Child Poverty: London

Margaret Greenwood Excerpts

Thursday 22nd February 2018 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Henry. I congratulate my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) on securing such an important debate.

I have been struck by the passion and clear sense of all the speeches we have heard from Members championing the need to improve the situation of those in poverty. From the stories my hon. Friend told about some of the impacts, I think we will all remember the image of children guarding their school dinner plates with their arms to stop other people taking their food. That is horrific, given the scale of wealth in this country. She made a powerful and moving speech.

I also draw particular attention to the speech by my right hon. Friend the Member for Enfield North (Joan Ryan), who, along with my hon. Friend the Member for Westminster North (Ms Buck), talked about her pride, which I share, in the last Labour Government’s record in lifting 1 million children out of poverty. I also draw attention to the passion of my hon. Friend the Member for Westminster North, which was also touched on by my hon. Friend the Member for Hammersmith (Andy Slaughter), in talking about how such extreme wealth can sit next to such poverty, and the image that people from outside London have of it.

The debate was prompted by the release of disturbing new statistics by the End Child Poverty coalition, which show that, in some parts of London, more than half of children are now growing up in poverty; in Bethnal Green and Bow it is 54%, and in Poplar and Limehouse it is 53%. The Minister questioned those statistics at the last Work and Pensions questions. I suggest that Government Ministers are in no position to do that, given the Government’s reluctance to publish up-to-date figures on a wide range of social security issues. The coalition Government only agreed to continue to publish data on child poverty at all after being pressured by the Opposition and voluntary organisations working in the field.

However, even the Department for Work and Pensions’ statistics on child poverty show that London has the highest rate of child poverty of any part of the UK. According to DWP figures, 37% of children in London are growing up in poverty after housing costs are taken into account. The Institute for Fiscal Studies estimates that current Government tax and benefit policies will see that rise to 41% over the next two years.

Although the rate of child poverty is highest in inner London, it is clear that child poverty is a London-wide problem. For example, some 45% of children in Edmonton are growing up in poverty, as well as 40% in Enfield North and 37% in Croydon North. It is not only the geographical spread that is the problem but the severity of the child poverty. In 2016-17, 40,000 children in London received helped from food banks, according to the Trussell Trust, which is of course the largest but by no means the only provider of food aid in the UK. The latest figures for this year show a similar level of need.

Free school meals ensure that children in families on low incomes get one hot meal a day, which is vital for their wellbeing and ability to learn. The Labour party would introduce free school meals for all primary school children and all secondary school children whose families claim universal credit. Under Government plans, children in families that claim universal credit will no longer be eligible for free school meals if their families earn more than £7,400 a year, which is such a small sum of money that it is difficult to understand how the Department could come up with that policy. Will the Government step back from introducing a cliff edge for eligibility for free school meals?

Many speakers have highlighted the significance of the high housing costs in London; it is something that those of us who do not live in London find quite astonishing. Last September, the median private rent in London for a one-bed property was £1,250 a month, compared with £595 for England as a whole. The level of private renting is at its highest since the 1970s, and private sector rents in London are more than double the average for England as a whole.

Over the past five years, the cheapest fifth of private rents have increased faster than rents in the sector overall. Although the number of children in social housing living in poverty has risen in recent years, the number of children in private rented accommodation living in poverty tripled over the decade up to 2015-16, by which point more than half of all children in private rented homes were living in poverty.

Seven in 10 households in temporary accommodation in England are in London, and more than 80% of them are households with children. Those children have no security in where they live. Levels of overcrowding in London are more than twice as high as the rest of England, and the rate of overcrowding is especially high for ethnic minority households. That means that children may not have the space to play or the peace and quiet they need to do homework. If there are family tensions, it is harder still for children to escape them.

Just 29,000 homes of all types were built in London per year between 2013-14 and 2015-16, and only 24% were —apparently—affordable, which is down 10% on the previous three years. No homes for social rent were built in London in the current Foreign Secretary’s last year as Mayor of London. The current Mayor has set a target in his London plan of 65,000 new homes a year, half of which will be affordable. He also wants to redefine “affordable”, as the current definition of 80% of market rate is beyond all too many people, as many Members have said.

