Child Poverty

Lord Bird Excerpts

Monday 29th April 2024 Lords Chamber

Asked by

[Lord Bird]

To ask His Majesty’s Government what plans they have to address the root causes of child poverty across the United Kingdom.

[Lord Evans of Rainow (Con)]

My Lords, as dinner break business is now the last business of the day, the allocation of time is now 90 minutes. Therefore, the Back-Bench speaking time has increased from four minutes to eight minutes.

[Lord Bird (CB)]

I welcome the chance to sort out the problems of poverty in an hour and a half. I welcome the idea that, in such a short amount of time, we can sort out the problem that a third of all our children are in or around poverty—that is 4 million children in the United Kingdom.

I alert people to my belief that, in the seven or eight years I have been in the House of Lords, I have never come to a debate or discussion where the root causes of things are dealt with. I believe strongly that one of the main problems we have is that Governments, Oppositions and people who have worked for many years in and around poverty are always dealing with the effects of poverty; they do not deal with the root causes of poverty. So when I proposed this small debate, I was actually trying to be revolutionary. I was trying to move the House of Lords—and, I hope, the House of Commons—towards the idea that instead of continuously dealing with the effects of poverty, we move the argument towards the root causes of poverty.

Throughout the world—it is not just the United Kingdom—in the region of about 80% of all money spent on social intervention is spent on dealing with the emergency and problems of coping with poverty. There is very little money spent on prevention or cure—the two opposites. Since the time I came into the House, I have been like a scratched record; I have gone on, again and again, asking when we are going to spend our time on eradicating poverty rather than ameliorating it and trying to accommodate it. That has been my real argument.

I think that His Majesty’s Government and His Majesty’s Opposition, and the previous Governments and Oppositions, have always dealt with the terrible reality poverty throws up. Tonight, I want to be a revolutionary and ask why we do not all look at something quite real. Why is it that, for all our efforts over decades—my decades go back to the end of the Second World War—we have always tried to deal with the obnoxiousness that is thrown up by poverty but we have never done a scientific analysis of the root causes of poverty? We have never had a Government or an Opposition, or an argument within our universities and charities, or among those who get involved in the struggles of the poorest among us, ask when we are going to do something about eradicating poverty.

I am sorry if I sound a bit Joan of Arc. I came into the House of Lords with one strict instruction from the people who encouraged me to come here, which was to help to dismantle and get rid of poverty, not to shift the deckchairs on the Atlantic. My instruction was not to make the poor more comfortable but to actually get rid of the concept of poor people.

I come from poverty, and maybe that is what drives me on. I come from people who came from poverty, who came from poverty and who came from poverty. The interesting thing is that when I grew up, I realised that they were surrounded by poverty; they could not get away from it. The mind-forged manacles that go with poverty meant that they perpetuated it. I have done my best within the lives of my own children to get rid of poverty in their futures, but the larger part of my family is still perpetuating poverty. Why? Because the root causes of poverty were never dealt with in the course of their lives.

To me, the big problem with poverty is the inheritance of poverty. In the United Kingdom, about 4 million children—a third of our children—are in poverty. It is interesting that a third of our children are in and around the problems of poverty, and in spite of all our efforts they remain so. What are we, the Church, the charities or the political parties going to do about it? Will they wake up one day and say, “Actually, we’re getting no nearer”? We know that in the last year, 100,000 more children have arrived in poverty.

We need an enormous mind shift, but I do not see it happening. I do not see anybody building the intellectual appliances or the university courses to find out why we are always trying to address the problems of poverty as if a bit more to the poor will actually change anything.

I came into the House of Lords and was astonished at the number of people who wanted me to get involved in agitating to give poor people more. I was determined, however much it would damage my reputation, not to do that. If the only thing you inherit is poverty, how do we break that situation so that you do not inherit it?

Can I just check: if we have more time, does this mean I can speak for another five minutes?

[Baroness Bottomley of Nettlestone (Con)]

Speak for ever, as long as you let me speak for ever too.

