UK Poverty

Debbie Abrahams Excerpts

Wednesday 4th February 2015 Westminster Hall

[Lisa Nandy (Wigan) (Lab)]

It has been almost five years since the coalition Government took office, so we are far beyond the time when it was even remotely credible to claim that everything that has happened in this country is the fault of the previous Government. The truth is that the choices that we make as a country have an effect. With a few months to go until the general election, this is a good time to assess the Government’s impact on the most vulnerable people in this country and to look again at the Prime Minister’s claim, five years ago, that he would not balance the books on the backs of the poorest. What a joke that statement now seems.

The rise in food banks has been the most visible sign of the devastation caused to towns such as mine, Wigan. In the past three months, my local charity, the Brick, has handed out more than 1,000 food parcels to families who cannot afford to eat. The first thing I want to say is this: be in no doubt that the situation has become much worse under this Government. Ministers have constantly said that food banks are the fault of the previous Government, but let me give them the facts. There were 3,000 food bank users in 2005, and 40,000 by 2010. By 2012, that had exploded to 128,000 people queuing for food parcels in one of the wealthiest countries in the world. Under the Labour Government, food banks fed tens of thousands of people a year; they now feed a quarter of a million people in this country, and the numbers are rising.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I congratulate my hon. Friend on securing this debate. She may not be aware that we had never had a food bank in Oldham until 2012. In that year, 849 food parcels were delivered; last year, 5,000 people ended up receiving support, including 1,500 children. The numbers are going up inexorably. Would my hon. Friend like to comment on the suffering that those people are experiencing?

[Lisa Nandy]

That experience is mirrored in my constituency. The Brick gave out 6,097 food parcels in Wigan last year. I spent a day helping its volunteers to do that. Many of the food parcels were cold boxes—I had never heard of a cold box before I spent the afternoon at my local food bank—for people who cannot afford the gas or electricity required to heat up some soup or a tin of beans. Our credit union, Unify, the charity Compassion in Action and Citizens Advice have given out loans, furniture and fuel payment vouchers in increasing numbers in the past four years. Yet people were told by the Conservative hon. Member for Blackpool North and Cleveleys (Paul Maynard) that unfortunately their food bank use has become a habit. How utterly offensive.

The real causes are obvious. In my constituency, one can track almost exactly when the cracks in the community started to show. In October 2012, the Government introduced a new sanctions regime that affected nearly 6,000 families in my borough alone. It had an immediate impact. In early 2013, the manager of the Brick, Trish Green, said:

“We have been operating since 2008 but recently we have seen more families, more young people and people who have lost their jobs using the service…It also affects every part of the borough and we distribute food parcels throughout different communities, not simply the more deprived areas.”

That is mirrored across the region: as pointed out by my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams), between 2012 and 2014, the number of people accessing food banks in the north-west exploded, growing by 238%. That was not, as the Conservative Minister for Business and Enterprise, the right hon. Member for West Suffolk (Matthew Hancock), said, because

“more people know about them”.

The vast majority of food bank referrals were because of benefit sanctions, although delays, debt, low-paid work, loss of job and family crisis were all common reasons.

Most of my constituents who have used a food bank were referred to it after being refused help by the jobcentre. A quarter of them had been told that they had not participated in an employment programme, and a fifth had been told that they had failed to attend an adviser interview. Let me give the Minister an example. Just yesterday, a man got in touch with me who had taken on temporary work over Christmas. He had notified the jobcentre of the start and finish dates of that temporary work, but was told that he had missed an appointment with the jobcentre to give the information that he had already provided. He was sanctioned. The jobcentre was closed on the day when he was supposed to have attended an appointment, so he was paid just 1p for the whole of January. He found out yesterday that he has been given £26 for the whole of February. Will the Minister tell me how someone in this country is meant to live on a penny a month?

