Beer Duty

Jessica Morden Excerpts

Tuesday 7th March 2017 Westminster Hall

[Steve Double]

I wholeheartedly agree. Not only are pubs great places for community cohesion, but they promote responsible drinking in a safe environment, which we should wholeheartedly support.

[Jessica Morden (Newport East) (Lab)]

I thank the hon. Gentleman for giving way again; he is very generous. On responsible drinking, another change has been the move to lower alcohol beer. Is the hon. Gentleman aware that beer with an alcoholic strength of less than 3.5% is subject to 66% more duty than very high-strength cider at 7.5%? Does he agree that we could do more to incentivise the consumption of beers under 3.5%?

[Steve Double]

I agree. We do need to look in particular at the amount of duty on high-strength ciders, because it is disproportionately low and should be increased. The duty on lower strength beers should also be looked at, to encourage their consumption. The industry was challenged by the Government to reduce consumption of alcohol units by 1 billion by 2015. By reformulating and introducing lower alcohol drinks, the industry surpassed that target ahead of schedule, which we should acknowledge and welcome. There is also a fall and clear downward trend in problems relating to under-age drinking in pubs, as licensees—pub landlords—have become more responsible in their approach to that matter.

The problems associated with drinking have less and less to do with pubs and more and more to do with sales of cheap alcohol in supermarkets and other off-licence establishments. It is clear that pubs can and do have a very positive impact on their local communities. Pubs are experiencing a revolution. They have caught the spirit of the times and of this Government: there is a belief and a strategy about getting best value for money and a happier, better outcome for everyone by making best use of what we have and combining our efforts.

Let us take as an example the village of Nanpean in my constituency of St Austell and Newquay. Once a bustling, busy community, almost solely reliant on the booming china clay industry, it has declined in recent years. That and changing shopping habits over the years meant that the Co-op supermarket, four general stores, the butcher’s, the bakery, the fish and chip shop and the post office all had to close. No shop remained—none was viable as a stand-alone unit; none could survive with separate overheads and wage bills. Thanks to innovation, though, the Grenville Arms pub in Nanpean now houses the post office and a shop, and the combination of the three has proved a great success. Each one helps the others to provide key services to the local community of about 2,000 people. The shop sells essentials and locally produced food, and the return of the post office is a real asset to the whole community. The scheme has created new jobs and, with its fresh role at the centre of village life, the pub has become a community meeting point.

All that was achieved by converting a disused room. Of course, there was a cost. That was met by the licensee and an organisation that was originally the inspiration of His Royal Highness the Prince of Wales. Pub is The Hub is a voluntary, not-for-profit organisation helps pubs in rural communities to innovate and thrive. By working with all interested parties—breweries, licensees, councils and local communities—it has had success in bringing together talents and opportunities and meeting needs. It gives guidance to groups seeking to buy their local pub to save it from closure. Besides advice, it gives grants—modest sums of money that make a big difference. Pub is The Hub says that, on average, for every pound in grant provided, an additional £1.60 is forthcoming from other sources.

I am very grateful to the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Brigg and Goole (Andrew Percy), who is responsible for pubs. He continues to champion Pub is The Hub and has this year supported the organisation further with a £50,000 grant. Heineken matched the funding, giving Pub is The Hub further assistance to continue its excellent work across England and Wales and now, I believe, in Scotland.

A revolution is under way in the pub trade, and we need to do a lot more to support it. The simplest and best way to do that is by continuing the process of reversing the crazy, punitive, unfair and mean-spirited hikes in beer duty imposed by the previous Labour Government. The UK’s excise duty rate for beer is much higher than that in most European countries. Despite the three duty cuts by the Conservative Government in recent years, the UK has the third highest duty rate in the European Union. Forty per cent. of all beer duty paid in the EU is paid by the UK, yet we drink only 12% of the beer.

Tax on beer has been a sorry story. From 2008 to 2012, there were steep and relentless tax increases, with a staggering 9.1% hike in March 2008 and an 8% increase in December of the same year. Then came the beer duty escalator, which increased beer duty by 2% above inflation every year. By 2012, beer duty had increased by 42% since 2008. Although other factors played their part, that was a disaster for the industry, with thousands of pubs closing and tens of thousands of job losses. Despite the hike in duty, revenues rose by just 12%. Punitive taxes do not work.

In 2013 the beer duty escalator was, mercifully, dropped. Then came further relief with three 2% cuts and a freeze in 2016. There is revived confidence in the sector. Beer sales have increased, which in turn has led to higher levels of investment in pubs and breweries. Tax cuts work. They boost trade at home and give this major exporting industry extra confidence in its future. In 2016 the value of UK beer exports was a healthy £584 million; it was up 17% on the previous year. So there we have it: a multimillion-pound industry that exports the world over, employs the young in record numbers, attracts visitors to our shores and yet has in its sights ensuring that villagers still have a post office and the lonely have a place to go and be part of the local community.

I and many other hon. Members present want to thank the former Chancellor and the Government. Despite the enormous task of deficit reduction and the difficulties that lay ahead, they chose to reduce beer duty, seeing the beneficial effects that that would ultimately have. Confidence and investment are returning but now we need another hand up—we need a further reduction in beer duty. Seven out of 10 alcoholic drinks sold in pubs are beer, and 82% of those are brewed in the UK. The most effective way of keeping our community pubs open and trade buoyant is by continuing to support them and giving them the confidence they need. I am calling for a revival of the beer duty escalator, but escalators go in both directions. I want an escalator that goes the other way and reduces beer duty significantly.

