Regional Inequalities: Child Poverty

Liz Twist Excerpts

Wednesday 2nd March 2022 Westminster Hall

[Liz Twist (Blaydon) (Lab)]

I beg to move,

That this House has considered regional inequalities and child poverty.

It is a pleasure, Dr Huq, to serve under you as Chair in this debate on regional inequalities and child poverty. Speaking about child poverty gives me no pleasure at all. In 2022, in the world’s fifth-richest country, we should not need to talk about child poverty or regional inequalities at all, yet sadly too many of my constituents and people living across the whole north of England face real inequalities in all aspects of life. That directly affects our children’s life chances, health, wellbeing and, yes, even life expectancy. I acknowledge that there are huge divides between communities in London, too; there is great wealth in some parts and real poverty in others. It is important to recognise that.

Of course, covid-19 has deepened inequalities; the north was affected by longer lockdowns, a higher number of infections and, sadly, a higher number of deaths. Professor Sir Michael Marmot’s report, “Build Back Fairer: The COVID-19 Marmot Review”, and before that, “Health Equity in England: The Marmot Review 10 Years On”, published in 2020, clearly set out the situation. Covid-19 does discriminate, hitting hardest those people in our communities who are already affected by inequality. It has exacerbated inequalities, hitting hardest those groups and people who were already disadvantaged.

Earlier this year, the Northern Health Science Alliance, or NHSA—a group of academics and health specialists working in collaboration—published a major report, “The Child of the North: Building A Fairer Future After Covid-19”. Sadly, I do not have time to take hon. Members through all its detail, but the findings were that inequality and low living standards are a huge problem across the north, and that this problem is only getting worse.

The NHSA’s report found that today, nearly a third of children in the north live in poverty, and 60% of northern local authorities have above-average numbers of children living in low-income homes. The report found that children across the north spent more time in lockdown than their peers in the rest of England. They are also more likely to grow up in care. Young children in the north are less prepared when they start school than children in the rest of England.

The report clearly shows the many ways that regional inequality blights the lives of children and adults, including through higher levels of poverty, poorer educational attainment, higher levels of infant mortality, lower life expectancy and worse mental health outcomes, both for children and adults.

Finally, the report concludes that

“Poverty is the lead driver of inequalities between children in the North and their counterparts in the rest of the country, leading to worse physical and mental health outcomes, educational attainment, and lower lifelong economic productivity.

The COVID-19 pandemic has made this situation worse. Although the full impact is not yet known, modelling suggests that, without intervention, the outlook is bleak.”

I am pleased that, one week today at 10 o’clock, I will host the report’s authors as they present their findings. I hope that the Minister can call in and speak to some of those involved in putting the report together, as well as to some of the children with whom they worked, to hear at first hand how we can reduce regional inequalities and improve the life chances of our children and young people right across the north.

One of the best parts of our job as MPs is the great opportunities that we get to go into local schools. When I visit schools—primary and secondary—I see children and young people who are full of enthusiasm, and keen to tell me about what they are learning and the things that really interest them. The classrooms are full of their artwork, and they ask loads of questions—very often the questions that adults would be far too polite to ask—and of course there are teachers and other school staff doing their very best to level up the chances of those children, so that they are the best they can be.

There are great things happening in the north, but we owe it to those young people to really address the disadvantages that they face, and to reduce the poverty that holds them back. There are people and organisations on the ground across Blaydon constituency taking positive steps to make things better and ease things for those who are really struggling, such as the Gateshead food bank depots at Blaydon and Birtley, the Blaydon Community Larder, the Gateshead West pre-loved school uniform scheme, the Winlaton Centre, The Bank in Chopwell, the Birtley Hub and so many others right across my constituency. However, it should not have to be like this in this day and age.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

My hon. Friend is making an excellent speech. She mentions food banks. We have seen a huge increase in food bank usage in Newcastle Central, and had the third highest increase in child poverty in the country between 2015 and 2019; it was almost 13%. Some 100,000 of the children living in poverty across the north-east live in families where one parent is working, and we see that reflected in food bank usage. Does she agree that we have to ensure that parents have enough to feed themselves and their children without going to food banks, and that the Government have been failing on that?

