Government's Management of the Economy

Debbie Abrahams Excerpts

Tuesday 23rd February 2021 Commons Chamber

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

I am afraid I am worried that the Minister showed in his opening remarks that he is living in some parallel universe with no understanding of what millions of people are going through. However, in the run-up to next week’s Budget, I put on record not just the moral imperative to protect our citizens from poverty and destitution through our security system, but the health and economic imperatives, too.

Yesterday, the all-party parliamentary group on health in all policies published our report investigating the health effects of the Welfare Reform and Work Act 2016. Even before covid, there was a poverty crisis driven by savage social security cuts spanning nearly a decade. Our children—the very children the Government are now saying we need to protect—have been disproportionately affected, as have our disabled people.

The overwhelming evidence shows that the immediate consequence of this epidemic is epidemic levels of mental ill health. For our children, we know that for every 1% increase in child poverty, an extra six babies out of 100,000 will not see their first birthdays. For those children who survive this poverty, their educational attainment and even their behaviour and future longevity will have been affected. Longer term, as Professor Sir Michael Marmot spelt out last year, we will see the UK’s already flatlining life expectancy, which is declining in our poorest areas, decline even further—one of the worst in any advanced economies.

As Professor Marmot also said, the UK’s high and unequal covid death toll can be related to the poverty and inequality across the UK driven by 10 years of severe austerity, including cuts to social security. Since 2010, £34 billion has been taken out of social security support for working-age people. Even with the £20 a week universal credit uplift, the Institute for Fiscal Studies has calculated that the UK has the least generous out-of-work support in the OECD. The welfare budget may have made savings, but that has resulted in our NHS, schools and local councils having to pick up the pieces as a result of the devastating health impacts and human costs.

I reiterate that the health impacts of this social security-mediated poverty were covid-driven. This week’s National Institute of Economic and Social Research report shows the doubling of households living in destitution to nearly half a million and emphasises the inadequacy of social security support. It adds to the call that many of us have been making: we need a new social contract with the British people fit for the 21st century—a new Beveridge.

Covid-19: Disparate Impact

Debbie Abrahams Excerpts

Thursday 22nd October 2020 Commons Chamber

[Kemi Badenoch]

I commend my hon. Friend for the important work he is doing to support his community. The Government agree that charities play an invaluable role in this country, which is why we have committed a £750 million package of support specifically for charities, social enterprises and the voluntary sector, so that they continue their work through the outbreak. That includes £200 million that has been distributed by the National Lottery Community Fund through the coronavirus community support fund. The fund closed to new applications on 17 August, but about 97% of the total fund value had been awarded as of 13 October. In addition, £150 million has been released from dormant accounts to help social enterprises get affordable credit to people who are financially vulnerable and to support charities tackling youth unemployment.

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

Covid is the disease of poverty. The evidence clearly shows that there is a higher prevalence of, and mortality from, the disease in areas of high deprivation. In addition to people from black, Asian and minority ethnic groups being at risk of covid, disabled people accounted for nearly 60% of all deaths between March and July. They are more likely to live in poverty than non-disabled people, and also accounted for a third of the 300,000 people who were not eligible for social security support in the spring. I understand that the Equality and Human Rights Commission is examining discrimination of disabled people during covid, but what are the Government doing to protect disabled people’s lives and livelihoods in the second wave?

[Kemi Badenoch]

As I said earlier, the Government really take seriously the outcomes for those with disabilities. There is a lot of work happening across Government, across very many Departments. We are not leaving anyone behind; we are making sure that support is available, not just at national level through support schemes, but through local authorities and through the Department for Work and Pensions locally. If the hon. Lady wants more information, I am sure that this is something I can write to her about. I do not have the full information to hand, but I know that there is a lot of work going on across Government.

Covid-19: Economy Update

Debbie Abrahams Excerpts

Thursday 22nd October 2020 Commons Chamber

[Rishi Sunak]

My hon. Friend regularly reminds us all about the importance of digital connectivity in rural areas such as his, and indeed mine, and he will know, as I do, that the Government are committed to bringing both gigabit-capable broadband and mobile phone networks to all the parts of our country that otherwise might not have as strong connectivity as they would like. I know he will join me in welcoming that, as it will make an enormous difference to the local economy in his and other rural areas.

