Working People’s Finances: Government Policy

Debate between Kim Johnson and Baroness Winterton of Doncaster

Tuesday 21st September 2021 Commons Chamber

[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?

Universal Credit and Working Tax Credits

Debate between Kim Johnson and Baroness Winterton of Doncaster

Wednesday 15th September 2021 Commons Chamber

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

This cut to universal credit is perhaps one of the most callous and cruel policies this Government have proposed, and we have a long list to choose from. After more than a decade of brutal austerity measures and chronic Tory mismanagement, absolute poverty and child poverty were soaring even before the devastating impact of the pandemic. In my Liverpool, Riverside constituency, where child poverty, relative poverty and absolute poverty already soar above the national average, it amounts to more than 3,200 families and nearly 6,000 children.

This draconian Tory Government are dangerously out of touch with the reality of millions. They have no comprehension of the reality of poverty, of missing meals and going cold. They claim that the need for fiscal responsibility overrides the need for just and fair policies, as if the two are mutually exclusive and as if economic prosperity cannot exist without inequality and poverty. The cut of £1,000 from the pockets of those most in need is the ugly face of that ideology of class warfare—let us call it what it is.

As a black, working-class woman born and raised in Liverpool, I know full well the impact of this class warfare. Thatcher’s policies of managed decline in the 1980s threaten to pale by comparison with the cruelty of this Tory Government. The bare, honest truth is that this cut is not fiscally competent. Hitting workers’ spending power with cuts to universal credit, a rise in national insurance contributions, a public sector pay freeze and a personal income tax freeze is not the economic competence that the Tories claim. It is the opposite.

Instead of taking money out of the pockets of those most in need, the Government must wake up to the reality facing millions of families who will be pushed into Dickensian levels of poverty and misery. I call on Members on both sides of the House to cancel this cut.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Before I call the Front Benchers, I should say that they have agreed to cut down their contributions to allow everybody to get in.

Government's Management of the Economy

Debate between Kim Johnson and Baroness Winterton of Doncaster

Tuesday 23rd February 2021 Commons Chamber

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

I think Conservative Members must be living in some kind of alternative universe, because this Government have presided over the highest death toll in Europe and the worst economic recession of any G7 country. This was not an accident. It was not inevitable, and it did not need to happen this way. The 10 richest men in the world have seen their wealth increase by £400 billion during this pandemic—enough, says Oxfam, to prevent the world from falling into poverty because of the virus and to pay for vaccines for all. However, instead, the vast majority of us have been forced by this Government to pay the price, with a £20 cut in universal credit, a hike in council tax, and a pay freeze for our key workers. At the same time, billions have been squandered on private firms that have failed to provide a functioning test-and-trace system and have made a profit out of poverty. This Government have spent nearly £2 billion on crony contracts, taking public money away from local authorities that are more capable of delivering the vital services we need during the pandemic and instead giving it to their mates, who have inevitably failed to deliver. This is proof that the Government are the party of the bosses and the billionaires, not the workers as they keep telling us.

We are now staring down the barrel of the worst recession for 300 years—and why is that? Let us not forget that it was the Tories who dragged our country through over 10 years of ideologically driven austerity that undermined our economy, society and the public sector, and left us vulnerable to this crisis. The numbers in precarious work and on zero-hours contracts have gone through the roof, and the obscene practice of fire and rehire is now being increasingly used by unscrupulous employers to force their staff into low wages, work terms and conditions, and longer hours, essentially doing more for less.

I would like to take this opportunity to tell you about Kevin, a striker in the British Gas dispute and one of my constituents, who has kindly agreed to share his story. Kevin is a British Gas engineer who has spent the last few months standing on a picket line. I send my full support and solidarity to him and all the British Gas strikers who have just finished their latest round of industrial action, and urge Chris O’Shea to get around the negotiating table and treat these workers with the respect and dignity they deserve. They went back into work and put themselves at risk of covid to ensure that homes had heat and power. Kevin tells me that he is proud to have done this work because that is what engineers do—“It’s what we do.”

As British Gas is successful in forcing through these cuts to terms and conditions, we risk a domino effect putting hundreds of thousands more jobs at risk of having their terms and conditions undercut. This would further weaken our economy and our society, continuing an economic policy agenda that left our country and economy so vulnerable to the virus in the first place. We need to take decisive action to address the deep inequalities and injustices in this country. I call on Members to support this motion so that we can begin to reverse the damage done by the last decade of draconian economic policies—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I have to ask the hon. Lady to finish because we have one more Back-Bench speaker—Jim Shannon.