[Liz Twist]

I most certainly agree. That picture is reflected in my constituency, too. We must make sure that families have enough to live a good and decent life, and to support their children.

On the north-east more specifically, the North East Child Poverty Commission, hosted by Newcastle University, produces valuable research on the prevalence and effects of child poverty across the region. On the latest available data, from 2019-20, the north-east has the UK’s second highest rate of child poverty. An average of 37% of all babies, children and young people in our region grow up poor, whereas the UK average is 31%. Most concerningly for our region, the north-east also experienced the steepest growth in child poverty from 2014-15 to 2019-20—the six years leading into the pandemic; it rose by 11 percentage points from 26% to 37%. By comparison, there was a UK-wide rise of 2 percentage points over the same period.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Does my hon. Friend agree on the importance of the relationship between our social security system and the adequacy of working-age support on the one hand, given that £34 billion a year has been taken out of support for working-age people, and the impact on child poverty on the other? Would she like to comment on the fact that for every 1% increase in child poverty, an additional five babies a year out of 100,000 live births will not see their first birthday?

[Liz Twist]

I agree with my hon. Friend, and I will come to the economic aspects of this issue later. We do not yet have child poverty figures for the period during the covid-19 pandemic; I understand that we will not have them until the end of March 2022. However, from some of the available real-time information, it is clear that there has been a significant financial impact on thousands of families in our region. The north-east has experienced the joint steepest increase in the proportion of pupils eligible for free school meals during the pandemic of anywhere in England, having already had the highest proportion pre-covid.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

My hon. Friend is making a powerful and timely speech. She mentions free school meals; another support that many families in the north-east rely on is Healthy Start vouchers. A report by Northumbria University and Feeding Britain recently highlighted that there are incredible struggles with the move from a paper-based system to a prepaid card system. Families are being rejected at the tills in their hour of greatest need, and cannot get any help through the helpline. Does she agree that the Minister should commit today to urgently resolving the matter, so that families, and particularly children, get the support they need?

[Liz Twist]

I thank my hon. Friend for that valid and pertinent point. That is one detail that must be looked at—it is so important for those families. Turning to in-work poverty, the TUC found that 108,775 children living in poverty in the north-east come from homes with at least one parent or carer in work. That is an increase of 52% since 2010. Children growing up in poverty is not about parents who refuse to work, but rather a lack of good, secure and well-paid jobs in the north-east and across the north.

[Margaret Greenwood (Wirral West) (Lab)]

My hon. Friend is being generous with her time and making an excellent speech; I am impressed that it is so wide-ranging. She will be aware that 4.3 million children are living in poverty in the UK. According to research by the End Child Poverty coalition in May last year, 20% of children in my constituency of Wirral West were living in poverty in 2019-20. That has increased since 2015. Does she agree that Government policy is having a direct impact in stimulating child poverty? She is talking about parents being in work, but policies such as the cut to universal credit are only making the matter worse.

[Liz Twist]

I absolutely agree with my hon. Friend, and I shall come on to that later. The regional inequalities go beyond childhood and affect people in the north-east throughout their life. According to “Health Equity In England: The Marmot Review 10 Years On”, living in a deprived area of the north-east is worse for health than living in a similarly deprived area in London, to the extent that life expectancy for those living in deprived areas of the north-east is nearly five years lower. Life expectancy in the north-east is lower than in any other part of England, and region matters more for people in the most deprived areas. For both men and women, the largest decreases in life expectancy were seen in the most deprived 10% of neighbourhoods in the north-east. That is clearly unacceptable. I thank Jane Streather, chair of the North East Child Poverty Commission, for her work over the last 10 years; she steps down as chair later this year.

Of course, we cannot have this debate without speaking about what the Prime Minister calls levelling up. That phrase seems to mean so many things to so many people, but I would argue that a crucial part of levelling up, reducing inequalities or whatever else we call it is reducing child poverty—giving our children and families the economic means to get out of the poverty trap. It was disappointing to see that the levelling-up White Paper did nothing to address that fundamental issue for families, many of whom are working households. The “Child of the North” report clearly points out the link between tackling poverty and increasing productivity, so it makes sense to take steps to remove those children from poverty. What we have seen with the removal of the £20 per week universal credit uplift is the exact opposite.

