Inequality and Social Mobility

Debate between Jim McMahon and Amber Rudd

Wednesday 12th June 2019 Commons Chamber

[Amber Rudd]

I certainly agree with the hon. Lady that we need to do more to provide more housing for people on low incomes, and this Government are committed to ensuring that we do build more houses, that we make more available and that we make more houses available at prices within the local housing allowance, which has also been a challenge.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Is not the truth, however, that as well as the pound that people have in their pockets being worth less now than before, the social and economic contract of this country has been completely smashed apart? The idea that if you roll up your sleeves and work hard you can get on in life and have a better life for you and your children is no longer true for millions of people in this country.

[Amber Rudd]

The hon. Gentleman paints a very bleak picture, but the facts that came out on Tuesday demonstrated that monthly incomes are rising faster than inflation. There are jobs being made available and inequality has started falling since 2010.

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[Amber Rudd]

Characteristically, the hon. Gentleman raises an important point. We know that different headwinds are at play here, and we know that social media is, in some respects, having a negative impact on health inequalities. My right hon. Friend the Health Secretary recently met with social media companies to see what can be done to control the harmful websites that are, for instance, part of the reason why we believe people may be committing suicide. My right hon. Friend the Home Secretary recently commissioned Dame Carol Black to review drug usage. Different things are going on here, but I reassure the hon. Gentleman that we are alive to wanting to improve health inequalities in this area, and we recognise that there is more to do.

We will set specific, measurable goals for narrowing discrepancies in health outcomes, and all local health systems will be expected to set out how they will reduce them in their area. That will ensure that we continue to provide world-class healthcare free at the point of use not just for this generation, but for generations to follow. As part of our long-term funding for the NHS, a five-year budget settlement will see funding grow by an average of 3.4% in real terms, because it is vital that anyone who suffers illness or cannot work knows that we stand ready to support them at times of need.

[Jim McMahon]

Will the Secretary of State give way on that point?

[Amber Rudd]

I want to make some more progress.

We continue to look for ways to help people out of poverty, which is why we have acted to increase the incomes of the poorest in society. My right hon. Friend the Chancellor has injected an extra £10 billion into universal credit since 2016, and that meant we could increase the universal credit work allowance by £1,000 in April, providing extra cash in the pockets of hard-working people in 2.4 million households.

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[Amber Rudd]

I know there are people who have difficulties, and I listen to people in my Hastings constituency. I try to make sure that we respond as a Government, and I try to help them individually, but the Government cannot just base policy on anecdotes. We also have to look at the statistics and there are many different ways of doing that.

The hon. Member for Wirral West may quote relative or absolute statistics, but it is important to have an agreed basis so that we know we are measuring the same thing. That is why I have said we will look at the Social Metrics Commission’s “A new measure of poverty for the UK” report, of which she may approve because it looks not just at people’s income but at their actual spending. That makes a huge difference to people on low incomes. I urge her to look at the report.

[Jim McMahon]

I appreciate the Secretary of State’s generosity in allowing an intervention again. In that spirit, is the Department having cross-departmental conversations on the impact of other taxation? VAT, the most regressive indirect taxation, and council tax, the most regressive direct taxation, take 8% of a lower-income family’s income. Surely there should be such conversations across the Government.

[Amber Rudd]

We always have conversations across the Government. I work very closely with my colleagues across the Government to ensure that we devise the best policies to help everybody on low incomes. Those people need our support.

Supporting those on the lowest incomes and making sure that people’s life chances are not determined by their background or gender is at the heart of a one nation Conservative Government. For as long as we lead this country, we will always put social mobility at the centre of what we do and prioritise those most in need of financial support.

We believe that good government can empower people with a hand up, not just a handout, to get a good education, enter work and earn a decent wage. We have sought to keep taxes as low as possible, particularly for those on low and middle incomes, so that these people can keep more of the money they work hard for. We are not complacent about the challenges faced by the lowest earners in this country, which is why they are entitled to free childcare earlier in their child’s life than anyone else. Our increased national living wage and work allowances ensure that, once people are in work, they now earn more than ever.

It is the Government who are improving the situation for families across Britain. I urge all colleagues to reject the motion.