The Economy and Work

Emma Lewell-Buck Excerpts

Thursday 26th May 2016 Commons Chamber

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

After years of abandoning and punishing the most vulnerable people in society, we get a Queen’s Speech that talks about introducing legislation to tackle some of the deepest social problems and to improve life chances for the most disadvantaged. However, we all know the truth: this Government’s grand rhetoric is rarely matched by policy. In fact, their policies tend to be regressive and punitive, pushing more and more people into poverty. No one living in poverty is there as a result of their own doing; the perpetuation of poverty and the rise in child poverty since 2010 is a clear failing of Government.

A recent report from Sheffield Hallam University, also referred to by the hon. Member for Glasgow Central (Alison Thewliss), looks at the uneven impact of welfare reform, revealing that the north yet again takes the biggest hit on welfare reform while the south, outside London, remains largely unscathed. Some 83% of the overall financial losses fall on families with children. The north-east alone is set to lose £620 million a year by 2020-21, which is a loss per working-age adult of £380 a year. South Tyneside, the council which covers my constituency, is the sixth worst-affected local authority. Even the introduction of the living wage has left the lowest-paid workers little better off, if at all. One of my constituents, a carer, is now in a desperate financial situation because the new living wage has taken her over the threshold to be eligible for carer’s allowance. An extra £8 a week has cost her £62 in lost benefits.

If this Government really care about life chances, they would not be running into the ground the services people that people rely on the most. They would not have closed over 800 Sure Start centres. They would not be presiding over a crisis in teacher recruitment. They would not be focusing resources on adoption to the detriment of social work that can keep families together. They would not be presiding over the collapse of the NHS and social care. They would not have made such a mess of the benefits system to the extent that more than 1 million food parcels have been handed out. Disabled people would not be losing more than £1,500 a year. The terminally ill would not be being declared fit for work and having their income slashed. Homelessness would not have doubled since 2010. We would not have rising wealth inequality in areas blighted by high unemployment. The Children’s Society has reported that children and young people in Britain are among the unhappiest, unhealthiest, poorest and least educated in the developed world.

This Queen’s Speech identifies an impotent and careless Government whose numerous U-turns reveal deep problems at the core of their policy making. Of the 30 announcements, we have heard 28 of them before, because we have for the past year had to put up with a Government obsessed with internal politics. We all know that the EU referendum has nothing at all to do with whether or not we are better off in or out of Europe. The Government have taken up precious parliamentary time with a prolonged, unedifying fight between—[Interruption.] You can have your say later. It is a fight between two middle-aged public school chums over who is going to run the country.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. Even though that was said from a sedentary position, it is not “you” who has had your say—it is “he” who has had his say.

[Mrs Lewell-Buck]

Thank you, Madam Deputy Speaker. I am going to end by saying that if this is the Prime Minister’s last Queen’s Speech, I am sure it is not a legacy that he or anyone on the Government Benches should be proud of.

[Several hon. Members rose—]

Oral Answers to Questions

Emma Lewell-Buck Excerpts

Tuesday 1st December 2015 Commons Chamber

[Damian Hinds]

The hon. Lady raises an important point. In fact, full-time workers account for almost three quarters of the employment growth since 2010. The crucial reform in the welfare and social security system is of course universal credit, which specifically seeks to get over the spikes found in the hours scale so that it always pays to move from being out of work into work and, crucially, to move up the hours scale.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

14. What recent estimate he has made of the level of household debt.

[The Economic Secretary to the Treasury (Harriett Baldwin)]

Since the financial crisis, households’ financial positions have improved. Household debt as a proportion of income has fallen to 144% in the second quarter of 2015, down from a peak of 168% in the first quarter of 2008.

[Mrs Lewell-Buck]

I thank the Minister for her response, but a large number of my constituents have been alarmed that mistaken overpayments of working tax credits made by Her Majesty’s Revenue and Customs have been recovered, without warning, from their child tax credit entitlements. Is the Department’s policy now to push people into poverty and debt by punishing them for HMRC’s mistakes?