--- Later in debate ---

[Graham Evans (Weaver Vale) (Con)]

It is a pleasure to serve under your chairmanship, Sir Roger. I pay tribute to the Backbench Business Committee and the Chairman of Ways and Means for enabling the debate and to my hon. Friends the Members for St Austell and Newquay (Steve Double) and for Gower (Byron Davies) for their speeches. Indeed, I pay tribute to Gower Gold, which is an excellent beer, and to Tribute; I look forward to visiting St Austell brewery in my capacity as chairman of the all-party beer group. I pay tribute to my predecessor, my hon. Friend the Member for Burton (Andrew Griffiths), who did an excellent job in slaying the hated beer duty escalator.

I must confess that I have stopped many a barrel of beer going sour in my life. I met Mrs Evans in a pub when I was a wee slip of a lad in my 20s working behind a bar. My mother was a barmaid and she worked in a pub; my brother and sister worked in a pub; my father spent most of his time in the pub. My auntie and uncle had a pub in Chester on Northgate Street—I am sure the hon. Member for City of Chester (Christian Matheson) knows it well—and it is an excellent coaching inn. I used to stay there for my school holidays. It was haunted—I believe it still is—and it used to scare the life out of me, but that does not stop me going in whenever I visit Chester.

The economic value of pubs and beer is important. The industry employs nearly 1 million people, many of them young, and contributes £23 billion to UK plc and £10 billion in tax to the Exchequer. I welcome the steps taken in the last Parliament on the dreaded beer duty escalator, with the three successive cuts in beer duty before the freeze in the 2016 Budget. Although it is easy to think that a penny or two off a pint does not make any difference, it does make a significant difference, as right hon. and hon. Members have said. The turnaround in confidence since 2013 has seen more than £l billion invested by brewers and pub owners each year, with thousands of pubs across the country being able to keep their doors open.

Yet despite those positive steps, the UK still has the third highest duty rate in the EU. The amount paid per pint is almost three times the EU average. UK beer drinkers pay 52p of duty per pint, whereas those in other major brewing nations such as Belgium, Germany and the Czech Republic pay around 5p per pint. Having recently met the Minister, I know she will be aware of the cross-industry initiative to incentivise the production of low-alcohol beers benefiting from the duty reduction on products below 3.5%. Although the industry has taken some steps with low-alcohol beers, the lower the percentage, the less the flavour, so looking at a stronger strength up to 3.5% ABV gives brewers the opportunity to create tastier beers.

[Jessica Morden]

The hon. Gentleman makes a valuable point on lower-strength beers. Does he agree that AB InBev in my constituency, which is developing more of those products, has a laudable aim in trying to have 20% of its products in the lower strength range by 2025? Does he agree that that is a positive development?

[Graham Evans]

That is a good and powerful point, and I wholeheartedly agree with the hon. Lady. I grew up with a Manchester brewery called Boddingtons; we used to call it the “cream of Manchester”, but sadly it cannot be called that because it is brewed in Luton these days. AB InBev is producing it at 3.5%, which puts it in that low ABV category. I am keen to support the promotion of beers such as the ones made by the company in the hon. Lady’s constituency. At 3.5% Boddingtons is still a tasty beer, although it is not quite how I remember it from the ’70s and ’80s.

Few can argue that 3.5% beers should have 66% more duty imposed on them than 7.5% high-strength cider, which is more associated with problem drinking than any other drink. Hon. Members may remember the question that the hon. Member for North Tyneside (Mary Glindon) asked at last week’s Prime Minister’s questions about her constituent who tragically died while drinking high-strength cider.

We are in a difficult economic position and alcohol excise duty makes an important contribution to reducing our inherited deficit, but beer duty clearly remains a concern to publicans, constituents and hon. Members. I therefore urge my hon. Friend the excellent Minister to carefully consider beer duty’s impact on the profitability of pubs, responsible drinking and the future of our local communities. Some 90% of the beer we drink is brewed in the United Kingdom and supports UK jobs and industry. In a post-Brexit Britain, the Great British pint drunk in the Great British pub will be able to compete on a level playing field with our European and international competition. We are lucky that the Minister loves beer and pubs—she is a member of CAMRA—and I urge her to do whatever she can for the Great British brewing industry.

Concentrix: Tax Credit Claimants

Jessica Morden Excerpts

Tuesday 18th October 2016 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

I congratulate my right hon. Friend the Member for Slough (Fiona Mactaggart) on the excellent case she has put. Like many right hon. and hon. Members, in the past few months my office has dealt with dozens of cases every week of people who have found themselves in increasingly desperate situations as a result of Concentrix investigations, and I would like to make it clear that I welcome the decision not to renew the contract. I hope that it leads to the work coming back in-house.

Some of my constituents are victims of domestic abuse and have gone to refuges and then been rehoused. Although their support workers have told Concentrix of the change in their circumstances, it has not been logged. One constituent’s brother was accused of being her partner, and another constituent was accused of co-habiting with a former tenant. Many have been drawn to the discretionary assistance fund administered by the Welsh Government and to food banks. Yes, in the medium term we need scrutiny of how that has happened, of why it has not been monitored and of the payment by results model.

HMRC staff have been drafted in to help, but there are clearly not enough of them. All credit to them, but they have suffered huge cuts over the past few years. It clearly will not take 21 days to deal with some of the cases—I have heard that it will take up to six weeks. We need to clear the backlog now, because there is much distress out there and people have suffered. We need the Minister to give a clear steer about which cases are the priority. Yes, we urgently need to learn the lessons, but we also crucially need help now for those affected, with more staff to turn cases around.

