Regional Inequalities: Child Poverty

David Rutley Excerpts

Wednesday 2nd March 2022 Westminster Hall

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

It is a pleasure to serve under you in the Chair, Dr Huq. I congratulate the hon. Member for Blaydon (Liz Twist) on securing this debate. I know that she feels passionate about this subject; it is clear from the contributions made today that other Members across the House do as well. I recognise that Opposition parties are particularly well represented in this debate.

No one wants to see children living in poverty in their constituency, and I understand the passions that drive all the contributions I have heard today. Some of the central missions of this Government are to reduce regional inequality, spread opportunity and increase prosperity right across the United Kingdom. Where someone is born in this country should not be a barrier to what they can achieve. That is why this Government are committed to levelling up, and we at the Department for Work and Pensions are clearly playing our part.

The Government are committed to levelling up across the country. We are creating exciting opportunities, including via the UK’s first freeport in Teesside, which is estimated to create more than 18,000 highly skilled jobs. Our provision of £5 million to create a five-acre business park in Burnley Vision Park will create high-quality manufacturing and engineering jobs in the area. The move of the Treasury’s regional centre to Darlington shows the ambition there, while the DWP has an office in Leeds, which I visit on a regular basis along with other Ministers.

Through the integrated rail plan, we are setting out a £96 billion strategy of rail construction and upgrades for the midlands and the north to be delivered over the next 30 years. That will be the biggest ever single Government investment in Britain’s rail network.

[Peter Gibson]

I am incredibly grateful to the Minister for mentioning my constituency and the Treasury jobs coming to Darlington, but multiple other Government Departments, with 1,700 new jobs, are coming to my constituency, ensuring that people can go far but stay local. That is the real way to tackle long-term poverty.

[David Rutley]

I understand the point my hon. Friend makes.

I want to talk about jobs, because job creation is key to helping more people stand on their own two feet. Our approach to levelling up centres on removing barriers to work, wherever people live in the UK, and on supporting people to find the job that is right for them. That is based on clear evidence that having parents in work, particularly full time, is the most effective way to lift children out of poverty. Children living in households where all adults work were six times less likely to be in absolute poverty before housing costs in 2019-20 than those in workless households. We have been making a difference: there are 100,000 fewer children in absolute poverty before housing costs, and nearly 580,000 fewer children are living in workless households than in 2010.

[Siobhain McDonagh]

Will the Minister give way?

--- Later in debate ---

[David Rutley]

There is a fight there, but I will go with the hon. Member for Middlesbrough (Andy McDonald)—[Interruption.] He is deferring to the Member for south of the river, the hon. Member for Mitcham and Morden (Siobhain McDonagh).

[Siobhain McDonagh]

Will the Minister clarify the point about 100,000 children brought out of poverty before housing costs? What is the number after taking account of housing costs?

[David Rutley]

I do not have those figures in front of me. There has been some debate about the appropriate measure. Some hon. Members are keen to have a relative measure as opposed to an absolute measure, but there are challenges with that, with some counterintuitive results. For example, relative poverty is likely to fall during recessions, due to falling median incomes. That measure of poverty can decrease, even if people are getting poorer. We need to look at different measures. The measure we think is most accurate is absolute poverty before housing costs. We have, of course, set other key statutory indicators in place as well, around parental worklessness and children’s educational attainment.

[Liz Twist]

I want to touch on the definition of poverty because it is clearly important. I should point out that the people I referred to, who are producing the reports around the north-east and the north, are well-respected academics who look into these issues. I should also point out that the House of Commons Library produces figures on both these measures. It is clearly a difficult area.

[David Rutley]

I know that the hon. Member is very thoughtful about these matters; we have worked together in different capacities over the past few years. Of course, there are different measures. Today I am highlighting that it is difficult to decide which is most appropriate. The Government and t Department believe that absolute poverty before housing costs is the best measure. I have highlighted one of the problems with relative poverty targets at certain times in the economic cycle, and we need to be cognisant of that.

