Social Security

Debate between Mike Amesbury and Debbie Abrahams

Monday 10th February 2020 Commons Chamber

[Mike Amesbury]

Unfortunately, the Labour party is not in government, but I will say to the hon. Gentleman that the cuts have amounted to £4.7 billion per year, so the so-called investment that the Government propose pales into insignificance against that.

As we have heard from the Minister today, the Government intend to end their four-year freeze on benefits by proposing to uprate working-age benefits in line with the CPI rate as of September 2019, which was 1.7%. We welcome that slight step forward. Remarkably, for a range of benefits and not just universal credit, this will be the first cash increase in basic entitlements since April 2015. It is important to point out that there has not been any recent change in policy from the Government: the freeze was always due to come to an end in April this year, as announced by the previous Chancellor.

If we scratch beneath the surface of the increase, we find that, after adjustment for price increases, the four-year benefit freeze has actually meant a cut in the real level of benefits by 6%. In many cases, that has come on top of earlier cuts. The 2015-16 benefits freeze followed uprating by only 1% each year in the three years prior to its introduction. There is, therefore, now a yawning gap between the level of benefits offered and essential living costs. Those political choices have consequences, with child poverty, homelessness and in-work poverty at alarming levels, as evidenced in the recently published Joseph Rowntree Foundation UK Poverty report.

Indeed, under this Prime Minister, children will receive a miserly increase of 75p per week in child benefit, and the second child just 55p per week.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

My hon. Friend is making a lengthy and well thought-out speech, unfortunately not reflected by the Government. He mentioned the increase in child poverty and the concerns that so many charities, including the Joseph Rowntree Foundation, have. Their conclusion is that the cuts in social security are driving not only child poverty but disability poverty. Does he agree?

[Mike Amesbury]

I do agree with my hon. Friend. Social security has become a vehicle for cuts and children have borne the brunt, with over 4 million now in poverty.

The 75p per week for the first child will not even buy a loaf of bread in many shops. As a result of the four-year freeze, families living in poverty are now a total of £560 worse off a year on average, equivalent to three months of food shopping for low-income families. Harsh and punitive Conservative policies such as the benefits freeze, the two-child limit and the five-week wait have created a society in which people are forced to turn to food banks in ever-increasing numbers just to get by.

The flagship social security reform of universal credit is not working. The full roll-out will now be delayed yet again until 2024, seven years behind the original plan. It is driving far too many people into poverty, debt and rent arrears. One of its key defects is the in-built and unrealistic five-week wait. At what stage will the Minister apply common sense and change that to fortnightly payments?

According to latest figures available, in 2018-19 the Trussell Trust distributed just short of 1.6 million emergency food parcels, of which 578,000 went to children—the highest level since the charity opened and up nearly 20% on the previous year. In some parts of the UK—Scotland and London and the north-east—the percentage increase year on year was even higher. That represents a depressing 73% increase in food bank use over the past five years, and the Trussell Trust identifies the failing benefits system as one of the main reasons behind that. Behind these devastating statistics are real people, families and children up and down the country, many of them in the constituencies that the new Tory MPs in the north represent.

I turn to the freeze in the local housing allowance. Evidence suggests that it has been a particular source of hardship because of the increasing number of people forced into private rented accommodation by the shortage of social housing. The charity Shelter has calculated that as a result of the benefit freeze, 94% of areas in the UK are unaffordable for people claiming LHA. Recent research by the charity Crisis and the Chartered Institute of Housing found that almost 93% of areas were still unaffordable. There are huge discrepancies throughout the country. For example, an average of £87 a month would be needed to make the bottom 30% of the rental market available in the UK. However, in London a claimant would need an extra £1,398, so the uprate of £10 per month is totally unrealistic.