Child Poverty in Scotland

Debate between Hugh Gaffney and Patricia Gibson

Wednesday 30th October 2019 Westminster Hall

[Hugh Gaffney]

I totally agree. That is a change we can make today.

The Government decided to implement a two-child limit policy, despite warnings from this House and charities that it would worsen child poverty in Scotland. What was warned about has come to pass, and almost 4,000 low-income families in Scotland are affected, with a loss of £3,000 per year for each family. We cannot ignore the impact of other welfare reforms introduced by the Government. The benefit cap affects over 3,000 households in Scotland, 92% of which contain children. The benefits freeze has impacted low-income families, further fuelling child poverty across Scotland.

It would be fair to say that the Government’s welfare reforms have worsened the child poverty rate in Scotland, but we cannot ignore the fact that the Scottish Government have gained greater powers, which would enable them to better address child poverty. The Joseph Rowntree Foundation highlights that in areas of Scotland such as Edinburgh, where the private rent sector is bigger than the social sector, private rent growth has outstripped inflation over the last decade. Higher rents impact on the incomes of families, meaning that they are less able to cover essential costs such as food and heating. Undoubtedly, that fuels child poverty across Scotland.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

The hon. Gentleman will know that 16% of benefits have been devolved to Scotland. He says that the Scottish Government should do more; what does he think the Scottish Government should do that they are not currently doing?

[Hugh Gaffney]

The Scottish Government should use more of their powers to help children. They have the powers; we are asking them to use them. The Scottish Government’s own figures reveal that there was a 4% increase in the number of children living in temporary accommodation last year. Nearly 7,000 children now live in temporary accommodation in Scotland, and last year, 38 children were made homeless every day. It is clear that the failure to provide permanent, high-quality accommodation for children is increasing child poverty across Scotland.

[Hugh Gaffney]

Are those houses social housing? Are those houses council housing?

Although the Scottish Government have introduced a £10-per-week child support payment, it will not be fully in place until 2022. My good friend Mark Griffin MSP highlighted that nearly 60,000 children will lose out on the child support payment because initial applications will be restricted to children who are five and under. How will such a restriction truly help to tackle child poverty across Scotland? We need real policy changes that will eradicate child poverty in Scotland. We must scrap universal credit, because it has absolutely failed to address child poverty.

[Patricia Gibson]

I thank the hon. Gentleman again for being generous with his time. We are all on the same side; we all believe that child poverty is bad, and we all want to do whatever needs to be done to eradicate it. Again, 16% of benefit powers are devolved to Scotland. He talks about policy changes; what specific policy changes does he want in Scotland that we have the power to deliver but have not yet delivered?

[Hugh Gaffney]

I said at the beginning that we are here to get the right policies. I want the right policies in the Scottish Government.

The Government should end the five-week wait that claimants must go through, as the hon. Member for Glasgow South West (Chris Stephens) said, before they receive their initial universal credit payment. I was also concerned to hear that the Secretary of State for Work and Pensions refused to rule out a further extension of the benefits freeze. I urge the Government to bring the benefits freeze to an immediate end, rather than looking at extending it. An extension of the benefits freeze means an extension of child poverty across Scotland. I urge the Government to end the benefit cap and the two-child limit policy.

Ahead of this debate, the House’s digital engagement team undertook a public engagement exercise and received over 700 responses. Respondents called on the Government to look again at their damaging welfare reforms such as universal credit. I hope that the Government will reflect on that.

The Scottish Government must also look at the policy changes that they could make. They could introduce a Mary Barbour law to cap rents in the private rented sector, in order to help low-income families. They could build more social and affordable housing to end the disgrace of children being trapped in temporary accommodation, or finding themselves homeless. They could look again at the child support payment, which the Resolution Foundation found would still leave more than 25% of children in Scotland living in poverty—the Scottish Government’s own target of 18% would not be close to being met. I also urge them to listen to the calls of Scottish Labour for a child benefit top-up of £5 per week to support those affected by the two-child limit policy.

I started this debate by saying that all of us in this House share the goal of eradicating child poverty in Scotland. That goal will be achieved only through serious policy change of the kind that I have suggested today. I put on record my support for North Lanarkshire Council’s Club365 programme, which helps to tackle holiday hunger among children in my constituency. That shows that local councils can take action to address child poverty, despite the budget cuts imposed on them by central Government.

Former Prime Minister Gordon Brown was right to say that Scotland now has a full-blown child poverty emergency. In emergencies, we expect rapid and decisive action. I hope we will see that action from both the UK and Scottish Governments.

