Cross-departmental Strategy on Social Justice

Eilidh Whiteford Excerpts

Wednesday 14th September 2016 Westminster Hall

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

Thank you, Ms Dorries. I will try to do the maths on the timing.

I congratulate the hon. Member for Congleton (Fiona Bruce) on securing this debate and on her thoughtful speech. Let me say at the outset that Scottish National party Members share the desire to support families, to promote social justice and to improve the prospects of young people from disadvantaged backgrounds. We recognise that that will require cross-departmental action that cuts across a range of policy areas and Government functions, including areas of devolved responsibility—a point that may be reflected this afternoon in the fact that only Back-Bench Members from Scotland and Northern Ireland are in the Chamber today.

Where we part company with the UK Government is in our analysis of the underlying drivers of poverty and deprivation and in the prescriptions we offer to address it.

[Andrew Selous]

Will the hon. Lady give way?

[Dr Whiteford]

I will not give way because I am very short of time.

The hon. Member for Congleton put great emphasis on family policy, and clearly families are at the heart of a stable society. We have heard from other speakers today and from the Government in recent months about life chances. That is an innocuous enough term. Who could take issue with improving life chances? The problem is that the shift in the Government’s rhetoric has masked a sharp move away in policy terms from consideration of the economic drivers of disadvantage, particularly low income, towards social phenomena such as family breakdown and addiction, which we have heard a lot about today but which actually affect children in families across the income spectrum.

Don't get me wrong—children are often very badly affected by parental separation or a parent’s problematic use of alcohol or drugs, but that will not necessarily push them into poverty. Likewise, problematic levels of debt are by no means the preserve of low-income households. I agree with the hon. Member for Congleton that support for all families who are coping with these issues is important regardless of their income level, but if we want to achieve greater social justice and to close the gaps in educational attainment, job prospects, and long-term health and life expectancy between the wealthiest and the poorest, it is intellectually dishonest to pretend that low income is anything other than the core driver of poverty. It is a distraction to think we can tackle child poverty without recognising that material deprivation, lack of money in a household and chronic financial insecurity—symptoms of a labour market that is increasingly characterised by low-paid, temporary jobs with fluctuating hours of work—and excessive housing costs lie at the heart of the gulf in prospects. We cannot tackle these glaring inequalities if we are not prepared to bite the bullet of these gross disparities in income.

The reality is that the Government’s austerity agenda continues to reduce the incomes of families in lower paid jobs and those unable to work because of serious illness or disability. Austerity has hit the incomes of women and disabled people disproportionately. The four-year freeze on working-age benefits, including child tax credits, working tax credits and jobseeker’s allowance, will see families lose an estimated 12% of the value of their support by 2020. Two thirds of children growing up in poverty in the UK live in working families, so cuts to tax credits have an enormously detrimental effect on parents in low-paid jobs. That undoubtedly puts pressure on families and strains relationships.

The cuts to the work allowance will also hit low-paid working parents, including single parents, some of whom could lose as much as £2,600 a year. The cuts to the work allowance also remove from universal credit one of the cornerstone benefits of the system, namely that it was supposed to remove the work disincentives—the so-called benefit trap inherent in the previous system. Universal credit now replicates that flaw so that for many low-paid parents there is now no incentive to take promotion or increase their working hours because their family will be worse off. According to the Resolution Foundation, work will pay on average £1,000 a year less for working families in receipt of universal credit.

The hon. Member for Strangford (Jim Shannon) and my hon. Friend the Member for Lanark and Hamilton East (Angela Crawley) talked about the Concentrix fiasco, which we debated in the main Chamber today. All I can say is that it has caused extreme financial distress and hardship. I know of at least two families who have lost their home because of that. The Government really must take responsibility.

Another key issue in addressing life chances is housing costs. There is a chronic shortage of affordable housing across the UK, a consequence partly of grossly inflated house prices and partly of the failure of successive Governments to build enough affordable homes. I am glad to say that in Scotland we have taken a very different approach and have started to reverse that situation. We are committed to building 50,000 more affordable homes in the next five years, which will go some way to meeting need, but we cannot avoid the fact that children who grow up in a warm, dry, decent and stable home will have better life chances than those who do not. That is a good example of why we need cross-departmental efforts to tackle child poverty. Again, it goes without saying that poor housing puts terrible pressure on families and relationships.

Last week, I attended the launch of the Joseph Rowntree Foundation’s “Solve UK Poverty” report. One of the most important messages that comes out of that is about the dynamic nature of poverty. In this place, we often trade in lazy stereotypes about entrenched poverty, and there is no doubt that some parts of the country are affected by that because of deindustrialisation and so on. Nevertheless, for most people it is unexpected life events that push them into poverty, whether it be redundancy, relationship breakdown or long-term illness and serious health problems. One of the most important things that the Joseph Rowntree Foundation highlighted is families’ level of resilience. Clearly, when unpredictable events that could happen to any of us strike, poorer families have less of a cushion. They are much less able to cushion themselves against such events that can have long-term, far-reaching consequences.

I will finish by talking about how we measure child poverty and pick up some of the points made by my hon. Friend the Member for Lanark and Hamilton East. The Welfare Reform and Work Act 2016 removed the statutory child poverty targets that were to be met by 2020. A cynic might assume that that is because the Government know that the Institute for Fiscal Studies is correct in its projection that the rate of child poverty in the UK is set to increase to over 18%—affecting almost one in five—by 2020 as a direct result of austerity reforms.

Life chances indicators may provide some useful insights, but given that two thirds of children living in poverty have working parents, focusing on worklessness will not take us much further forward and misses the big picture of widening inequality eroding young people’s life chances. I am glad to say that in Scotland we are taking an alternative approach to child poverty which focuses on maximising household resources, investing heavily in high-quality early-years education, including 30 hours a week free childcare for all nursery-age children and for the most disadvantaged two-year-olds, and renewing the focus on closing the attainment gap in schools between those from the lowest income groups and their better-off peers.

The Scottish Government are also consulting on legislation to measure child poverty with proposals for ambitious statutory income targets and duties on Ministers to report every year on published delivery plans. We have also protected the education maintenance allowance, which has helped young people from low income families to stay on at school or college so that they get the qualifications they are capable of achieving, and ensured that those who get the grades they need to go to university can study on the basis of their ability to learn, not their ability to pay tuition fees.

We should not dodge the big issue about income, but should recognise that it is at the heart of families and their ability to sustain the normal shocks and events that most people go through at some point in their lives.