[Lord Bird (CB)]

God bless you, because I was running out of time.

[Lord Evans of Rainow (Con)]

My Lords, I announced at the beginning of the debate that rather than an hour, we have an hour and a half. That extends Back-Bench speeches, but the noble Lord may have a few more moments above the 10 minutes for which he has spoken now. He can carry on.

[Lord Bird (CB)]

I love democracy.

I was born in the London Irish slums of Notting Hill, but we moved to Fulham. On my road, I fell into being a friend of a guy whose family, like mine, came from Ireland. His father had accumulated a number of jobs. He was a very clever guy, even though, like my family, he was ill educated. He became very wealthy and bought his house, so he had a house in Fulham Broadway at a time when my family were living around the corner in social housing—what was called council housing. He became very prosperous and employed 20, 30, then 50 Irish people to make money for him, so that he could buy a house, then a bigger one. There were two kinds of poverty. That guy did not inherit poverty, but my family inherited it and made damn sure that we and other members of my family inherited poverty and the mind-forged manacles that go with it.

What do we actually do to break that situation so that people in poverty are given something—a “je ne sais quoi”, a little thing—that will mean they do not imitate the inherited poverty of their own family? To me, that is the big issue: Patrick Crowell and his mum and dad built a business, made money and became middle class and prosperous, but my family remained in poverty. Their children and their children’s children are still in poverty and stuck in social housing, having all sorts of problems.

I want to know how the House of Lords and the House of Commons, with all their great brains, can help us dismantle the mind-forged manacles that come with poverty and its inheritance. That is my passion. Over the next few months, as we move towards a general election, I will be campaigning through my work in the Big Issue, and in Parliament in general, for a reinvention of social housing.

Do noble Lords know that there are so many people in this world who are defenders of social housing? These people absolutely love it and think it is absolutely brilliant. But do noble Lords know that the children of people who live in social housing rarely finish school, get their qualifications, get skilled and move out of poverty? Do noble Lords know that a fraction, an infinitesimal number of people in social housing, ever get to university or college so that they can then start living a fuller life away from poverty? Do noble Lords know that in housing associations, on average 70% of people are unemployed? I do not want to be interpreted as rude or insensitive, but if you really wanted to condemn somebody to poverty for the next 100 years, you would give them social housing.

[Baroness Bottomley of Nettlestone (Con)]

You have had 15 minutes.

[Lord Bird (CB)]

Forgive me—I am now going to stop—but I wanted to move on to say that this is why I am campaigning to change the way we deal with poverty. We have a situation in which eight government departments are dealing with poverty, but we do not have a convergence to dismantle it. Some 40% of government expenditure is spent on poverty; we really need to change it. I am calling for the creation of a ministry of poverty prevention. I thank noble Lords very much for their time.

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[Lord Bird (CB)]

I agree with the noble Lord. Children do need a secure home, but the real problem is that all the conditions that lead you to need social housing mean that you never have a full life. I say to anybody in this House: try living in social housing, and then try to get to university or into a skilled job. That very rarely happens; that is the only problem. For me, the problem is not that social housing is not one of the most beautiful things in creation. The question is: what are we going to do to make social housing the foundation for a growth away from poverty and need?

[Lord Shipley (LD)]

I take the noble Lord’s point, and I understand. Perhaps that is why we need a broader, longer discussion. From my perspective, housing waiting lists are so long, and the quality of so many homes in the private rented sector is so poor, that the need to build decent homes within the sector for social rent seems imperative. Without that we will never solve the housing crisis.

Social housing providers can have a responsibility for providing wider support services, particularly for getting people into work and for giving help and advice to those who suffer from ill health. Estate officers can often do things to assist families or individuals that they would not be able to do if it were not for social housing. Maybe we need to have that longer debate.

I understand totally what the noble Lord was saying about a ministry of poverty prevention. Of course, all Whitehall departments are supposed to be doing things to reduce poverty, but the main one is the Treasury. It is about persuading the Treasury to invest more in things such as social housing that might help to reduce poverty.

