National Insurance Contributions Increase

Kim Johnson Excerpts

Tuesday 8th March 2022 Commons Chamber

[Kim Johnson (Liverpool, Riverside) (Lab)]

Listening to Members on the Government Benches this afternoon makes me believe that they are living in an alternative universe, because during this pandemic, the number of billionaires has increased and the richest 1% have increased their wealth exponentially, while more are suffering in-work poverty and are increasingly reliant on food banks. We are the fifth richest country in the world, and that should not be happening.

A recent report from Oxfam found that an annual wealth tax on billionaires and multimillionaires in the UK could pay the salaries of £50,000 new nurses, permanently increase universal credit by £20 a week and build 35,000 new affordable homes. It also said that the revenue could cover the cost of the health and social care levy twice over every year, completely eliminating the need to raise national insurance and place the financial burden on those least likely to afford it. What have the Tories actually done? They have chosen to hit the lowest paid and the youngest the hardest. The very key workers who kept our country going throughout the pandemic are now struggling to put food on the table. Research by the Bakers, Food and Allied Workers Union showed that 40% of its members were eating less because of a lack of cash, and nearly 10% had run out of food altogether because of a lack of money.

The choices that this Government have made are driving working people into food poverty, so does the Minister agree that their record of giving bankers a billion-pound tax break while voting to raise taxes on working people and cut social security and pensions in real terms is an absolute disgrace? Inflation is predicted to rise above 8%, but benefits are increasing by only 3%. This is the worst time to increase national insurance contributions, as it will hit working people hardest and mean that they will have to decide whether to eat or heat.

My constituency has some of the highest child poverty rates in the country, rocketing to 29.3% compared with the national average of 19.1%. One quarter of children in my constituency live in absolute poverty, although more than half of those families have at least one parent in work. Our NHS and social care systems are on their knees after a decade of Tory cuts. They should be funded by a wealth tax on the super-rich, not by a tax rise on the poor, who are already being hit hardest by the crushing cost of living crisis that is expected to worsen after April with a 54% increase in the cost of energy, food and fuel.

Instead of supporting and resourcing local government to provide gold standard in-house social care services with decent pay and conditions for workers, the Tories have systematically defunded councils for 12 years. They have cut £450 million in Liverpool alone, with a further £34 million of cuts in the pipeline. No matter how the Government try to dress it up, the perfect storm of low pay, insecure work and tax hikes on working people means that the finances of millions of families across the country are on the brink of catastrophe.

We cannot allow the Government to continue to turn a blind eye to the skyrocketing levels of poverty that they are presiding over. We must take urgent action to reverse the cuts to public services and local government, implement a £15 an hour minimum wage to boost the income of the lowest earners, reverse the cuts to social security and pension payments, and scrap the national insurance contributions hike. The worst of the cost of living crisis is yet to come. Enough is enough: it is time to make the wealthy pay their fair share and alleviate the burden on the working classes.

Prime Minister’s Chief of Staff Appointment

Kim Johnson Excerpts

Monday 7th February 2022 Commons Chamber

[Michael Ellis]

I have no doubt that my hon. Friend is absolutely right.

[Kim Johnson (Liverpool, Riverside) (Lab)]

I asked a question of the Chancellor of the Duchy of Lancaster in this Chamber recently about the failure of the civil service fast track system to recruit black members of staff. Will the Paymaster General give assurances that his right hon. Friend will be able to continue to progress that most serious issue in his new role?

[Michael Ellis]

The hon. Lady is quite right to ask that question. That is a very important matter and it continues to be. I can give her that assurance.

Tackling Fraud and Preventing Government Waste

Kim Johnson Excerpts

Tuesday 1st February 2022 Commons Chamber

[Rachel Reeves]

I understand that MPs want to represent businesses employing people in their constituencies, but it is the role of the Chancellor and the Government to make sure that money goes only to people who deserve it, not fraudsters. The hon. Gentleman was a member of the Business, Energy and Industrial Strategy Committee, which I chaired. The Committee did ask the Government to get money to businesses that needed it, like those mentioned by Labour Members, but basic checks that could have been done in a matter of minutes were not done. He will know, because of this Government’s tax rises and the increase in energy prices, that an average household in his constituency will, from April, be £1,378 worse off.

[Kim Johnson (Liverpool, Riverside) (Lab)]

Does my hon. Friend agree that the £4.3 billion that has been written off is a disgrace, given that the austerity that local authorities have suffered over the past 12 years has had a major impact on the people they serve and our communities?