Enterprise Bill [ Lords ] (Seventh sitting)

Jessica Morden Excerpts

Thursday 25th February 2016 Public Bill Committees

[Kevin Brennan]

My hon. Friend is right. Exclusions have been made for those who serve our country, and I think these workers also serve our country in what they do—which is, as she said, difficult, technical and sometimes dangerous work.

[Jessica Morden (Newport East) (Lab)]

I commend my hon. Friend for the argument he is making in support of Magnox workers. Those workers include a constituent of mine, who rightly pointed out not only that she was extremely shocked to find herself included in these redundancy terms but that, if we change people’s terms and conditions at this stage, the industry is very much threatened by losing the vital skills we need to do this decommissioning work.

[Kevin Brennan]

I said earlier in the Committee that Government Whips should be seen but not heard, but of course that convention does not apply to Opposition Whips in Committee, as all Committee members will know. That is particularly useful, as it allows my hon. Friend to raise a constituency issue of such direct importance to what is under discussion. I am sure her constituents will take note of what she is doing in the Committee to defend their interests.

As I said, these companies are in a unique position. They are mostly engaged in managing the safe closure of nuclear facilities, which is a hugely important task that is very difficult to manage. By its nature, it involves working towards a specific end date, at which point the employees will in effect make themselves redundant. They are in a particularly different category. To get someone with the necessary skills to commit to that task when they are in, say, their early or mid-30s, we need to ensure that they know they will be provided for if they successfully complete their task by the time they reach their mid to late 50s, when finding re-employment in a similar role with their skills would be potentially very difficult.

As we have heard, if these companies cannot afford the packages necessary to compensate someone for the loss of their role when their task is completed, the companies will find it extremely difficult to prevent these highly skilled workers, who were mobile in earlier parts of their career, from simply leaving. That, in itself, will ultimately drive up the costs and risks associated with decommissioning and exacerbate an already difficult skills shortage in the industry.

Legislating now, as the Government are doing, to override long-standing arrangements in the nuclear sector where the employees involved have kept their end of the bargain faithfully, is pretty unconscionable in my opinion. How can it be right that workers who have stayed with a company to deliver successfully the safety commissioning of a site see their promised redundancy compensation reneged on by the Government when it is due to be paid?

The Treasury justification for applying the cap to the employees of those companies, as I understand it, is the old chestnut of the Office for National Statistics judging them to be publicly controlled. That technical, statistical designation, however, does not mean that applying the cap to those workers is either fair or necessarily value for money for taxpayers in the long term. It is unfair unilaterally to strike down agreements between companies and their employees. It will drive up overall costs for decommissioning as recruitment and retention in the relevant sectors take a hit. There is also no proof that taxpayers will receive any benefit, as the private operators of the companies often receive higher incentive payments under their contracts as a result.

Unless the Government decide to act on this, and I hope they do, employees in the sector will note that when it comes to pension provision and other issues the Treasury has excluded them from the public sector, but it considers them within scope for the cap in the Bill. Proceeding with imposing the cap on the employees of those companies will store up significant industrial relations issues. One can only guess how they will feel —actually, we do not have to guess, because we know from the evidence that we have received, which I will come on to in a moment. How will they feel when they discover that the Secretary of State considers them to be fat cats requiring legislation to limit their payments, even though they are employed by the private sector, while the Government absolutely reject any limit on anyone working in the banking sector? Why is a privatised banker not given the fat-cat treatment by the Secretary of State, but nuclear decommissioning workers are? Yet again it seems to be up with the bankers and down with the workers with this Government. What a shocking value-free zone the policy is, if the Government stick to it and do not accept that they have got it wrong and should support our amendment.

We have received strong representations from Magnox workers and from the trade unions that have represented them so ably. Other companies in the sector are covered and they are referred to in new schedule 3. For the record and for the sake of inclusivity in my remarks I will name those included in the new schedule: Sellafield Ltd, Westinghouse Springfields Fuels Ltd, Magnox Ltd, National Nuclear Laboratory, International Nuclear Services, Atomic Weapons Establishment Ltd, Low Level Waste Repository Ltd, Dounreay Site Restoration Ltd, RSRL Winfrith and RSRL Harwell. Note that none of those companies is called Fat Cats Ltd.

Oral Answers to Questions

Jessica Morden Excerpts

Tuesday 10th March 2015 Commons Chamber

[Mr Gauke]

We are not afraid of anything. The Government have been more successful at prosecuting criminals involved in tax evasions, more successful at closing tax avoidance loopholes and more successful at getting money in. That is a record we can be proud of.

[Jessica Morden (Newport East) (Lab)]

2. What proportion of recipients of tax credits are in employment.

[The Economic Secretary to the Treasury (Andrea Leadsom)]

In total, 4.5 million households are in receipt of tax credits, and 71% of them are in employment. The Government believe it is right to provide additional support to those in need through the benefits system, but we have been clear throughout that we want to ensure that people are better off in work than on benefits.

[Jessica Morden]

Will the Minister confirm that the Government’s real-terms cuts to tax credits will not only hit more people in work but hit far more women than men?

[Andrea Leadsom]

I am sure the hon. Lady shares my delight at the great news that the gender pay gap is lower than it has ever been, that there are more women in work than ever before and that 1.85 million people are in work who were not in work at the time of the last general election. That is cause for celebration. The Government have strived at every point to support women into work, whether through entrepreneurial allowances, support for women with child care or other measures.

Wales Bill

Jessica Morden Excerpts

Wednesday 30th April 2014 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

My right hon. Friend is making a brilliant and convincing argument against dual candidacy, as always, but does he agree that, as the Electoral Reform Society has said, at the very least changing the system back and forth risks undermining the stability of the electoral system? Should we not just stick with the system that we have?