There is an issue around income disparity. The first thing that has to be done to reduce poverty is reducing income disparity. That is why we have to deal with low pay, and make every effort to increase the minimum wage and the living wage above the rate of inflation so that those in lower pay brackets have more.

Mention has been made of absolute poverty and relative poverty. The truth is that too many children are being brought up in households with very low incomes. That is always poverty, whether it is absolute, relative or deep. We have heard the figures of 4.3 million children living in relatively low-income households and 2.9 million children in deep poverty—a household where income after housing costs is below 50% of median income.

All those tests are based on income, whereas child poverty derives from long-term unemployment, low qualifications, ill health, poverty of aspiration and poverty of opportunity. All those need tackling by the different Whitehall departments that the noble Lord, Lord Bird, talked about.

If levelling up is to be a success for the Government, child poverty needs to be addressed. The point is that levelling up is about people, not places. It is about individual children, and hence the two-child limit seems wrong. It was introduced in 2017, seven years ago. The Resolution Foundation has told us that it increased poverty, particularly for families with three or more children. It should cease, as it is increasing poverty in poor households. All the organisations that one can think of—the National Association of Head Teachers, the Church of England, Save the Children, the Child Poverty Action Group and Barnardo’s—say that it should cease.

As the right reverend Prelate the Bishop of Lincoln reminded us, Sure Start was a success. It was introduced in 1999 to improve child development. Some 250 projects were created, concentrated in places where high numbers of children under five were living in poverty. Those centres helped with play, learning, health and childcare. I recall that, when I was leader of Newcastle City Council, we had a major success with our Sure Start centres. It is about aspiration and addressing some of the issues that the noble Earl, Lord Effingham, reminded us of.

The Institute for Fiscal Studies said in a recent report that the programme of Sure Start paid for itself with better GCSE results, improved skills in literacy and numeracy, personal development, and fewer interactions with the police and criminal justice system. It is a means of achieving what the noble Lord, Lord Bird, set out asking us to do, which is to spend more money on prevention rather than on solving the problems that poverty has created. There was too short a judgment in 2010, when there was a change of Government and an end to Sure Start. Too many people thought that it had not proved itself but, if a longer timescale had been taken, they would have known that it had.

Something needs to be created in a new Government. It may be called Sure Start or something else, but we need something like that, which intervenes with those who live in poor households.

[Baroness Sherlock (Lab)]

My Lords, I thank the noble Lord, Lord Bird, for securing this debate and all noble Lords who have spoken. Before I say anything more, I add my reflection to those of my noble friend Lady Lister and the noble Baroness, Lady Bottomley, in memory of Lord Field. He was an example to all of us of what it means to take a whole lifetime and yet, at the end, never cease to be outraged by the level of child poverty in a rich country. We all owe him a debt.

Tonight’s debate has highlighted the multifaceted nature of poverty. Whenever we have debates on poverty, there is always a temptation for some people to say that it is not about money and other people to say that it is only about money. Manifestly neither is correct. It is not just about money but it is not not about money either. The noble Baroness, Lady Janke, the right reverend Prelate the Bishop of Lincoln and other noble Lords made a very clear point of explaining what happens when you simply do not have enough money. If that is the case, all the strategies and all the preventive work in the world does not help you feed your kids that night; you simply cannot afford to do it.

On the basic level of access to resources, Britain is not in a good place. Over a fifth of our population lives in relative poverty. I know that the Government prefer absolute poverty as a measure, probably because it normally falls as real incomes rise, but, in the latest statistics in the document Households Below Average Income, we learned that the share of people living in absolute poverty is going up again, as the noble Baroness, Lady Janke, pointed out. There are 600,000 more people, half of them children, living in absolute poverty, in what is still one of the richest countries in the world by global standards. We should not be in this space.

