UK Poverty

Helen Goodman Excerpts

Wednesday 4th February 2015 Westminster Hall

[Helen Goodman (Bishop Auckland) (Lab)]

What a delight it is to see you in the Chair this afternoon, Mr Crausby.

I begin by congratulating my hon. Friend the Member for Wigan (Lisa Nandy), who has secured an important debate. She made a passionate speech, in which she described eloquently the impact of poverty on her constituents. Because she has given us so many concrete stories about real people, I will give an overview and talk about the national picture. However, I remind the Minister that this is the second time in the space of a month that she has been asked about sanctions. We asked her to do a number of things about sanctions during a debate in the north-east, and to check what was going on. When she winds up the debate, I would like to know whether she has done those things.

During the previous Parliament, I was privileged to be the Minister who took the Child Poverty Act 2010 through Parliament. Because of the complexity of measuring child poverty, we had four measures: relative poverty, absolute poverty, persistent poverty, and combined low income and material deprivation. The Bill was passed with all-party agreement, and everybody agreed that we wanted to make progress on all those fronts. What has been the record? The record of the Labour Government between 1997 and 2010 was a reduction of 1.8 million in the number of children in absolute poverty. The record under this Government, according to the DWP’s own statistics, which the Minister published last summer—I hope that she is listening to this—is that the number of children living in absolute poverty has gone up by half a million.

The next measure is relative poverty. Between 1997 and 2010, the number of children living in relative poverty fell by 1.3 million. The number fell by 200,000 between 2009 and 2013, but the Institute for Fiscal Studies forecasts an increase of 400,000 by the time of the election in May. Government Members have to ask themselves why absolute poverty has increased and relative poverty has reduced. What is going on here? The explanation is this. The median income in this country has dropped by 8% under this Government, whereas the income of those in the poorest decile has dropped by 5%, so everybody is poorer; it is just that those at the bottom are not quite as much poorer as are those in the middle. The hon. Member for Esher and Walton (Mr Raab) can shake his head, but those are the figures that the Government published only in July, and the Government should think about that.

[Charlie Elphicke (Dover) (Con)]

Labour’s crash.

[Mr David Crausby (in the Chair)]

Order. A Parliamentary Private Secretary should be seen and not heard, Mr Elphicke.

[Helen Goodman]

The response that we have had from Ministers and Tory Members today is precisely what the Archbishop of Canterbury describes in the book “On Rock or Sand?” as “wilful blindness”. If we are wilfully blind to the real problems in this country, we will not be able to deal with them. That is the major problem. The Government are responsible for a large number of the measures that have pushed the poorest further down.

What are we going to do instead? My hon. Friend the Member for Edinburgh East (Sheila Gilmore) pointed out that in-work poverty is now exploding as well. That point is also made in an excellent book by Julia Unwin, which I recommend to all hon. Members. In-work poverty is the new feature of poverty. It is caused by rising prices, a cost of living crisis and falling incomes. The Government will continue on that exploitative path, which will, in fact, increase the benefits bill by £9 billion, as my hon. Friend the Member for Leeds West (Rachel Reeves) pointed out this morning. However, this morning the Secretary of State was bragging about something that Barnardo’s has complained to me about, namely the taking of £50 billion from the children of this country during this Parliament.

Hon. Members have asked, “What would Labour do?” I will tell them what Labour will do. The first thing that Labour will do is to abolish the bedroom tax.

[Chris Heaton-Harris]

Paid for by?

[Helen Goodman]

Paid for by taxing the hedge funds, as was discussed during Prime Minister’s questions only this lunchtime, when the Prime Minister refused to do that. [Interruption.]

[Mr David Crausby (in the Chair)]

Order.

[Helen Goodman]

The bedroom tax bill of £3,800 over the next Parliament will be visited on the poorest people. Two thirds of those who pay the bedroom tax are disabled. If a Tory-led Government are re-elected, those people will face having to pay another £3,800. That is why the first thing that a Labour Government will do, if we are elected, is to abolish the bedroom tax.

We will also increase the minimum wage. We will tackle the zero-hours culture. We will tax bankers’ bonuses in order to get young people into work. We will sort out the energy market. We will do something about rents. We will take steps to improve child care, so that lone mums and other mums can get out to work and support their families. We will build more houses, which will help to bring down housing costs and provide more jobs. It is a comprehensive picture, and it is a real choice for the British people.

--- Later in debate ---

[Esther McVey]

There are also 300,000 fewer children living in relative poverty.

[Helen Goodman]

Will the Minister give way?

[Esther McVey]

I will not give way for a while, because I would like to put these figures on the record.

The top 1% of income tax payers will contribute nearly 30% of this year’s income tax bill. We talk about the richest helping most to get us out of the financial situation in which we found ourselves after Labour left office, and that is what is happening. The top 20% of income tax payers are paying 80% of the bill, which is key. We also have 390,000 fewer children living in workless households, and in-work poverty has fallen by 300,000. In fact, in-work poverty rose 20% between 1998 and 2008.

--- Later in debate ---

[Esther McVey]

The numbers I have given are for private enterprise. Equally, I do not know what the answer was when the hon. Lady stood up to explain why there was a 100% increase in the claimant count between 2005 and 2010, but our claimant count has come down. The increase in malnutrition is a debate for another time.

[Helen Goodman]

It is not a debate for another time.

[Esther McVey]

I think it is. Many people who have gone to hospital with malnutrition have actually put on weight, which is down to a poor diet. That is a much bigger debate for another time. What we can talk about is what is happening, how we are getting people into work and how worklessness is falling in the constituency of the hon. Member for Wigan. [Interruption.] Obviously she does not want to listen to these answers because they do not play to the things she was talking about. Equally, her local paper celebrated that Wigan has received the pupil premium award. A headmaster said:

“We couldn’t be more pleased to win the award”.

The award is key to helping young people to go forward.

I listened to the hon. Lady’s stories about sanctions, and I would like to know about the specific instances. I replied to a letter the other week—I hear that she has sent me another, to which I will be writing back in due course—but if she gave me the names of the people, rather than keeping them anonymous, I could find out what happened at the jobcentre. If someone wanted to go to a funeral, it would be good cause. Somebody with learning difficulties is a vulnerable person and has good cause. There is a booklet that the hon. Lady can download from the website that outlines the guidance, which is substantial. It is a heavy document that says how people will be given good cause. Equally, there have always been sanctions in the benefit system. This is nothing new—