Social Security Support for Children

David Linden Excerpts

Wednesday 23rd November 2022 Westminster Hall

[Ms Qaisar]

It is as if the hon. Member has seen my speech; I will come to that point later.

Of course, it is not only the Trussell Trust; there are a number of independent and locally run food poverty groups. In my constituency, for example, we have Paul’s Parcels, which serves Shotts and the surrounding villages. We are living in food bank Britain, where almost 1 million children receive some sort of help from food banks. The Food Foundation also found that around 4 million children have experienced food insecurity in the past month. Some people will argue that there has been an increase in food bank use due to wider awareness, but I would argue that consecutive Conservative Governments are the reason for that increase. It is their financial mismanagement of the economy, and now austerity 2.0, as set out in the Chancellor’s autumn statement, that are pushing people further and further into poverty.

We face the reality that there are more food banks than McDonald’s in the UK. The richest MP in the House of Commons double-jobs as the Prime Minister. Rather than extending a lifeline to the average punter in the street, the Government are handing out bankers’ bonuses. Who benefits and, crucially, who are the losers? Many groups are victims of the financial mismanagement of the three Prime Ministers and four Chancellors just this year. My concern is for children and young people. They are largely voiceless and are rarely actively involved in the decision-making process.

In Scotland, we have a completely different approach to target help for children. It starts from the basic notion of referring to benefits as social security. In 2021, the SNP Scottish Government introduced the Scottish child payment, which is a groundbreaking piece of policy. Since then, the payment has doubled in value to £20, and on 14 November 2022 it automatically increased to £25 per week for those already in receipt of it. Based on March 2022 modelling, that increased payment is estimated to lift 50,000 children out of poverty and reduce relative child poverty by 5 percentage points.

That is a phenomenal piece of legislation, and I am so proud of it. Many Members here might argue, “Anum, you’re biased; you’re an SNP MP, and that’s the SNP Scottish Government.” However, that is not just my belief. Chris Birt, associate director of the Joseph Rowntree Foundation, said:

“The full rollout of the Scottish Child Payment is a watershed moment for tackling poverty in Scotland, and the rest of the UK should take notice.”

Will the UK Government do so? In fact, would the Minister care to intervene and announce that they are following the Scottish Government’s lead? No, he is furiously writing away. When he replies, I hope he will announce that the Scottish child payment is being implemented across the UK.

That is where the issue lies: the SNP Scottish Government consider social security as an investment in people that is key to their national mission to tackle child poverty. We do that with the limited economic levers that the Scottish Parliament holds.

The Scottish Government have implemented a number of other policies. I will go through them and ask whether the UK Government will commit to follow suit. The Scottish Government are offering free school lunches in term time to all 281,865 pupils in primary 1 to 5 and in additional support needs schools. That saves families an average of £400 per child per year. That will be extended to primary 6 and 7 during the Parliament. Will the UK Government follow suit?

The Scottish Government are massively expanding the provision of fully funded high-quality early learning in childcare. They are providing 1,140 hours per year for eligible children aged two, three and four. In fact, if eligible families were to purchase the funded childcare provided by the Scottish Government, it would cost them about £5,000 per eligible child per year. Again, will the UK Government follow suit?

The Scottish Government have increased the school clothing grant to at least £128 for every eligible primary school pupil and £150 for every eligible secondary school pupil from the start of the 2021-22 academic year. Again, will the UK Government follow suit?

The Scottish Government are bringing forward those policies with the limited economic levers that they hold.

[David Linden (Glasgow East) (SNP)]

I declare an interest as a massive fan of my hon. Friend’s constituency—if not the Shotts part, then certainly the Airdrie part. I commend her for securing the debate, and I want to back up the point she is making. Although the Scottish Government are doing a huge amount of incredibly ambitious things to tackle the scourge of child poverty, 85% of welfare spending remains under the control of this institution. Does she, like me, believe that it is absolutely abhorrent that, under the devolution settlement, the Scottish Government have to use their devolved budget, which would normally be used on things such as trying to reduce class sizes, to try to plug the gaps in an inadequate state support system that is the result of a Conservative Government—something that people in Scotland have not voted for since the 1950s?