[Rachel Reeves]

My hon. Friend makes an important point. Her council in Liverpool and all our councils have lost money, and this Government are handing it out to criminals. Billions of pounds of taxpayers’ money has been written off, but it was not the Chancellor’s money to write off; it is the public’s. The Government have clearly lost their grip. We must restore faith and confidence in how taxpayers’ money is spent.

We have a National Crime Agency in our country for a reason: to tackle serious and organised crime. It should be the National Crime Agency that the Government ring first on such occasions, but instead there are reports that they do not even want it to look into the matter. The Chancellor said earlier that just 13 cases are being looked at by the National Crime Agency. That is why Labour has brought our motion to the House today: to call on the Government not only to come back by 31 March with a clear answer about how much of their money has been clawed back from criminals, but to allow the National Crime Agency full access to investigate all aspects of fraud within covid support. The Government should not be resisting any effort whatever to retrieve taxpayers’ money and to hold people responsible. We need to know how it is so easy for organised criminals to steal from right under the Treasury’s nose.

Downing Street Garden Event

Kim Johnson Excerpts

Tuesday 11th January 2022 Commons Chamber

[Michael Ellis]

It is not appropriate to prejudge. The hon. Gentleman wishes to prejudge what occurred. We will await the outcome of the investigation.

[Kim Johnson (Liverpool, Riverside) (Lab)]

Today, I received an email from a constituent, Angela, whose mother died in a nursing home in St Helens where she was unable to hold her hand or be close to her before her death. She is outraged, as are many other people, by the actions of the Prime Minister and the people who partied in the Downing Street garden. Does the Paymaster General agree that the Prime Minister needs to take the decent action and resign?

[Michael Ellis]

No, I do not agree, because that would be inappropriate. The Prime Minister has devoted his time as Prime Minister to serving the people of the country in dealing with the crisis that has been the pandemic—probably the biggest crisis of any type that has befallen the country since the end of the second world war. This Prime Minister has led the way. He has delivered on vaccines, on healthcare and across the board and he has achieved the results, in very difficult circumstances, that we see in the progress of the pandemic. We are awaiting the results of an independent investigation into allegations of gatherings. When we have that information, we will be able to comment further.

Oral Answers to Questions

Kim Johnson Excerpts

Tuesday 2nd November 2021 Commons Chamber

[Rishi Sunak]

First, may I put on record my thanks to my hon. Friend, who raised this issue with me some months ago in the run-up to the spending review? I hope that he and his communities are pleased with the funding that was allocated, thanks to his and other interventions. I am of course prepared to work with him and the Secretary of State for Business, Energy and Industrial Strategy to consider all relevant proposals and assess the right options for the taxpayer in this country.

[Kim Johnson (Liverpool, Riverside) (Lab)]

T4. Hospitality is one of the major sectors in Liverpool, Riverside, representing up to 20% of the economy and accounting for 50,000 jobs and 4,000 businesses this time last year, but, sadly, many have been forced to close due to covid. While the freeze on VAT on hospitality until April next year is welcome, the 50% hike to bring it up to 20% in six months’ time is causing a real panic to small businesses in my constituency. Will the Chancellor acknowledge that the planned hike to VAT in hospitality poses a significant risk to our economic recovery and that what we need now are measures that shore up our recovery rather than slow it down?

[Rishi Sunak]

We did have a measure in last week’s Budget to support the hospitality sector with its recovery, and that is the £1.7 billion cut to business rates next year. That represents the largest single-year cut to business rates in more than 30 years outside of the coronavirus. It provides a 50% discount to hospitality businesses, which I know are important to our local communities. I am sad that the hon. Member did not raise the not one but two levelling-up fund bids that Liverpool enjoyed last week, which I know will also help to regenerate parts of the city and provide improved transport connections to benefit local businesses.

Working People’s Finances: Government Policy

Kim Johnson Excerpts

Tuesday 21st September 2021 Commons Chamber

[Mr Clarke]

We are clear that the right thing to do as we emerge from the pandemic, in which we have spent £400 billion on providing a comprehensive response, is ensure that our NHS is ready to deal with the backlog of cases that has inevitably arisen as well as providing a long-term fix for social care in a broad-based solution, bringing together a progressive tax rise in which the wealthiest pay more and business plays a fair role. I am confident that that is the right thing to do at this time.

Let me remind the House once more of the sheer scale of what this Government have been doing and of our support for the economy. The £400 billion I referenced a moment ago is spending that has been devoted to safeguarding jobs and incomes the length and breadth of the UK. It is spending that has given millions of people financial certainty through a very difficult 18 months.

