Child Poverty

Debate between Neil Gray and Douglas Chapman

Tuesday 15th September 2015 Westminster Hall

[Douglas Chapman]

My hon. Friend will perhaps be aware of the report by the Educational Institute of Scotland called “Face up to Child Poverty”, the stand-out quote from which was:

“Not only is the incidence of poverty increasing, the nature of poverty is changing. Low wages mean that more than half (59%) of children living in poverty are within families in which at least one adult is employed…Scotland has seen a 400% increase in the use of food-banks…and organisers report that a significant proportion of their clients are in work”.

Will he comment on that view of how the nature of child poverty is changing? What should the UK Government do to change that situation?

[Neil Gray]

I thank my hon. Friend for pointing out that important report. It is a very sad state of affairs when our teachers have to deal with children who are hungry when they come to school. That is shocking and depressing.

Wholescale cuts to tax credits will reduce the allowance before tax credits start to be withdrawn from £6,420 to £3,850 and increase the taper rate at which tax credits are withdrawn from 41% to 48%. Those cuts will slash household incomes for 197,200 families in Scotland with nearly 350,000 children. Nearly 250,000 families in Scotland will be worse off by an average of £1,000 per year as a result of changes to tax credits alone. As they qualify for tax credits, those families by definition have the lowest incomes in the country. They are least able to deal with those cuts to their income and, as they are in low-income work, will have little opportunity to increase their wages to a degree that would make up the shortfall. They are also far more likely to live week to week and simply cannot cut their cloth to suit.

All that completely flies in the face of Government rhetoric about making work pay. Indeed, when the Budget measures are taken in the round, the IFS has said that people in the four lowest income deciles will see their net income cut by between £600 and £1,300; compare that with people in the ninth decile—the second richest decile in society—who are to receive a net income rise. Levels of income without question have an absolute bearing on levels of poverty, yet as a result of scrapping the Child Poverty Act 2010, this Government will no longer have to account for income levels in the UK.

Poverty robs children of their childhood. Children living in poverty are more likely to live in poor housing, and to have poorer education outcomes and greater health issues. Poverty is the greatest barrier to children achieving better life outcomes—the aim at the heart of the UN convention on the rights of the child. Given that it has been demonstrated that their measures will push more children into poverty, it is time for this Government to think again and take a different path.

For their part, with their limited influence over these matters, the Scottish Government are providing over £300 million between last year and next to help mitigate the worst of the Westminster welfare cuts for families in Scotland. That means the people of Scotland are paying twice for the Tory cuts—the Scottish Government have their budget slashed and they have to set aside extra cash to ease the burden for hard-pressed families.

In conclusion, for all the reasons I have mentioned, I say, in accordance with the traditions and procedures of this place, that yes, this House has considered child poverty in this debate, but in reality, its current Tory majority is certainly not considering child poverty, and it is about time that it did.