Child Poverty

Drew Hendry Excerpts

Tuesday 15th September 2015 Westminster Hall

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I congratulate my hon. Friend the Member for East Renfrewshire (Kirsten Oswald) on securing such a vital debate. My constituency is perhaps not the first to come to mind when thinking of areas where poverty strikes, but our enduring challenge is the low-wage economy. Unemployment is low in comparison with many other areas, but low wages are the biggest threat to children growing up there. Indeed, low wages, coupled with the increased cost of living, have certainly played a part in 210,000 children in Scotland living in relative poverty, many of whom come from families in which at least one parent is working. That should quite simply be considered an outrage.

We often hear the UK Government talk of making work pay, yet policy decisions achieve quite the opposite. In my constituency, that means one in five children growing up in poverty, with the figure as high as one in three in some parts. Changes to the tax credit regime will, without question, further worsen the living conditions of over 7,000 children in Inverness, Nairn, Badenoch and Strathspey, as up to £1,000 a year is taken out of family budgets. The measures announced in the Budget are regressive, and it is children in families with the lowest incomes who continue to be hit hardest. It should be borne in mind that the proposals will affect life chances in areas of high deprivation, and families who are on the radar of financial distress. They will also be part of daily life for those who are afraid to admit to their situation, through fear of unwanted service disruption or sheer embarrassment at the stripping away of layers of personal pride that the removal of support leads to.

I want to share how, in the highlands, in-work families will lose out as a result of the tax credit regime changes. Limiting tax credits to two children results in the removal of £7.2 million from welfare payments in Highland—simply put, that is £7.2 million from low-wage, low-income families. Removing the family element of tax credits takes £4.02 million from welfare payments in Highland, which is £4.02 million from low-wage families. Increasing the tax credit taper from 41% to 48% means the removal of £7.77 million from welfare payments in Highland. The reduction in income thresholds in tax credits equates to a removal of £33.33 million from welfare payments in Highland, which is a further £33.33 million from low-wage families. I will stop with the numbers, but everyone in the Chamber knows that they go on and on.

I want to ask the Government this: in our low-wage but low-unemployment economy, how do such cuts ever help make work pay? They do not. Families are already struggling with housing costs, heating bills and food prices, and parents face a harrowing choice between heating their home or putting food on the table, with some even wondering if they will still qualify for the food banks because of the number of their visits. In a growing number of cases, due to the oppressive sanctioning regime faced by my constituents and many others, there is the phenomenon of no-income poverty.

Thank goodness the Scottish Government have, by paying, done what they can across the piece to mitigate the outrageous bedroom tax imposed on Scotland. In the highlands there are virtually no one or two-bedroom social housing units, which has been a real problem. Through no fault of their own, people have been scared and intimidated. Again, they have had to be compensated by the Scottish Government.

Poverty robs children of their childhood. Children and young people growing up in poverty face limited life chances. We surely should not accept any child growing up without a fair start in life. The charity Barnardo’s Scotland says that its caseworkers have recorded numerous cases of having visited homes where there was literally no food in the cupboards. The UK Government need to take action to reverse, not increase, child poverty. As others have said, these children are more likely to live in poor housing, to suffer chronic illness in childhood, and to die at birth or in infancy.

--- Later in debate ---

[Chris Evans]

We will let you get away with that.

Child poverty is an age-old problem. Writers such as Charles Dickens, in the 19th century, J.B. Priestley, whose “An Inspector Calls” was recently adapted by the BBC, and the great socialist George Orwell have all chronicled poverty and its effects throughout the years. Yet however much great literary works and great authors have covered the scourge of poverty in all its forms, the problem has still not been solved.

Poverty at its extreme affects the two most vulnerable groups of people in society, the very old, who often have to make the choice between heating and eating, and the very young. We have heard many statistics, but for so many people across the country, in constituencies we have already heard from, in Scotland, in the north—including Manchester—and in Wales, poverty is a way of life. Extreme poverty means young people go to school hungry, not having been able to eat breakfast that morning. They do not have the equipment they need to gain the skills to succeed. Very often, they will return to substandard accommodation that is damp, and they will become ill. They have failed before they have even begun.

The sad fact is that, despite all the campaigns throughout the 19th and 20th centuries, poverty still comes down to one thing: someone born into poverty will probably die in poverty. As in the time of the great writers I mentioned, the challenge for society is to end poverty in all its forms.

I do not believe that people become politicians—come to the House of Commons or, indeed, go into Government—to oversee an increase in poverty, but that is what we have seen from this Government. If we look at the figures after housing costs have been taken into account, over 27% of children in my south Wales constituency are living in poverty. Across Wales, one fifth of all children grow up poor. In the UK—the fifth richest country in the world—more than 4 million children are living in poverty. None of their parents wants things to stay the same; they want to provide more for their families. Not one of them does not want to escape the tiring, punishing reality of being poor.

It is no good, however, simply setting out the challenge we face, which other Members have eloquently described. Anyone who cares about our country’s future and our constituents’ lives must now seek solutions, because it falls to this generation to eliminate poverty in all its forms.

The problem cannot be solved by simply throwing more money at it. That has been tried, and we still see poverty on a scale we cannot imagine. The Joseph Rowntree Foundation report “What will it take to end child poverty?” stated:

“Ending child poverty is only partly about transferring money to poor households. A long-term solution must involve much more, tackling the root causes of poverty and in particular giving families opportunities that help them gain greater control of their own lives.”

