Food Banks

Debate between Danny Kruger and Sam Carling

Tuesday 19th November 2024 Westminster Hall

[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.