Look at how this cashes out. The IFS has been pointing out that the number in material deprivation rose by 3 million in the three years to last year. In that same time, the proportion of those who could not adequately heat their homes jumped from just 4% to 11%. I must say to the Minister that, although the Government chose to give people cost of living support, they gave the same amount of money to everybody, whether a single person living in a studio flat or somebody with a family living in a larger house. As a result, the official statistics said:

“Incomes for those with children reduced the most. This reflects the flat nature of the cost of living and additional support payments, meaning for larger households they are split between more household members”.


Have the Government reflected on the best way to support people in these circumstances?

I fully accept that it is about not just incomes but support and opportunity. But child poverty has combined with the impact of 14 years of public service neglect, frankly, and the differential impacts of the pandemic to produce an attainment gap between children who experienced deprivation and their peers, with a lifelong impact on their life chances.

What should happen now? The last Labour Government lifted 2 million children and pensioners out of poverty. I know the noble Lord, Lord Bird, said at the start that he thinks, essentially, “A plague on all your houses. None of you has done anything”, but I am proud that the last Labour Government introduced Sure Start. As the noble Lord, Lord Shipley, pointed out, not only did it have an effect at the time but children had better GCSEs later as a result of having been part of Sure Start back then. I had a privilege of being part of the Treasury team working with Gordon Brown on questions of poverty when Sure Start was being introduced.

[Lord Bird (CB)]

I just want to say that I used Sure Start. In spite of appearances, I was a very young father, and it was the most wonderful thing. I lived on the largest housing estate in south London and Sure Start was absolutely brilliant, so I am 100% behind it.

[Baroness Sherlock (Lab)]

I am grateful to the noble Lord for clarifying that. One of the most depressing points of my career, frankly, was coming into the Lords in 2010 and having to sit on the Opposition Benches watching everything that I had worked on introducing being dismantled stage by stage in the name of austerity. However, we are where we are.

What should happen now? If the British people were to trust Labour again in an election—and obviously I hope they will—then we would want to introduce a mission-driven Government, and one of our five key missions would be to break down the barriers to opportunity for every child at every stage, with a strategy to tackle child poverty. It would be the responsibility of all government departments to tackle the fundamental drivers of poverty. We would address that by having cross-departmental mission boards looking at exactly how that was being driven across departments.

We would focus on increasing the number of young people in education, employment or training. We would look to reform childcare and early years support, introduce free breakfast clubs, and improve school standards. I agree with the noble Earl, Lord Effingham, about the importance of the nutritional content of school food and of access to sports.

On financial education, I am split. I agree with the noble Earl about the importance of financial education. However, recently I have met people who work for charities that traditionally have given debt advice. They told me in the past they would bring people in, sit them down, look at all the sources of income and all their outgoings, and help them to manage their budgets. They are now saying that more and more—sometimes most—of the people they come across literally do not have enough money to do it. Their budgets cannot be balanced; even the charity workers cannot balance them, with all their skills in financial education and management. So we have something of a crisis here. We need people who can manage to be taught how to manage well, while those who simply cannot manage it, however good they are, need to be helped to find a way through that. We would therefore want to support our social security system, strengthen rights to representation at work, improve social security and extend sick pay. We would boost wages by removing the minimum wage bands and expanding the remit of the Low Pay Commission.

We would want to tackle the housing crisis by retrofitting homes, strengthening renters’ rights and building more social and affordable housing. I take the underlying point that the noble Lord, Lord Bird, is making: decent, affordable and safe housing is a necessary but not sufficient condition to enable people to move out of poverty. It is both of those things. It is necessary because many of the people who would not be in social housing would otherwise be in bed and breakfasts, insecurely housed or, even worse, out on the streets.

We need nothing short of national renewal in this country. It will not happen overnight and will not be easy, but it should surely be the priority of any Government to guarantee opportunity to all our children. That is something I think we can all get behind.

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[Viscount Younger of Leckie (Con)]

Absolutely. As I have said before, I do not think that we will agree at all on this—but, as I say, we are not minded to move on this policy. Both noble Baronesses will be well aware of our position on this.