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

Twenty-three OECD countries had job subsidy schemes in place for a major event such as a pandemic, but unfortunately, the UK was not one of them. The Government’s piecemeal approach to the pandemic is leading many of my constituents to ask why we were so poorly prepared for it in every single way. In Oldham East and Saddleworth, unemployment has nearly doubled since March. We know now that across the country nearly 300,000 people were not eligible for social security support. A third of those people were disabled and one in 10 were from the north-west. How many low-income workers covered by this new financial package will be excluded from social security support to top up their wages?

[Rishi Sunak]

The hon. Lady is right to say that we did not have a wage support scheme when we entered this crisis, which is why I place on record my thanks to the fantastic team of officials at the Treasury and at HMRC for acting with unbelievable speed and decisiveness in helping me to create, design, and implement these schemes in record time, enabling us to help pay the wages and protect the jobs of more than 9 million people.

Public Health Restrictions: Government Economic Support

Debbie Abrahams Excerpts

Tuesday 13th October 2020 Commons Chamber

[Steve Barclay]

Among the range of measures that we have put in place as support, one speaks directly to my right hon. Friend’s issue, which is the rent support of up to £3,000 for businesses that are forced to close. The Welsh Government can then use Barnett consequential funding to support businesses and to design a scheme as they see fit, but it is for the Welsh Government to design those schemes, not the UK Government. That is what devolution entails. What we have done through the comprehensive package of measures that we have put in place is ensure that there is Barnett consequential funding to allow the Welsh Government to put that support in place.

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

Like infectious diseases of the past, covid is a disease of poverty. Various indicators, including cuts to local authority funding, show that regional inequalities have been exacerbated over the past decade. Contrary to the Minister’s earlier remarks about the generosity of the packages to local authorities, only 10% of costs associated with the pandemic have been reimbursed by the Government. What is the Minister’s assessment of the actual impact that the recent announcement of measures have had on the Government’s ambition to level up?

Finance Bill

Debbie Abrahams Excerpts

2nd reading & 2nd reading: House of Commons & Programme motion & Programme motion: House of Commons & Ways and Means resolution
Monday 27th April 2020 Commons Chamber

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

As so many of us speak virtually for the first time in a House of Commons debate, it is clear that the impact that—[Inaudible.] The early response to the pandemic was to provide some relief to businesses. The array of support, added to as the gaps in it were revealed, is not only inadequate but has too many hoops for businesses to jump through and is too slow to get to them. That is particularly the case for small businesses.

I wrote to the Chancellor five weeks ago about the gaps in the various business support schemes he announced. Among the questions I asked him were whether he would ensure that all Government Departments had paid their suppliers and that those suppliers had in turn paid their supply chain. I also asked him why he chose the small business rate relief option instead of an HMRC delivery mechanism. An HMRC route would have supported 7,000 small businesses in Oldham, instead of only 3,900 that have received rate relief. I have yet to hear from the Chancellor on those points, and I would be grateful for a response tonight. Fundamentally, his package of measures does not do what it is meant to do: keep businesses afloat until we are able to come out of total lockdown. I heard from a local business last night which has had to close after nearly 30 years of trading and another that is close behind.

Similarly, the Government’s response to the hundreds of thousands of individuals who do not qualify for, or whose employers are refusing to use, the job retention scheme has been found wanting. Ministers at last week’s Work and Pensions Committee were not able to answer how many people will have been pushed into debt after having to rely on social security support for the first time or about estimates of the increase in poverty. The £20 a week extra in universal credit and the increase in local housing allowance will be completely wiped out for some claimants, given that the benefit cap is still in place. Again, I would be grateful for a response on that tonight.

Disabled people are disproportionately represented in the self-employed workforce. Although I am pleased that the minimum income floor has been lifted from universal credit, why has disability social security support not been uprated, given the additional costs that disabled people are facing on top of the average pre-pandemic costs of over £530 a month?

This health emergency will be followed by an economic and potentially social one as well. Many have predicted that the economic effects from the pandemic could last for most of this decade, and in that regard, it is a reminder of the 2008 global financial crash. As we prepare for a partial lifting of the lockdown, we need to learn from other countries on how to do that safely and effectively—something I fear we did not do when planning our covid strategy.

