(7 years, 9 months ago)
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The hon. Gentleman and I share views on many issues, not least on how welcome it is that the marriage allowance is once again a transferable allowance. However, that is just a small dent in properly recognising marriage and giving it its true worth and value. That could perhaps be done not least by following the call from many of us, and from the Centre for Social Justice and others, to focus particularly on couples with young children. I would certainly support that.
Not all marriages last, and external support is often needed when there are difficulties. The Department for Education has said that for every £1 spent on relationship support, the Government save £11.40, yet the Department for Work and Pensions seems to be considering significant cuts in support for face-to-face marriage counselling services. Does the hon. Gentleman agree that that would be a terrible mistake?
This celebration and debate is not just about putting everyone in a Persil advert of perfect families, where everything goes right. Things go wrong, and resilience is needed. That can come at an early stage through counselling, support or marriage preparation, or after marriage through MOT tests and further support, not least at crucial moments involving young children or debt. Statistics show that the Government spend only 1.6p for every £100 of social harm that is caused by family breakdown. More needs to be done to tackle the associated price tag of £47 billion a year, which is a conservative estimate.
The way in which a marriage plays out in our society should provoke the Government to do all they can to ensure that marriage and the social benefits it affords are accessible to everyone, for richer and for poorer. In 2015, the Marriage Foundation—I very much commend Sir Paul Coleridge, who is here today, and Harry Benson for the great evidence-based work that they have done over the years—found an alarming widening of the marriage gap between rich and poor, with wealthier couples being four times more likely to get married than those from poorer backgrounds. Some 80% of high earners marry, whereas only 24% of low earners do. The rich get married and the poor increasingly do not. That bias in favour of wealthy couples is a social injustice. In fact, to use the words of the former shadow Cabinet Minister for the family—now our Prime Minister—it is a burning injustice, which needs to be tackled by the Government and others. That is vital because marriage supports family stability and provides an important pathway out of poverty.
Marriage must not disappear; in fact, it should be central to Government policy making. I sometimes search Government policy documents on my computer to see where the M-word comes up, but it often does not. There should be family impact statements looking at the impact of marriage and the support it provides in a lot of arenas. The life chances strategy or the social reform strategy, or whatever it will be called, will be published shortly, and I will again search to see where the word “marriage” comes up, because it needs to. If we are tackling burning injustices, we need to support marriage.
I want to spell out some social benefits of marriage. Unmarried parents are six times more likely to break up before their first child’s fifth birthday. Children from broken homes are two-and-a-half times more likely to be in long-term poverty, and 44% of children in lone parent families live in relative poverty—almost twice the figure for children in couple families. Cohabiting couples make up just a fifth of couples with dependent children, but nearly half of all family breakdown. There are a lot of reasons to consider, but marriage is socially just and aids social mobility. Children who experience family breakdown perform less well at school, gain fewer qualifications and are more likely to be expelled from school. I therefore encourage the Government to commit more resources to tackling family breakdown by celebrating marriage.
I welcome the marriage tax allowance. We have mentioned the importance of that; it brings us in line with other OECD countries that have recognised family stability by recognising marriage. However, it is also important to build on that good work. The fact that 90% of a married person’s tax allowance remains transferrable means that although we have that recognition in principle, it does not really get to the heart of the problem.
There are many creative ways of celebrating marriage. As hon. Members have mentioned in their interventions, we can do much more. There is the financial element—we have debated whether that is important in the past—but more than that, it is about practical support and how we provide relationship support. I welcome the previous Prime Minister’s absolute commitment to that and the money that was provided for relationship support, which must continue—indeed, it should increase, because it is money well spent. Supporting fathers, which several hon. Members present have championed through the all-party group on fatherhood, is particularly important, as is broadening access to marriage preparation classes and marriage counselling.