We can do that only if people work. We can have all the Government schemes we want, but the best way to end poverty is to have working households. While people are stuck—dependent on the welfare system—they will never have control over their own destiny or the ability to break their family out of poverty. They will suffer poverty of money and, yes, poverty of ambition.

The Joseph Rowntree Foundation states that truly tackling child poverty will require us to provide considerable personal support to people who are likely to face a combination of disadvantages in terms of entering the labour market. We can overcome those disadvantages, but only with targeted, personalised and localised support. That cannot be done just through existing public sector structures. Instead, there needs to be a partnership between public bodies, private bodies and, above all, local communities. We must harness the financial power of the Government, the innovation of the private sector and people’s knowledge of their own lives and communities—the people who know what is best for communities are those who live in them. We must put in place strategies that reach the poorest, the hardest to help and the most disadvantaged.

The last Labour Government made great strides with a public sector approach, but the world has moved on. The challenges in 2015 are not the same as they were in 1997.

[Drew Hendry]

Notwithstanding the hon. Gentleman’s wise words about tackling the issue on a longer-term basis using a real plan, which I absolutely subscribe to, does he agree that the actions taken by this Government in the short term do nothing to help those who are already working, but who are below the poverty threshold, and nothing to achieve the long-term ambitions we should all share?

[Chris Evans]

I agree. The hon. Gentleman used the phrase “short term”, and the problem with this Government’s approach from the beginning is that there has been too much short-term thinking. The problem in politics may be that we think from one election to the next and do not plan for the long term. I believe that poverty is at its highest level at the moment because people are too fixated on the stereotypes perpetuated by the press—the idea that someone finds themselves on benefits not because they have fallen on hard times, but because they are some sort of scrounger. We must end that stereotype if we are to move on. That is where the long term comes in.

Child poverty will be solved only by a Government who are firmly focused on the issue in the long term. The distinction between the public, private and third sectors must be broken down. In the pursuit of a country where no child is born poor, there can be no qualms about harnessing the best of private enterprise and the best of social action. In practice, that will mean contracting diverse providers from charities to recruitment companies and agencies to deliver employment support. It will mean private companies showing the social responsibility we have always talked about and working with people who face severe disadvantages in terms of entering the labour market to put in place individual strategies to overcome those problems. It will mean families who are stuck in poverty receiving one-on-one support that is tailored to their needs from any willing provider who can provide the best support.

The one-size-fits-all model of Jobcentre Plus and the welfare system has comprehensively failed, to the extent that Ofsted found that Jobcentre schemes have a success rate of less than 1%. Rather than pursue that model, the Government should work with any company or organisation that can help. No stone should be left unturned. This is not about taking an ideological approach and saying the public sector is always right or the private sector is always better. This is not about left or right, or about Welsh, English Scottish or Irish; this is about doing what works to end child poverty.

The people trapped in the punishing reality of being poor will not care where the support comes from, as long as it works. However, it must be part of a new contract with them. The Government will work with anyone who can provide support, but individuals must take responsibility; they must accept that if the country is there for their family, they must be as well. It must be Britain’s moral mission to end child poverty, but all the support we can provide will not be enough if people do not take responsibility. They cannot be allowed to see welfare as a way of life, to be the worst possible example to their children and to sustain the culture we see in far too many communities where joblessness is the norm. The deal must be: “We will help you, and you will get the support you need, but, in return, you have to work, to provide for your family and to be responsible for your spending.” That is how we end child poverty and lock in a country where no child is born poor. Without ensuring personal responsibility, any action we take to help the poorest children will be reversed, and we will never break the poverty of ambition that traps poor children into a life of poverty.

--- Later in debate ---

[Justin Tomlinson]

I thank the hon. Gentleman for that intervention. That is a fair point. At the moment, we are seeing about 1% a month coming off the ESA benefit. It is a poor success rate and we would expect far better. In his speech, the hon. Gentleman was bang on, in that we need to have localised individual responses. We need better support and to have more businesses signing up to provide those opportunities. We are looking to reform that and are in consultation. I spent much of the summer with my Minister for Disabled People hat on, doing visits and looking at the best ways that that can be done in the changes. Given the record of 1% a month coming off that benefit, and with people often then slipping back in, it is incredibly important to address that looping effect.

The wider issue is a tragedy for each and every family, because families in which no one works lose their sense of self-worth.

[Drew Hendry]

From the Minister’s words, I am sure that he, personally, very much wants to see a long-term solution to the problem, but he mentioned a long-term ambition. Does he not accept that by not having a short and medium-term option for people in work at the moment, they will be punished and pushed further into poverty by the removal of those working tax credits, particularly in constituencies such as mine, where there is relatively low unemployment but very low wages?

[Justin Tomlinson]

I will address that later, so please be patient for a little bit longer.

Children grow up without the aspiration to achieve. They become almost certain to repeat the difficult lives of their parents, following a path from dependency to despondency, rather than to independence. At the beginning of my remarks, I talked about my background. That is what drove me into politics. We all have our calling, our passions and our priorities. That very much was what drove me into politics. As I said, I think we all share the same end goal; there is just disagreement on how we would look to achieve it.

On our record on worklessness and poverty, I highlight that many hon. Members have referred to the IFS statistics throughout the debate. I sound a strong note of caution on that. The statistics have been wrong every single year since 2011, and in the summer, they were half a million out, so I attach a big note of caution to the predictions and doom-mongering.