Budget Resolutions and Economic Situation

Liz Kendall Excerpts

Tuesday 9th March 2021 Commons Chamber

[Liz Kendall (Leicester West) (Lab)]

Today, I want to talk about the Budget and social care, or rather the lack of anything in the Budget on social care. The case that I want to make is not that the Government should have brought forward their long-promised reforms because the pandemic has exposed fundamental flaws that we must address if we want dignity and security for elderly and disabled people; it is not that these reforms are desperately needed because families have been pushed to their limits helping to care for loved ones; it is not even that our frontline care workers deserve a decent pay rise after everything that they have been through—although all these points are clearly true. The argument that I want to make today is not the moral case for social care reform, but the economic case. The Government’s failure to grasp the role that social care plays in our wider economy is undermining growth, productivity and the need to get value for taxpayers’ money, all of which are essential with both family finances and the public finances under such strain.

Much of the debate about how we build back better or level up has focused on investing in our physical infrastructure, but investing in our social infrastructure is equally important. Put simply, in today’s world childcare and social care are as much a part of our economic infrastructure as the roads and railways. First, that is because of the basics of demographic change; our population is ageing, and we need more than half a million more care workers just to keep pace with the growing demand. The Resolution Foundation has rightly argued that if the Government prioritised investment in social care, that would quickly boost jobs in every part of the country. The Women’s Budget Group has shown that investing in care would ultimately generate even more employment, because of the multiplier effects.

The second argument for investing in social care is to help improve our low productivity rates. Too many workers—predominantly women—have to take jobs below their true skill level, reduce their hours or leave the labour market because they cannot get the help they need to balance work and family life. With our ageing population, that is as much about the lack of social care as it is about the availability of affordable childcare. We have to change this. Finally, we need to invest in prioritising social care to stop costs being shifted to other more expensive parts of the public sector. Just look at delayed discharges from hospital; it makes no sense to have elderly people stuck in more expensive, acute care, when they could be cared for at home.

We have to do more to boost jobs and growth. Reform of social care is vital to achieving those goals. It is a matter of social justice and an economic necessity. The Government must bring forward their plans for reform; there is not a moment to waste.