Child Poverty in the North

Liz Twist Excerpts

Wednesday 3rd May 2023 Westminster Hall

[Liz Twist (Blaydon) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I thank my hon. Friend the Member for South Shields (Mrs Lewell-Buck) for securing this important debate. I also thank her co-chair of the APPG, the hon. Member for Cheadle (Mary Robinson), for her contribution to the debate and for the work of the APPG. It is incredibly important that we look at this issue.

Just over a year ago, I held a similar debate on the relationship between regional inequalities and child poverty, following the publication of the “Child of the North” report, which clearly illustrated all the factors involved in child poverty and the whole range of issues that build in disadvantage for children right across the north, such as education and health, which the hon. Member for Cheadle mentioned. I am pleased that work has continued following that debate, through the child of the north all-party parliamentary group, to make sure that we do not just have a one-off debate but actually continue to identify, and follow up on, the issues identified in the report.

The report was called “Child of the North”, but I want to concentrate on the region I know best, which is the north-east. Sadly, my region has the highest rates of poverty anywhere in England. That is not a claim I am pleased to make. It is shocking that children in my region are suffering poverty and deprivation and are being held back by that as they develop through the years. That is not something I am proud of, and it is something I would dearly like to change. Almost two in five children in the north-east are living in poverty. In my constituency, the number of children growing up in poverty increased by 13% between 2015 and 2021. That is absolutely shocking.

The numbers alone are difficult to think about, but it is even harder to think about what they represent—the struggling families and the children being held back. At an APPG evidence session, the North East Child Poverty Commission presented truly harrowing accounts from the people and families it works with, which brought home the true impact of this scandal on people’s lives. One account came from parents in my local authority of Gateshead who were using watered-down evaporated milk in their baby’s bottles because of the soaring price of baby formula and putting off weaning because of fears about the cost of solid food. That is absolutely shocking. It does not need saying—I hope—that that is simply unacceptable in the world’s fifth or sixth richest country. The report produced by the APPG following its evidence sessions—“Child Poverty and the Cost of Living Crisis”—illustrated clearly, as the hon. Member for Cheadle said, how the problem is compounded by the increases in the cost of living and the challenges people face. There has been a real deterioration there.

I am proud of our local community in Blaydon, and indeed of the many communities across Blaydon, for stepping in where the Government have fallen short. That includes the Gateshead food bank depots at Blaydon and Birtley, and we had the report from the Trussell Trust last week showing the huge increase in the use of food banks. There is also the Blaydon Community Larder, which helps people with food, the Gateshead West pre-loved uniform scheme and Feeding Families, which works across the north-east—I could mention many more organisations.

These organisations do all they can to support people with the basic necessities they need to keep their children safe, happy and fed, but they are struggling more and more to meet the growing demand for their help. According to the Trussell Trust, in the last 12 months the number of emergency food parcels distributed in the north-east rose by more than 50% compared with the previous year. That is the highest year-on-year increase anywhere in the UK. Sadly, Feeding Families, which has a huge depot in my constituency, has had to move premises, because over the last year its usage has increased by 100% as well. That is not an isolated example, and I know that people across the country and the north are also affected.

Families all over the UK and the north are struggling, and I do not want to play poverty Top Trumps—it is not a game I am interested in—but the trends in the north-east are particularly staggering. Last year, The Guardian reported on the 11 local authorities that had seen the highest percentage point increases in child poverty since 2015. All of them, sadly, were in the north-east. Alongside our neighbours across the Tyne, my local authority of Gateshead topped the list. That is not a list that I want us to be top of; I do not want us to be anywhere in that list, frankly, and I want action to put that right. This is a place-based crisis warranting a place-based explanation.

What is particularly striking about the rise in child poverty in the north-east is how it has affected families with working parents. We hear time and again from the Government how the best way to tackle child poverty is to get parents into work. But the number of children in in-work poverty in the north-east rose by 91% between 2015 and 2021, compared with a 27% rise across the rest of the UK, and that is before the cost of living really started to bite. It is clear that what we are seeing is the impact of a longer-term structural issue.

At 14.8% the north-east has the second highest rate of employee jobs paid below the Living Wage Foundation’s real living wage. Two in five of all children in key worker households in our region live below the poverty line—the highest proportion anywhere in the country. Do the Government really want to tell the children of those key workers— children who saw their parents celebrated for all the work they did during the pandemic—that their parents should get yet another job?

With large numbers of our local population relying on low and insecure pay, it should not come as a surprise that many families in our region rely on the universal credit system. Universal credit keeps many of our families going, but it is too often too flimsy a raft and a punitive one. According to figures from the North East Child Poverty Commission, 58% of children in families in Blaydon who receive universal credit collectively lose out on £111,000 per month in deductions from universal credit. That is an average of £73 per household that could have been used to purchase essentials that families scrape together every last penny to buy. Just last month we marked the sixth anniversary of the two-child limit, which has been recognised as one of the leading drivers of rising poverty for families with children. That limit affects 860 children in my constituency alone. It is clear that the system requires an urgent review.