We also need to recognise the impact that austerity has had on too many of our citizens over the last 10 years. Nearly six in 10 people living in poverty come from working households, compared with less than four in 10 20 years ago. Two thirds of the 4 million children living in poverty live in working families. Sick and disabled people are being isolated and excluded from society, with over 4 million living in poverty. There are increasing inequalities in income, wealth and power. The richest 1,000 people in the UK have significantly more wealth than the poorest 40%—that wealth increased by nearly £48 billion in 2019 and by £253 billion over the last five years. After decades of growth, we are now seeing our life expectancy flatlining, and for women and people in deprived areas it is actually going down. We have the worst child mortality rates in western Europe; four babies in 1,000 will not reach their first birthday.

Another round of austerity must not be allowed, and it certainly cannot be endured. Globally, it is estimated that the covid pandemic could cost as much as $10 trillion, and for each percentage point drop in the economy, 10 million more people typically fall into poverty. We must make sure that the poor, who are predicted to suffer disproportionately in this crisis, do not also suffer in its aftermath through widened socioeconomic and health inequalities.

We are at war with this virus. Out of this health emergency, and the tragedy and heartbreak that so many will endure, we must ask ourselves, “What type of society do we want?” It is my sincere hope that the Government’s long-term economic response will be to provide adequate support for all, as Labour did when we created the welfare state after the second world war.

Oral Answers to Questions

Debbie Abrahams Excerpts

Tuesday 2nd July 2019 Commons Chamber

The Chancellor of the Exchequer was asked—

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

1. What discussions he has had with the Secretary of State for Work and Pensions on the adequacy of social security spending in tackling poverty throughout the UK.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

Thanks to our welfare reforms, we have been able to get more people into work, we have the lowest unemployment rate since 1974 and more than 667,000 fewer children are living in workless households than in 2010.

[Debbie Abrahams]

Some £30 billion of support to working-age people has been cut from the social security budget, and there is more still to come. Eight out of nine disabled people will not benefit from the measures introduced in last autumn’s Budget and over 4 million are living in poverty. In the Chancellor’s last few weeks in post, what will he do to right this wrong?

[Elizabeth Truss]

I do not agree with the hon. Lady’s analysis. The fact is that income inequality is lower now than it was in 2010 and absolute poverty after housing costs is at a historic low for children.

Discrimination in Football

Debbie Abrahams Excerpts

Thursday 11th April 2019 Commons Chamber

[Mims Davies]

The hon. Gentleman makes an important point. At the racism summit I held, there were people outside football holding football to account for not being diverse and welcoming enough. They know the problem. It is time to change who is at the top, because that changes everything.

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

Racism and discrimination in football and other sports reflects society as a whole. Does the Minister agree that we need to be demanding more not only of our football and other sporting institutions, but of our leaders in the public and private sectors—and, dare I say it, in politics?

[Mims Davies]

We all have a hugely important role to play. I absolutely agree with the hon. Lady. We want sport, politics and our whole country to be open, tolerant, diverse and equal. We all have a role in making that happen.

Oral Answers to Questions

Debbie Abrahams Excerpts

Tuesday 9th April 2019 Commons Chamber

[The Exchequer Secretary to the Treasury (Robert Jenrick)]

In the spring statement, my right hon. Friend the Chancellor launched a review of our infrastructure financing, which includes that question on whether the UK would benefit from institutional arrangements. We have also made significant funds available to ensure that there is no shortfall for businesses that rely on the EIB.

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

T4.   Last month’s Office for National Statistics figures show that life expectancy for the poorest has fallen whereas for the rich, it has increased. Analysis into the key drivers of that, including Public Health England’s investigations, shows that it is the result of cumulative tax and social security changes. I therefore ask the Chancellor, once again, what will he do about that, and particularly, will he stop immediately the benefit freeze that has such a devastating effect on people’s lives?

[Elizabeth Truss]

As I have said, we are moving on from the benefits freeze. We are in a position now where real wages are growing and benefits will increase in line with inflation from 2020. However, the best route out of poverty and to helping people is ensuring that children get a good education and that more jobs are available in our economy.

Spring Statement

Debbie Abrahams Excerpts

Wednesday 13th March 2019 Commons Chamber

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

Four babies in 1,000 will not reach their first birthday as a result of this Government’s austerity policies. If the Government are so keen on tackling burning injustices, why will they not end the freeze and end it now?

