Child Poverty in Scotland

Patricia Gibson Excerpts

Wednesday 30th October 2019 Westminster Hall

[Hugh Gaffney]

I totally agree. That is a change we can make today.

The Government decided to implement a two-child limit policy, despite warnings from this House and charities that it would worsen child poverty in Scotland. What was warned about has come to pass, and almost 4,000 low-income families in Scotland are affected, with a loss of £3,000 per year for each family. We cannot ignore the impact of other welfare reforms introduced by the Government. The benefit cap affects over 3,000 households in Scotland, 92% of which contain children. The benefits freeze has impacted low-income families, further fuelling child poverty across Scotland.

It would be fair to say that the Government’s welfare reforms have worsened the child poverty rate in Scotland, but we cannot ignore the fact that the Scottish Government have gained greater powers, which would enable them to better address child poverty. The Joseph Rowntree Foundation highlights that in areas of Scotland such as Edinburgh, where the private rent sector is bigger than the social sector, private rent growth has outstripped inflation over the last decade. Higher rents impact on the incomes of families, meaning that they are less able to cover essential costs such as food and heating. Undoubtedly, that fuels child poverty across Scotland.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

The hon. Gentleman will know that 16% of benefits have been devolved to Scotland. He says that the Scottish Government should do more; what does he think the Scottish Government should do that they are not currently doing?

[Hugh Gaffney]

The Scottish Government should use more of their powers to help children. They have the powers; we are asking them to use them. The Scottish Government’s own figures reveal that there was a 4% increase in the number of children living in temporary accommodation last year. Nearly 7,000 children now live in temporary accommodation in Scotland, and last year, 38 children were made homeless every day. It is clear that the failure to provide permanent, high-quality accommodation for children is increasing child poverty across Scotland.

[Hugh Gaffney]

Are those houses social housing? Are those houses council housing?

Although the Scottish Government have introduced a £10-per-week child support payment, it will not be fully in place until 2022. My good friend Mark Griffin MSP highlighted that nearly 60,000 children will lose out on the child support payment because initial applications will be restricted to children who are five and under. How will such a restriction truly help to tackle child poverty across Scotland? We need real policy changes that will eradicate child poverty in Scotland. We must scrap universal credit, because it has absolutely failed to address child poverty.

[Patricia Gibson]

I thank the hon. Gentleman again for being generous with his time. We are all on the same side; we all believe that child poverty is bad, and we all want to do whatever needs to be done to eradicate it. Again, 16% of benefit powers are devolved to Scotland. He talks about policy changes; what specific policy changes does he want in Scotland that we have the power to deliver but have not yet delivered?

[Hugh Gaffney]

I said at the beginning that we are here to get the right policies. I want the right policies in the Scottish Government.

The Government should end the five-week wait that claimants must go through, as the hon. Member for Glasgow South West (Chris Stephens) said, before they receive their initial universal credit payment. I was also concerned to hear that the Secretary of State for Work and Pensions refused to rule out a further extension of the benefits freeze. I urge the Government to bring the benefits freeze to an immediate end, rather than looking at extending it. An extension of the benefits freeze means an extension of child poverty across Scotland. I urge the Government to end the benefit cap and the two-child limit policy.

Ahead of this debate, the House’s digital engagement team undertook a public engagement exercise and received over 700 responses. Respondents called on the Government to look again at their damaging welfare reforms such as universal credit. I hope that the Government will reflect on that.

The Scottish Government must also look at the policy changes that they could make. They could introduce a Mary Barbour law to cap rents in the private rented sector, in order to help low-income families. They could build more social and affordable housing to end the disgrace of children being trapped in temporary accommodation, or finding themselves homeless. They could look again at the child support payment, which the Resolution Foundation found would still leave more than 25% of children in Scotland living in poverty—the Scottish Government’s own target of 18% would not be close to being met. I also urge them to listen to the calls of Scottish Labour for a child benefit top-up of £5 per week to support those affected by the two-child limit policy.