[Harriett Baldwin]

The hon. Lady might remember the terrible roll-out of working tax credits that occurred when the Labour Government were in power. I can assure her that we will continue to improve the administration of tax credits. When her party was in power, people could have a £25,000 change in their income without it affecting their tax credits. We have brought the figure down to £2,500.

Oral Answers to Questions

Emma Lewell-Buck Excerpts

Tuesday 27th October 2015 Commons Chamber

The Chancellor of the Exchequer was asked—

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

1. What assessment he has made of the potential effect of proposed changes to tax credits on child poverty.

[Kirsten Oswald (East Renfrewshire) (SNP)]

2. What estimate he has made of the administrative cost of proposed reforms to tax credits announced in the summer Budget 2015.

--- Later in debate ---

[The First Secretary of State and Chancellor of the Exchequer (Mr George Osborne)]

Last night, unelected Labour and Liberal peers voted down the financial measure on tax credits approved by this elected House of Commons. That raises clear constitutional issues that we will deal with. We will continue to reform tax credits and save the money needed so that Britain lives within its means, while at the same time lessening the impact on families during the transition. I will set out these plans in the autumn statement. We remain as determined as ever to build the low tax, low welfare, high wage economy that Britain needs and the British people want to see.

[Mrs Lewell-Buck]

Six thousand, eight hundred children in South Shields are growing up in families who rely on tax credits. One of my constituents told me, “Tax credits at the moment only just make it possible for families to feed and clothe their children as it is. If this Government keep making cuts on those of us who are lowest paid we may just give up hope.” The public, the experts, some of the Chancellor’s own MPs and the other place all agree that his plans will victimise working parents and their children, so will he please give my constituents some hope and shelve these ridiculous tax credit cuts?

Oral Answers to Questions

Emma Lewell-Buck Excerpts

Tuesday 21st July 2015 Commons Chamber

[Mr Osborne]

My hon. and learned Friend is right. The good news is that the gender pay gap is at its lowest level in history, but we have more work to do and that is why we have introduced the new audits for companies. Of course, women will be the biggest group of winners from the national living wage.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

I listened to the Minister and Chancellor talking about tax credits earlier, but here is a bit of reality. A couple in my constituency told me that as carers for a disabled child, they work part time and will lose around £2,000 in tax credits under the Chancellor’s reforms. But they will not benefit from a higher minimum wage because their jobs are professional level and their hourly pay is already above that rate. Does the Chancellor think it is fair that his reforms will make families with disabled children poorer?

[Mr Osborne]

We have to look at the entire Budget package, because that is the new contract. Part of that is a tax cut, which I suspect will help the hon. Lady’s constituents, because we have increased the personal allowance. They may also be eligible for the new 30 hours of free child care. Many more of her constituents will also benefit from the national living wage. But what is the alternative? It is to have an unsustainable welfare system, the cost of which goes up and up and squeezes out spending on infrastructure, education and science, and puts our country at risk from economic storms abroad. That is what we lived through 10 years ago and we do not want to go back there.

Oral Answers to Questions

Emma Lewell-Buck Excerpts

Tuesday 10th March 2015 Commons Chamber

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

To follow up the question from my hon. Friend the Member for Leyton and Wanstead (John Cryer), it appeared from recent written answers that the Government are leaving open loopholes that see workers lose hundreds of pounds a month from rip-off umbrella companies. Why is that?

[Danny Alexander]

As I said, we are consulting on that matter and have already taken considerable action to deal with intermediaries. I am sure that more will be said about the issue in due course.

Oral Answers to Questions

Emma Lewell-Buck Excerpts

Tuesday 2nd September 2014 Commons Chamber

[Danny Alexander]

The Scottish Government’s plan to renege on Scotland’s share of the debt in the event of independence is simply not credible because of the catastrophic effect it would have on the people of Scotland. Mortgage rates would go up, credit cards and bills would go up, and the Scottish Government would have to resort to the bond market’s equivalent of Wonga to raise money to pay for public services in Scotland. To default on the debt would be to punish every Scot for Alex Salmond’s failure to think through his currency plan B properly.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

T8. Since the Government updated the law in April, thousands of construction workers such as my constituent, Ron Boyle, are facing a new form of exploitation. Forced to register with sham umbrella payroll companies, they lose hundreds of pounds a month in bogus fees, and pay national insurance contributions that ought to be the responsibility of their employers. Will the Minister assure me that that loophole will be closed quickly, so that workers such as Mr Boyle are not continually conned out of a fair wage?