[Mr Hammond]

I am sorry—I did not hear which freeze the hon. Lady asked about.

[Debbie Abrahams]

The benefits freeze.

[Mr Hammond]

I have answered the question. The benefits freeze will end at the end of the forthcoming year.

Bus Services: Greater Manchester

Debbie Abrahams Excerpts

Monday 4th March 2019 Commons Chamber

[Jim McMahon]

I thank my hon. Friend for her intervention. I congratulate her on the work that she does in supporting constituents for whom this is a real issue. Middleton and Heywood have First Bus as the main operator as we do in Oldham, with the main depot being based in Oldham for north-east Manchester. It runs the lion’s share of the routes, so there is no competition that would mean that the standard was raised. I appreciate that point being made.

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

Is my hon. Friend and neighbour concerned, as I am, about the reliability of bus services? That is a constant cause of concern not just in casework but among my staff, one of whom had to wait over an hour for a bus tonight and was yet again late. Is my hon. Friend also concerned about the decrease in the use of bus services? There has been a decrease of 25 million journeys in the space of five years in Greater Manchester.

[Jim McMahon]

Over the past decade, we have seen 32 million fewer bus journeys a year as a result of poor services. I congratulate my hon. Friend and neighbour on the work that she does in fighting for access to rural services, where many people feel isolated. When the bus does not turn up on time when it is needed, particularly in the winter when it is dark, as at the moment, it can be very difficult for local people. She campaigns on that with real effect, and I congratulate her.

--- Later in debate ---

[Ms Ghani]

The hon. Gentleman makes a valid point about the statutory instrument tomorrow, but funding for buses, especially for Manchester, is particularly high compared with other parts of the country. It does very well for buses through different types of funding across the Government. For example, I sign off on budgets for low-emission buses. Manchester is always very good at putting together fantastic bids and securing funding, including, I believe, a section of the £2.5 billion transforming cities fund, which will again provide an opportunity to support buses and tackle congestion, thus bringing communities together.

The hon. Gentleman talked a lot about how services can improve, especially when more information is available on routes and ticketing, and accuracy and transparency on fares. That is why the open data part of the Bus Services Act is absolutely key. We know that passengers want to have good information and clarity not only about when they can get their bus but on how much their ticket is going to be. The bus open data powers in the 2017 Act will go further than the partnership provisions requiring all bus operators of local services in England to open up route and timetable, fares and tickets and real time information for passengers from 2020. Those improvements aim to remove uncertainty in bus journeys, improve journey planning and help passengers to secure best value tickets.

The hon. Gentleman touched on accessibility. We recently launched the inclusive transport strategy, which looked at how we can further reinforce the accessibility that buses have and remind drivers in particular which parts of the bus are available for wheelchair users. That work will continue.

I will touch on air quality because the hon. Gentleman raised that valid point. The environment is absolutely key for our constituents and buses across the UK are cleaner than ever, with 15% of the fleet now operating using low-emission technology. The ultra-low-emission bus scheme was announced in March 2018, making £48 million available for local authorities and operators. He will be pleased to be reminded that bus operators operating in Manchester and the Greater Manchester Combined Authority received £14.76 million, which will fund 70 electric buses and support infrastructure.

[Debbie Abrahams]

The Minister said that 15% of buses are low-emission buses. What timescale are we looking for to get to 100% of buses being low emission?

[Ms Ghani]

The Department is doing what it can through the money that it is making available—for example, the £48 million that I mentioned—and the assumption is that that will help not only to retrofit buses but to encourage bus operating companies to invest in their infrastructure. We know that one reason why people will jump on a bus is that they realise that it is a cleaner way to manage the environment.

I fear that I may be running out of time. We have to accept that there is no single solution that will work everywhere. I am confident that our commitment to local transport and the powers in the Bus Services Act will help to drive up bus numbers, as we would like to see across the country, but we must remember that buses are managed by local politicians, local authorities and bus operators. Only they can deliver better services by working together. I look forward to working with the hon. Member for Oldham West and Royton and anybody else who is passionate about buses to do what we can to improve bus numbers up and down the country.

Question put and agreed to.