Economy, Welfare and Public Services

Kim Johnson Excerpts

Monday 22nd July 2024 Commons Chamber

[Kim Johnson (Liverpool Riverside) (Lab)]

I start by congratulating all those who are making their maiden speeches today, and welcoming them to this place. I also thank my Liverpool Riverside constituents who re-elected me. I give my commitment to continue to be their voice in this place. My constituency is now the most deprived in the country, with 47% of children living in poverty. That is nearly one in every two children, and it is communities such as mine that have faced the sharpest edge of 14 years of austerity and the cost of living crisis. Nationally, 16 million people are now living in poverty; 4 million are children, and 1 million are living in destitution. I am sure everybody in this House would agree that those figures are unacceptable.

Child poverty is completely avoidable in the sixth richest country in the world. Not tackling it stores up problems for the future, costing our economy £39 billion per year, according to calculations by the Child Poverty Action Group. It is not a question of whether we can afford to adopt vital policies to alleviate child poverty, such as lifting the two-child cap; it is a question of whether we can afford not to. This is the reason I tabled amendment (f) to the King’s Speech, with a focus on debate not division, to push for a clear timetable for scrapping the two-child cap. The End Child Poverty coalition believes this to be the most effective way to immediately lift 300,000 children out of poverty.

There is support for this position from right across the political spectrum, and it is something that the Labour leadership has indicated that it will do as soon as financially viable, but there are pockets of money that can be found if we look hard enough. Gordon Brown has suggested that between £1.3 billion and £3.3 billion can be found by imposing a reserve requirement on banks similar to those that the European Central Bank and the Swiss banks currently have, and that £700 million can be found by simplifying the gift aid system.

Economists believe the recent upturn in the economy means that the new Government could begin to consider bringing forward priority policies such as scrapping this cap. Others would argue that progressive taxation should also be strongly considered. The latest Department for Work and Pensions data shows that two thirds of families impacted by the two-child cap have at least one parent in full-time work. The last Labour Government had a big and bold ambition in 1997 to end child poverty within a generation. As a single working mum of twins, I personally benefited from those transformative policies. Without the availability of after-school and holiday provision, I would not have been able to continue working.

I know we have inherited the worst financial situation since the second world war, and that Labour in government is going to have some very careful choices to make about the path forward. We have a massive mountain to climb, but we were elected with a massive majority. The country has voted for change. Removing the two-child cap would send a powerful message of hope to those who have put their trust in a Labour Government to bring about the change we so desperately need. The one in two children living in poverty in my constituency have known nothing but the tyranny of a Tory Government, hunger and hardship during their short lives. Those children cannot and must not wait any longer to be lifted out of poverty.

As I mentioned earlier, the purpose of my amendment was to debate this very important issue, not to cause divisions, and there has been lots of debate this week but we need action. This punitive policy needs to be consigned to the dustbin of history, where it belongs, and in its place we need policies to lift 4 million children out of poverty. Let us put these children and our country first. I call on the Chancellor to make some immediate changes here.

[Mr Deputy Speaker (Sir Christopher Chope)]

I call Peter Bedford to make his maiden speech.