Scotland (Poverty)

Mark Lazarowicz Excerpts

Wednesday 30th November 2011 Westminster Hall

[Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)]

I am grateful for having been able to secure this debate on poverty in Scotland on 30 November, St. Andrew’s day, which is also the day of industrial action in support of public sector workers and their pensions. Nothing could be more relevant to the working people of Scotland today than highlighting the threat of the growing poverty in our nation and the attack on workers’ rights by this ideologically driven, right-wing coalition Government. As I describe the Scotland I know, the reality of poverty and the threatened growth in poverty which is facing Scotland, I hope that the Minister will reflect and respond from his perspective of Scotland—although I have my doubts that there will be a shared perspective.

We Scots are often portrayed as a bit sentimental about Scotland, especially on occasions like Burns night or St. Andrew’s day. I want to talk about the reality of poverty in Scotland today. I do not think that the Minister will want to use any notes from my speech at whatever St. Andrew’s night bash he graces this evening. The national heroes and heroines to whom I would like to pay tribute are the anti-poverty organisations such as the Child Poverty Action Group in Scotland, the Poverty Alliance, the churches and other umbrella groups, bringing together those committed to seeing a fairer, more equal Scotland. The heroes and heroines to whom I would like to pay tribute are those in the unions and the Scottish Trades Union Congress who stand up for people’s rights at work and who fight the scourge of unemployment and the attack on working conditions. That is the Scotland to which we should pay tribute today.

I would like to acknowledge the excellent work done by John Dickie, head of CPAG Scotland, particularly for producing the book “Poverty in Scotland”, which contains some relevant facts and figures to which I shall refer. How do we measure poverty? People are considered as living in poverty if they live in households with less than 60% of median household income. That is the key measure used by the UK and Scottish Governments and by the European Union. Using that measure, and after housing costs are taken into account, the latest official data show that a single person is in poverty if he or she is living on less than £124 a week. A lone-parent family with two children aged five and 14 are in poverty if they are living on less than £256 a week, as is a couple with two children aged five and 14 on less than £346 a week—which is just over £12 a day, and not a lot to cover food, fuel bills, household goods and transport, never mind school trips, family visits and leisure activities. About 970,000 people in Scotland live in poverty—19% of the population. About 250,000 children live in poverty—25% of all children. Poverty in Scotland and across the UK is significantly higher than in many other European countries. In Denmark and Norway fewer than 10% of children live in poverty, while Germany has a poverty rate of 15%.

One would have thought that poverty levels in this day and age should be falling, but not any more. Yes, real progress had been made specifically among children—the numbers went down by 100,000 between 1996-97 and 2004-05. The number of pensioners in poverty has decreased by nearly two thirds since 1996-97. However, since 2007 there has been no overall reduction in child poverty or in poverty among adults of working age.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

I am grateful to my hon. Friend for giving way and I congratulate her on securing this debate. Given her comments, does she share my disappointment and anger at the fact that 10,000 children in Scotland are likely to be forced into poverty as a result of the tax and benefit decisions made by the Government yesterday?

[Sandra Osborne]

Absolutely. I will come to that point later.

These trends follow dramatic increases in poverty between 1979 and the mid-1990s. Perhaps, like me, the Minister remembers those years and can offer a view on what caused that to happen and on whether we are heading back in that direction, thanks to his Government’s policy. That is exactly the direction in which the Government are taking Scotland. Cuts and reforms currently in train will have a significant negative impact on individuals and communities across Scotland and on devolved issues such as housing, child care, health, social care, equality and anti-poverty policy as a whole.

In June 2010 the Chancellor promised a Budget that would be tough, but fair. He announced an increase in VAT to 20%, a two-year pay freeze for public sector workers, a three-year freeze in child benefit and a tightening of housing benefit entitlements and eligibility for child tax credits, among other austerity measures. Coupled with the comprehensive spending review last October, those measures represent some of the most regressive in living memory. Yet, in the same breath, the Government claim that we are all in this together.