The furlough scheme has protected 11.6 million jobs—that is equivalent to a third of the entire workforce—and it has paid out £68.5 billion to employers. The self-employment income support scheme has provided £27 billion to almost 3 million people. Businesses have been kept afloat thanks to loan schemes worth £79 billion, in addition to cash grants, VAT cuts and business rates relief, while the most vulnerable have been supported by a temporary uplift to welfare payments. HM Treasury’s own distributional analysis shows that our interventions have supported the poorest working households most as a proportion of income. That list is far from exhaustive, but it shows how the Government have met an extraordinary crisis with an extraordinary package of measures.

[Kim Johnson (Liverpool, Riverside) (Lab)]

In your constituency of Middlesbrough South and East Cleveland—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Can I just stop the hon. Lady? She must not use the word “your”, but say “in the Minister’s constituency”.

[Kim Johnson]

In the Minister’s constituency of Middlesbrough South and East Cleveland, the child poverty rate is 24.7%, smashing the national average of 19.1%, and up nearly 10% over the past six years. Can the Minister tell us exactly how he intends to justify his own Government’s decisions to hit the pockets of the most vulnerable families and disadvantaged people he represents?

[Mr Clarke]

I am incredibly proud to be part of the extraordinary transformation of Teesside’s economy, which is taking incredible shape under the work of our Mayor, Ben Houchen. Of course, that was reflected in the fact that the Tees Valley voted by 73% to re-elect our Conservative Mayor just this May. Why was that? It happened because of jobs and growth, and hope and pride in place—all the things that this Government are committed to delivering, and all the things that a Conservative Government are doing after years in which Labour neglected areas such as Teesside and left us with no plan, no options and no future.

Peak unemployment is now forecast by the Office for Budget Responsibility as being substantially lower than initially expected. All the evidence now points to a rebounding labour market. Just last week, the Office for National Statistics reported that vacancies are at a record high, while the headline unemployment rate has fallen for seven consecutive months and now stands at 4.6%.

--- Later in debate ---

[Kim Johnson (Liverpool, Riverside) (Lab)]

I must be living in the same alternative universe as my hon. Friend the Member for Liverpool, Wavertree (Paula Barker) because I do not recognise any of the positive spin I have heard from Conservative Members this afternoon. They must be experiencing selective amnesia. Eleven years of draconian austerity measures have attacked some of our most deprived communities, particularly in Liverpool. They have robbed 63%—£450 million—from my great city, which has had a devastating impact on the most deprived.

In my constituency, we have some of the highest child poverty rates in the country, which rocket to 29.3%, compared with the national average of 19.1%. One quarter of the children in my constituency live in absolute poverty. This Government are making decisions to hit the income of those households that are completely unconscionable and must be stopped. Like most of my Labour colleagues, I receive lots of desperate emails. One of my constituents wrote to me to say that the thought of more cuts is making them physically and mentally unwell, and they fear that when these cuts go ahead, they will lose everything they have worked so hard for over the years. Another told me that they have just £100 to survive until their next pay day, which is still 26 days away. They described their heartbreaking daily cycle of hunger, worry and depression.

This Government’s proposals to cut UC, end furlough and hike national insurance, and now the rise in energy prices, is creating a Tory-manufactured cost-of-living crisis. This could not have come at a worse time, as the cost of living is rising. Income is down and workers are doing more work for less pay. We are experiencing fire and rehire, less wages, more work, and worse terms and conditions. How can this Government talk about levelling up while disproportionately taking money out of the pockets of low-paid people who are reliant on welfare payments? In my constituency, more than 6,200 people are in receipt of unemployment-related benefits, including UC, which in reality supports a huge number of working people. That represents about a 50% rise since the start of the pandemic. With the end of furlough, the cut to UC and the hike on taxes on working people, this Government are creating the perfect storm, driving working people further into poverty through a combination of welfare cuts, tax hikes and soaring living costs.

I wish to conclude by paying tribute to Liverpool City Council, the voluntary and community centres, and all of the law centres in my constituency for the amazing work they have done during this pandemic to support those in most need. I dread to think what would have happened without that amazing support.

Health and Social Care Levy Bill

Kim Johnson Excerpts

2nd reading
Tuesday 14th September 2021 Commons Chamber

[Kim Johnson (Liverpool, Riverside) (Lab)]

I pay tribute to the social care workers working in care homes and the domiciliary sector in my Liverpool, Riverside constituency.