[The Financial Secretary to the Treasury (Mr David Gauke)]

I am grateful for that question, and we all sympathise with some of the difficulties that people have faced. It is fair to say that this Government are closing the loopholes in that area, dealing with intermediaries, and reforming the construction industry scheme to ensure that people who are employed have the full employment rights that they deserve.

Oral Answers to Questions

Emma Lewell-Buck Excerpts

Tuesday 29th April 2014 Commons Chamber

[Mr Osborne]

I join my hon. Friend in thanking those who went to work today on our tube system. The strike is totally irresponsible and unnecessary. It impacts on the economy and makes it difficult for people in London to get to work. [Interruption.] Well, perhaps the reason that so few Labour MPs are at Treasury questions is that they are manning the barricades with the RMT.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

T7. My constituent Mr Effard works on a zero-hours contract and does not know from week to week whether he will be given enough hours to be able to cover his bills. Mr Effard wants to work, but admits that in many ways jobseeker’s allowance provided him with more stability. Will the Chancellor admit that the normalisation of these contracts under his Government means that for people such as my constituent a job no longer guarantees financial security?

[Mr Osborne]

The last study on the impact of zero-hours contracts was undertaken by the previous Labour Government, who concluded that they wanted to retain the flexibility that such contracts offer to business. However, we are not satisfied that all the work has been done on this, which is why the Department for Business, Innovation and Skills is consulting on what changes potentially need to be made to zero-hours contracts. We have received a lot of representations, we are looking through them and of course we will come forward with a response shortly.

Autumn Statement

Emma Lewell-Buck Excerpts

Thursday 5th December 2013 Commons Chamber

[Mr Osborne]

My hon. Friend is another who has been an assiduous campaigner on behalf of the shops, pubs and restaurants, and indeed the charity shops, in her constituency. These measures really will help on the high streets of Ealing and Acton, and I am glad that they have been so warmly welcomed. The people who run these businesses are the epitome of hard-working and aspirational people. This Government and our party are going to stand by them.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

When this Government gutted the public sector in the north-east, the Chancellor insisted that the private sector would make up the shortfall. A recent report by KPMG, however, shows that over a quarter of private sector jobs pay less than the living wage, compared with less than 10% in the public sector. Is it any surprise to the Chancellor that in-work poverty has risen in my constituency?

Cost of Living

Emma Lewell-Buck Excerpts

Wednesday 27th November 2013 Commons Chamber

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

The time that I have is nowhere near enough to address the magnitude of the cost of living crisis and the spectacular economic failure of the Government’s policies, but I will try my best.

The average wage in my constituency, after income tax and national insurance contributions, is £1,319 a month. That budget faces extraordinary pressure as every aspect of the cost of living is on the rise. The average energy bill is £110 per month, which over the course of the year amounts to nearly an entire month’s pay.

[Mel Stride (Central Devon) (Con)]

The hon. Lady has just stated that every aspect of the cost of living is on the rise under this Government. Does she recognise that council tax, a very important component of the cost of living, has decreased by 9.5% on average during the period of this Government, yet it doubled under the Labour party when it was in office?

[Mrs Lewell-Buck]

I thank the hon. Gentleman for that intervention, but he needs to look at the bigger picture, which is what I will go on to talk about—the cost of everyday living in general.

Water costs a further £30 per month to my constituents. Rent makes another significant impact. A single bedroom property costs £395 a month in the private rented sector. Social properties are, of course, cheaper, but as my hon. Friends have explained on numerous occasions, there are few such properties to go around. Council tax starts at £80, so we need to take that off the overall budget. We are talking about working people who, if they have children, will also need to cover the cost of child care. As Labour highlighted in last week’s debate, the cost of child care is rising five times faster than pay and now amounts to more than £100 per child per week for 25 hours. That is around £460 per month.