[Ms Qaisar]

My hon. Friend’s point is incredibly valid. The Scottish Government hold limited economic levers, but they often have to use their budget to mitigate Tory austerity.

In debating topics such as social security for children, it is essential to reaffirm that a societal approach must be considered when formulating policy. Social security for children is about so much more than targeted support. We must consider what support is in place for parents. This week, I had the pleasure of meeting Lauren from Pregnant Then Screwed, which has revealed some harrowing statistics. Out of 1,630 women it interviewed who had had an abortion in the past five years, 60.5% said that the cost of childcare influenced their decision, and 17.4% said that childcare costs were the main reason for their decision. A separate survey found that 48% of pregnant mothers have to cut their maternity leave short due to financial hardship. Those are not simply statistics; that is the reality for many women.

In Scotland, childcare and policies relating to children are seen as lifelong investments for society. It has been said before that an investment in our children is an investment in our future, and I wholeheartedly stand by that. It is crucial that the UK Government take a societal approach to social security for children. The wider economic implications of child poverty are significant, with a 2021 study estimating the cost of child poverty in the UK at £38 billion a year.

There is a cost to not addressing child poverty, and I am not just talking about the direct financial implications. We face the harsh reality of children who are upset and anxious as a result of their parents worrying about household finances. That is not the type of society that I wish to live in.

In Scotland, different policies have been introduced. For example, before a baby is born, the Scottish Government provide expectant families with a baby box. Baby boxes include essentials for bringing up a child, such as clothing and digital thermometers. That not only provides essentials at a time that can, in any case, be physically, emotionally and financially challenging; it sends a clear message to families that the state cares about them. Some 93% of Scots who are eligible have taken up the scheme. Ireland has a pilot scheme, and the baby box has been hailed internationally. The UK Government would do well to mirror that approach, and if the Minister cannot commit today to introducing the baby box, I hope he will take the information on board and give it serious consideration.

We know that parents are having to make unimaginable financial decisions—to return to work early or to leave their jobs altogether if they cannot afford the cost of childcare. We know, too, that the cost of child poverty can disproportionately impact women. Typically, women assume the main role as caregiver and are the first to give up their jobs when childcare becomes unaffordable. The Scottish Government are massively expanding the provision of fully funded, high-quality early learning and childcare, providing 1,140 hours a year for eligible children aged two, three and four. In Scotland, we have we have taken a different path—one that puts children and families first, with lifeline policies providing help to those who need it most.

Over the past 12 years, the Tories have systematically dismantled the social security system. It is clear that the Tory-run system is not designed to help those in need. Rather, it pushes a poverty-inducing austerity agenda. I have described what the Scottish Government are doing to reduce the harmful impact of Tory austerity-driven Government, but the reality is that 85% of social security expenditure remains reserved to Westminster, so the change that is desperately needed must start here.

We are at a point at which meaningful and tangible policy can be implemented to make a difference to millions of children and families, and it is an active policy decision not to make those changes. That is costing all of society financially and socially. The limitations imposed on social security by the Tory Government are sickening. The freezing of the benefit cap since 2016 has disproportionately impacted lone-parent families, the majority of whom are women, as well as larger families and ethnic minority families. Official Department for Work and Pensions statistics have shown that more than 100,000 households have had their benefits capped since May 2022. Of that number, 87% are households that include children.

There is much that we could do to help families that are struggling. The Tory Government could start by looking at social security as an investment in society and future generations, rather than something that needs to be cut and limited. There are many clear ways to do that. First, the Minister could commit to removing the abhorrent two-child limit on universal credit and legacy benefits, as well as ending the benefit cap, which would lift 300,000 children out of poverty. My SNP colleagues and I have been campaigning tirelessly to eradicate that regressive measure, and we will continue to push for it to be removed.

