In-work Poverty

Ian Lavery Excerpts

Wednesday 28th June 2023 Westminster Hall

[Ian Lavery (Wansbeck) (Lab)]

As ever, it is a pleasure to serve under your chairmanship, Sir George. I thank my hon. Friend the Member for Slough (Mr Dhesi) for bringing this important debate to the Chamber.

I will start with a couple of statements made in the past week or so that I think are absolutely outrageous. The first was:

“I want people to be reassured that we’ve got to hold our nerve, stick to the plan and we will get through this.”

That was from the Prime Minister. People who are in work, in poverty, will be wondering what on earth the Prime Minister—one of the richest people in the country—knows about in-work poverty. I have no doubt that the Prime Minister works very hard indeed, but he gets the rewards. As my hon. Friend the Member for Slough said earlier in his fantastic contribution, the likes of the Prime Minister will not have seen their kids go to school with an empty belly, holes in their shoes or clothes that have been passed down from older siblings or somewhere else. Indeed, will he have used a food bank, for heaven’s sake? I have to ask that question.

The second statement I want to raise was from the Governor of the Bank of England, who said that

“we cannot continue to have the current level of wage increases…the current levels, I’ll be absolutely honest, are unsustainable.”

This is a man who is on more than half a million pounds. The same applies to him: he will not have had any difficulties when he has been making these decisions and telling people who are in poverty and cannot feed their own kids that they have to accept that they cannot have decent pay increases. The fact that inflation is as high as it is has nothing to do with wages for ordinary people. Ordinary people have not had wage increases. There has been wage stagnation. The facts show quite clearly that there has not been much of an increase since 2005—and look at the situation in the country.

I have been on the picket lines with many people over the past few years. Most of them are fighting for decent wages, terms and conditions. Most of them are now having to use food banks. I ask the Minister: why on earth, in this day and age, in the sixth richest economy in the world, should teachers, nurses, doctors, ancillary workers and public sector workers have to rely on food banks? This is the UK. We are not a third world country. Can the Minister please tell us why it is right and why it is acceptable that people in the health service can do a hard day’s graft and have to visit the food bank to feed their kids? Why are teachers having to do the same? Why are public sector workers, including one in five of those working in the DWP, claiming universal credit? It is an absolute outrage. The fact that people are saying that the route out of poverty is work is an absolute nonsense.

--- Later in debate ---

[Guy Opperman]

No, I am trying to answer this particular point. The reality of the situation on free school meals—[Interruption.] Hon. Members may chunter away as much as they like, but I am going to try to set this out. On free school meals, under the benefits-based criteria, which I believe is what the SNP Government wish to use, 2 million of the most disadvantaged pupils are eligible for and claim a free school meal. That is 23.8% of all pupils in state-funded schools. The number eligible for free school meals has increased since 2016-17 from 1.128 million to 2.019 million. Almost 1.3 million additional infants enjoy a free healthy and nutritious meal at lunchtime, following the introduction by this Government —to be fair, in the coalition—of the universal infant free school meal policy in 2014. This Government have extended eligibility more than any other. Taken together, we spend more than £1 billion per annum delivering free lunches to the greatest ever proportion of schoolchildren —to more than one third of schoolchildren.

I will move away from those particular policies, because the hon. Member for Wansbeck (Ian Lavery) raised a couple of points that I want to address. He was very critical of the Prime Minister, and it is perfectly his right to be so. The Prime Minister is a gentleman of wealth now, but the hon. Gentleman should remember that he is the son of a pharmacist and a GP, who grew up in Southampton.

The hon. Member also talked about his constituency. He will be aware that I set up the Northumberland Community Bank in Ashington in his constituency. The bank is the fastest growing credit union in the north and is, without a shadow of a doubt, doing amazing work in providing support for loans to local people in Northumberland. I say respectfully that that is an amazing institution, which I hope he supports.

[Ian Lavery]

Will the Minister kindly inform the House what those last remarks have to do with this debate?

[Guy Opperman]

The hon. Gentleman raised issues about support for working people. The Northumberland Community Bank is a fantastic institution that provides savings and loans to those in difficulties. It is a co-operative, which I am sure he supports; it was set up in Northumberland; it is a success story; and it is based in his constituency. I will move on.

The Government’s support is underpinned by the wider welfare system, and I will try to set out some particular points on that. In 2023-24, we will spend around £276 billion through the welfare system in Great Britain, including £124 billion on people of working age and their children. Benefit rates and state pensions have increased by 10.1% for 2023-24 and the benefit cap has increased by the same amount. The reality of the situation is that this country has never spent as much as it presently does on this support.