Banking in North Ayrshire

Debate between Hugh Gaffney and Patricia Gibson

Wednesday 14th March 2018 Commons Chamber

[Patricia Gibson]

My hon. and learned Friend leads me smoothly to my next point, although of course we are not just concerned about rural areas—Kilwinning could hardly be called a rural area, by any stretch of the imagination. Her point about the effect on small businesses is extremely important, because we all know that small businesses, which are the backbone of our communities—the lifeblood of our communities, keeping the heart of our high streets beating—work in an extremely challenging retail climate. If local businesses cannot bank their takings at the end of the business day, they incur additional insurance costs. They can either take their cash home with them at the end of the business day—because if the bank goes, there is no night safe—or they drive to the next town to bank their takings. Either way, their insurance costs go up. With businesses already struggling on the edge of survival, that could well be enough to tip several of them over the edge. For that reason, the support of banks in our towns often proves critical for small businesses. Let us not forget that, regardless of their political views, everyone in this Chamber understands the importance of small businesses to keeping our high streets alive.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

I welcome this Adjournment debate because three banks are shutting down in my constituency in Chryston, Bellshill and Tannochside. Tannochside has one local bank, built by the community. When those banks opened, it was local workers who built them, and the hon. Lady is spot on about local businesses. The staff of small businesses usually have to take large sums of money, and if the alternative is to go to the post office, post offices are not equipped to take them. This is a very good subject for debate and I thank the hon. Lady for introducing it.

[Patricia Gibson]

I thank the hon. Gentleman for that intervention. I now need to make some progress, because I know that the Minister is keen to respond.

As for those living in the towns affected by the closures, Kilbirnie customers have been advised that the nearest RBS following the closure of their branch is in Largs, a round trip of 18.8 miles; Saltcoats customers have been directed to Irvine, a round trip of 12.8 miles; and Kilwinning customers have also been directed to Irvine, a round trip of 6.8 miles.  That is simply not good enough when one considers that many of those customers do not have access to private transport.  They will be at the mercy of local public transport in all weathers. So the elderly and infirm will be left to fend for themselves as financial and social exclusion—that is what we are talking about—bites in their towns.  The bank closures will mean that the affected communities no longer have access to day-to-day essential banking services. We have heard about the problems of mobile banks. They are not a solution to the problem of the closure of the last bank in town. They are a poor substitute and the people of Kilwinning, Saltcoats and Kilbirnie expect and deserve better.

Banks have shown, and are showing increasingly, that they have no sense of service to our communities. Tonight, I call on the Minister to establish and enforce a guaranteed minimum level of service provision for essential banking services, recognising the importance of continued access to banking for our communities.  Surely, it is now time, given that banks are riding roughshod over our communities with no sense of service or responsibility, for a guaranteed minimum level of service provision for essential banking services to be put in place.

I know that the Prime Minister has said repeatedly that branch closures are operational matters for the banks, but that is not good enough. RBS is still almost 73% owned by the taxpayer, so this is a bitter pill to swallow.  In addition, the UK Government retain all legislative and regulatory powers in respect of financial services, so the UK Government have the authority to call a halt to this devastating round of closures while banks, stakeholders and the UK and Scottish Governments consider how best to take account of the obligation to banking customers and our communities.  Whatever the banks may say, they have an obligation to our communities—a service obligation, a financial obligation and a moral obligation.

The UK Government argue that these are “operational decisions” for banks, but there is a precedent, as the Minister knows, and George Osborne, the former Chancellor, let the cat out of the bag. He confirmed that during his time as Chancellor his consent was sought by RBS about the departure of the former chief executive officer, Stephen Hester.  The UK Government could right now reject any RBS branch closures unless and until impact assessments have been carried out, and should require RBS to ensure that practical and sustainable alternative banking services are put in place before any closures are signed off.

It really is time to call on RBS management to reverse these planned closures.  The Minister tonight has a responsibility to demonstrate that the UK Government are standing up for our communities on this most important issue. The SNP Westminster leader, my right hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford), has persuaded RBS to reprieve 10 branches across Scotland until impact assessments have been carried out.  I wish those communities well, but it does nothing to soften the hammer blow for the towns in my constituency that face losing their banks and for Kilwinning in particular which will lose its last bank branch.  In the past, the Minister has suggested that customers who are not happy can move their accounts to another bank.  What does he suggest that the people of Kilwinning do, when there is no bank for them to move to within a reasonable distance?

Of course customers are also advised to move their accounts to the post office.  Well, 10 years ago I recall collecting petition signatures to save post offices in my constituency when swathes of them were being closed down in my constituency under a previous Government. Post offices bolted on to the back of the local Spar simply do not provide the range of services or privacy that customers need and deserve.

I appeal in good faith to the Minister to ensure that these closures are halted—that RBS is ordered to halt these closures and carry out full impact assessments on the communities affected. All the communities affected want nothing less, and the people in the towns of Kilwinning, Kilbirnie and Saltcoats deserve nothing less.  Is the Minister going to stand with RBS management, or is he going to stand with the communities affected and the communities of Kilwinning, Kilbirnie and Saltcoats in particular?  I urge him to do the right thing and stand up for our communities.