Our social security system was meant to provide for people from cradle to grave, but it seems the Government cannot fulfil even the first part of that obligation. There must be action to ensure that the impact of the current crisis falls on those with the broadest shoulders and not on families who are already struggling to make ends meet. In the world’s fifth richest nation, that should be well within our capabilities.

I want to turn to some of the recommendations in the APPG’s report and the asks that have been touched on by my colleagues. I will keep it simple because the report has been published and can be seen—we are happy to share it with the Minister if she does not have it already. We need to ensure that families have enough money to live on and security of income; that children have enough healthy food to eat; that they have those healthy breakfasts that my hon. Friend the Member for South Shields talked about; and that they have access to the school meals they are entitled to—they should not lose out on free school meals when they are already entitled to them. Children also need to be brought up in warm, heated homes for the best start in life, and we need to use data to identify the families who need additional support and help. Finally, we need a joined-up approach across Government to look at the intersections between poverty, poor health, poor educational outcomes and poorer life expectancy. All of the data needs to be brought together to ensure that policies address all those issues. Our children deserve the best start in life, the chance to thrive and the best opportunities.

Before finishing, I would like to thank the North East Child Poverty Commission, with which I have worked over a number of years, for its work to ensure that we do not forget these issues and these children. I would also like to thank the co-chairs of the APPG, the NHSA and others who wrote the original “Child of the North” report. I hope that we can improve the chances of people in the worst situations and give every child the chance to develop, grow and thrive.

--- Later in debate ---

[Mims Davies]

I understand the hon. Lady’s point. I thank her for her passion and interest in this area, and for what she is doing for her constituents. There is no direct, objective way of clarifying what is an adequate level of benefit. Every person has a different level of requirements depending on their circumstances. Income-related benefits are not made up of separate amounts specific to beneficiaries’ expenditure, or food costs or whatever. The Government firmly believe that beneficiaries should be free to spend their benefits how they see fit in the light of their individual circumstances and needs.

The Government’s approach to welfare is to fully recognise the value and importance of work, which has been mentioned in this debate. Making it work for everybody is vital. We are determined not only to help people progress and be supported in work, but to protect and support the most vulnerable in society. Universal credit is adjusted monthly depending on a beneficiary’s circumstances. It is absolutely right that the people who need additional support, whether that is through the household support fund, hardship payments or an adjustment due to a change in circumstances, are able to come forward. I spent much of my childhood on benefits due to the impact of ill health and disablement, and we had to navigate through the same system. I personally understand it.

Whether people are on benefits for a short or a long time, it is important that they are supported, and know how to navigate the system to get the right support for their family. That is why I am always keen to reiterate the Help to Claim service, the Help for Households website and the work we have done on the household support fund. I thank our partners in particular for their work on delivering the household support fund for people, whether they receive benefits or not. We have heard today that because of the war in Ukraine and the changing impact of the pandemic, more people than ever have found things particularly tough. With the household support fund, I have made it clear that people on benefits, and those who are just above the threshold or just managing, or perhaps in a change of circumstances, will be looked for, found and reached out to so that that discretionary support can be given to those who need it most. Devolved Administrations will receive consequential funding to use at their discretion.

It is right that in our approach to tackling poverty, we are able to bring in different interventions and different changes. People can call it a sticking plaster, but for me it is a different intervention and a step change to support some of the people I have mentioned, who perhaps would not normally need to be supported by the benefits system. It is a firm belief that the best way to help families to improve their financial situation is through not only work but skills. My hon. Friend the Member for Cheadle (Mary Robinson) mentioned sectors and areas where people perhaps do not see a way into better-paid jobs and opportunities. It is vital that we engage and talk with them, and use Jobcentre Plus sits and local networks to help people see that there are opportunities just down the road from them. Their skill base, level of education or confidence—the word we hear continually at DWP—should not lock them out from the opportunities that are there. That is why those 1.1 million vacancies across the UK are our firm focus to help people to take further steps not just into work but to progress in work, and to be better off.

I will turn to some of the points that have been made today to hopefully underline that focus. On jobs interventions, there have been jobs fairs at the JCP in Birkenhead, and there are 16 employers with 400 roles available. In Sheffield, the NHS has very pleasingly streamlined the application process for universal credit claimants, ensuring that we actually attract the people who are down the road into the roles we need filling. In Doncaster, our local team has worked on jobs fairs particularly for those with health conditions and disabilities. In fact, there was recently a north-east jobs fair at the Stadium of Light with 50 employers and 1,800 people invited. It is absolutely vital that we use all different interventions to help people to be better off, including those additional interventions from Government as well as helping people to progress and be better off in work.

[Liz Twist]

I wonder if the Minister could comment on the figures I quoted on the number of people in the north-east who are actually working—many of them in different jobs—but still do not have enough to cope. What do the Government propose to resolve that issue? It is not just about work; it is about having good work.

