Budget Resolutions and Economic Situation

Debate between Eilidh Whiteford and Alison Thewliss

Thursday 9th July 2015 Commons Chamber

[Dr Whiteford]

The key point is that a falling birth rate is not good for anybody in whatever decile. Even those of us who do not have children are going to be dependent on the next generation being large enough to support us in our dotage when we need people to come in and look after us. The economics do not stack up. In the context of worryingly low birth-rate projections, we desperately need to encourage and make it easier for people in all deciles to decide whether having children is a possibility for them.

I have to say that I was appalled at the reference on page 88 of the Red Book to

“protections for women who have a third child as the result of rape, or other exceptional circumstances.”

I know this point was picked up yesterday, but I think the implications need to be addressed more thoroughly. It is perhaps important to acknowledge that rapes do not necessarily result in pregnancy. After all, rape is a crime that affects pre-pubescent children and post-menopausal women, as well as people of child-bearing age. How does the DWP intend to establish that a child has been born as a consequence of rape? Will there seriously be a box to tick on the form? Will a criminal conviction against a perpetrator be required?

We know that rape is one of the most unreported and poorly prosecuted serious crimes in the UK, with most surveys suggesting that 85% of women who are raped do not report it—for a variety of reasons, not least because most victims know their assailants and know that securing a conviction is a very long shot under our criminal justice system. Many simply do not want to put themselves through another traumatic ordeal.

I put it to Ministers that the women most likely to become pregnant as a result of rape are those in long-term abusive relationships who are being repeatedly assaulted. They are among those least likely to report rape, and those in the most extreme danger if they do. So I ask again, what will this “protection” mean in practice? How will the DWP arbitrate? Will women be believed? What steps will be taken to preserve their dignity and privacy? I would like to hear some answers to those questions.

[Alison Thewliss (Glasgow Central) (SNP)]

Does my hon. Friend agree that these circumstances could stigmatise the child and run contrary to our obligations under the UN convention on the rights of the child?

[Dr Whiteford]

My hon. Friend raises a very pertinent point—we should not be stigmatising children whatever their parentage. This could indeed cause many problems.

Before I conclude, I want to address the lowering of the benefits cap. One aspect that always seems to get lost in the debate is that the main driver of the excessively high benefit payments we see in London, the south-east and a few other hotspots across the UK is excessively high private sector rents. In most cases, the claimant does not see a penny of that money; it goes straight into the pockets of the private sector landlords. This is a very serious problem, but I think the Government are tackling it from entirely the wrong angle. They need to address the chronic under-supply of affordable housing, because until they address that underlying issue, rents will continue to soar and housing—to rent or to buy—will continue to be completely unaffordable for people on low and average incomes, by which I mean people who earn normal wages doing normal jobs. Plans to force housing associations to sell their properties to tenants will only make matters worse.

I remember that when the benefits cap was first introduced, I went to the Library to look at the impact on my own constituency. There was a grand total of three claimants affected, and two of them were people in temporary accommodation—they were in a short-term transitional situation. That was simply because our rental market was not quite so out of control as the rental market in some other parts of the UK.

My main concern about the new benefit cap is that it is entirely arbitrary and will mostly affect people in the private rented sector in high-rent hotspots. Fundamentally, it does not tackle the underlying problem of affordable housing supply, which is one of the main drivers of income poverty right across the UK. Instead, it seems to me that this arbitrary cap will create perverse incentives for people to move to areas or stay in areas of low economic growth where housing is more affordable but jobs are thinner on the ground. That gets us to the heart of the problem with this Budget. It puts a desperate squeeze on low and middle-income families, but there is little in the Budget to boost productivity. There is nothing to give Scotland a competitive advantage or give us a jobs boost. Instead, those who have already carried the can for the banking collapse of 2008 will stay trapped in work that does not pay.

Austerity has been a failed policy. It has held back our economic recovery and has harmed the most disadvantaged people. That is why we need powers over our economy, our employment and our benefits system to be devolved to the Scottish Parliament, where we can use them to build a more successful and a more equitable country that is in everyone’s long-term interest.