[Mr Hain]

I completely agree. The change was made after evidence had been assembled for Parliament, and Parliament was convinced by that evidence.

There is a simple question that both supporters of the Bill and critics of this Parliament’s 2006 ban cannot answer. It is this: if candidates cannot persuade voters to vote for them, why should they nevertheless be forced on voters through the back door? The people of Wales are entitled to an answer, even if this Government cannot give it to them by ramming through this highly contentious, undemocratic and thoroughly objectionable clause in a Bill that otherwise, in its broad features, enjoys a fair degree of cross-party consensus.

The fundamental point is that the Government of Wales Act 2006, by introducing the ban, put the voters back in charge. If voters did not want to elect somebody, they did not have to do so. If they reject a candidate, that candidate should not end up representing them. We should keep the voters in charge by rejecting clause 2.

Oral Answers to Questions

Jessica Morden Excerpts

Tuesday 11th March 2014 Commons Chamber

[Mr Gauke]

The reality is that the west midlands, as with other parts of the country, is growing strongly. Today’s figures show that manufacturing has grown by 3.3% over the past year, and that is particularly important for the west midlands. The reality is that we are moving into a period of growth, and that is encouraging. Further work needs to be done, but the truth is that this Government have succeeded in turning around the mess that we inherited.

[Jessica Morden (Newport East) (Lab)]

13. What discussions he has had with energy-intensive industries on measures to be included in the 2014 Budget.

[The Economic Secretary to the Treasury (Nicky Morgan)]

I meet a range of companies and industry bodies to discuss energy issues and their impact on business. The Government take the competitiveness of energy-intensive industries very seriously. We have made a package of £400 million available until 2015-16, and we continue to explore ways to ensure that our energy-intensive industries remain competitive.

[Jessica Morden]

Last week, job losses were announced at Orb steelworks—a subsidiary of Tata—in my constituency. The combination of high energy prices, the carbon floor price and the renewables obligation has hit the UK steel industry much harder than its competitors. Will the Minister acknowledge that there needs to be a package of measures in the forthcoming Budget, because unfortunately what the Government have done so far has just not been enough?

[Nicky Morgan]

First, may I express my sympathy for anybody whose job has been either lost or put at risk? I know that Wales Office Ministers have been in close contact with energy-intensive industries in Wales and have had discussions with both the Department for Business, Innovation and Skills and me about these issues. The Government recognise that the rise in energy costs is a key issue for many businesses, especially given the lower than expected European carbon price, and we will of course listen to all concerns expressed in relation to these issues.

Protecting Older People from Fraud (Wales)

Jessica Morden Excerpts

Tuesday 15th October 2013 Westminster Hall

[Paul Murphy]

Indeed I do, and I shall come on to that matter in one of my recommendations to the Minister. My hon. Friend makes an interesting point, however, about the role of neighbours. When someone is aware that an older person or couple, vulnerable as they are, lives nearby, neighbours, as well as friends and family, have a huge role to play in deterring such terrible things, as do citizens advice bureaux and our local authorities’ trading standards departments, all of which are aware of the issues.

I want to bring to the attention of Members a new sharp practice—that is what I shall call it at this stage—resulting from the so-called green companies exploiting the Government’s affordable warmth scheme and the green deal. Those schemes are, in themselves, good; they seek to give vulnerable people, such as those on benefits or who are older, help towards reducing their energy bills, whether through insulation or whatever. I am in no way criticising such excellent schemes, which are funded by the United Kingdom Government, not the Welsh Government, although of course they operate in Wales as well as throughout the rest of the United Kingdom.

Such phone-in companies call older people and try to persuade them to register for advice and assistance, for which they are charged. In reality, those who wish to take advantage of the Government schemes can simply go to the authorities, official help lines, citizens advice bureaux or trading standards departments and ask for advice on what they should do. As everyone in the Chamber knows, however, people are often caught by a person calling on the telephone, and they are susceptible and more vulnerable to such activity.

[Jessica Morden (Newport East) (Lab)]

I congratulate my right hon. Friend on securing the debate and on his work with Age Cymru, which I hope will help people in future. I, too, have seen a huge increase in my constituency of companies using the green deal to scam older people—cowboy practices. Recent cases have now been referred to trading standards, but they are clearly the tip of the iceberg. Does he agree that this seems to be a particular problem in south Wales, as reported by Which? recently? We should investigate that issue more fully.

[Paul Murphy]

Indeed. I did not come across that until constituents came to me with their problems. I shall give three examples—there are many—of this sort of practice. Eco Green Deal Solutions has now shut down, I am delighted to say, after the consumer watchdog programme, “X-Ray” on BBC Wales found that several customers who were not eligible were charged up to £249 for arrangement and assessment fees. Another is Cornerstone Green Solutions, which took £99 from an elderly and vulnerable lady in my constituency. I understand that another company, Diversity Network Ltd, which is totally independent of the other two, has tried to arrange a refund.

The company that has caused most concern throughout south Wales, including in my hon. Friend’s constituency, is Becoming Green. It has caused great distress to some constituents who came to see me, and among other things, it caused me to raise the matter in Parliament. It is charging older people £299 for what it calls its advice service, and when it is challenged, my constituents are unable to get their money back. One of its customers—interestingly, bearing in mind the earlier debate, he lives in Torquay—recently wrote to a national newspaper, whose reporter contacted the company 17 times before getting beyond an electronic switchboard, which cut him off. I also had great trouble getting through to the company, as did my constituents.