Another thing we cannot and must not ignore is the impact of the substantial increase in the cost of living. The families and children we are talking about are hit every bit as much as others, and in many cases more, by increasing inflation, the massively increasing energy costs and other increases. Those effects do not show yet in the figures I have quoted. What can we do? We must urgently work towards a comprehensive, cross-departmental child strategy that includes increasing Government investment in the welfare, health and social care systems that support children’s health, particularly in deprived areas and areas most affected by the covid-19 pandemic. That means raising child benefit by at least £10 per child per week, lifting the two-child limit and the benefit cap and, crucially, reversing the £20 cut to universal credit. We need a welfare system that both prevents and tackles poverty.

We need long-term transformative investment in the services that children, young people and families use, particularly those services that are targeted but universal, such as family and community hubs, in order to build social solidarity and reduce the risk of stigmatisation.

We need to develop area-level measures of children’s physical and mental health in order to better understand place-based inequalities. I ask him to look at those issues and respond to those points. I would be pleased to meet him to discuss these issues further. Can he answer each of those points?

I can do no better than finish with the words of Lemn Sissay OBE in the foreword to the “Child of the North” report, which I hope he does not mind me quoting. He says:

“Childhood is life defining and shaped by factors from before birth through to adulthood. A child’s mother’s health, the care they get, through family or the care system, what house they live in, what food they eat, how often they get to run around, their education, their opportunities. All of these things have a big impact and, as this report shows, the average Child of the North is disadvantaged from the start across all of these measures.”

The children of the north deserve the very best chance to develop, grow and prosper. I hope that the Minister will take action on these issues.

--- Later in debate ---

[Peter Gibson (Darlington) (Con)]

It is a pleasure to serve under your chairmanship, Dr Huq. I congratulate the hon. Member for Blaydon (Liz Twist) on securing today’s important debate.

As a fellow north-eastern MP, I know only too well that the north-east has been left behind by Governments of all colours. In 2019, the people of Darlington and other constituencies across the north-east elected Conservative MPs on the promise of levelling up and realising the full potential of the north-east. Since the election, the Government have faced incredible challenges that no other Government have. They have pressed ahead with their ambitious agenda and have committed to unprecedented investment up and down the country.

The annual “Households below average income” publication, about the number and percentage of children in low-income households, remains the most accurate published measurement of low income. Those statistics show that in the past decade 100,000 children have been lifted out of absolute poverty, and levels of combined material deprivation and low income for children are at their joint lowest level.

We know that the best way for people to find a route out of poverty is through work. That is why I welcome the Government’s lifetime skills programme, which enables people to get the skills they need in order to get the jobs that will help them to provide for their family.

[Liz Twist]

The hon. Member has quoted some measures. As he will be aware, there are different definitions of child poverty; the standard definition refers to 60% of median income. He needs to recognise that there is a difference.

[Peter Gibson]

I am grateful to the hon. Lady for her intervention. The issues around accurate definitions pose part of the problem. I hope the Minister will address that point, as Members on all sides of the House need to agree on an accurate definition of the issue that we are discussing.

The chances of a child growing up in poverty are significantly reduced when both parents are working and when both parents are present. I am proud that this Government are taking an approach to tackling poverty that has employment at its centre. The Government’s plan for jobs has already supported millions of people, and will continue to support people into work, in developing their skills, in making the most of their talents and in achieving their potential.

I recently met the Joseph Rowntree Foundation, and it impressed on me that it is in single-parent families or those with absent parents that a child is most at risk of growing up in poverty. We must remember that the state has limited levers for dealing with poverty unilaterally. A responsibility rests on both parents, and I would like to see greater efforts by the Child Maintenance Service to ensure that absent parents pay and meet their responsibilities.

While we know that employment is hugely important, I am glad that we have a robust welfare safety net in place to support people on low incomes; £111 billion has been invested in welfare support for people of working age. I welcome the Chancellor’s decision to extend the work allowance for those on universal credit, and the reduction in the taper rate, ensuring that work really does pay. Moreover, I welcome the Government’s £421 million household support fund to help vulnerable people in England with essential household costs over the winter, as our economy recovers.