I pay tribute to the Marriage Foundation, which is behind next week’s celebration, and to Harry and Kate Benson, whose life as a couple has recently received a lot of publicity. They recognise that marriage is not just a bed of roses. We all experience problems. Marriage Week is about recognising that we must not take our marriages for granted—we all need to work on them, and that applies to me as much as to anyone else—and nor should society or the Government. We should promote and celebrate this vital institution for a good society.
(10 years, 7 months ago)
Commons ChamberMy hon. Friend makes an extremely good point. Our opposition to this measure is that it disproportionately impacts on women and benefits men and that it does not recognise five out of six households with children up and down the country who are, as we know, struggling to make ends meet.
The problem with the hon. Lady’s point is that she is looking at married couples individually. The change is that, rather than wholly going down the route of an individualised tax system, as has happened in the past, this policy considers married couples. Married couples are benefiting and, if we asked them, they would say that they are benefiting as a couple and as a household. They are not hiving off men against women, which is what she seems to be doing.
The tax system works on an individual basis and this proposal introduces incredible complexity to the tax system. I shall cover that in more detail and explain the cost implications. Government Members obviously think that the costs are worth it, but I would be very careful about the concept that all married couples will happily share all their money and any tax gain—although, admittedly, we are talking about £3.85 a week. That seems to be rolling the clock back somewhat and assuming a level of communication within households that I do not think it is the Government’s place to assume.
Women are more than £26 a week—a week—worse off in real terms since 2010, and after significant progress under Labour, when the gender pay gap fell by more than 7%, it is now rising again for the first time in five years. The gap between women’s median weekly earnings in the private sector and the public sector has increased between 2009-10 and 2012-13 from 28% to 31%. The same gap for men has decreased from 17% to 14%. At the same time, the cost of child care places, which we debated at length yesterday, has risen by an average of 30% on this Government’s watch, five times faster than pay.
Analysis by the House of Commons Library shows that the Chancellor’s tax and benefits strategy since 2010 has raised a net £3.047 billion, or 21%, from men and 79%, or just under £12 billion, from women. That includes the Budget 2010 tax credit cuts, which took £2.7 billion from women and only £750 million from men, the 2010 spending review, under which reductions in child care support through tax credits took £343 million from women but just £47 million from men, and the three-year child benefit freeze, which has taken £1.26 billion from women and £26 million from men. That, of course, contrasts with the £3 billion tax cut that was given to the top 1% of earners in this country, under which 85% of the gainers are men, and this marriage tax allowance, under which 84% of the gainers will be men. This issue goes to the heart of the clause and of why we are tabling our amendment.
We have said very clearly that, rather than giving this tax break to only a third of married couples—some hon. Members say they are in favour of marriage, but only certain types, where one partner in the marriage stays at home—we would put that money towards all married couples and, indeed, all taxpayers by reinstating the 10p tax rate, which would benefit all marriages and all children in those households too.
I hear what the hon. Lady says, but I am afraid that will not wash with the electorate. The reality is that the Labour Government abolished recognising marriage in the tax system, and Labour now needs to make up that lost ground and join the mainstream in the other OECD countries and across the world. The Opposition need to recognise that people support marriage.
(10 years, 7 months ago)
Commons ChamberI beg to move, That the clause be now read a Second time.
It is a pleasure to serve under your chairmanship, Mr Amess. New clause 1 draws attention to the rising costs of child care for working parents since 2010, and seeks to commit the Government to addressing their failure in that regard. It also seeks to establish ways in which the tax and benefit systems could be used to make child care more affordable before April 2015, so that hard-working families experiencing a cost of living crisis can have the help that they need now, especially in the light of the challenges that they face as a result of changes made by this coalition Government.
The new clause gives us a welcome opportunity to explore one of the most pressing issues that face millions of parents throughout the country, and to address the fact that millions of families are facing a child care crunch. It is important to set the issue in context by revealing just what has happened to child care costs on this Government’s watch. The average bill for a part-time nursery place providing 25 hours a week has risen to £107, the highest level in history. The cost of nursery places has risen by 30% since 2010, five times faster than pay, and the average weekly cost of a full-time place has risen to £200 or more. That means that parents working part time on average wages would have to work from Monday until Thursday before they had even paid their weekly child care costs.
