Budget Resolutions and Economic Situation

Debate between Eilidh Whiteford and Antoinette Sandbach

Thursday 9th July 2015 Commons Chamber

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

When the Chancellor delivered his Budget speech yesterday, he made the oft-repeated claim that the

“best route out of poverty is work.”—[Official Report, 8 July 2015; Vol. 598, c. 333.]

That was probably true once, but it is no longer true—it has not been true for a number of years. The truth today is that, for millions of low-paid workers, poverty persists no matter how many hours or how hard they work. For people who are bringing up children on low or, indeed, average incomes, the costs of housing and of childcare mean that they are running to stand still. I have said before in this House that in-work poverty is the great scandal of our age. Sadly, very little was announced yesterday to tackle the underlying drivers that are stifling the opportunities and aspirations of the working poor.

Instead, we learned that the axe of the £12 billion-worth of cuts will fall most heavily on low and middle-income families. Last week the Government announced changes to the way in which child poverty is measured. Having heard yesterday’s announcements, it is not hard to understand why they did that, because the lowering of the threshold for tax credits and other changes announced yesterday will take income largely from the pockets of working parents and compound the projected increases in child poverty arising from the last round of cuts.

[Antoinette Sandbach]

Housing and childcare matters are devolved to the Scottish Parliament, so does the hon. Lady agree that, if there are structural imbalances, they need to be dealt with by the Scottish Parliament?

[Dr Whiteford]

I am sure that the hon. Lady is well aware that Scotland’s childcare offer is significantly better than that enjoyed by people in other parts of the UK, and that our housing situation is not exacerbated by real rent imbalances similar to those experienced in London and the south-east of England in particular. I will pick up on that later.

The hon. Lady will also be aware that the Scottish block grant is calculated on the basis of the contents of the Red Book. The money currently allocated to Scotland is determined by this Chamber, so this Budget is relevant to everybody throughout the UK. It would be very wrong to ignore the fact that the purse strings are still controlled here, and that is one of the reasons why I argue for those powers to be sent up the road to Scotland, where we can use them more wisely.

I want to return to the issue of child poverty and the paper exercises conducted to measure it. Whatever we do to massage the figures, I do not think any of us can avoid the evidence of our own eyes in our constituencies. We are seeing growth in child poverty on the ground. We see it in the rise of food banks, which have already been alluded to, and in the larger number of people coming through MPs’ doors with income-related problems. That is also being experienced by advice bureaux. We also see it in the evidence of organisations that work directly with vulnerable families and those on low incomes.

In my constituency, one in five children is growing up in poverty. That might come as a surprise, because we enjoy some of the lowest unemployment in the whole country. A very small percentage of people are not in work, but many thousands of people are in low-paid work, and it is those working poor who are going to be most affected by what was announced yesterday.

More families than ever are running to stand still, and under this Government more people are being left behind. The UK has a deeply polarised labour market, and the ability of people in low-paid work to get ahead is severely curtailed.