Child Poverty

Kirsten Oswald Excerpts

Tuesday 15th September 2015 Westminster Hall

[Kirsten Oswald (East Renfrewshire) (SNP)]

I beg to move,

That this House has considered child poverty.

It is a pleasure to serve under your chairmanship, Mr Howarth. I am delighted to have secured a debate on this vital topic. Child poverty unfortunately blights the lives of so many children throughout the UK, and should surely be a concern of absolute priority for the Government. I note, however, that in July’s Budget the Chancellor of the Exchequer launched the Tory Government’s latest plans to attack the poor, the vulnerable and the helpless in society.

The most recent target of the Government’s austerity crusade is our children. I have to wonder what that says about their priorities. They have often been heard to give much less than reassuring explanations for their dismantling of the welfare system, saying they are building a better, fairer society, where work pays. How do the proposals in the Welfare Reform and Work Bill truly build a better, fairer society? It is my contention that the Government are simply not concerned about fairness. In fact, it could be considered spineless to attack the people in our communities who most need our assistance: the working poor, the ill and the unemployed. Ultimately, the weakening of the welfare system has and will continue to hit low-income families and children the worst. Is that really the way forward?

Currently, 3.7 million children in the UK are living in relative poverty—that in itself is just not good enough. Shockingly, however, rather than actively stepping up to address the challenges facing children today, the Tory Government have hit out with further assaults on the poorest in the UK. The Institute for Fiscal Studies has predicted that, as a result of the Government’s most recent policies, child poverty could increase by more than a million from 2010, reaching highs of 4.7 million by 2020-21. Those are astonishing figures. It is frankly deplorable that, in a region as rich as the UK, such shameful, regressive and unacceptable policies should be even considered by the Government, never mind being pushed through this House.

Today, in another Chamber, right as we speak, the Government will move to reduce the amount people can earn—from £6,420 to £3,850—before tax credits begin to be withdrawn. The same measures seek to reduce the threshold from £16,105 to £12,125, as well as to increase the taper rate, which will mean that families reliant on those benefits lose out faster. That is simply illogical. It is incomprehensible and immoral to focus cost-cutting exercises on children.

Tax credits were introduced in 1998 in response to rising child poverty. Since their introduction, the number of children living in poverty in the UK has fallen from 26% to 17%. Surely the policy was working. Although we know that more needs to be done to lift all children fully out of poverty, at least tax credits have been keeping food on the table for children, and their parents’ heads above water. Today, the Tory Government move to take us backwards, to intensify the difficulties facing the working poor and our children.

In Scotland, 346,000 children will be affected by the tax credit changes—that is more than 197,000 families. In my own constituency of East Renfrewshire, nearly 15% of children are living in poverty, after housing costs. That is of great concern. The Child Poverty Action Group has estimated that the overall child poverty rate in Scotland could increase by a colossal 100,000 by 2020. Surely it is not good enough for us simply to vote against these measures; surely we have also to question the Government’s motivation. What sense is there in their actions, taking food from children’s mouths? I find it difficult to see how members of the Conservative party are not deeply concerned about the measures and proposals on child poverty, which is why I have brought this issue to the House today. I would like to force the Government to re-examine their proposals before it is too late.

As an elected representative, it is sickening to me to think of even one child in poverty, never mind such incredible numbers. I despair for the children in my area who will be affected by the Government’s actions. I despair for children around the world, so I urge the Government to do what they can in the UK and to heed the warnings given by the charity and voluntary sector, which has said that the proposed policies will plunge more children into poverty rather than pulling them out.

The Government have given us no plausible evidence base to demonstrate how cutting tax credits will incentivise work; I challenge Government Members present to address that point. Before they do, I remind them that the Government’s own evidence review of drivers of child poverty last year noted that the most important barriers to children exiting poverty were those arising from a lack of sufficient income from parental employment, not just worklessness.

It has been confirmed by the House of Commons Library that 99,600 out-of-work families in Scotland are receiving tax credits, compared with 250,300 families who are in work and receiving tax credits. The Government therefore contradicted their own testimony that cuts to the welfare system will make work pay: it is clear that working families and their children will suffer most from the tax credit changes.