The Government could do more than simply remove the cap. Following the Chancellor’s recent fiscal statement, the Child Poverty Action Group has reported that, even with the uprating of benefits in line with inflation, families will be worse off in 2023-24 than they were after universal credit was cut last year. That weak attempt to reverse 12 years of austerity will have a marginal impact on children, as the entire UK Government’s social security system is in desperate need of an overhaul.

Other fundamental issues with universal credit impact children. Policies such as a five-week wait for first payments, the bedroom tax and the cruel sanctions regime all push families on universal credit towards destitution. If we reversed the policies introduced by the Tory Government since 2015, we would lift 30,000 children in Scotland out of poverty by 2024.

It is not the job of food banks and charities to uphold a crumbling social security system. I am honoured to represent the constituency of Airdrie and Shotts, which has dedicated community organisations. Since my election last year, I have worked tirelessly and closely with many organisations to support them in delivering an essential lifeline to constituents who face destitution as a result of Tory-made austerity.

The cost of living crisis is disproportionately impacting children, with families having to cut back on both essential and luxury items. In this festive period I am working alongside four constituency-based organisations: Paul’s Parcels, Diamonds in the Community, Airdrie food bank and Airdrie community school uniform bank. We are asking people to donate advent calendars for the four organisations to deliver across the constituency. A simple item such as an advent calendar is unaffordable. Sadly, many children will not enjoy the typical Christmas festivities, because their parents or carers cannot afford simple luxuries.

In my contribution I have outlined a number of asks, and I look forward to the Minister’s response. I imagine that there will not be much in the way of concessions, but I hope he will sincerely take on board the approach of the SNP Scottish Government and consider following suit.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

As always, it is a pleasure to speak in today’s debate, Sir Christopher. I thank the hon. Member for Airdrie and Shotts (Ms Qaisar) for securing it, and congratulate her on her first Westminster Hall debate—I am convinced that it will not be her last, and we look forward to her future contributions.

I was very impressed by the hon. Lady’s contribution today, which laid out the strategy of the Scottish Government and the work they have done outside this place for their own people. One cannot fail to be impressed by the clear commitment that the Scottish Government have to supporting children. The summary that the hon. Lady gave was illuminating and helpful; it is a guide for us in other regions across the United Kingdom to take note of, as I often do. I am a great believer in noting things that are done well in one region and taking them on board in my own region, and if we do something well, I like to share that. I know the Minister is of the same opinion.

I am very pleased to see the Minister in his place, as he knows—I have said so to my colleagues this morning. I always look forward to his contributions and his answers; I think he understands the points that we are trying to put forward, and hopefully from that understanding will come the answers that we seek. I am sure the Minister will tell us what has been done for children and social security across the United Kingdom. I want to replicate the contribution of the hon. Member for Airdrie and Shotts from a Northern Ireland perspective; many of the things that she mentioned are happening in my constituency as well, as I will illustrate.

The hon. Member for Airdrie and Shotts is right that the cost of living crisis is having a knock-on effect on children’s development. With the rising cost of electricity, oil, foodstuffs and school items such as uniforms and school meals, parents are struggling to make ends meet each month. That is greatly impacting parents and children. Social security services across the United Kingdom of Great Britain and Northern Ireland have a role to play in ensuring that children are given the best start in life. It is great to be able to discuss those matters.

We all recognise that families are struggling. I do; I see it in my office every day. I find it distressing to see a family in need, or to see a mother distressed over her children and how to make ends meet. For me, the question is how we help. I know that that is also how the Minister will respond: how can we help? What can we do?

Society is often marked, and should be marked, by its attitude to those in need. The hon. Member for Airdrie and Shotts referred to being a “voice of the voiceless”. That is what I want to be as well: a voice for the voiceless—for those who do not have the opportunity to come to Westminster but expect their MP to come for them. I am happy to do that.

