Pensions and Social Security

John McDonnell Excerpts

Wednesday 13th February 2013 Commons Chamber

[John McDonnell (Hayes and Harlington) (Lab)]

It is unfortunate that the order cannot be disaggregated, which would allow us to vote for its individual elements—supporting the increases at the rate of inflation and opposing those with a 1% increase. The breaking of the historic link between inflation and social security benefits, which has lasted over a generation on a political consensus, is a significant step, so it is important for us to judge it issue by issue in respect of the people affected by it.

I have looked at the Government’s impact assessment, which says that we are affecting one in eight households. The households most affected—those most likely to receive a cut—will be those further down the income scale, families with children and women who are heading lone parent families. I think that when we take decisions such as this, it is important to assess the position of those whose benefits are at stake and to look at their plight. The Institute for Fiscal Studies said that 2.5 million workers’ families will lose an average of £215 a year; 7 million in work will lose £165 a year; and, to reiterate what was said in previous debates, 68% of those affected by the order will be in work.

An assessment undertaken by the House of Commons Library showed that these families are already facing higher inflation because they spend more on food and utilities. Their experience of low income is quite startling. Children born in families with low incomes already have a birth weight 130 grams lower on average than children in social classes 4 and 5. These families are more closely associated with infant mortality and chronic disease later in life, yet these are the ones whose benefits and income we are cutting. Before their second birthday, a child from a poorer family is already showing a lower level of attainment than those in professional families. By six, a poorer child will already have been overtaken in terms of attainment by a child of lesser ability from a professional family. Children aged up to 14 from unskilled families are five times more likely to die from an accident and 15 times more likely to die from a fire at home than a child from a professional family. Such children also leave school with fewer qualifications.

Last year, according to the figures, 130,000 people—and they will be the people whom we are discussing tonight—including 20,000 children were fed by the Trussell Trust through its food banks. That is the reality of what is happening to the people whose benefits we are cutting tonight—for that is effectively what we are doing.

I pay tribute to Save the Children for two pieces of research that it conducted. One was a survey of parents, and in the other it talked to children directly, which I think was quite a significant thing to do. It is important for the voices of children to be heard in the House. As the survey of parents showed, what families are currently experiencing is shocking; and, as I have said, those are the families whose benefits we are cutting.

In response to the survey, well over half the parents on low incomes—more than 60%—said that they were having to cut back on food, while more than a quarter said that they had skipped meals in the last year. One in five families said that their children had to go without new shoes when they needed them. A large number of the children in poverty said that they were missing out on things that many other children took for granted, and one in five specified school trips. One in five parents in poverty said that they had had to borrow money to pay for essentials such as food and clothes in the past year. Those are the families who are in the most poverty, and they will be impoverished even further as a result of what we are doing tonight.

[Mr Russell Brown]

My hon. Friend is entirely right. Organisations such as Save the Children, Barnardo’s and the Children’s Society have produced the cold hard facts that Labour Members all know about. I should like to think that Government Members would get a grasp of the facts as well.

Does my hon. Friend recognise, as I do and as, I think, many people do, that a mother who is trying to prepare a meal and put it on the table often says that she will eat something later, when in fact she is skipping that meal in order to feed her children, knowing full well that they need food in their bellies to get through the rest of the day?

[John McDonnell]

Indeed. According to the survey, half the parents questioned had gone without food themselves at some time in the past year to ensure that their children were fed.

We sometimes forget that children have views as well, and that those views can permeate a whole family. When a family is living in poverty, the children understand what is going on. They have a glimpse of what is happening, and they realise what their parents are going through. I found the survey of children shocking as well, and quite startling. Save the Children said that

“the most striking finding from the survey is the extent to which children are aware of the financial strain their parents are under. Parents are stressed by lack of money and”

—whatever they do—

“many children are sharing this burden.”

It said:

“The majority of all children (58%) think it is getting harder for their family to pay for everything.”

Those children understand. It also said:

“Over half of children in poverty (52%) agree that not having enough money makes their parents unhappy or stressed.”

[Kate Green]

My hon. Friend is advancing a powerful case. I am glad that the Secretary of State is present. He often says that debt is a route to poverty, but is not the situation that my hon. Friend is describing proof that, in fact, poverty will drive those families into debt?

[John McDonnell]

That is true, and I shall say more about it shortly. There is a wider debate to be had, but the pressure on parents that forces them into debt eventually has implications for their children.

According to Save the Children,

“Over a third of children…say their family struggles to pay the bills….4 in 10 children… ‘agree’ or ‘strongly agree’”

—that phrase is typical of surveys—

“that their parents are cutting back on things for themselves, such as…clothes and food.”

The children witness their mums and dads not eating properly.

Let me leave the last word to the families themselves. A number of parents were quoted extensively by Save the Children. It is worth reading quite a few of those quotations, because they hit home and reveal what people are really experiencing. One parent said:

“ I regularly leave the heating off and use blankets and jackets to keep warm so that we have more money towards the food bill... I buy the cheapest brand foods so that I can afford the right amount of fruit and veg for the children. Missing a meal or two a week is not uncommon for me so that my children can eat. My children never go without what they need, but I sometimes have to.”

Brendan is 13. He says:

“I had shoes that were all broken up and full of holes. People at school laughed at me…I saved up my own money for my own shoes, but I don’t care about the brand or the make.”

They are the people who will be driven further into poverty as a result of the decisions we take tonight. We now have 3.5 million children living in poverty, and as a result of the last Budget, the autumn statement and today’s measures, we will probably have another 400,000 or 500,000 children living in poverty by 2015. We are blighting a generation.

Those children will never forgive us, and nor should they forgive us, because we are currently redistributing wealth from the poor to the rich, not from the rich to the poor so that we can tackle poverty and child poverty. That is why I wish I could vote against tonight’s orders. We are in a bind, however. If we vote against this order, we vote against the CPI increases as well. I hope lessons will be learned so that in future years we will properly consider each element of any such proposals.

Any Member who votes for this order tonight should feel a weight of guilt on their shoulders. Individuals and families are suffering greatly. The Save the Children survey findings reflect what we see in our constituencies. People say to us in our advice surgeries every week that they cannot survive on the income they have, whether they are in work because of low wages, or out of work because of low benefits, or—that dangerous combination—in work and on benefits at the same time. They cannot survive on their incomes.

Poverty is not just about income, of course. There is a range of other interventions that need to be discussed and debated, but those other interventions do not work if people cannot put food on the table. They do not work if people are cold at night and do not have shoes or a coat to put on their children. That is why we must halt this cutting of benefits.

We must instead start to look at how we can create a fairer society. We had a consensus for at least two generations after the welfare state was established that when inflation took hold, we would increase social security benefits in line with inflation, so that the poorest would be protected. I agree that we occasionally had rows in this House—both between and within parties—about what form that protection should take. I refused to support the shift from RPI to CPI. That was a debate worth having, and even under the new definition at least people on social security benefits were protected. Now we have torn up that consensus and the people who suffer will not be those who take part in party political debates, but the sort of people who were surveyed by Save the Children, and most of them will be children. That is a total disgrace.

We cannot vote against the Government tonight because of the nature of the order before us, but we can campaign against these measures, and that is what we will do. We will take our argument into our constituencies. We will mobilise people, and I think this generation of children will remember who forced them further into poverty. Any Member who votes for this order tonight will pay for it in the long term—even if they end up paying for it in history. Those Members will be taking part in the impoverishment of a whole generation—kids who cannot afford coats, school shoes and school trips and whose parents have to go without food. That is unacceptable in 2013 in the seventh richest country in the world.