Cost of Living and Brexit
Debate between Mhairi Black and Philippa Whitford(11 months, 1 week ago)
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Dr Whitford
I thank my hon. and learned Friend for her contribution. It is quite clear: we saw the discomfort of the Labour party on Brexit for quite a number of years, because its approach to Brexit had flip-flopped backwards and forwards, so it simply avoids the topic.
Until recently, people would think that there had been an omertà in the mainstream media when discussing the UK’s poor economic performance. Despite previously campaigning against Brexit, the Labour leader, the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), is now clear that he will not consider rejoining the EU, the customs union or the single market, yet he claims that he can somehow reduce the trade friction that has cut exports by 15% and cost 4% of GDP.
Just as Brexiteers claim the problem is just that Brexit is not Brexity enough, we now have Labour claiming that they will “make Brexit work”. It cannot work, but if the Labour leader wants to reduce some of the damage of Brexit, he should support the idea of a Committee to identify proposals that could be put to the EU prior to the review of the trade and co-operation agreement in 2026. Otherwise, what is the plan—close his eyes, click his red heels together and make a wish? Talk about not reading the room.
Just as polls show that a majority across the UK recognise that Brexit is a mess and would support rejoining the EU, the supposed official Opposition have lashed themselves to the mast of the floundering Tory Brexit ship. I am not quite sure why they are called the official Opposition when they do not seem to do much opposing and just go along with the policies of this Tory Government, whether that is on Brexit, immigration, outsourcing the NHS in England to private companies or denying the right of the Scottish people to choose their own future.
Labour may have abandoned almost all its previous pledges, and does not offer much real change after the next election, but the politicians who have caused the current damage to the UK economy are those with their bahookies squarely planted on the Government Benches. Tory austerity may initially have made the Treasury balance sheet look better, but 13 years of benefit cuts and public sector pay freezes have sucked money out of local economies, leading to dead high streets and rising poverty, particularly among children, pensioners and disabled people.
Austerity also meant that health and care services were already struggling when covid hit, and the workforce shortages that hamper all four UK health services have been exacerbated by the loss of freedom of movement, meaning that they are all struggling to catch up on the backlog.
The cost of energy is a major contributor to the cost of living crisis, but while global energy prices have risen due to the Ukraine war, the problem has been exacerbated by the Tories’ policy over decades. It was their poster girl, Mrs Thatcher, who put the profits of oil, gas and electricity into private hands. That has left the UK fully exposed to global price rises, despite the UK and Scotland’s energy potential. We are unlike France, with its nationalised power supplier, which has been able limit price increases to 4%. The UK has been unable to do that.
While the energy support payments were welcome, they had a limited impact on energy bills, which had doubled in a year. The UK Government did not follow other European countries such as Germany, Spain, Ireland or the Netherlands in substantially cutting VAT on energy bills, even though rising prices means that such a VAT cut could have been revenue-neutral.
Brexiteers actually promised cheaper food—it is hard to believe—but that has turned out to be a complete crock, with food inflation in the UK at more than 19%, the highest in Europe. The costs of basic foods and supermarket brands are rising even faster, meaning that those on lower incomes face a dramatic surge in food costs, with more people resorting to food banks or missing meals. Almost 30% of the UK’s food comes from the EU, so there will be another surge in food prices next winter when the UK introduces full customs checks on foodstuffs being imported from the EU.
Mhairi Black (Paisley and Renfrewshire South) (SNP)
Does my hon. Friend agree that it is also an absolute scandal that during a cost of living crisis, when we are seeing prices such as those she described, we have produce going to waste in Scotland because we do not have enough people to actually pick the fruit and veg?
Dr Whitford
I thank my hon. Friend for that point. While soft fruit is a particular issue in Scotland, this is an issue right across the UK because of the lack of European staff in harvesting. As my hon. Friend says, the sector is seeing food rotting. We are also seeing this issue in other sectors; there is hardly a sector that is not struggling for workforce.
With regard to the checks on incoming foodstuffs from the EU, the former ill-named Brexit Opportunities Minister, the right hon. Member for North East Somerset (Sir Jacob Rees-Mogg), delayed the checks for the fourth time last year. At the time, he suggested that they would cost £1 billion, and described them as an “act of self-harm”—duh! I could have told him that in 2016. On top of that, the now-infamous mini-Budget that tanked the pound and the stock market while the then Chancellor, the right hon. Member for Spelthorne (Kwasi Kwarteng), was still on his feet, sent mortgage costs spiralling. The relentless rise in interest rates in response to inflation is making home ownership unattainable for young families, as well as pushing up rents.
Benefit Claimants Sanctions (Required Assessment) Bill
Debate between Mhairi Black and Philippa Whitford
Mhairi Black
My hon. Friend makes a brilliant point. It is covered by the second part of the Bill, which I will touch on later.
It is clear that DWP decision makers are not making any genuine assessment but are simply rubber-stamping referrals, because the proportion of people being sanctioned for not actively seeking work has risen to 98%. No real consideration is being given to the individual’s circumstances and life.
On health, “Living at the Sharp End”, a recent Citizens Advice Scotland research report on the causes and impacts of gaps in income for Scottish citizens advice bureau clients, found that benefit sanctions were one of the top five causes of a period of no income. One of the most striking findings from an analysis of the report’s 47 case studies is the impact that gaps in income have on the mental and physical health of clients in the sample. Of those case studies, almost a third mentioned worsening mental health issues as a result of a gap in income, and two of them explicitly mentioned suicidal thoughts.
I ask Members to think of the process that people already have to endure. As I said at the beginning, they are already terrified before they go into the jobcentre, never mind when they end up as part of the sanctions process. [Interruption.] If an individual suffers from depression, anxiety or any other mental health condition, the system as it stands completely neglects what life is like for them when they are having a bad day or are struggling. In response to a Scottish Government consultation in October 2015, the Scottish Association for Mental Health said:
“The number of sanctions applied in Scotland doubled in the last year, and individuals with mental health problems are disproportionately affected.”
