Cost of Living: Support for Young People

Debate between Fabian Hamilton and Paul Blomfield

Tuesday 18th October 2022 Westminster Hall

[Fabian Hamilton]

As I said earlier, it is a pleasure to serve under your chairship this afternoon, Ms Ali, in spite of the interruptions. I shall continue where I left off an hour and a quarter ago.

The fact that the Government still have not committed to increasing universal credit in line with inflation is shameful. If universal credit rose in line with wages, young people would receive just £7.42 extra per month. If, however, it rose in line with inflation, they would receive an additional £21.49 per month. Given the huge difficulties young people are facing at the moment, does the Minister think that failing to commit to an inflation-linked increase is morally acceptable?

The stark reality of this crisis could not be clearer for Jack, who attends YMCA sessions in Leeds. Jack is not his real name, of course. Jack is 10 years old and lives with his parents and two siblings. He has been quoted at YMCA sessions as saying that

“we’ve got no food at home.”

The fact that a child as young as 10 has been put in this position is unforgivable. It is a humiliation for our country not only at home but abroad. With wages squeezed more than ever, Jack’s family also receives support at school, through the uniform exchange, because they cannot afford to buy new school uniforms. The pressures of the current crisis are now causing issues between family members at home.

I commend the activists in Leeds for pioneering school uniform exchanges across the city, but it is outrageous that their brilliant work is even necessary in modern Britain. I ask the Minister what he would like to say to Jack and his family after yesterday’s day of shame for the Government, when the Prime Minister and her new Chancellor effectively gave the green light for energy bills to go up to a predicted average of £5,000 a year for most households from April.

The failure to provide cost of living support to young people often affects their parents as well. A report released by UNICEF today states that 59% of parents with children under five say that they are struggling with their mental health, and 66% have been negatively affected by the rising cost of living. That amounts to a total of more than 2 million families in the United Kingdom. The status quo is simply unacceptable, and this crisis will only deepen as we approach winter and enter the new year. Among parents feeling the pinch from the rising cost of living, the report also found that just under half have already cut back on their electricity and gas usage, with one in 10 unable to adequately heat their home as winter approaches. As we know, that will be hugely detrimental to the development and education of young people.

As I said earlier, the cost of living emergency, coupled with covid, will amount to a disaster for many families up and down the country, especially young people. Public Health England data shows that across the first three quarters of 2021-22, nearly one in three children aged between two and two and a half were assessed as having missed out on reaching their expected level of development. That contrasts with around one in six in the first three quarters of 2019. A recent YouGov poll pointed to the fact that over a quarter of people aged between 18 and 24 feel unable to cope with the cost of living crisis owing to the stress that it is causing, so I ask the Minister what plans are in place to ensure that the mental health problems in parents and elder siblings do not have a knock-on impact on younger people and children.

I turn now to university students, who have also missed out on learning because of the pandemic and are currently facing huge financial problems, but who risk being a forgotten group of people suffering from the impact of the crisis.

[Paul Blomfield (Sheffield Central) (Lab)]

My hon. Friend is making a powerful speech, and I am glad that he is including students. There will be mixed experiences in terms of students’ ability to fall back on family support, but is he aware that recent research conducted for Universities UK indicated that over half of students were considering whether they would be able to continue with their studies as a result of the pressures they are under? Does he recognise that university students cannot draw down the support that is generally available through the council tax system, because they do not pay council tax? Is he aware that other countries, such as Germany, are treating students in the same way as other low-income groups—for example, pensioners—by giving them additional grants? Does he recognise that the Government need to make some sort of national intervention on this issue, and not rely on a patchwork of different measures that are being introduced by some universities and some councils?

[Fabian Hamilton]

I thank my hon. Friend, who is a very old friend of mine and has a great reputation for standing up for students and universities—certainly in this place and before he came into the House. I was not aware of many of those facts. I did not realise that half of students were considering giving up their courses, and I can only imagine the detrimental effect that it will have not just on their futures, but on the future of our whole country.

From my time on the Foreign Affairs Committee, I recall visiting South Korea and asking people how they could account for their massive success since the second world war. That was 15 or so years ago, and since then South Korea has become even more successful and has risen higher up the scale of G20 countries to become one of the most powerful industrial nations in the world. The Korean Education Minister at the time said to me, “It is one very simple fact. We took a decision after the Korean war that the only future for our country, as a rural agrarian economy, would be to invest in our young people, and educate them to such a level that that education would follow through in terms of our industry, our scientific research, our know how and our intellectual property.” We can see that that has happened.

A country that relinquishes the potential of its young people to develop, not just themselves but the economic future of that country, is one that is in trouble. I do not want to see that happen to this great nation—it would be absolutely tragic. I think we can learn from our economic, social and geopolitical partners, in countries such as Germany, as to how we can handle a crisis like this. They have the right idea. Not everything that happens in Europe is bad, believe it or not; there are some really good policies there. I think we should learn from those, and I hope that the Minister will begin to address that question.

Those university students who have missed out on learning because of the pandemic and are currently facing financial problems risk becoming a forgotten group of people suffering from the impact of the cost of living crisis. As my hon. Friend the Member for Sheffield Central (Paul Blomfield) has said, it has serious implications for the long-term job market in the UK. Recent polls suggest that 55% of those who felt concerned about managing their living costs were worried that it might prevent them from continuing their studies. That rises sharply—up to three quarters—for those students who are severely disadvantaged or from poorer backgrounds. We simply cannot afford for more than half of our young people to drop out of university before graduation. I would be grateful if the Minister told us what support the Government are providing to universities, centrally, to tackle the issue before it is too late.

It is increasingly clear that urgent action is needed to prevent more young people from sliding into poverty. In a recent Barnardo’s report, one young person was quoted as saying that

“mentally, it’s taken a massive toll. I was thinking of seeing a counsellor, but I don’t want to because of the fear of how much it would cost. I haven’t been able to get the correct help”.

I am the president of Leeds UNICEF, and through that group I have heard first-hand about the horrific experiences of my young constituents, as well as of the many people across the city of Leeds who are struggling.

I conclude by strongly urging the Minster to look closely at extending free school meals, at improving mental health provisions for schools, and at backing the Labour party’s call for a breakfast club in every primary school in England and Wales. Those measures would at least give parents and young people some of the support they so desperately need.