Government funding for affordable homebuilding in London is still less than half the amount spent in 2009-10. The Chancellor announced an additional £2 billion for affordable housing in the Budget, but the Office for Budget Responsibility later revealed that that came from existing housing pots. The Mayor has called for £2.7 billion a year to fund affordable housing in London. Will the Government ensure that he gets the funding he needs to meet London’s housing need?

High London rents mean low-income families are likely to face a shortfall between their housing benefit and their rent. However, the Government have not only failed to back new homebuilding but also cut local housing allowance for private sector tenants in 2011, and then introduced the benefit cap in 2013, which they lowered further in 2016. Will the Government abolish the benefit cap, as Labour would?

In 2013, the Government also replaced council tax benefit with council tax support. Even families with very low incomes are now generally expected to pay some council tax. In 15 London boroughs, 200,000 low-income residents paid, on average, at least £200 more a year towards their council tax than they would have if they had received council tax benefit. Will the Government recognise the pressure they are putting on the finances of families on low incomes and act to restore council tax benefit?

The result of sharply rising rents and less help with housing costs is that low income families are more at risk of losing their homes, which causes misery, for families with children in particular. The total number of eviction orders rose in the five years to 2015-16. Possession orders, rather than mortgage orders, made up 97% of the total eviction orders in that year. High eviction rates are occurring in boroughs with high proportions of families with children living in the private rented sector and receiving housing benefit. Nine of the 10 boroughs with the highest eviction rates are in outer London.

The long waits that universal credit claimants experience for initial payment put them at particular risk of eviction. Increasing numbers of families with children in the capital are claiming universal credit as the full service is rolled out. There is clear evidence from the Residential Landlords Association that landlords are also increasingly reluctant to let to universal credit claimants in the first place.

The Government announced the removal of the waiting period and said that they would make it easier to get an advance, but they refuse to publish regular statistics on timeliness or advances. I had to table a written question in January to find out that, even under the old system of a six-week wait, one fifth of claimants were still not being paid in full on time, and 13% were not receiving any payment at all. The Government would not say how many people had requested an advance, so although more people are getting them, we do not know the extent of the need.

The Minister questioned the End Child Poverty coalition’s statistics. Since the Minister sets such store by accurate figures, will he give a commitment to publish regular statistics on the timeliness of payments and on how many people both request and receive an advance, so that we know whether the changes the Government introduced are making a difference?

The Government do not publish statistics on households affected by the two-child policy either. Will they commit to doing so? That policy will have a particularly severe impact on some religious communities, where reproduction, use of contraception and family size are determined by beliefs, and where culture is also a factor. Those communities are important parts of London’s population, and some of them, such as the Bangladeshi communities in Tower Hamlets and Newham, are located in areas of high child poverty. A couple may well have planned a large family, then found that their circumstances have changed and that they need to receive social security. Will the Government reverse the pernicious two-child policy?

The Government’s stock answer when called to account on child poverty is that work is the best route out of poverty. Yes, it is better to be in work, but work should pay. That was supposed to be one of the foundations of universal credit. However, cuts to universal credit work allowances will hit families on low incomes hard. It is the case that 58% of people in poverty in London are in a family in which someone is in work; that is up from 44% a decade ago. And 17% of people in in-work poverty live in a household in which all the adults work. During the past decade, average weekly pay in London has fallen. In 2016, just over one fifth of workers in London were low paid, compared with 13% in 2005. There is a range of reasons for that, not least a rise in insecure employment. One third of temporary workers are on a temporary contract because they cannot find a permanent job. The figure is nearly 10% higher than in 2004.

Many parents of very young children want to work, but face the challenge of finding both a job that will fit in with parenting and affordable childcare. A recent Gingerbread study of lone parents in Camden highlighted the fact that very few part-time jobs were advertised on the Government’s own job search portal, with which all claimants have to register. The average cost of childcare in a nursery or from a childminder in London is just over £150 a week—more than £40 a week higher than the average for England.

Child poverty in London is not new. Charles Booth’s maps showing the geography of poverty at the end of the 19th century or Roger Mayne’s photos of 1950s Notting Hill testify to that. However, the End Child Poverty coalition’s statistics are still shocking. Rather than questioning the figures and trying to brush them under the carpet, the Government should react to them by making the tackling of child poverty the priority that it should be.