Quite separately, two other people got in touch with my office, one a woman, the other a young man. Both had been sanctioned in the past few months for attending the funeral of a family member. In both cases, the individuals had notified the jobcentre of the reason why they could not turn up to sign on. I was thinking about what on earth people are supposed to do in that situation. It reminded me of a line from Kafka, which states that,

“it is not necessary to accept everything as true, one must only accept it as necessary.”

When death is not a good enough reason to change the rules, what sort of society have we become?

We find increasingly that people are sanctioned for being just a few minutes late for appointments to sign on. My local councillor, Jeanette Prescott, said that,

“several times this year I have had to refer a gentleman with learning difficulties to Denise (the local Reverend) for food due to him having sanctions on him for turning up late (once by 4 minutes). The gentleman can’t tell the time and is a recluse. He has been found sitting in his flat in the dark with no electric or gas. He won’t ask for help. Only for the old neighbours watch out for him and contact myself heaven knows what would of happened to him. I was informed he has to get a letter off the doctor for an electric card…The lad turned up at my door the other night. He hadn’t eaten for 5 days. He looked like he was dying.”

--- Later in debate ---

[Lisa Nandy]

The man I am talking about is the fourth case of someone with learning disabilities being sanctioned that I have come across in my constituency office this month. The Minister’s Department holds the responsibility for people with disabilities. I hope that she has listened to the comments made by her colleague and will take the opportunity to condemn them. I also hope that she will ensure that in future no one will be sanctioned for having learning difficulties that prevent them from being able to tell the time.

[Debbie Abrahams]

I am sure that my hon. Friend will want to take the opportunity to mention the fact that the universal credit regulations include the potential for introducing in-work conditionality for people who are in work but on low pay. The hon. Member for Sherwood (Mr Spencer) should be careful in what he says. Also, people are sanctioned who have done nothing wrong. We repeatedly hear examples of people who did not know that they had appointments because they were made without their knowledge. Of course, they did not turn up to those appointments, so they were sanctioned.

[Lisa Nandy]

Absolutely. I could not agree with my hon. Friend more.

I want the Minister to understand the complete nonsense of the system. Another of my local councillors, Lol Hunt, got in touch with me last week to help a 53-year-old woman. That woman was awarded maximum points for ESA last year; she got no points at all this year. Absolutely nothing in her health or circumstances has changed. Councillor Hunt said that,

“she has very little food in her cupboards and is cancelling her direct debits this week for rent, gas, electric, phone etc. as she simply cannot pay.”

That is just the tip of the iceberg as to the stupidity of the sanctions regime.

The single biggest reason that my constituents were given for being sanctioned last year was that they were supposedly not seeking work. For example, in one family, a couple with two-year-old twins, one of the partners worked as a home care worker on a zero-hours contract—I am sure all Members are familiar with the situation of the many people who work in the home care industry on low pay and with insecure conditions. The hours that she was given were so few that the pay did not even cover the bus fare to work.

The wider family tried to help out, but the stepfather is out of work and the grandmother on a small pension. They were even refused a doorstep loan. The twins were living on a tin of beans and a few potatoes a day, while the adults went for days on only tea and the occasional biscuit. Relatives of mine remember such conditions in our family a few generations back, but that was before the war. One of my constituents—one of the parents—told me that,

“asking for food was so humiliating but the alternative was to go hungry. We were so grateful for the help of the Brick and they made us feel like it is not something to be ashamed of.”

Contrast the actions of that local Christian charity with the words of Lord Freud, Minister for Welfare Reform, who said that,

“food from a food bank…is a free good, and by definition there is an almost infinite demand for a free good.”—[Official Report, House of Lords, 2 July 2013; Vol. 746, c. 1072.]

How utterly insulting to a family such as the one I am describing. They had built up £1,000 in rent arrears, because they were not earning enough even to cover the bus fare to work. At a loss as to how to help them, the only advice that a local charity could give them was that the partner should leave her job, because it was pushing them further into debt. Reluctantly, they went to claim jobseeker’s allowance, but were told that she had left the job voluntarily and were sanctioned for three months. The mother said:

“We were receiving 15 minutes of work a day that is around £1.10 a day. If this…wasn’t a good reason for leaving a job, I truly do not understand what is.”