The hon. Lady has given statistics showing what has happened since 2010. Did child care costs increase before 2010, and if so, what did the last Government do about it?
The point of putting the issue in context is that the rise in child care costs since 2010 is astonishing, and has made child care unaffordable for many parents. I shall say more later about the number of parents, particularly mums, who feel that the cost of child care prohibits them from going to work. I think that rather than questioning the statistics, Government Members should get real and do something about that. Waiting until 2015 to make a promise for tomorrow is just not good enough, which is why we tabled our new clause.
According to alarming new research from the Family and Childcare Trust, families are paying more on average for part-time child care than they are spending on their mortgages. They are handing over a staggering £7,500 a year or more for child care for two children, which is about 4.7% more than the average mortgage bill. Rising prices have been matched by the fall in the number of child care places. The number of places provided by nurseries and childminders has fallen by more than 35,000 since 2010, at a time when the number of four-year-olds has actually increased. Most worrying of all, there are 576 fewer Sure Start children’s centres than there were in 2010, which means that an average of three are being lost each week. At least, that was what we were seeing before the Government took their database down.
It is interesting that the hon. Lady mentions that, because I will quote directly on this issue a little further on in my submission.
We know that the Government are good at con tricks, giving with one hand but taking much, much more with the other. For example, they made a U-turn last month when they decided to support 85% of child care costs for all universal credit claimants. That was a welcome reversal after the coalition decided in 2011 to cut the support for child care through the working tax credit from 80% to 70%—a decision that led to an average loss of £570 a year for low-paid working parents. It is just another example of this Government taking with one hand and giving with the other.
As Alan Milburn, chairman of the Social Mobility and Child Poverty Commission, has said, low-income families will still lose out, despite this increase in support for those most in need. He told The Independent on Sunday:
“The Government has taken half a step forward. The announcement that 85% of childcare costs will be met under universal credit from 2016 will help work pay for low-income families. This is very welcome. The sting in the tail is that this £200 million expansion in childcare support will come from within the universal credit programme…That risks robbing Peter to pay Paul.”
Perhaps the Minister could also give a bit more detail on how she intends to pay for the increase in support. While she is at it, perhaps she could provide some clarity on when low-income families eligible for universal credit can expect to receive this support with their child care costs.
Under the original plans of the Secretary of State for Work and Pensions, most would have expected to receive the increased support when the tax free child care is introduced in 2015, but clearly that is not going to happen. Will the Minister clarify when the Government expect to introduce this support and whether it will be in the near future? Ultimately, as Opposition Members have made absolutely clear, parents facing a cost of living crisis will see through any child care con, because it does not make up for how much the families are now paying for child care under this coalition Government.
I come now to the first part of new clause 1 and the Opposition’s proposals for improving child care support, which we know will make a real difference to working parents. New clause 1 proposes that the Chancellor should undertake a review of the ways in which child care could be made more affordable before April 2015. We have done much of the work for him with our clear suggestions for supporting families on this pressing issue. We want to extend free child care for three to four-year-olds from 15 to 25 hours a week for working parents, which can be fully funded by increasing the bank levy. As with the 15-hour early-years entitlement, the new 25 hours would be for 38 weeks of the year, which would mean more than £1,500 of extra support per child each year. Perhaps most important, Labour’s plans will not demand that working parents spend £10,000 on child care in order to get the maximum promised help.
We also know that for school-age children, child care can become a logistical nightmare, with many parents increasingly struggling to find before and after-school child care, while the Government stick their fingers in their ears and hum. On the Government’s own record, 62% of parents of school-age children say that they need some form of before and after-school or holiday care in order to combine family life with work, but of those nearly three in 10 are unable to find it. To give parents of primary-age children peace of mind, the Opposition would set in law the guarantee that they could access wraparound child care from 8 am to 6 pm through their local school if they wanted it. This primary child care guarantee will benefit parents of primary-age children most, because those parents most need support. Of course, these plans will be in addition to all the support that parents will already receive, and they will not be contingent on spending thousands of pounds on child care in order to qualify.