The problem is that admirable schemes have been undermined by the activities of companies that are jumping on the bandwagon simply to make a big profit. I have contacted trading standards offices. Torfaen has an excellent trading standards office, which in recent weeks has received 62 complaints about such companies, 44 of which trade in becoming green, almost wholly from people over 60. The companies that I mentioned operated in Cardiff, where trading standards have received many complaints. Both authorities, and probably Newport and Caerphilly, are looking closely into the activities of those companies and others, and investigating them.

Women in Wales

Jessica Morden Excerpts

Tuesday 16th July 2013 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

It is good to start early on this hot, sunny July afternoon, Mr Benton.

Last year, I looked at the financial cost for women in Wales of the policies of the coalition Government. The study, which was based on parliamentary questions and Library research, revealed that, directly due to coalition policies, £1 billion would be taken away from Welsh women. It highlighted that more than £700 million would be lost to women in Wales as a direct result of pension changes; housing benefit changes, not including the ruthless bedroom tax, would account for more than £13 million; nearly £40 million would be lost due to changes in working tax credits; and public sector pay restraint would cut £300 million out of families’ pockets.

Have things got any better since then? Clearly, the answer is a resounding no. Things continue to get worse for women in Wales, whether because of the replacement of well-paid jobs by lower-paid ones, sustained attacks on public sector jobs, the increase in zero hours contracts and part-time working, cuts to child care, or direct tax or benefit changes, such as the bedroom tax. Whichever cut it is, women in Wales are being hit hard.

Why is this situation affecting women so badly? Women are, on average, poorer than men. Some 64% of low-paid workers are women and in later life women’s average personal pensions are only 62% of the average for men. Women also live longer, often spending the final years of their lives alone. Women are more likely to be the primary carers for children, older people, the sick or the disabled. Nearly three quarters of carer’s allowance claimants are women, confirming that women take responsibility for the majority of care. Women are also far more likely to be lone parents. Indeed, in Wales 95% of lone parents are women and that group is much more likely to be below the poverty line. Women are also more likely to be the victims of domestic and sexual violence.

Given that women use public services and benefits more than men, it is clear that when provision is cut it will hit women even harder. The fact that women are bearing the brunt of the Government’s deficit reduction plans is proven by Library research. Of the £14.4 billion raised in 2014-15, through changes to taxes, benefits, pay and pensions, £11.4 billion—some 79%—comes from women and £2.9 billion from men. In a Cabinet with three times as many men as women, it is hardly surprising that women’s voices are not being heard at the highest level.

[Mrs Siân C. James (Swansea East) (Lab)]

The cuts in the public sector are particularly affecting us in Swansea East, because we have high dependency on public sector jobs. Does my hon. Friend agree that the cuts are impacting much more strongly on women than on men, because more jobs are being developed for men, but not as many for women?

[Jessica Morden]

In terms of public sector employment and cuts to it, my hon. Friend is right. I will mention that later.

Let us look for instance at tax and benefit changes. The coalition Government and Ministers at the Department for Work and Pensions have consistently described their welfare cuts as fair. Clearly, they are unaware of or are ignoring the disproportionate impact they are having on women in Wales. A recent Office for National Statistics study on the effect that benefit and tax changes have had on incomes by household types demonstrates the negative financial consequences for women and families. That study, which covered the financial years 2010 to 2012, shows that a lone parent household with dependent children is £2,248 worse off. We have already established that the vast majority—95%—of lone parents in Wales are women. For other families, the situation does not get any better. A household with two adults and two children is nearly £5,000 worse off. The stress on parents who are trying to accommodate such an income fall, bearing in mind the huge hike in living costs, adds a great deal of pressure for people who are already working hard to keep their heads above water.

A recent report by the TUC showed that most jobs created since the recession have been in low-paid industries such as retail, the service sector and residential care. That was borne out by the ongoing inquiry by the Welsh Affairs Committee into the Work programme. Nearly 8% of the 587,000 net new jobs since June 2010 have been in sectors where the average pay is £7.95 an hour or less. Figures from the Office for National Statistics show that long-term unemployment has increased by nearly 100,000 since May 2010, and a shocking 86% of that increase is among women. Young Welsh women are particularly struggling in the labour market, with one in five out of work. In the figures released in June, the overall unemployment rate in Wales remained unchanged at 8.4% but the number of unemployed women rose again.

[Nia Griffith (Llanelli) (Lab)]

Does my hon. Friend recognise that there is a particular problem for young mums in Wales? According to the House of Commons Library, a couple with a joint income of around £24,000 will lose £1,300 in benefits as a result of the changes to child trust funds and tax credits, particularly the baby element. An awful lot of people in Wales, including many of my constituents, come from households with a joint income of around £24,000. Young mums will be particularly vulnerable and will have very little money to spare for their children.

[Jessica Morden]

My hon. Friend makes a valid point. Young families, in particular, will be hit by the cumulative impact of the loss of the child care element of tax credits, the child trust fund and maternity grants.

In Wales, most part-time jobs are undertaken by women; 27% of public sector employees work part time and 85% of those are women. Although it is true that many women want to work part time, many others have no choice.

[Mr Mark Williams (Ceredigion) (LD)]

I have some sympathy with many of the points that the hon. Lady has made on the welfare reform agenda. On child care, does she acknowledge that the Government have announced a constructive package that will help many young mothers? The figures suggest that 5,700 people in Newport would benefit. Child care is a particular problem, and the Government are taking action. In a spirit of fairness, I am sure that she would acknowledge that that should be recognised.

