Two-child Benefit Cap and Child Poverty

Ian Lavery Excerpts

Tuesday 11th July 2023 Westminster Hall

[Kim Johnson]

I thank my hon. Friend for his contribution. I believe that the incoming Labour Government should make every effort to look at eradicating poverty in any way, shape or form. We are seeing a resurgence of Victorian diseases such as malnutrition, rickets and scarlet fever. Children are going to bed with empty bellies and going to school unable to concentrate or learn to their full potential. In recent years, we have heard many heartbreaking stories of children mimicking eating from empty lunch boxes or even attempting to erase their hunger by eating paper and erasers. Children are incredibly aware of the stigma of poverty, and the pressure can have lifelong psychological effects on top of the material impact on educational attainment, life chances and associated health problems.

[Ian Lavery (Wansbeck) (Lab)]

It is great to see my hon. Friend bringing this extremely important debate to the Chamber. In the north-east, 12,000 children and families are unable to claim the universal credit benefit because of the two-child cap. Some 5,400 are also not considered eligible because of their child tax credits and their situation with universal credit. Will my hon. Friend say what sort of impact that has on ordinary families not just in the north-east, but up and down the country?

--- Later in debate ---

[Guy Opperman]

As I think I have made clear, I do not accept the arguments about poverty. I am not aware of the specific LSE paper that the hon. Lady mentions, but I would make the simple point that in this country we have never given more welfare support or paid higher figures for pensioner support or disability support. Without a shadow of a doubt, there has been massive cost of living support, as I will outline, to the most vulnerable.

[Ian Lavery]

The Minister makes the case for how good this Government have been on benefits, support and work funds. Minister, that is 4.2 million children living in poverty. He cannot be happy with that; he has to admit it is far too high. Secondly, does the Minister think kids sitting round the tea table at night are worried about whether they are in abject poverty, absolute poverty or relative poverty? If you have an empty belly, you have an empty belly, and this Government should be totally ashamed of themselves because of the high statistics and figures that are rising week in, week out.

[Guy Opperman]

With respect, I do not accept that the figures are rising week in, week out. The simple point is surely this: over the past two years, the taxpayer has contributed £94 billion of support to vulnerable households, and that support is ongoing. For example, the energy price guarantee will remain in place as a safety net and a support for households until March 2024. The cost of living payment, which I can go into more detail on, features a further £150 payment to 6 million people, over and above existing benefits, which have gone up by 10%. Over £900 will go to 8 million households on means-tested benefits over the course of the year. The first £301 payment to those on means-tested benefits was made in April.

For pensioners, an additional £300 on top of the winter fuel payment is being paid to over 8 million pensioner households. Such a degree of support has never been provided before, and whatever people’s views are of this Government—positive or otherwise—they have stepped in to the tune of £94 billion with cost of living support over the past two years. As I say, the first £301 payment was recently issued to local people up and down the country.