[Mims Davies]

I completely agree with the hon. Lady. I believe just over £3.6 million has gone into the household support fund in Blaydon, and there have been nearly 11,000 cost of living payments in the hon. Lady’s constituency. We are making those interventions exactly as she describes, to support those people who may be working but whose circumstances have changed. We are in difficult times—let us not deny that—due to a combination of historical, generational problems, as hon. Members have pointed out today, but also off the back of the pandemic and a war on our continent. It is therefore absolutely right that Government are able to step forward. I am happy to write to the hon. Lady about the direct interventions we have made in her constituency to help those youngsters. That is what is at the heart of this matter: not statistics, but people like Sophie, who was mentioned earlier. These youngsters need to know and feel that the Government, and anybody from any political party or any intervention, are on their side and are helping to make things better. I hope that answers the hon. Lady’s question.

[Liz Twist]

I thank the Minister for letting me intervene again. I understand the amount of money that is put in through the household support fund. My question is: if we work on the basis that work should pay and getting into work is the best intervention to give children—as the Minister rightly says, children are individuals, not statistics—the best chance, what are we going to do outside the current cost of living crisis? This issue existed before the cost of living crisis and it will continue. It is, as I said, a structural issue.

[Mims Davies]

I think we are actually talking the same language here. It is about progression in work and being better off, as my hon. Friend the Member for Cheadle mentioned. How does someone go for those better-paid jobs, and how do they progress? Of course, it is also about ensuring that sectors are paying the right rates—good work, as the hon. Member for Blaydon (Liz Twist) mentioned. It is about ensuring that people are well remunerated and well supported in those roles, which is exactly why we have our in-work progression focus. We did a large report on that. It has been mentioned today that transport could be an issue for some people, and their educational base has been mentioned as well. It is about whether people are able to get to that next rung, where they are actually better off. That is what our in-work progression champions are doing in JCPs. Someone can be working all the hours God sends, but are they better off? That is something that answers that question. That is what we are determined to do.

Turning to the report, it is important to highlight what we are doing beyond the household support fund. We are investing £30 million to provide free breakfasts for children in up to 2,500 schools in disadvantaged areas; we have extended this programme through to July 2024. As we know, children continue to learn well if they receive a healthy breakfast. That is really important. Eligibility for free schools has changed several times as we have heard today, with more groups included and 1.9 million disadvantaged pupils being supported through the benefits-related criteria, while a further 1.25 million infant pupils are receiving free school meals through the universal infant free school meals policy.

I absolutely agree that the balance around doing well in education is vital, as we heard from my hon. Friend the Member for Cheadle. We are absolutely focused on these interventions, whether that is the breakfast clubs or the pupil premium, alongside the Department for Education. The schemes are there to help the most vulnerable children. There is also support for children under four and pregnant women through the Healthy Start scheme. We have heard about the holiday activities and food programme, or the HAF programme, which is an investment of £200 million a year. All those interventions are absolutely right. Both from the report and from comments, it has been clear throughout the debate that all our interventions need to change to make a generational shift for our communities. That includes those on in-work progression, our childcare offer and whatever is introduced from each part of the community or from Government.

The levelling-up agenda was mentioned. To unleash the full potential of every local economy, we must spread opportunity to every corner of the country to reverse decades of economic underperformance. As we heard, individuals can be locked out of their local economy if their education, confidence and network hampers them. We need strong local interventions, such as the jobs fairs that I mentioned.

The DWP has local teams that specialise in working in partnership with local authorities. They create the links with communities that are necessary to understand each local area’s needs and to tailor provision and support with the local labour market. Through those links, they regularly engage with local authorities and local leaders, some of whom have been mentioned, to ensure that all our interventions, including our restart programme for the long-term unemployed, work for them.

I will turn to food prices because I am mindful that they are particularly challenging. I am keenly looking at the issue and working on it with the Minister for Food, Farming and Fisheries, my right hon. Friend the Member for Sherwood (Mark Spencer). Rising food prices affect those on the lowest incomes. A combination of factors, including agrifood import prices, domestic agricultural prices, labour costs and manufacturing costs, have had a significant impact. That is why we focused on delivering the biggest support that we could in the spring Budget, including through our focus on childcare.

I am mindful that I have been speaking for some time. I am happy to respond in writing to hon. Members, and I will share those responses with the House. In conclusion, I will be very clear: this Government are fully committed to providing opportunities for parents. We have not heard a lot about parents, but theirs is a really difficult position to be in. They do absolutely everything and strive all they can, but must constantly ask themselves how they can make ends meet so that their children do better. We are determined. In my role as Minister for Social Mobility, I am determined to ensure that people will be able to prevail in every area of the UK. They will be sustained and supported. At the same time, we will ensure that the most vulnerable have the targeted support that they need in these very challenging times.

I thank all those at the coalface, supporting every child in need in every community. We all work diligently to reduce the number of children in need, so that we can see an end to this challenge across our communities—wherever those young people live.