[Jessica Morden]

As far as I can see, the action on child care is too little, too late. Many families in my constituency are struggling with huge child care costs, which are bigger than those in many countries around the world. The Government’s proposals will take time to filter through and will have no immediate impact on those families. In addition, the little bit of help that has been provided for child care is totally offset by the huge cuts to tax credits.

According to the Bevan Foundation report “Women, Work and the Recession in Wales”, the number of people in Wales who work part time because they were unable to find a full-time job has increased by 79% to one in five of all part-timers. In addition, the burden of unpaid work still falls on women. Child care responsibilities or caring for older people mean that many women have little choice but to work part time. Contrast the difference between the Labour Government in Cardiff, who are doubling the number of Flying Start places despite losing £1.4 billion from their budget, with the coalition in Westminster, who have cut the child care tax credit by up to £1,500 a year for low paid women while giving millionaires a tax cut of £2,000 a week.

In Wales, women make up two thirds of public sector employees, so the steady and sustained attack on jobs in the public sector has affected women disproportionately. In addition, the pay freeze has worsened the pay gap between men and women; the full-time pay gap now stands at 14.9%. In many parts of Wales, particularly in places such as my constituency, the public and private sectors are completely intertwined. If money is taken from public sector workers, less money will be spent in the local economy, which in turn hits the private sector. By affecting so many women in such a way, the Government are directly affecting the Welsh economy.

The living wage is one that meets the requirements for a basic quality of life and reduces families’ reliance on Government programmes for additional income. In 2012, it was calculated that 24% of all working women earn below the living wage and 62% of those earning less than the living wage are women. How do we stand in Wales? Wales has the second-highest proportion of people earning below the living wage in the UK, the highest proportion of part-time workers earning below the living wage and, at 44.5%, the highest proportion of female part-time workers earning below the living wage.

In Wales, many women are on zero-hour contracts, which were the subject of a debate secured by my hon. Friend the Member for Sunderland Central (Julie Elliott) in this Chamber last week. Recent UK estimates suggest that 97,000 people in Wales have such contracts, of which at the very least half will be women. I know from bitter experience, however, that Government answers to parliamentary questions on the matter are difficult to come by.

Labour wants universal credit to work, but even the impact assessment by the Department for Work and Pensions states that

“second earners may choose to reduce or rebalance their hours or leave work.”

As a result of pay inequality and time taken out of the labour market to raise children, fewer women tend to be primary earners in their households, so the policy will simply not work for many women. In addition, many people are concerned that women will be sanctioned because they struggle to find the child care to enable them to take a job. That question was raised in the Welsh Affairs Committee inquiry into the Work programme.

Government cuts are not only affecting women disproportionately but cutting off access to advice and legal support. At the same time as all the changes are being made to benefits, swingeing cuts are being made to advice services. Organisations such as Citizens Advice, Shelter Cymru and Consumer Focus Wales provide such services, but the sector is expected to lose approximately £3.36 million from various sources over the next 18 months, which is the equivalent of 50 full-time jobs. In fairness, the Welsh Government have recognised the importance of such services and recently provided £1.8 million of extra money to allow the organisations to adapt to the increased demand for their services.

My local citizens advice bureau in Newport, which does excellent work, has had 745 more cases this year than last, but that tells us only part of the story. The citizens advice bureau can only deal with the numbers for which it has funding and advisory capacity. The staff know that more demand exists, but they cannot meet that demand without additional funding. That is happening at a time when people need more help than ever before. As we all see in our surgeries, demand increases every week.

The changes to legal aid demonstrate yet again that the Government are willing to make cuts irrespective of their impact. I am already seeing heartbreaking cases in my surgery following the cuts to some family and civil legal aid. One mother of three children came to see me because her ex-husband had refused to return one of the children after a stay. The father has a high income but the mother is in receipt of benefits, so she sought legal advice but was informed that she does not qualify for legal aid. Because both parents are considered good parents, a court case will be required to solve the issue, but she does not have the money to pay for it. Her husband can have a solicitor but she cannot. She told me that

“the poor no longer have recourse to justice, only the well off.”

Unfortunately, she appears to be right.

Many victims of trafficking and domestic abuse will no longer be eligible for legal aid. According to research by Rights of Women and Welsh Women’s Aid, half of all domestic violence victims will not qualify for legal aid to help them and their children safely to separate from abusive relationships.

[Susan Elan Jones (Clwyd South) (Lab)]

In recent years, we have seen a welcome change in emphasis from the police on domestic violence, and more people are now willing to report domestic violence. If people are being asked, rightly, to come forward, but they are being failed when it comes to legal funding, the situation is serious. I would have thought that people right across the House would regard domestic violence cases as extremely important.

--- Later in debate ---

[Jessica Morden]

My hon. Friend is quite right. The changes to legal aid require a much higher level of evidence to be provided, and organisations such as Women’s Aid believe that as a result, half of women across Wales will not have access to legal aid if they need it.

There are so many areas in which women are disproportionately affected, and I have only talked about a few. I could have talked about the abolition of crisis loans, the bedroom tax, changes to tax credits or pension changes. Name a policy and it is likely to hit women hardest. When families are already feeling the impact of more than 7% inflation on energy costs, with Wales having some of the highest electricity bills in the UK, as well as more than 6% inflation on clothing and more than 4% inflation on food, people can see why it is important to address the inequalities.

Equality law states that whenever the Government propose new legislation and policies, they have to give due consideration to the impact that the changes may have on equality of opportunity between men and women. Time and again, it is clear that the analysis is either inadequate or being ignored, as women in Wales are disproportionately affected by the coalition’s policies. Rather than getting the analysis right, the equality duties were highlighted in the Government’s red tape challenge, and there are fears that they might be watered down or dropped altogether by the coalition.