Improving educational outcomes for children is also key to tackling long-term poverty, and the Government are determined to help people receive the best possible start in life, creating a level playing field for transforming the education system, to ensure that people gain the skills they need to unleash their potential. The Government recognise the current regional differences in schools, meaning that some children do not have access to the same level of education.

I also take the opportunity to praise the Government’s fantastic holiday food and activities programme. Darlington Borough Council received £460,000 to deliver food and activities over Easter and summer, and has already reached more than 2,000 local children. Councillor Jonathan Dulston, the deputy leader of Darlington Borough Council, said:

“This fund came at a crucial time, and this Government support gave local authorities like Darlington the tools to step up and bring communities back together by creating educational, physical and fun opportunities to help our children thrive.”

--- Later in debate ---

[David Rutley]

I do not have those figures in front of me. There has been some debate about the appropriate measure. Some hon. Members are keen to have a relative measure as opposed to an absolute measure, but there are challenges with that, with some counterintuitive results. For example, relative poverty is likely to fall during recessions, due to falling median incomes. That measure of poverty can decrease, even if people are getting poorer. We need to look at different measures. The measure we think is most accurate is absolute poverty before housing costs. We have, of course, set other key statutory indicators in place as well, around parental worklessness and children’s educational attainment.

[Liz Twist]

I want to touch on the definition of poverty because it is clearly important. I should point out that the people I referred to, who are producing the reports around the north-east and the north, are well-respected academics who look into these issues. I should also point out that the House of Commons Library produces figures on both these measures. It is clearly a difficult area.

[David Rutley]

I know that the hon. Member is very thoughtful about these matters; we have worked together in different capacities over the past few years. Of course, there are different measures. Today I am highlighting that it is difficult to decide which is most appropriate. The Government and t Department believe that absolute poverty before housing costs is the best measure. I have highlighted one of the problems with relative poverty targets at certain times in the economic cycle, and we need to be cognisant of that.

With our economic recovery continuing, it is right now to focus on helping people, wherever they live in the UK, to move into and to progress in work. There are more than 1.29 million—nearly 1.3 million—vacancies across the UK. Payroll employment is at a record high of almost 29.5 million; it is higher now than it was in February 2020 across all regions. Last quarter, there were 14,000 more jobs in the north-east in payroll employment, and 38,000 in the north-west.

Last month, published estimates showed that the number of online job adverts—another indicator of opportunities —across the UK was over 38% higher than the pre-pandemic level. For the north-east, the figure was a staggering 68.9% increase, so there are real vacancies out there.

Hon. Members, particularly Opposition Members, have highlighted challenges for individual families, which I understand, but I am trying to highlight that there are opportunities out there. Hon. Members know from speaking to their businesses that there are shortages of labour. One thing we need to do is ensure that we can match those people who need work with the opportunities available.

--- Later in debate ---

[Liz Twist]

I thank all hon. Members who have taken part in what has been a stimulating and thoughtful debate. I did ask some specific things, and I clearly did not expect the Minister to roll over and agree with some of them, although I wish that he would—particularly whether he might be able to check his diary to see if he can attend the “Child of the North” meeting next week, because it would be worth while to talk to the academics there. I would also welcome the opportunity to speak to him about some of these things in more detail.

There are too many points to respond to, not least the bits about employment and unemployment. Unemployment in the north-east was actually higher; it bucked the trend in some other parts of the country. That is a significant point.

The Minister referred to the integrated rail plan and the expenditure on rail. He will know that across the north, most of us feel that we have lost out. There may be investment, but we have lost out on the opportunities provided by strengthening the east and west coast connection and the High Speed 2 proposal.

What we need in the north is not just jobs; we need good, high-quality jobs that represent real opportunity for people to develop and make the progress he talks about, and we need to do much more to make that happen. Finally, the north is great. The north-east is great.

[David Rutley]

The north-west is great too.

[Liz Twist]

Well, I will speak for the north-east and the rest of the north—they are great. The debate is not about whingeing and saying, “It’s not fair.” It is about saying that the north-east is a fantastic place and our children need the best opportunities to make the best of their lives.

Motion lapsed (Standing Order No. 10(6)).