This country is in the grip of a social care crisis, and this Bill needed to be a watershed moment for the sector. Instead, we have been presented with a package that neither fixes the social care system for service users and workers nor funds it fairly. Unprecedented numbers of staff are leaving the profession, with 600,000 care workers currently earning only the national minimum wage, more than 110,000 vacancies and a massive turnover of 30% a year.

We are in desperate need of a detailed plan to mend and future-proof a system broken by years of underfunding and neglect. Decent pay, terms and conditions for undervalued employees must take centre stage of any serious plan to tackle the deep-rooted structural issues in the social care sector, along with a long-term workforce strategy and improved quality and standards of care.

Instead, this plan does nothing to address the job retention and vacancy problem facing the adult social care sector by improving pay, terms and conditions. Can the Minister tell us what thought, if any, this Government have put into tackling job retention and vacancies in the social care sector?

Despite being the primary commissioner of adult social care services, local government is glaringly absent from the Government’s package. Age UK has called for a big injection of funding into councils’ care budgets, including a social care workforce strategy to meet rising demand and the needs of disabled and older people by widening the criteria for state support alongside a new deal for unpaid, informal carers.

We need a plan to fundamentally tackle the social care crisis through local government bringing services back in house, with proper funding raised by a wealth tax on the richest. Billionaires in Britain got £290 million richer every single day during this crisis. While they were raking in massive profits, millions across this country were struggling to make ends meet and many relied on food banks.

This package will leave a key worker earning £26,000 a year facing a hike in their Nl contributions, on top of a pay freeze, rising council tax, and a frozen personal allowance for income tax—and all this at a time when food, fuel and energy prices are increasing. It is obscene that, after all this, the Tories are pushing through a tax hike that will hit the lowest-paid workers while leaving the wealthy untouched.

The Prime Minister gave a strong assurance that he would fix the social care crisis after a decade of cuts by this Conservative Government, which took £8 billion out of the social care system. This plan does not come close to the additional £7 billion for social care called for by the Health and Social Care Committee, and much of the funds that will be raised risk being absorbed by a resource-starved NHS.

Social care should be universally free at the point of use, just like healthcare. Once again, we see another broken Tory promise. The lip service paid by this Government to levelling up is shown to be just as hollow as their promises not to hike taxes, and I will not be supporting this.

Better Jobs and a Fair Deal at Work

Kim Johnson Excerpts

Wednesday 12th May 2021 Commons Chamber

[Kim Johnson (Liverpool, Riverside) (Lab) [V]]

Yesterday, my constituents and millions of people across our country desperately needed to hear a Queen’s Speech that rose to the scale of the challenges our country is facing. In a year when the pandemic has been particularly brutal for the poorest and the most vulnerable, millions of families are no more than a pay packet away from disaster, with children out of school going hungry, and the elderly and disabled have suffered at the hands of a deeply inadequate social care system. Instead, the programme for government we were given showed just how far removed this Government’s priorities are from tackling the widening inequalities, poverty and insecurity that define the lives of so many of my constituents and millions more across the country.

The Government outlined detailed initiatives for a shameful new plan for immigration, voter suppression, legislation and constitutional reform to repeal the Fixed-term Parliaments Act, but they dedicated a mere nine words to their plans for social care. That speaks volumes about the warped priorities of the Government, as they seek to increase their powers and to limit accountability, at a time when they have presided over a catastrophic pandemic response resulting in more than 130,000 deaths.

This Government talk big about levelling up. I asked the Prime Minister how he could say those words with a straight face. He has missed an historic opportunity to level up workers’ rights and end disgraceful fire and rehire practices—legal loopholes that allow bosses to undercut workers’ rights and conditions with absolute impunity. Nearly one in 10 workers have been told to reapply for their job on worse terms and conditions since the first lockdown in March. One in four workers in the adult social care sector are on zero-hours contracts. Care workers in the independent sector earn barely half the average UK annual wage. That is a disgrace, not least after the sacrifices that they have made to keep our elderly, disabled and vulnerable cared for during this difficult year.

When I asked the Prime Minister last month whether he would commit to legislating against the draconian fire and rehire practices that are already outlawed in several countries, stunningly, he did not even know what I was talking about. Instead of bringing forward legislation to lift millions in work out of poverty, this Government have betrayed working families on low wages and precarious contracts.

The task before us is immense—to rebuild from the ashes of the pandemic a society that prioritises health, education and wellbeing. The lessons from the past year have shown just how undervalued our key workers are. In their name and in recognition of the sacrifices that they have made for all of us this year, we must continue to fight for a society run by them and for them.

