Living Standards

Lilian Greenwood Excerpts

Wednesday 4th September 2013 Commons Chamber

[Lisa Nandy]

Again, I would really like to send the hon. Gentleman on a history course. If he looks more closely at what happened under the previous Government, he will see not only that youth unemployment fell, but that at the one point in the mid-2000s when it rose it was because there were more young people compared with the number of jobs. It was due to an increase in the number of young people, not a shortage of jobs. The previous Government immediately took action to reduce youth unemployment, something I hope Ministers revisit and learn from in view of the problems we have now.

I was talking about the widespread exploitation of people on zero-hours contracts. Whole sectors are now dominated by this. I represent women in my constituency who work in the home care sector, and I have heard appalling stories about the way they are treated. One woman was forced to take eight hours of shifts on no notice whatever. She has two young children and had to take them with her and lock them in her car while she tended to older people. I would be really grateful if the Minister stopped laughing for a moment, because this is very serious. When the Under-Secretary of State for Business, Innovation and Skills, the hon. Member for East Dunbartonshire (Jo Swinson), responded recently to a debate in Westminster Hall packed with Labour MPs raising similar concerns, she did not say very much. However, it cannot be beyond our wit to bring in some kind of statutory code or regulation and ensure that it is enforced. I take the Minister’s point that some people like zero-hours contracts, but, given the widespread exploitation of people in that situation, surely it is time to take action.

[Lilian Greenwood (Nottingham South) (Lab)]

Will my hon. Friend give way?

[Lisa Nandy]

I am sorry but I will not, because I have only a short time left.

Women, in particular, are affected by zero-hours contracts. We should take this seriously, because women are increasingly important to low-income households. In 1968, men in low-income households contributed 71% of the household income. By 2008, that was just 40%. The contribution made by women had doubled, yet female unemployment remained stubbornly high. We lag eight percentage points behind OECD leaders such as Iceland, Norway and Sweden in the re-employment of women with children. We should celebrate a fall in unemployment whenever it occurs, but we need to look seriously at what is happening to women; otherwise we will fail to solve the problems for families.

We should also take seriously the fact that for many women part-time work is not a choice. One third of women with children were found recently to be in part-time work through lack of choice. We should first address the high cost of child care, which is rising by 5% a year. As my hon. Friend the Member for Islington South and Finsbury (Emily Thornberry) pointed out, that far outstrips affordability, especially for those on the minimum wage.

Finally, we should take immediate action to tackle low pay. We have seen a long-term trend of falling pay and rising profits. There is no pressure from the Government to take action against multinationals such as Tesco, which made huge profits last year. It employs many women in my constituency on below the living wage. I say to Ministers that low pay is not a ladder for most people. They are trapped in low pay, which is why we need action on the living wage. It is not just important for individuals and their families; it is important for the local economy. If people are not spending, small and medium-sized enterprises fold and the cycle continues. I ask Ministers this: where is the pressure? Condemn those multinationals, implement a living wage and refuse to do business with companies that will not take action. It is time for us to take concrete action. Our families and our young people simply cannot afford for us not to do so.

--- Later in debate ---

[Lilian Greenwood (Nottingham South) (Lab)]

Twelve months ago, I spoke at the launch of the Clifton food bank in my constituency. I was proud to support Wendy White and everyone else in her team of volunteers who had given their time and energy to help support others in the local community. Led by the Clifton churches in partnership with the Trussell Trust, the Clifton food bank is providing vital help to people who simply cannot make ends meet. Many of those referred to the food bank have sought help from the Clifton advice group. Claire Ashton, who has been involved in the group for 13 years and who chairs the management committee, recently said that it had seen a marked increase in the number of people struggling to put food on the table, and that this was a direct impact of Government policies, particularly benefit cuts.

When I spoke at the launch, I was proud of the response from a community that is not wealthy, but where people look out for each other. My view then and now is that it is a disgrace that even though we are the seventh richest country in the world, we face an epidemic of hidden hunger, particularly among children. But as families struggle to make ends meet while the Government stand by, the work of food banks is vital. It is the Government’s failure to act, their standing by in the face of a cost-of-living crisis, that prompts me to speak in today’s debate.

Today, the Prime Minister demonstrated how out of touch he is, completely refusing to recognise his failure to turn things around for hard-working families in cities such as Nottingham. Contrary to what he says, life is getting harder, not easier, for ordinary families. Prices are rising faster in the UK than in any other major economy; average wages are down almost £1,500 a year since this Prime Minister came to office; and we have the slowest recovery for nearly 100 years and almost 1 million young people are out of work—with devastating consequences, as a number of my hon. Friend have already described.

The Prime Minister claimed that people were getting back into work but in my constituency—I recognise that it is not the case everywhere in the UK—unemployment is higher now than it was in May 2010. The unemployment rate in Nottingham South is now 6.5%, compared with a national average of 4.5%. Those forced to rely on out-of-work benefits are condemned to falling living standards because of this Government’s 1% cap on benefit rises, which falls so far behind the current rate of inflation.

Life is hard not just for those who are unable to find a job; it is hard for those in work, too. In Nottingham, the average wage for a full-time worker is about £22,000, but that compares with a national average of £26,500. Of course, many part-time workers, especially women, earn far less than that.

Employees face increased uncertainty about their incomes. Many are under-employed, trapped on zero-hours contracts or reliant on a multiplicity of mini-jobs, and they are at far greater risk of losing their jobs following the Government’s decision to reduce employment protection and workplace rights. I ask Members to compare that decision to reduce job security and make work more uncertain with the decision of our local Labour councils, such as Nottingham city council and Nottinghamshire county council, to provide a living wage. I pay tribute to Nottingham Citizens for its campaign to secure that decision, and its practical action to support ordinary working people and our local economy.

It is no surprise that when people in Nottingham South have had the opportunity to choose who they want to represent them over the last couple of years, they have chosen Labour. They recognise that the present Government are out of touch and make the wrong choices. This Government have chosen to raise VAT while cutting taxes for millionaires; they have allowed energy companies to make huge profits while failing to help people with energy bills that have risen by £300 a year, condemning many thousands to fuel poverty; they have failed to take action to curb bank bonuses while allowing payday lenders to charge exorbitant rates of interest; and they have done nothing to tackle rogue landlords and rip-off letting agents, although many more households are being forced into the private rented sector because they cannot get on to the housing ladder. When we compare average house prices in Nottingham with average salaries, it is easy to see why that is happening.

Any recovery in the United Kingdom’s economic performance is to be welcomed, but ordinary people know that recent improvements are not benefiting low and middle-income families. The 16 food banks in my city are a shocking reminder of how out of touch the Government are, and show clearly why Nottingham needs a Labour Government with a programme that will boost living standards.