That is not an accident of the system; that is the system.

The level of confusion in the Government is astonishing. The Department for Work and Pensions website states:

“We expect claimants to do all they reasonably can to look for and move into paid work. If a claimant turns down a particular vacancy (including zero-hours contract jobs) a sanction may be applied, but we will look into the circumstances of the case and consider whether they had a good reason.”

Only a couple of weeks ago, however, I had a letter from the Minister stating:

“It may be helpful to explain that Jobseeker’s Allowance claimants are not required to apply for a zero hours contract job and cannot be sanctioned for refusing to accept employment under a zero hours contract or for leaving such employment voluntarily.”

She even went to the trouble of underlining some of the words in that sentence. When she responds to the debate, will she tell me how that fits with what happened to my constituents only recently? Will she tell us what the policy is? Perhaps she would like to explain it to people who are trying to navigate the system and work within it, but who find that there is no safety net.

--- Later in debate ---

[Mr Spencer]

Of course, the Labour party now supports our funding pledges, so there is friction between what is being said about reversing some of our changes and other statements about supporting our spending regime. It will be interesting to hear the Labour Front-Bench justification of that.

In another life, I was a farmer, involved in food production and supply. Interestingly, the OECD says that 9.8% of people had difficulty affording food in 2006-07, but the figure had fallen to 8.1% in 2011-12. That shows we are going in the right direction. There will always be individuals who get themselves into difficult circumstances and where the system has frankly gone wrong. The hon. Member for Wigan raised several such cases and I have encountered some in my constituency office, when clearly the system has broken down and some incorrect decisions have been made. It is my job as a Member of Parliament to try to help people through the system and solve their ills, and we have succeeded on a number of occasions in helping individuals in difficult circumstances to work their way through the system to the right point.

[Debbie Abrahams]

Will the hon. Gentleman give way?

[Mr Spencer]

I will not give way any more, because other people want to speak.

I want the Government to continue to reduce the deficit, and to make sure that the economy continues to grow and that we generate more jobs and help people out of poverty through employment. I want them to continue to cut taxes at the lowest end, so that we can raise more people out of tax altogether. I want them to create more jobs and back businesses—particularly small businesses that create real-life careers for people. I want a continuation of the welfare cap, so that we can control immigration and make sure people in work are better off and so that people who decide to go into work and get a career and who can move forward aspire to overcome their difficulties. I want better schools, to make sure that the next generation have the education that will deliver them a future, make them ready for the workplace and enable them to take careers and move forward. The only way to solve the problem is to give people the aspiration and ability, so that they can aspire out of their difficulties.

--- Later in debate ---

[Mr Raab]

If someone is earning between £10,000 and £15,000 under this Government, they are paying 54% less tax than they were under the last Government. If someone is a millionaire—we get lots of jibes on the Government side of the House about that—they are paying 14% more. When do we ever hear that referred to?

A lot of people have talked about poverty. If we look at the inequality Gini coefficient, we see that on elderly poverty, fuel poverty, the number of people not in education, employment or training, and child poverty—on every single statistical benchmark—the level of poverty or inequality is lower now than what the last Government left behind. Where is a little bit of honesty about that?

When it comes to affordable homes, the average annual rate of the creation of affordable homes is 50% higher under this Government than the last Government. The hon. Lady might have mentioned that in her speech. What about inflation, which eats away at incomes?

[Debbie Abrahams]

Will the hon. Gentleman give way?

[Mr Raab]

I will not, because I have very limited time before we come to the wind-ups, and we have heard a huge amount from the Opposition side. It is important to hear the counter-arguments to puncture some of the myths that the Labour party is putting around—[Interruption.]

