amendment of the law

Debate between Lisa Nandy and Baroness Primarolo

Tuesday 25th March 2014 Commons Chamber

[Lisa Nandy (Wigan) (Lab)]

This is the third day of the Budget debate that I have sat through, and I surely cannot be the only one who is finding it incredibly depressing. Too often in this House, we pretend that the reality is either black or white, but people outside this place know full well that real life is much more complex than that. I want to say from the outset that of course the last Government made mistakes. It is right that my party should and does acknowledge those mistakes. It is also right that Government Members should acknowledge that when my party was making some of those mistakes, they did not just agree with us, but were urging us to go further.

The Secretary of State expressed dismay that we were not talking about the fall in unemployment. He is no longer here, but I wanted to say to him that of course I welcome the fall in the unemployment figures. Unemployment is a tragedy that affects not just individuals, but entire families and communities. I know that only too well from my constituency of Wigan.

Although I welcome any fall in the unemployment figures, we should not pretend for one moment that that is where the picture ends and that, as a consequence, life for people outside this place is rosy and is getting much better. The fall in the headline unemployment figures masks a much more complicated picture for many people, including many of those whom I represent. It masks a sharp rise in under employment, which has been a feature of the economic recovery. It masks particular problems for women and young people, especially in relation to long-term unemployment.

Many people in the workplace not only have low wages, but face extreme job insecurity. When we talk about the strivers and the shirkers or, to use the Chancellor’s new language, the doers, we need to remember that the people we are labelling doers or strivers today might be labelled something much more offensive tomorrow, because many people are moving in and out of insecure, low-paid jobs at an alarming rate. To label people strivers or shirkers depending on which day we happen to catch them is not just offensive, but utterly stupid. In parts of the country such as mine, a combination of those factors —low pay, job insecurity and long-term unemployment among particular groups—contributes to the entrenched problems that we face. I am concerned that the Budget has very little to say to those people, and the Chancellor has had little to say about the problems.

In the brief time available to me, I shall outline a few of the major problems that we have and some of the things we could do about them. First, we have seen over recent years that, as has been the case in every major recession in history, Government intervention increases growth. For four years I have sat in the Chamber and listened to the Chancellor delivering Budgets. Over that time his language has not changed, but slowly, gradually I have heard the policies change slightly. The changes have been too small and too late, but in recent years I have heard him talking about the need to build houses, Government investment in mending roads, and underwriting exports. If only we had been talking about that four years ago, what would we have seen?

The public and the private sectors are not separate; they are heavily interdependent. In my constituency, which is a good case in point, many people are employed in the public sector, and every time they go out and spend in local shops, those small businesses get a boost and they are able to keep the staff they have and employ more people. We have to understand the role of Government if we are to get out of the present mess. I am concerned that small businesses are not getting the support they need and deserve. When I talked to small business people in my constituency after the Budget, they said that they are still struggling to get lending—net lending to small and medium-sized enterprises continues to fall—and that business rates are crippling. Although there were measures in the Budget to help larger businesses, SMEs need help now as they are some of the biggest employers in this country.

The Government need to take seriously the issue of underemployment. If the people on low and middle incomes do not have enough money to make ends meet at the end of the week, they cannot go out and spend in local shops and businesses, and areas such as mine will continue to sink under the weight of unemployment and all the other challenges we face.

I pay tribute to people at this time. One Government Member said that doom and gloom does not chime with the public mood. I believe that. People are experiencing horrendous problems, yet they are still optimistic, they are volunteering and they are trying everything they can to make their communities work.

One thing we need to understand is that subsidies do work. I have heard too many Government Members, including the Secretary of State, saying that they do not. Youth unemployment is our biggest and most urgent national challenge. I see young people losing confidence by the day because they are unable to get a job. Many of them are the first in their families to go to university and they are now competing with 16-year-olds for jobs that they could have done years earlier. If young people get a job and remain in it for long enough, they get the skills and the confidence and they are worth it to their employers, and those jobs persist. That is why the Conservatives should not rubbish Labour’s youth jobs guarantee. That is the way to get young people on to the ladder and out of the revolving door of apprenticeships and unpaid work.

Over the past four years the richest 10% have indeed paid a price as a result of Budgets, but the poorest 10% have come off second worst. When we look at where the economic burden has fallen, it makes no economic sense. Every pound that goes into the pocket of one of my constituents who does not earn very much money at all goes straight back out into the local economy, boosting jobs and boosting the economy.

Finally, the benefits cap does nothing to deal with the real structural challenges that we face. We need to have an urgent debate about how to deal with entrenched problems such as child poverty—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. Time is up. I call Guto Bebb.

Education Bill

Debate between Lisa Nandy and Baroness Primarolo

Wednesday 11th May 2011 Commons Chamber

[Ian Mearns]

It is also a concern that the decision to abolish the EMA in the first place was based on flawed evidence from a survey that was conducted in school sixth forms but not in further education colleges. That fact in itself shows that Ministers got the whole message wrong. In 2009-10, 567,000 youngsters received the EMA at the higher level—£30 a week—yet Ministers have decided to do away with it, based on evidence from youngsters in sixth forms but not in FE colleges. In my area of Gateshead, 67% of youngsters attending the local college were entitled to the EMA at the higher level.

[Madam Deputy Speaker (Dawn Primarolo)]

Order. May I just point out that we are running close to time and interventions should therefore be brief, so as to give as many Members as possible the chance to speak?

[Lisa Nandy]

I agree with my hon. Friend. Despite everything that has happened and the anger that many of us have expressed on behalf of young people in our constituencies, it is important that we proceed on the basis of evidence. Another concern that has been expressed to me is that if there is no clear guidance, eligibility criteria or national standard in respect of who will receive the EMA, it could leave colleges open to legal challenge under equalities legislation, if students are left disadvantaged as a result of not receiving it. I would be grateful if Ministers were to take that into account in their deliberations and as part of the current consultation.

All Labour Members have concerns about the impact of the funding cut to which my hon. Friend the Member for Scunthorpe has referred and about the reduction in the number of students who will be able to receive support. I would be grateful if Ministers were to make a commitment today that they will monitor the impact of the withdrawal of the EMA and if it is found that fewer students can participate and achieve in education, they will reverse their decision.

As my hon. Friend has said, one of the reasons why Labour Members feel so strongly about this issue is that we have seen a triple whammy: the Aimhigher initiative, which got 40% more students in my constituency going on to university in just six years, has been abolished; the EMA, which enabled students to get to the stage where they could go to university, is going; and tuition fees have been raised beyond the level that many young people in my constituency can afford. At the same time, 1 million young people are unemployed. So, if those students are going to endure significant hardship, which is what many families—in particular, those containing several siblings—will face, to stay on at college without much hope of going on to university, it is imperative that they have a guarantee of not only the level of financial support that they will receive, but the quality of education that they will get.

That brings me to enrichment funding. My hon. Friend the Member for Scunthorpe has tabled a proposal on that, which I support.