With our economic recovery continuing, it is right now to focus on helping people, wherever they live in the UK, to move into and to progress in work. There are more than 1.29 million—nearly 1.3 million—vacancies across the UK. Payroll employment is at a record high of almost 29.5 million; it is higher now than it was in February 2020 across all regions. Last quarter, there were 14,000 more jobs in the north-east in payroll employment, and 38,000 in the north-west.

Last month, published estimates showed that the number of online job adverts—another indicator of opportunities —across the UK was over 38% higher than the pre-pandemic level. For the north-east, the figure was a staggering 68.9% increase, so there are real vacancies out there.

Hon. Members, particularly Opposition Members, have highlighted challenges for individual families, which I understand, but I am trying to highlight that there are opportunities out there. Hon. Members know from speaking to their businesses that there are shortages of labour. One thing we need to do is ensure that we can match those people who need work with the opportunities available.

[Rachel Hopkins]

The Minister was talking about job opportunities and people being able to access them. When he makes statements such as that, does he take into account the significant cuts to bus services and the fact that many of my constituents are not able to travel far as they do not have a car?

[David Rutley]

There are barriers to work, and that is why we are focusing on issues such as childcare. We have the flexible support fund. I urge constituents of the hon. Member who have challenges such as that to go to their jobcentre, particularly as they start to find new work. The flexible support fund is genuinely flexible. It breaks down all those barriers. It can help with childcare and travel costs as well. I thoroughly recommend that individuals have those meetings, and I can help make introductions if required.

The plan for jobs is a multibillion-pound initiative that will bring targeted tailored support to jobseekers of all ages in all these regions. One of the key initiatives is the job entry targeted support scheme, which helps get people back into work as soon as possible. Over 94,000 people, including 26,600 in the north-east, have started the programme since April last year.

The hon. Member for North Ayrshire and Arran (Patricia Gibson), who regularly holds me to account—in a forthright manner, I hasten to add, but I love her none the less—wants to know what is new, and I will reveal to hon. Members some new and important stuff we will be doing to help people into work—indeed, we do not just want to help people into work; we want to help them progress in work as well. We will be going further over the next month. We will be extending the support we provide in jobcentres to a national model of support to help approximately 1.7 million working universal credit claimants in Great Britain to overcome barriers that hold them back from progressing, increasing their earnings and moving into better paid jobs. Across every jobcentre, claimants will be able to access work coach support to address any skills gaps or wider barriers to progression, and we will be appointing specialist progression champions, who will make connections between employers, local authorities and skills providers.

Despite our political differences, I encourage all hon. Members present to engage with their local jobcentres—I know that my shadow, the hon. Member for Westminster North (Ms Buck), regularly does so—particularly on the issue of in-work progression, because that will be a way to help tackle regional inequality and the challenge of child poverty, which are priorities for all present.

At this point, I have said the things I needed to say in response to much of the debate. I am conscious that the hon. Member for Blaydon wants to come back in as she has a couple of minutes to wind up.

[Liz Twist]

I thank all hon. Members who have taken part in what has been a stimulating and thoughtful debate. I did ask some specific things, and I clearly did not expect the Minister to roll over and agree with some of them, although I wish that he would—particularly whether he might be able to check his diary to see if he can attend the “Child of the North” meeting next week, because it would be worth while to talk to the academics there. I would also welcome the opportunity to speak to him about some of these things in more detail.

There are too many points to respond to, not least the bits about employment and unemployment. Unemployment in the north-east was actually higher; it bucked the trend in some other parts of the country. That is a significant point.

The Minister referred to the integrated rail plan and the expenditure on rail. He will know that across the north, most of us feel that we have lost out. There may be investment, but we have lost out on the opportunities provided by strengthening the east and west coast connection and the High Speed 2 proposal.

What we need in the north is not just jobs; we need good, high-quality jobs that represent real opportunity for people to develop and make the progress he talks about, and we need to do much more to make that happen. Finally, the north is great. The north-east is great.

[David Rutley]

The north-west is great too.

[Liz Twist]

Well, I will speak for the north-east and the rest of the north—they are great. The debate is not about whingeing and saying, “It’s not fair.” It is about saying that the north-east is a fantastic place and our children need the best opportunities to make the best of their lives.

Motion lapsed (Standing Order No. 10(6)).