It is clear that the UK Government were planning to give with one hand and take with the other when the Chancellor announced his golden ticket increase of the minimum wage. As ever, the devil is in the detail. The Office for Budget Responsibility estimates that the higher minimum wage rate will increase earnings by £4 billion in total by 2020; however, there will be welfare cuts of £12 billion. That simply does not add up. In any case, the policies target different groups, with those hit by cuts to tax credit unlikely to benefit from the minimum wage rise.

It is extremely worrying that the Tory Government have gone one step further in the Welfare Reform and Work Bill by enforcing a two-child cap on families who will be eligible for receiving child tax credit from 2017. Currently, 872,000 families in the UK—548,000 of whom are in work—receive an average of £3,670 a year for supporting a third child or subsequent children. The policy is deeply unfair, and threatens to undermine the financial stability of thousands of families who are at a higher risk of poverty.

The Government’s own national poverty strategy recognises that the risk of child poverty is already significantly higher among larger families. In fact, a third of children living in poverty are in families with three or more children. The Government’s rationale is still unclear. There is no evidence base to show how the measures would somehow bring about some kind of behavioural change, should that be their plan. To deny assistance to families—most of them working—who fall on hard times or into a low income but have three or more children, is completely condemnable. The policy seems to be based on the assumption that a third child is now a luxury commodity, reserved for the most affluent, but the right to a family life should surely be protected and encouraged by the Government.

The Government’s welfare reform measures have already hit some of those most at risk of poverty, and the new proposals will undoubtedly thrust more children into poverty, but one of the Government’s most troubling moves is to remove the requirement in the Child Poverty Act 2010 to report on income targets. They have renamed the Child Poverty Commission the Social Mobility and Child Poverty Commission, which represents a stark shift in focus from tackling poverty to promoting social mobility and equality of opportunity rather than of outcome.

The removal of income targets means the fundamental driver of poverty is de-prioritised. Do the Government no longer care how much money people have in their pockets to feed their families? Instead, by focusing on targets that are not necessarily related to poverty, the Government are taking worrying steps towards characterising poverty as a lifestyle choice, rather than addressing the social and economic drivers that cause people to fall into poverty. I wonder whether there is a link between their attacks on the welfare system and their rationale for watering down commitments to protecting children.

It is worth noting the Scottish Government’s approach to tackling child poverty. Under the Scottish National party, the Scottish Government will look at a Scottish approach that builds on the innovative child poverty measurement framework, with a view to introducing a new approach to reporting on measures to tackle poverty. Scotland has shown its commitment to tackling inequalities and lifting children out of poverty, and I am pleased to note that the Scottish Government’s Social Justice Secretary, Alex Neil, has requested that the UK Government repeal all parts of the Child Poverty Act relevant to Scotland and confirmed that the Scottish Government will remove themselves from the new social mobility commission. Instead, they will develop a distinct Scottish approach that does not ignore the increasing problems of in-work poverty.

Coupled with the squeezing of the benefit cap and work-related conditions imposed on families with younger children, the UK Government’s austerity campaign is on course not only to hit hard-working and low-income families, but to sink more children further into poverty. It is beyond reason and moral thinking for the Government to identify the poorest children in the UK as the target for shouldering the bulk of their cuts. To protect children, to ensure that they have full access to a real childhood and opportunities to grow and flourish in education, as well as socially, the Government must withdraw the measures in the Welfare Reform and Work Bill, halt the changes to tax credits and continue to build on the good work of the child poverty commission, rather than getting rid of it.

[Mr George Howarth (in the Chair)]

Order. I do not propose to impose a time limit at the moment, but seven Members have indicated that they want to speak, excluding the SNP and Opposition spokespeople and the Minister. If those who are called can emulate the great self-discipline exercised by the mover of the motion and keep to a time limit of seven minutes, we should be able to get everybody in.

--- Later in debate ---

[Kirsten Oswald]

I thank you, Mr Howarth, the Minister and all those who have made such valuable contributions. We have been discussing a very important subject and have heard many mind-boggling statistics, but as my hon. Friend the Member for Lanark and Hamilton East (Angela Crawley) said, this is not about statistics; it is about children. On that basis, I must ask the Government to consider their approach to child poverty, to think very carefully about all the important things that have been said today and to think again about how they take this forward.

Question put and agreed to.

Resolved,

That this House has considered child poverty.