Welfare Reform and Work Bill

Jim McMahon Excerpts

Tuesday 23rd February 2016 Commons Chamber

[Jim McMahon (Oldham West and Royton) (Lab)]

I place on record my thanks to my constituency neighbour, my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams), for the work that is being done to shine a light on the Government and expose them for what is a cruel attack on the people who can least afford it.

It is clear that the Minister believes poverty is an inconvenience. On the Labour Benches, we believe strongly that poverty is an evil. What is the Government’s response? To see no evil, to hear no evil and to speak no evil. Why would the Government seek to hide the true scale of poverty, if not because they realise that, through their targeted attacks on the poor, including the working poor, poverty will increase? The Government do not want to see poverty, because to see it would be to expose it and would be a cause of guilt—if guilt is possible with this Government. That is why, through the benefits cap, communities will be displaced as towns and cities are socially cleansed.

The Government do not want to hear the truth about poverty, either, because to hear it would create a noise so loud that the country would not sit back and take it. That is exactly why they want to silence charities such as Barnardo’s and the Children’s Society with the gagging Act that is the Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Act 2014.

The Government do not want to speak the truth about poverty, because to speak it would be hypocritical. They know that their actions are pushing more and more people into poverty and on to the breadline. That is precisely why they are blocking their own officials from publishing data on the number of people living in true poverty. We can talk about life chances, and we know how important education, health and housing are, but let us be honest: if you have to put the electricity or gas on, or put a uniform on the backs of your children, or make a decision about whether you or your children eat, then money is very, very important.

That evil affects too many families in Oldham West and Royton. Take the Coldhurst ward in my constituency, where more than 51% of children are growing up in families in poverty. Take Oldham as a town, where 40% of children are growing up in families living in poverty. It is getting worse, not better, under this Government. That is not surprising. Could any Member in this Chamber really live on £13 a day to cover food, heating, electricity, clothes, transport and toys for the children? There are too many mothers who go hungry just to feed their children. By 2021, it is estimated that 1 million more children will have been pushed into poverty. No wonder the Government do not want to report on how many people are living in poverty. It is a national scandal.

Research by the Children’s Society—a charity still able, at the moment, to give a voice to those who need one—highlights that 14,400 children in my constituency alone live in working households that will be affected by the freeze on benefits. As corporations such as Google laugh all the way to the bank, it is for my constituents to queue at the food bank. Not measuring how many people are in poverty is like driving a car with the instrument dashboard disconnected: you do not know how fast you are going; you do not know how long you have been going, or the distance you have travelled; you do not know whether you have enough fuel to last the distance; and you do not know if the car is overheating until it is too late. This is the real crux of the issue: the Government’s view is clearly that the welfare system is not a well maintained machine to be looked after and to last but a banger to drive into the ground and send to the scrapheap.

[Marie Rimmer (St Helens South and Whiston) (Lab)]

It has been a regular occurrence in my nine months in Parliament that we face another lamentable situation in which this Government, and specifically the Secretary of State for Work and Pensions, are called upon to think again. Opposition Members in the other place have once again provided us with an opportunity to pause for reflection.

I wish to focus my remarks on the cruel and utterly devastating cuts to employment and support allowance for those in the work-related activity group. Let me set that out in context. A cut of £30 a week would have a huge impact on nearly all affected families and individuals in this country. We have heard in previous debates about tax credits and universal credit about the kind of impacts such a drop in income would have. The amount of £30 a week is equivalent to raising council tax for a household in a band D property in St Helens by 7.5% every year for the next decade. This cut does it in one go.

Child benefit is £20.70 a week for the first child and £13.70 for an additional child. When the Government proposed to withdraw those amounts from individuals earning enough to pay the 40% tax rate, putting them among the top 15% of earners in this country, they produced huge outrage among Government Back-Bench Members. There were newspaper campaigns—