At Prime Minister’s questions recently, following a Budget empty of any measures to address the problem now, I asked the Prime Minister to explain why his Government had failed to take the action to help parents with child care costs before the next general election. He answered:
“We are helping families with child care, not least by giving 15 hours…That is happening before the election; it has happened under this Government in this Parliament—15 hours of free nursery care for three-year-olds and four-year-olds…Opposition Members say it is not enough; it is more than Labour ever provided.”—[Official Report, 26 March 2014; Vol. 578, c. 344.]
That was not only a very complacent response but, unintentionally I am sure, misleading, and goes to show just how out of touch this Government are on this issue of child care.
The previous Labour Government introduced 12.5 hours of free nursery education for three to four-year-olds a decade ago, back in 2004, with the clear intention that that would be extended to 15 hours by 2010. Far from this being a coalition policy, the plan was inherited by the coalition from the previous Labour Government. As I set out, the future Labour Government will continue to build on this legacy, extend it to 25 hours a week for working parents, funded by an increase in the bank levy, and guarantee wraparound child care.
This was the Chancellor’s final opportunity to introduce policies that will really benefit parents before the general election, to give much needed support to working parents now, not in 18 months’ time. Parents have already seen their child care costs rise five times faster than their pay. They are already spending more on child care than on their mortgage. They have already seen the number of nursery places fall by thousands. They have already seen hundreds of Sure Start centres close, despite the Prime Minister’s promises to the contrary. Of course, most stay-at-home mums, as well as working parents, already see child care costs as one of the biggest barriers to their going back to work or increasing their working hours. A review of the issue is both due and urgent, and I commend new clause 1 to the Committee.
It is a pleasure to take part in this debate. It is always interesting to hear the hon. Member for Newcastle upon Tyne North (Catherine McKinnell). Essentially, she seeks to press a reset button in relation to a new Labour history—is it new Labour any more?—of child care. It seems that for Labour life started—or, it might say, ended—in 2010.
We did get to an element of truth at the end of the hon. Lady’s remarks when we heard reference to the previous Labour Government’s policies. When I came into Parliament in 2005, the Labour Government announced a new tax relief for child care benefits, which, as we heard, then went through various stages. In September 2009, the then Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), fronted the extension of free child care for two-year-olds. We inherited those two policies. In the coalition Government’s first Budget, we confirmed that the previous Government’s measures were being taken forward. Therefore, any reference to the costs in 2010 must be a reference to the legacy of the previous Labour Government. By any logic, this coalition Government merely extended the previous Government’s policy on tax relief and free child care for two-year-olds. It is inappropriate, and a partial view of history, not to refer to the legacy inherited from the previous Government.
(12 years, 7 months ago)
Commons ChamberI will not, as the hon. Gentleman has not been here for the whole debate.
In regard to Lords amendment 194, the Government have repeated their intention to continue to provide legal aid for victims of domestic abuse involved in private law family cases. However, as children are necessarily involved, I am naturally concerned that the adults caring for them should have unfettered access to legal aid, so that they can protect themselves and their children. The Government’s U-turn on the definition of domestic abuse is welcome, but it does not deal with the crux of the matter, which is that the evidence required to prove domestic abuse on an assessment for legal aid is unduly restrictive.
Victims will pass through the narrow evidential gateway. Broadly speaking, an order will need to have been made within the past 12 months or still be in place, and the abuser will need to have a criminal conviction or be party to ongoing criminal proceedings for abuse. The evidence will have to have been generated within the past 12 months. On that basis, a letter from a refuge, to which a woman has fled from domestic abuse, stating that she is a victim would not suffice, and neither would a letter by a social worker stating the same thing. Victims who have not previously sought help from the police or lawyers, those who are too scared or proud to do so and those enduring low-level but nevertheless unacceptable abuse are among those who might be denied support.