There are encouraging signs that the economy has now turned a corner. Inflation has more than halved from its peak, delivering on the Prime Minister’s pledge, and is forecast to fall below 2% in 2024-25. Food price inflation is at its lowest since January 2022, at 4%, and wages are rising in real terms. We remain committed to a strong welfare system for those families who need it, and have uprated working-age benefits by a further 6.7% from this month and raised the local housing allowance to the 30th percentile of local rents, benefiting 1.6 million private renters in 2024-25.

Some questions were raised by the right reverend Prelate the Bishop of Lincoln and also alluded to by the noble Lord, Lord Shipley, about social housing, which is an important subject. Their questions were linked to items of damp and mould; they asked what the Government were going to do about this. The Government have now introduced Awaab’s law through the Social Housing (Regulation) Act 2023, which gives the Secretary of State powers to set out new requirements for social landlords to address hazards such as damp and mould in social homes within fixed time periods. We are now analysing the responses to the consultation, and then we will publish a response setting out findings and bringing for secondary legislation as soon as possible.

What I should say, which think was alluded to by the noble Baroness, Lady Bennett, is that everyone has a right to a safe and decent home. Since 2001, the decent homes standard, the so-called DHS, has played a key role in providing a minimum quality standard that social homes should meet. We are currently reviewing the DHS to ensure that it sets the right requirements for decency, and we will publish a consultation on a proposed new standard soon.

[Lord Bird (CB)]

I am not against social housing—I am for social housing—but I want to break out of the situation whereby, if you get into social housing, you tend to fall behind everybody else. On what the Minister is saying about how they are going to change the requirements on social landlords, social landlords should be turning their tenants into people who can have a larger life and can get out of poverty. For most of them, even if they get into work, it is always in the low-wage economy, and they stay there. What are the Government doing about breaking the low-wage economy that many people in poverty find themselves in, who are often in social housing?

[Viscount Younger of Leckie (Con)]

Indeed, I will allude to the cross-government work that is going on. It may be that it requires a letter to write on that point, but I shall allude to it later, if I have the time.

Altogether this year we will have spent £306 billion through the welfare system in Great Britain, including around £138 billion on people of working age and children. This includes additional support to ensure the best start in life for children. For example, we have extended free school meal eligibility several times and to more groups of children than any other Government over the past half century. They are now claimed by more than 2 million of the most disadvantaged pupils. In addition, healthy food schemes provide a nutritional safety net for more than 3 million children. For those who need extra help with essentials, as inflation continues to fall, we are providing an additional £500 million for the extension of the household support fund in England, for a further six months, including funding for the devolved Administrations.

While it is right that we maintain a strong welfare safety net, we know that having parents who work, particularly full-time, plays a key role in reducing the risk of child poverty. My noble friend Lord Effingham mentioned this. In 2022-23, children living in workless households were more than six times more likely to be in absolute poverty after housing costs than those where all adults work. This is clear evidence of why, with more than 900,000 vacancies across the UK, our focus is firmly on ensuring that parents get the right support to find work and succeed in work. Our policies include: our generous universal credit childcare offer for working parents; our in-work progression offer; further increases to the national living wage to £11.44 an hour; and national insurance cuts.

The noble Baroness, Lady Lister, asked about making the housing support fund permanent. The HSF is not the only way we are supporting people on lower incomes. April’s benefit uprating of 6.7% will see an average increase in universal credit of £470. Raising the national living wage will deliver an increase of over £1,800 to the gross annual earnings of someone working full-time on that wage. Uplifting the local housing allowance to the 30th percentile of local rents, as mentioned earlier, will benefit 1.6 million private renters by an average of £800 per year.