All this leaves the average individual in my constituency with just £244 to live on per month. That needs to cover food, transport, other bills as well as a multitude of other costs that are part of daily life. I admit that this is rather a crude calculation, but the fact is that people in South Shields living on this meagre income are the lucky ones. Despite everything, they have managed to hang on to their homes and provide for their families through sheer tenacity and the hard work ethic that permeates my constituency. But what about those who fall below the average? What about those on zero-hours contracts, the 3,592 unemployed, the elderly and frail, the homeless and the rough sleepers? And there are those who are affected by the Government’s bedroom tax, who will lose an extra £450 a year.

Five thousand children in my constituency live in poverty, and many of them live in households with a parent in work. Some 4,260 of my constituents live in fuel poverty, and 1,440 of them are affected by the bedroom tax. We have a rise in homelessness and a rise in rough sleepers, yet still this Government fail them. This is a Government led by a Prime Minister who said prior to the 2010 elections that the Conservatives

“are best placed to fight poverty in our country.”

This is an astonishing claim when we know that over a million people have fallen into poverty on his watch, including 300,000 children.

[Alec Shelbrooke]

Will the hon. Lady give way?

[Mrs Lewell-Buck]

I do not have time. I am sorry.

My local citizens advice bureau, despite taking on extra staff, is struggling to cope with the volume of inquiries it has had about debt. The once monthly requests for emergency food aid are now almost a daily occurrence. My local food bank and soup kitchen have seen demand for their service rise to unprecedented levels. Increasingly, the people coming to these agencies, I am told, are in work. This is no surprise, as we now have 1.4 million more people being paid below the living wage than in 2009.

When I was unemployed, when members of my family and I fell on hard times, I was proud to live in a country where I and they would be able to get help. This is no longer the case. I am still proud of my country, just not of the people who are running it.

People are turning to payday loans to deal with the hardship they face. Last year in my constituency the average borrowing constituent had debt to the tune of £1,610. We all know how quickly this debt can become unmanageable, with dire consequences for those who owe. But these are not people after easy money. They are working people who no longer have the ability to save for a rainy day.

As bad as things are for working people, they are worse for the unemployed. In my constituency more than 3,500 people are out of work. The Chancellor said that

“every job lost in the public sector has been offset by three new jobs in the private sector.”—[Official Report, 26 June 2013; Vol. 565, c. 305.]

This has not happened in South Shields. I recently held a jobs fair in my constituency, and had great co-operation from local employers, but the total number of jobs that these organisations were able to offer was just over 1,000, well short of filling our employment gap.

The situation is worse for our young. A constituent of mine told me how his daughter was offered a job interview and forced to travel to Leeds at short notice. She did not have the money to pay for the train ticket. When she asked the DWP for help, she was refused it. She is now on a zero-hours contract, and some weeks her pay is lower than when she was claiming benefit—but I suppose this Government do not mind about that, as long as she is no longer contributing to the unemployment statistics.

In my constituency people come together every day to help those who are struggling, but they find their task harder and harder as levels of need are rising to an unprecedented degree. Organisations such as Citizens Advice, the Key project, Hospitality and Hope, St Aidan’s, Supported Living and St Hilda’s church are all making a difference, but without the Government taking action their task will continue to be a heavy one.

To sum up, my constituents are great, hard-working, big-hearted people who show every day the ethos of hard work and social responsibility, despite the onslaught of misery caused by this Government.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

I have listened with interest to my hon. Friend and to the previous speaker, the hon. Member for Elmet and Rothwell (Alec Shelbrooke). If there is no cost of living crisis, or no one is responsible for it, why will this Government go down in history as the Government of zero-hours contracts, payday loans, food banks and the bedroom tax? Does not that tell us all we need to know about the cost of living crisis?

[Mrs Lewell-Buck]

My hon. Friend is spot on. This Government are to blame for the cost of living crisis and economic failure in our country.

In the past, the values of my constituents were rewarded and people could be confident that hard work would bring them security and fulfilment. Now that link is broken. They are made to work for their poverty and the Government fail to uphold their responsibility towards them. We need a Labour Government to restore the link.