Income Equality and Sustainability

Lord Stevenson of Balmacara Excerpts

Wednesday 6th May 2020 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, I join with others in thanking the most reverend Primate for his service to the House and to the country. His excellent speech caps a career spent campaigning for greater equality in income, notably the living wage. His time has surely come. I declare an interest as a former chair of StepChange, a debt charity, and I would like to make two points.

First, we are seeing a welcome attempt by the Government to mitigate the supply shock being caused by Covid-19. Keeping sufficient liquidity in the economy to ensure that companies can survive and hold jobs open is crucial. But as the IPPR reported today, once the immediate crisis is over, the economy will be scarred and we will need a broad-based stimulus to drive up demand, reduce risk and support the creation of high quality jobs—particularly, as other noble Lords have said, for young people about to enter the job market. Can the Minister confirm that plans for this are under way?

Secondly, the figures show that the Government need most urgently to support the debt charities that are working with those who are suffering because of unmanageable debt. ONS figures show that 8.6 million people have experienced reduced income as a result of the coronavirus crisis, while Citizens Advice has reported that over 13 million people have already been unable to pay or expect to miss at least one bill, and there has been an 81% increase in the use of food banks.

The Government should lead by example by taking measures to reduce the impact on households which are falling behind on bills. These could include bringing forward the statutory breathing space, temporarily suspending the rule that people become liable for their full council tax bill if they miss one payment, temporarily halting all bailiff activity and agreeing with the proposal from Citizens Advice for better protection for renters.

[The Deputy Speaker (Baroness Pitkeathley) (Lab)]

With apologies for the difficulty in hearing the noble Lord, Lord Stevenson, I now call the noble Baroness, Lady Janke.