Increasing numbers of families are truly struggling through this winter. In my office, I have seen large numbers of families seeking assistance from food banks. I am always encouraged—I say this respectfully—that the first food bank in Northern Ireland was in Newtownards, in my constituency of Strangford: the Thriving Life Church food bank. We do between 20 and 25 referrals to the food bank every week, so we get a fair perspective on who is coming to the office.

The manager of the food bank tells me that he foresees that this winter will be the hardest ever, and that is after 10 or 12 years of the food bank being in my constituency. It is not just the working class—I use that terminology to describe, rather than anything else—who come to the food bank. The working class will probably always be there, but the manager tells me that he now sees the middle class coming. I see that all the time. I see those who are squeezed by their mortgages and car repayments, who are living on a fine budget. They do not live in luxury, but they have a standard of living that they wish to have. They are being impacted, and I see that more than ever.

Almost all the families who come to my office have young children of school age. People want to do the best for their children. That is what a father and mum do, and it is what we have done all our lives. Reports have shown that Northern Ireland has the worst poverty rates, including for child poverty, in the United Kingdom. One in four children—24%, or around 95,000—are growing up in poverty in Northern Ireland. A massive two thirds of that group are growing up in families where parents are working. Some 12% are in absolute poverty, which means exactly that: absolute. People face situations that they never thought they would face. They need help from food banks, churches and their families: mums and dads, grannies and grandas, and probably uncles and aunts will step in to help out as well.

That highlights how dire the situation is. Belfast, Londonderry and Strabane are among the places with the highest volumes of child poverty in Northern Ireland at over 26%. The average for Northern Ireland is 17%, so in those areas it is even worse. Social security plays a crucial part in assisting people in Northern Ireland, especially families. Child maintenance is proven to help children’s wellbeing and the quality of family relationships. The parent who is not responsible for day-to-day care—the paying parent—pays child maintenance to the parent or the person who does: the receiving parent. Single parenting is a major factor in explaining why families are suffering. Looking after children as a single parent can be quite a challenge when one’s income has not increased along with inflation.

In addition, universal credit is a widely used benefit that assists in living costs for those on low incomes. One of the girls in my office deals with nothing but benefit issues, because of the magnitude of the issue. That is a five-day week on universal credit, employment and support allowance, personal independence payments, disability living allowance, income support and even housing benefit.

[David Linden]

I know, having visited the hon. Gentleman in his constituency office in Newtownards last Easter, just how hard the staff in his office work. Does he agree with me that, even though we are in a crisis moment, now is quite a good time for a fundamental root-and-branch review of the social security system? Universal credit sometimes gets a bad rap. The concept in itself is not necessarily bad, but we need to look at how we can reform it to make it work. Churches do the right thing in terms of scripture—they look after our children and feed people—but that is not necessarily the role of churches. We should do a fundamental review of the social security system to ensure that churches can get on with their work rather than having to fill the void that has been created by the state.

[Jim Shannon]

As always, the hon. Gentleman brings knowledge to these debates, which is helpful. That is a knowledge that he has gained through practical and physical work on the ground. That can probably be said of everyone present, in fairness, but it is an illustration of that work. What do I think about the universal credit system? It was designed, by its very nature, to help. From what the lady in my office who deals with benefits issues tells me, I often find we have to advise that it might be better for people to stay on what they have at the moment. They should not necessarily transfer to universal credit because that, in theory, could disadvantage them.

The hon. Gentleman asked whether there is a need to look at universal credit, and I think that the answer is yes, with respect. It should not be a disadvantage to go on to universal credit. It should not hurt people’s benefits. We must remember that the benefits are there for a purpose: they are there to help the person because they have a disablement. They may have care or mobility issues—serious issues. To make the change and lose out financially just does not make sense. I, the hon. Gentleman and probably all Members in the Chamber would be happy to give illustrations of that.

