix. I pay tribute to other innovations such as social supermarkets as well. Lastly, I do not agree with the hon. Member that we need a more central strategy and direction for the household support fund. Its great value is in the innovation that it enables, and the way that it empowers local communities, which he said that he believes in, to ensure that local authorities can take responsibility for supporting their communities. That is an important innovation that was brought in by the last Government, which I supported, and I hope that it will continue.