Dr Philippa Whitford (Central Ayrshire) (SNP)
The Health Committee is conducting an inquiry into suicide and the causes of suicide. Since the crash of 2008 and the increase in the number of unemployed people, we have seen a sharp rise in the number of suicides, particularly among middle-aged men, who suffer at rate of 3:1. The idea that the financial changes that this country has seen over the past seven or eight years have had no impact is, frankly, wrong. How people are treated really matters, not just for the quality of their life, but for whether they survive.
Mhairi Black
The idea that individuals and citizens in our society are reliant solely on the charity of others to eat and to feed their children shows that we are sliding backwards down a hill to Victorian times.
Dr Whitford
We also have to acknowledge the increase in malnutrition in this country, particularly micro-malnutrition, which means a lack of vitamins and minerals. People who are living precariously with low-paid jobs tend to have poor nourishment, and if they are reliant on food banks they have no access to fresh food, given that the vast majority of them do not provide it. We are, therefore, laying down problems for the future.
Mhairi Black
What Sean in Glasgow got across was that one of the main reasons behind the anxiety that prevents people from having nutritious food and from feeling confident enough to get out of their bed if they are depressed and to get a healthy diet comes down to the pressure that the system as it stands puts on mental health.
Mhairi Black
That point speaks for itself. This is not a political argument; it is factual. The system is costing money; it is not giving us good value for money. It is causing a lot of distress and hardship for many people.
Dr Philippa Whitford
Over the last seven or eight years, pressures on the mental health services in this country have increased. It may not simply be that the sanctions regime is not saving money; the regime is likely to be costing money, because it is driving more people to require support.
Mhairi Black
I appreciate the point that the hon. Lady makes, but with the greatest respect, she misses the point. When people are under extreme stress, they accumulate debt. That is how, as the study says, they end up in arrears, which puts pressure on councils, local authorities and the individuals themselves.
In a report published in December 2015, Crisis found that homeless service users are disproportionately affected by sanctions. In the past year, 39% of the survey sample had been sanctioned, and three quarters of the survey respondents who had been sanctioned said that it had had a negative impact on—surprise—their mental health. Overall, 21% of sanctioned respondents said that they had become homeless as a result of the sanction. The simple fact is that, no matter how we look at it or how we arrive at this point, no Government should make their citizens homeless. It does not matter whether that is happening to 21% of people affected, or whether the figure is higher or lower. One person made homeless is too many. This Bill is an attempt to prevent that situation from ever arising.
Dr Whitford
Is it not the case that aspects of support normally provided by central Government end up being a burden on local government? We do not allow families to live in doorways in cardboard boxes, so they will end up in temporary accommodation, which is funded by local government.
Mhairi Black
My hon. Friend has just echoed the arguments that have been made on that point.
I want to move on to the second main part of my Bill. It deals with hardship payments—my hon. Friend the Member for Livingston (Hannah Bardell) spoke about them earlier—which I view as the second-biggest problem in the system. Currently, when a sanction has been imposed, a person may be able to get a reduced-rate hardship payment, but such payments are not awarded automatically—a person will need to apply for them. Again, we must remember that we are talking about human beings who are often very vulnerable. Whether because of their mental health, their physical health, their financial situation or their caring responsibilities, they are up to their eyeballs in stress already, and when they hear the dreaded word “sanctions”, the situation becomes 10 times worse.
The system is not designed to guarantee that everyone will be listened to. Some people might be lucky enough to be listened to. The system might be fine, as I said at the beginning, in jobcentres that are managing to make this skeleton of a system kind of work, but there is no guarantee that it will be the same for everybody. When an individual hears that they are being referred for—that dreaded word—a sanction, their world often falls apart and they are thrown into utter chaos.
Concentrix
Debate between Mhairi Black and Philippa Whitford(7 years, 6 months ago)
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Mhairi Black
It is actually completely disgusting for this to be happening under the watch of Government. It is also worth remembering that, when we talk about these horrendous individual cases, they are not unfortunate or rare examples—it is happening throughout the UK. Whoever made the music that is played when people are put on hold by Concentrix must be making a fortune, because my entire office can whistle it off the top of their heads, we were kept on hold for so long—and that was on the MPs’ hotline. The fact that people who do not have access to that hotline are sometimes having to spend up to 90 minutes on the phone is ridiculous.
Dr Philippa Whitford (Central Ayrshire) (SNP)
I wonder whether other colleagues have shared the experience of my staff. Concentrix just flatly refused to deal with them, saying that it would speak only to the MP. We are only there one day a week, and that might be when it is not easy to take the history from the constituent.
Mhairi Black
It is also worth remembering that the number people were asked to phone was an 0845 number, so it cost an absolute fortune. I think that anyone in the Chamber would find it cost a fortune, so imagine how much pressure that will put on someone who already qualifies for tax credits, but has been told that they will not be receiving them.
When we in the office did get through, we were told that people had to apply for mandatory reconsiderations, only to discover that the contract also delegated extensive decision making powers to Concentrix, including the processing of mandatory reconsiderations. So this private company has to investigate itself to find out whether it made the correct decision. We should bear in mind the fact that the contract states that it should be paid only on the basis of results. The entire contract has been a shambles; it has been ludicrous from the start.
As if all that were not bad enough, during the evidence session with the Select Committee, Concentrix admitted that 90% to 95% of all mandatory reconsiderations were upheld. The company was openly admitting that it got it right only 5% of the time. These are the people who have applied for an appeal. How many people have had their benefits stolen from them who have not gone for a mandatory reconsideration?