--- Later in debate ---

[Esther McVey]

I will not give way for a while, because I would like to put these figures on the record.

The top 1% of income tax payers will contribute nearly 30% of this year’s income tax bill. We talk about the richest helping most to get us out of the financial situation in which we found ourselves after Labour left office, and that is what is happening. The top 20% of income tax payers are paying 80% of the bill, which is key. We also have 390,000 fewer children living in workless households, and in-work poverty has fallen by 300,000. In fact, in-work poverty rose 20% between 1998 and 2008.

[Debbie Abrahams]

Will the Minister give way?

[Esther McVey]

I will not give way for the moment.

It is also key to know that 1.75 million more people are in work. When my hon. Friend the Member for Esher and Walton (Mr Raab) talked about what sorts of jobs those people are doing, he was right to say that, since the election, three quarters of them are full-time jobs. In fact, in the last year 80% are full-time jobs. What sorts of jobs are they? The vast majority, 75%, are skilled, managerial and professional. If we want to look at the figures from the other point of view, we could say that, at the election, 600,000 more people were in relative poverty and there were 670,000 more workless households. We could say that there were 300,000 more children and 200,000 more pensioners in relative poverty. We could also say that there were 50,000 more households in which no member had ever worked. That is what we were picking up. As my hon. Friend the Member for Daventry (Chris Heaton-Harris) pointed out—I hope this is a point of consensus for all of us—there had been a financial crash and the GDP of the whole country had shrunk by 7%. The truth of the matter is that everybody had to bear the brunt of the crash that we had from the Labour party, but we have ensured—[Interruption.]

[Esther McVey]

We have ensured that the richest are paying the most. We are ensuring that the richest people are now paying more than they ever paid under Labour. The hon. Member for Wigan talked about working for Barnardo’s, and I congratulate her because I am a child of Barnardo’s. When we talk about poverty and how we take people out of poverty, the key building blocks have to be education and employment, and the Government are creating those key building blocks.

When we look at this, what have we done? We have brought record rates of women into work. We are increasing and supporting lone parents into work. We have put £2.5 billion into the troubled families initiative, and we have put the same amount into the pupil premium. We have ensured that 3 million people are out of tax altogether and that 26 million people have had their tax reduced. We have increased the minimum wage to £6.50 an hour, which is the first real increase since 2008—a 3% increase—and which benefits more than 1 million people. People in full-time work on the national minimum wage are getting an extra £355 a year. All those things are key, and we are doing them.

[Debbie Abrahams]

Would the Minister like to comment on her point about the reduction in inequality? The OECD’s report before Christmas and the International Monetary Fund’s report from a similar time show that inequality has actually increased. In fact, we have the worst rate of inequality in 30 years. The reports show that inequality is harming growth and that the trickle-down economics to which the Government are absolutely committed does not work. It actually stifles growth and hurts human beings.

[Esther McVey]

I never recognise where the hon. Lady gets her figures. I have given the independent facts, which are correct. The only thing I will say is that here is a party that delivered the biggest financial crash in living memory. This is the party that said there would be 1 million more unemployed people now, but we are near to having 2 million more people in employment. [Interruption.] Labour Members would do better to listen for a change, rather than charging forward with things that really are not true. It is sometimes worth listening, rather than talking, especially when the Labour party delivered such a disaster for the UK, which we are all now having to cope and deal with. It is worth remembering that, because of our long-term economic plan, we are the fastest-growing developed nation. The UK has delivered more jobs than the rest of Europe added together. Those are the facts.

My hon. Friend the Member for Esher and Walton read out a list of facts about the constituency of the hon. Member for Wigan. He talked about the unemployment figures and the claimant count rising by 100% between 2005 and 2010, but let us look at what is happening in Wigan now: the employment rate is up by 7.9 percentage points; the claimant count is down by 49%; the long-term claimant count is down by 44%; the youth claimant count is down by 70%; and the long-term youth claimant count—[Interruption.]