Commission on Race and Ethnic Disparities

Kim Johnson Excerpts

Tuesday 20th April 2021 Commons Chamber

[Kemi Badenoch]

Absolutely. I welcome the support shown by those leading experts in their respective fields and I thank them for their positive engagement with the report’s findings and recommendations that pertain to them. The Sewell commission, as I understand it, adopted an approach that was driven by a need for better outcomes, not better process, which is testament to its strong desire to effect change for all, not for a selected few. I am very happy to accept that there will probably never be a race report in this country that everyone will get behind. We have very different views on it, but what we do need is to hear from those people who have different views from what we constantly hear reported.

[Kim Johnson (Liverpool, Riverside) (Lab) [V]]

Minister, is it common sense to want to ignore the difficult part of our history and withdraw funding from charitable organisations, including the National Trust and the Runnymede Trust, which highlight the consequences of institutional racism, as members of the so-called Common Sense Group is proposing? Is that not divisive rhetoric that stokes culture wars?

Ministerial and other Maternity Allowances Bill

Kim Johnson Excerpts

Consideration of Lords amendments
Monday 1st March 2021 Commons Chamber

[Kim Johnson (Liverpool, Riverside) (Lab) [V]]

In the run-up to International Women’s Day, this is an opportune moment to welcome the Bill and the long overdue advancement of basic rights that it brings for women in Parliament. No Minister should be forced out of their post due to pregnancy, and participation in politics and public life should be accessible to all. However, gaping holes remain. The Bill only covers maternity leave for birth mothers and does not include paternity, shared parental or adoption leave, or considerations for parents of premature babies.

Centuries of struggle by women and trade unions and international best practice show that gender equality is best achieved when rights to parental leave are extended to all parents, so although this development is welcome it does not go far enough. The Bill fails to cover Ministers in the Scottish and Welsh Parliaments and the Northern Ireland Assembly, so will the Minister commit to strengthening the Bill and making it more inclusive at the earliest possible opportunity? If we cannot get it right in the corridors of power, how can we expect the policies we decide in Parliament to effectively tackle gender discrimination throughout society?

After a decade of austerity cuts by this Government that fell heavily on the shoulders of working women, and particularly on black working women—cuts that the United Nations special rapporteur on extreme poverty called so sexist that they may as well have been compiled by a group of misogynists in a room—is it at all surprising that the pandemic has disproportionately left women at greater risk of leaving or losing their jobs, reducing their income and taking on extra caring burdens?

Earlier this month, a report from the Women and Equalities Committee, which I sit on, warned that this Government’s plans for economic recovery risk turning back the clock unless the equality impact of every policy is fully assessed. Will the Minister take this opportunity to confirm the Government’s commitment to assessing the equality impact of their covid recovery plans? Women are more likely to be employed in sectors shut down during the pandemic, are more vulnerable to job loss or being placed on furlough, and are disproportionately employed on precarious contracts. The burden of juggling childcare and home schooling duty, as well as caring responsibilities for elderly or sick family members, has all fallen disproportionately on the shoulders of women.

Research by the TUC revealed that a quarter of working mums are using their annual leave to manage their childcare during covid, with nearly one in five being forced to reduce their working hours or to take unpaid leave from work. In response, the TUC has called for temporary access to the furlough scheme for parents and those with caring responsibilities, and I want to take this opportunity to add my voice to that call.

In conclusion, the provisions of the Bill barely scratch the surface when it comes to promoting gender equality in Parliament and ensuring that politics is both accessible and inclusive. I urge the Government to take this opportunity to commit to strengthening the Bill and to acknowledge the need for much more to be done to protect basic rights for women inside and outside Parliament.

[Jim Shannon (Strangford) (DUP) [V]]

I would like to say a few brief words and thank all other right hon. and hon. Members for their contributions. This is all about making sure that Ministers’ maternity allowances are in place, so the amendments are very simple, as has been suggested, and I believe that there should be no difficulty in accepting them.

I can well remember that when someone close to me had a miscarriage, she was told on Mother’s Day by a lovely lady who had given her flowers in her church with all the other mothers. “You do not have your baby, but you’re still a mummy.” Whether a mother holds her baby in her arms or only in her heart, the creation of life gives her that title and I believe that it is right and proper that we respect that in law. I support the amendments, which simply clarify that position.

I echo the comments of others who have suggested to the Minister in a very nice way that this should be the first stage in delivering for elected representatives in the Scottish Parliament, the Welsh Parliament and the Northern Ireland Assembly, and for councillors and those who hold positions in local government. It is time to get it right. In her conclusion, perhaps the Minister can reassure us that those in the devolved Administrations and at council level will find the same liberties, equalities and opportunities.