Sometimes our advice has to be that what is available is not necessarily the best thing to go on to. That is the issue, unfortunately. I know that universal credit is there for a purpose, but it may not suit everybody. In addition, it is a widely popular benefit to assist with living costs for those on low incomes. The issue with universal credit is that it is a combination of many benefits and often families will receive less money. That is making it increasingly hard to cope with the rise in the cost of living. The Government, through the autumn statement, indicated that they wish to give people in the benefits system more opportunities to work. I welcome that, but that will not work in every case. It cannot work in every case because people have disability issues that mean they cannot work. In theory, it may help people, as they can gain universal credit and have a job at the same time. There are opportunities, but it does not suit all.

The rise in the cost of living is also having a detrimental impact on people’s mental health. Any parent’s main priorities for their children are good health, housing and education. There has also been an increase in free school meals and uniform grant applications as parents are struggling to cope with the cost of school payments. This year has been horrendous. I have seen more and more people apply for the grants for free school meals and for uniform. A total of 97,000 children in Northern Ireland are on free school meals. There are consistent delays in processing the claims. The Minister is always keen to assist, so I ask, please, for some urgency when the applications are being processed. Let me give him an example. In September, one of my constituents applied for a school uniform grant. Eight weeks later—about two weeks ago—that money eventually came through. Again, at the time that it was needed, it was not there. It was not that it was not coming; that was not the issue. The issue is the processing of it.

--- Later in debate ---

[Kirsty Blackman (Aberdeen North) (SNP)]

I thank you, Sir Christopher, for chairing the debate today. I congratulate my hon. Friend the Member for Airdrie and Shotts (Ms Qaisar) on bringing forward the debate and I thank all hon. Members for taking part.

My hon. Friend made some points about individual organisations in her constituency. I absolutely agree that we should thank those organisations for all the hard work they do, because they are absolutely necessary, but we can do that at the same time as saying they should absolutely not be necessary. It was good to hear about Paul’s Parcels and the work that my colleague is doing to support those organisations and the eradication of poverty in her constituency. I hope that all hon. Members are doing what they can in their constituencies, as well as putting pressure on the UK Government to try and ensure a sufficiency of social security.

Social security is about security; it is about having a secure situation where people can have positive mental health—the hon. Member for Strangford (Jim Shannon) talked about people’s mental health—rather than spending every moment worrying about whether they are going to be able to feed their children tomorrow, next week or next month, and whether they will be able to afford food. We need the social security system to work and provide the safety net that it is supposed to. After a decade of Tory Government, it continues to fail and it is not getting better.

I have less optimism now for the futures of my constituents than I have ever had at any point in this job and in my previous job as a city councillor. In about 15 years in an elected role, I have never seen the levels of hardship that I see coming through the door in my constituency office, on the news and in our communities. This has not happened before.

The problem is that there is no light at the end of the tunnel right now, no matter what the Government have announced in terms of inflationary upgrades, for example. As the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) mentioned, that is a temporary measure; it is not permanent and does not provide the level of structural reform people need to afford to live. What could be more important than ensuring that kids are fed and warm? There is nothing more important.

Our Scottish Government are now into their second child poverty action plan. We had “Every child, every chance”, which ran from 2018 to 2022; we now have “Best start, bright futures” from ’22 to ’26. These plans are about putting tackling child poverty at the heart of the decision-making processes of the Scottish Government. I do not think it is too much to ask that the UK Government replicate that, and say that they care about eradicating child poverty, and therefore will have a strategy to do that and make it a central aim of their plans.

[David Linden]

More fundamental to that, though, would be if the UK Government could even start measuring child poverty, which is part of the issue. Yes, it would be great if they had a strategy to deal with it—that would be absolutely fantastic—but does my hon. Friend agree that it is alarming that the Government do not even measure child poverty? They do not realise the scale of it, other than by measuring it anecdotally, as I am sure the Minister does in his Hexham constituency when people come through the doors at his surgery on a Friday morning.

[Kirsty Blackman]

I agree. The fact that the Government are unwilling to even measure child poverty shows the lack of importance they give to this issue. If they cared as much about it as they should, they should be willing to explain, “This is what the current situation is. This is the measurement. This is how bad it is. This is how many people are suffering and how many children are in poverty in the UK in 2022”—in the UK in 2022! How can we be saying this? The UK Government need to stand up, hold up their hands and say, “This is the current situation and this is how we are going to improve it.”