The noble Lord, Lord Bird, and the noble Baronesses, Lady Lister and Lady Bennett, asked whether we accepted that a strategy was now needed. I did promise to try to answer this. We have consistently set out a sustainable long-term approach to tackling child poverty, based on evidence about the important role of work in substantially reducing the risk of child poverty. I am very aware of the interest that the noble Lord, Lord Bird, takes in this, and I reassure the House that Ministers continue to work across and beyond departmental boundaries to ensure that we take a co-ordinated approach to supporting vulnerable and low-income households. This includes a cross-government senior officials group on poverty, as well as bilaterals and meetings with external anti-poverty stakeholders. The noble Lord, Lord Shipley, is right that Treasury input to this is vital.

I return to the question of childcare raised by the noble Baroness, Lady Bottomley. She asked what extra support we are providing to parents. The Department for Work and Pensions and the Department for Education work closely together to ensure that there is a comprehensive childcare offer that reflects different family circumstances, covering children over a range of ages.

Earlier, I mentioned some of the problems families in poverty face which mean that they can struggle to move into work and improve their financial circumstances. This Government offer a range of programmes to help people address these complex underlying challenges, so that they can take their first steps towards securing better outcomes for their families.

I applaud my noble friend Lord Effingham for making a number of interesting points. The noble Lord, Lord Shipley, put it well when he said that they were interesting contributions to the debate. I agree with many of the points that he made.

The pupil premium funds schools to help improve educational outcomes and close attainment gaps for disadvantaged children in state-funded schools in England. Funding for this is increasing to over £2.9 billion in the year 2024-25. That is £80 million more than last year.

We are taking significant action to improve children’s health, which is another important point. This includes dramatically reducing sugar in children’s food, investing over £600 million to improve the quality of sport for children, and encouraging healthy diets for lower-income families through schemes such as Healthy Start. We are also investing £2.3 billion a year in mental health services.

The Money and Pensions Service’s UK Strategy for Financial Wellbeing is a 10-year framework to help everyone make the most of their money. It has set out five goals to be achieved by 2030, including to see 2 million more children and young people receiving meaningful financial education.

One example of the support that we are giving is the Supporting Families programme, which is now the responsibility of DfE. This has funded local authorities to help almost 637,000 families experiencing multiple disadvantages to make sustained improvements with their problems.

A network of 300 supporting families employment advisers, specialist DWP work coaches, work with the programme, providing employment support that is helping almost 10,000 families, resulting in around 200 job starts every month.

My noble friend Lady Bottomley mentioned Reducing Parental Conflict. This is very close to my heart—I am directly responsible for it in government—and we have £33 million-worth of funding available from 2022 up until next year, 2025. This programme has enabled local authorities to support couples to address conflict in their relationship, which has helped to deliver positive impacts for children over no less than three major evaluations at the end of last year. We are also looking to see how we can ingrain that in the Child Maintenance Service, which again is my responsibility. I feel very passionate about it, and the work we do, by the way, helps to take 160,000 children out of poverty each year, and there is always more to be done.

The noble Baronesses, Lady Janke and Lady Bennett, spoke about childcare, and I want to give a quick response. The department is aware that, for some universal credit claimants, childcare costs present challenges to entering employment. To support people to become financially resilient by moving into work and progressing in work, eligible UC claimants can claim back up to 85% of their registered childcare costs each month, regardless of the number of hours that they work, compared to 70% in tax credits.

The right reverend Prelate the Bishop of Lincoln is not in his place, and I am not sure why. I think I will write to him rather than answer him when he is not in his place. He asked about rural communities.

I shall conclude, given the hour, by reassuring the House again of the importance we place on this matter. The early years, as I am sure the noble Lord will agree, are vital to securing good outcomes for children, and that is why we continue to work across government to ensure the best start for all children, including through our early years childcare provision and funding for school breakfast clubs. We understand that many families still face challenges, we are not shying away from that, and we will continue to work to ensure that the welfare system supports families who need it. To conclude, with inflation falling towards target and the economy beginning to turn a corner—perhaps green shoots; I do hope so—it is right that we continue to support parents to meet their responsibilities towards their children by seeking employment opportunities wherever that is possible.