It is now time for the Secretary of State for Wales to carry out an in-depth analysis of the impact of his Government’s policies on women in Wales, because no matter which way we turn or whatever policy we look at, the Government are letting down women in Wales.

--- Later in debate ---

[Stephen Crabb]

There are communities in Wales in which unemployment among women remains a very serious problem, and I recently spent a day visiting various initiatives in the valleys, looking at job creation schemes and efforts to address long-term unemployment among men and women. I completely recognise the point that the hon. Lady is making, but let us step back and look at the bigger picture.

More women in this country went out to work today than ever before in history. There are now 13.8 million women in employment, which is more than ever before. Female unemployment actually rose under the last Labour Government by 30%. Under this Government, since May 2010, the number of women employed in the UK has increased by more than 350,000; in Wales, the number of women employed has increased by 21,000. The picture is not as gloomy as the hon. Member for Newport East presents. The employment rate in Wales among women is up by 1.2 percentage points, which is good progress. We are not complacent about that, and we need to be ambitious about improving it, but the trajectory is positive.

In the hon. Lady’s constituency of Newport East, there are now 2,400 more women in employment than two years ago. Surely she must welcome that. The employment rate among women in her constituency is up by more than 6%. Some positive things are happening.

[Jessica Morden]

Does the Minister appreciate that long- term unemployment among women and unemployment among young women have risen?

[Stephen Crabb]

I do not have the specific statistics to hand, but as I said to the hon. Member for Swansea East (Mrs James), there are certainly communities in which the trends are not as positive as the broader Welsh trend that I have presented here. We need to be more ambitious and redouble our efforts to see unemployment fall across all categories of women in Wales. I hope Members of all parties can agree on that.

Beyond just the positive signs we are seeing in the employment market, we as a Government absolutely recognise that many, many families face real financial pressure at this time. Many of those families, as the hon. Member for Newport East rightly says, are headed by single women, which is one reason why we are absolutely committed to assisting with the cost of living. We have seen some significant increases in the cost of living, which have placed huge burdens on families in recent years. That is one reason why we are doing one of the most effective things that can be done to put cash back in families’ pockets, which is to take the lowest-paid workers out of income tax altogether. We have now cut income tax for more than 1.1 million working people in Wales by increasing the tax-free personal allowance. By increasing it to £10,000 in 2014, we will lift 130,000 of the lowest-paid workers in Wales out of income tax altogether. Let no one be in any doubt: the majority of those 130,000 people lifted out of income tax—57%—will be women.

The hon. Member for Newport East spoke in great detail about some of our welfare reform measures. The introduction of universal credit is central to our welfare plans. Why are we reforming welfare? First, we cannot begin to think about cutting the deficit and the debt burden unless we are serious about welfare reform. Also, we all have communities in our constituencies where there are people who have not worked a day in their life—we have 200,000 such people in Wales, and worklessness is still a huge problem in many of our communities. If we care about those communities and are bothered by that, we must be serious about welfare reform. We as a Government are certainly bothered by it, which is why we are putting so much energy and focus on welfare reform.

[Stephen Crabb]

If that is a real concern and there is evidence to back it up, I will certainly take it to my noble Friend Lord Freud, the Minister responsible for welfare reform, and discuss it with him. I sit with him and discuss the impact of welfare reform in Wales, because I am concerned about it. The whole purpose of introducing universal credit is a more simplified system, which we want to incentivise more work. We hope that more women will choose to re-enter the labour market, partly on the back of the introduction of universal credit. Some of them will be in work already, but we want them to take on more hours if they choose to do so. We want people to be able to make the right choices for them in their circumstances at that point in time, and we want a welfare system that supports those choices rather than creating negative incentives that work against the interests of the families and individual women that we are discussing.

Households with single women and couple households will be better off on average after the introduction of universal credit. We are clear that that is what the modelling shows. Single women will receive an average increase in benefits of about £13 a month, and the figure for couple households will be £16 a month.

The impact of child care costs has been mentioned. We recognise that, and I am grateful to my hon. Friend the Member for Ceredigion (Mr Williams) for putting on record some of the measures that we as a Government have taken to assist with child care costs, most notably the introduction of the tax-free child care scheme, which makes child care simpler and more affordable for parents to access. From autumn 2015, working families will be able to claim 20% of child care costs, up to £1,200 per child under 12. We believe that that will contribute significantly to helping women who want to go out to work in Wales by encouraging those who want to do so to get back into the labour market and take the jobs that are being created.

To respond to the point made by Opposition Members, I absolutely agree that more women than men have been affected by public sector job losses, due to the proportion of men and women who work in public services. Nevertheless, it is true—even in Wales, where Opposition critics said that it could not happen, because we were led to believe that the private sector was too weak—that more private sector jobs have been created in Wales to offset public sector job losses. Women are taking up those new jobs. Some of them will need extra skills training, and we are committed to helping provide that, but I genuinely believe that the employment situation is not nearly as grim as Opposition Members say.

[Jessica Morden]

Does the Minister accept that some of those jobs are lower-paid part-time jobs?

[Stephen Crabb]

There is a general problem in the economy at the moment that real wages are falling as a consequence of the recession. We are seeing that across sectors. Actually, a great many women want to work part-time. When I go around and talk to unemployed men, one common complaint that I hear is, “A lot of the new jobs being created are much more suited to women with families.” A great many women in Wales have been able to benefit from that structural change in the labour market.