I want to set out a few specific asks, some of which have been made already. As my hon. Friend the Member for Airdrie and Shotts mentioned, 87% of those affected by the benefit cap are families with children. The benefit cap would need to increase by £942 to reverse the loss since 2013. Despite the fact that the Government are looking to increase it, this is only the fourth time that social security payments have risen with inflation in 10 years. If we in Scotland can find an extra £25 a week in order to provide the Scottish child payment, the UK Government, with their far vaster budget and flexibility in dealing with their fiscal situation, can surely afford to do the same. They can afford it, but they choose not to match the payments we are making in Scotland.

There is the issue of the sufficiency of social security. One in four people on social security skipped meals this summer. That was in the summer—before the additional price cap increase on electricity and gas; before the upcoming winter months when people will need to put their heating on; before people had to buy school uniforms for their children when school started again in August or September. That situation is set only to get worse, and the promise of a temporary increase in universal credit will not fix it. There is currently no way out of this. We have no certainty that there is not going to be a cost of living crisis next year. Certainly none of my constituents has that level of certainty.

Let me turn to the issue of debt repayment deductions that are made from universal credit and other benefits. We have a situation where the UK Government can take 25% off the standard allowance to reclaim debts. Sometimes, those debts are caused by overpayments that are no fault of the person, but entirely the fault of poor decision making in the DWP or job centres. To be fair, that does not happen all the time; I am just saying that sometimes it is an issue.

If the UK Government have done an assessment of social security payments and believe them to be sufficient—that people can afford to live on them—how can they justify putting in place a benefit cap or taking 25% off the standard allowance? They are saying, “This is what we believe is sufficient for people to live on, but we are just going to take a quarter of it away.” It does not make any sense. People already cannot afford to live on the social security payments they are receiving. When the amount people are getting each month is reduced because of those reductions or the benefit cap, it is even less sufficient. Again, the conditionality and sanctions in place reduce that basic minimum level of payment that people should be entitled to.

[Kirsty Blackman]

I am glad that the hon. Member has managed that on behalf of his constituents. That is actually not the preferred route that I would take. I would prefer to look at whether people can afford payments rather than coming up with an arbitrary percentage, which is the UK Government’s preferred choice. I would look at affordability. How much are their outgoings and incomings? Can they afford to make the debt repayments? That is what we do, and when organisations like StepChange are managing debt, they look at whether people can afford it.

[David Linden]

In my time working for Glasgow Credit Union before I was a politician, one of the things we regularly had to do when determining whether someone was eligible to borrow loans was calculate their debt ratio. Although that is required by the Financial Conduct Authority and imposed on things like credit unions, part of the problem is that the DWP does not routinely look at people’s income and expenditure. Does the hon. Member agree that the Minister should look at a debt ratio when making these decisions?

[Kirsty Blackman]

I absolutely agree. That is the way this should be taken forward, rather than setting an arbitrary percentage—whether it is 25%, 10% or whatever level. It should be done on the basis of affordability, and a debt ratio would be the preferred method; it would make sense.

One thing that I do not think has been mentioned yet is those people with no recourse to public funds. They are not in receipt of social security payments or the vast majority of payments that are available to others. We are seeing the most drastic and extreme levels of poverty experienced by some of those families, particularly refugee and asylum-seeking families. We are seeing children and families who literally cannot afford any food, and I just cannot believe that the UK Government are unwilling to make any change to the system of no recourse to public funds, because what people are going through is horrendous.

The UK Government stand up and say, “Oh well, it’s fine. They can just go home to whatever country they came from.” Generally, people who are here having made an asylum or human rights claim are here because it is worse in the country they came from and because their children are in danger if they go back. In fact, no recourse to public funds sometimes applies to people who are stateless—they have no country to go back to. It is a horrendous situation, and the UK Government need to fix it.