We could also talk about pension reforms such as the introduction of the single-tier pension and tackling the historic inequality between men’s and women’s pension receipt. We could talk about the efforts that this Government are making to tackle domestic gender-based violence, a point raised by Opposition Members. We as a Government are absolutely committed to, and serious about, breaking down the barriers that women face in all spheres of life, so that women can play their fullest role in work and have equality at home, in educational institutions and—

[Jessica Morden]

Why are there not more women in the Cabinet, then?

[Stephen Crabb]

We will try to fix that. The hon. Lady will have to wait and see. On that point, I will end.

Question put and agreed to.

Legal Aid (Rural Wales)

Jessica Morden Excerpts

Wednesday 26th June 2013 Westminster Hall

[Mr Williams]

As I shall say later, the delivery in practice will be a different story. There is concern that the consultation period of eight weeks is too short and does not allow people fully to analyse the proposals, particularly when reflecting on the Government’s ambitious timetable not only to get the proposals authorised, but to start tendering the contracts by the autumn. Consultation is particularly critical in this case, given that the proposals can be enacted without further primary legislation, which is why it is opportune that we discuss such matters now.

[Jessica Morden (Newport East) (Lab)]

I congratulate the hon. Gentleman on securing the debate. In April, the Government cut some civil and family legal aid, the consequences of which I am seeing in my office, with many parents fighting custody battles where one parent can get a solicitor and the other parent cannot. Therefore, justice is denied and courts are getting clogged up. In light of those changes, does it not make sense for the Government to slow down and have a look at what is happening already where they have cut legal aid, before rushing into further changes?

Food Banks (Wales)

Jessica Morden Excerpts

Tuesday 12th February 2013 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

I congratulate my hon. Friend the Member for Cardiff West (Kevin Brennan) on securing this important debate and on his compelling contribution, in which he painted a stark picture. As he said, the Government’s response to the increasing despair among Opposition Members about the growth of food banks has been to say that food banks grew under the last Labour Government, that they are a sign of the big society, that they are somewhere for people to go if, as the Downing street source said,

“they need a bit of extra food”,

and that we should thank them for the work that they do. I certainly agree with the last part. I thank Raven House Trust and King’s Church in Newport, which do a superb job with the little resource that they have. They are hugely dedicated, and I thank the volunteers in local churches who collect on their behalf. I am not sure that I know what a big society is, but I can certainly recognise examples of the good society operating in Newport.

As my hon. Friend said, we must all agree that the huge growth in food banks is sobering and a terrible reflection on how bad things have become. Raven House Trust, based in my constituency, became a charity in 1994, helping Newport’s homeless with furniture and food. In December, it gave out 850 food parcels, and this week it told me that in the last six months of last year, it had seen a marked increase in demand due to welfare changes, and that it is bracing itself for a dramatic increase from April. That trend is confirmed by the Trussell Trust, which is based in Newport and operates food banks elsewhere. It says, as my hon. Friend said, that 40% to 45% of those who ask for help do so because of changes to benefits and delays in benefit payments, although, as my right hon. Friend the Member for Neath (Mr Hain) said, many working families on low pay are also in need.

Everyone who needs a food parcel will have a different story, but it is true to say that those in desperate need and asking for help have often been the homeless, those with drug and alcohol problems and, in my area, asylum seekers. That is absolutely awful, but Raven House says that, increasingly, families with children are relying on food banks to survive. Changes to the benefit system—which often leave people with reduced payments while claims are processed—low pay and rising fuel and energy bills are causing the cost of living to rise the fastest for the poorest households.

[Geraint Davies]

On that issue, does my hon. Friend agree that the online delivery of universal credit will mean that many families, who are vulnerable and often dysfunctional—some people have mental illnesses, and many do not have access to computers—will have no benefits, leading to a massive escalation in poverty, hunger and reliance on food banks?

[Jessica Morden]

My hon. Friend is right. Yesterday, as he will know, we heard evidence from charities working with people with mental health issues in Wales. They said that for their clients, not being able to do things online was a huge problem, as many clients had difficulties opening the letters. That is a big issue.

Recently, food banks in my constituency have seen a marked change and desperate need. Let us remember that families must be referred by an agency or an advocate, such as a citizens advice bureau, social services, Newport City Homes, Women’s Aid, and others. However, help is not unlimited. People are expected to use the parcels to tide them over and get back on their feet.

The picture is much the same at King’s Church, which collects food to donate back out to agencies. When it set up it did not feel best placed to assess the need, and did not want to interrupt the established process between, say, a social worker and their client. It collects the food to pass on to agencies, which decide who to give it to. King’s Church opened in 2009 and at that stage gave out 50 food hampers a month. It has expanded the areas it covers across south Wales and now gives out in excess of 1,200 a month.

In 2012, King’s Church gave out 12,500 hampers. It expects to deliver 18,000 in 2013 and forecasts a need for 24,000 in 2014. It is important to remember that in the King’s Church model the official agencies identify the need. Demand is going up. King’s Church feels that it is just scratching the surface. Both King’s Church and Raven House are gearing up for the benefits changes, and we can see why. A study by Bron Afon housing association into those affected by the bedroom tax in Torfaen quotes tenants—it visited every one of them—saying that they would rather go without meals to find the money to stay in their home. Teachers report seeing hungry pupils each day and food banks are working with schools.

Providers in my constituency know that things will get worse. The trend has been a steep rise in demand, even before the Government’s austerity measures really hit. When FareShare Cymru, which is based in Cardiff and does an excellent job, is reporting that charities are finding it hard to pay the membership fee to join its organisation, and that it is finding it difficult to maintain the service, the Government need to open their eyes to see how their policies are hurting. They should not just make flippant remarks about people getting an extra bit of food.