I started this debate by saying that all of us in this House share the goal of eradicating child poverty in Scotland. That goal will be achieved only through serious policy change of the kind that I have suggested today. I put on record my support for North Lanarkshire Council’s Club365 programme, which helps to tackle holiday hunger among children in my constituency. That shows that local councils can take action to address child poverty, despite the budget cuts imposed on them by central Government.

Former Prime Minister Gordon Brown was right to say that Scotland now has a full-blown child poverty emergency. In emergencies, we expect rapid and decisive action. I hope we will see that action from both the UK and Scottish Governments.

--- Later in debate ---

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

I congratulate the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) on securing the debate. In my constituency, one third of children live in poverty, and it has the third-worst statistics in the whole of Scotland for child poverty. That is shameful in this day and age, and it matters, because I grew up in abject poverty and I know what it is like. Poverty is not just about a lack of money, although clearly that is the foundation on which all poverty is built. It bleeds into every single area of life, and it is hugely damaging for the children affected. It does not just mean a cold house, or going to bed with an empty, hungry tummy, which is bad enough and completely unacceptable in this day and age. It also brings with it a poverty of hope, aspiration, self-confidence and self-belief.

Material poverty reduces and lays waste to the things we want all children to have. It is life-limiting, and too often leads children into a pit from which it is hard for them to escape. Even if, on growing up, they manage to drag themselves out of poverty, it leaves scars behind that do not vanish on reaching adulthood.

I have spoken in the past about how poverty brings isolation. When people live in poverty, there is no money to access local services. Parents cannot take their children out for a treat for the day; they cannot go to the pictures or visit the local café. They cannot have the everyday pleasures that ought to be part of every child’s life. It means that their life is limited and their horizons are not broadened. Many things are out of reach for them. That life limiting brings another kind of poverty, which arises from material poverty. That is a shocking indictment of a country as rich as ours.

[Dr Whitford]

My hon. Friend was a teacher in a former life, before she came here. I am sure that she recognises the impact of the cold house and the hungry tummy on trying to concentrate and study. These children will struggle at school, which will impact on all their opportunities for the rest of their life.

[Patricia Gibson]

Absolutely. My hon. Friend makes an excellent point. The fact is that unless child poverty is addressed, raising aspiration and attainment is like working with one hand tied behind your back. Children who are hungry or go home to a cold house tend to find it much more difficult than other children to attain their goals at school, whether those are academic or vocational. Their life is limited in ways that are difficult for people who have not experienced poverty to imagine.

The Scottish Government are doing what they can to tackle child poverty. Their Child Poverty (Scotland) Bill sets tough targets to reduce child poverty levels. A £50 million fund will support innovative approaches to tackle child poverty. Free early years childcare has been expanded to 30 hours per week, and there is a new best start grant to provide financial support to low-income families. The popular baby box gives practical support to new parents. An initiative that has been unveiled recently is the Scottish child payment, which provides £10 per week for each child.

These measures are welcome and can ease the scourge of child poverty, but they cannot remove it. We need to use all the levers of tax and benefits to make the inroads required to remove it. The Scottish Government have power over 16% of social security spending, and that is better than 0%, but it is far from what is required to tackle this scourge on our society.

It is no accident—the Minister has heard this—that the roll-out of universal credit brings with it a spike in food bank use. In my constituency in the past year, 8,173 people relied on food bank assistance, of whom 2,192 were children. That is an absolute disgrace in this day and age, although I pay huge tribute to the food bank organisations in Ardrossan and Largs in my constituency, which do tremendously good work against challenging odds.

[Stephen Kerr (Stirling) (Con)]

Will the hon. Lady give way?

[Patricia Gibson]

Just a minute. The hon. Gentleman was not here at the start of the debate, so I do not know if am allowed to.

People are punished for being poor. Their children are punished as well, and left without the support that they need. That damages the life chances of children and their parents. Benefits must reflect people’s need—it is as simple as that.

We have heard today about the five-week wait for universal credit, which is unacceptable, but I have something very specific that I want the Minister to take away and think about. I have raised it before—to no avail, as far as I can see. When people have a five-week wait for universal credit, they are offered loans—it does not matter what they are called—by the Department for Work and Pensions to help them through that five weeks. We might think that that helps ease the pain of waiting five weeks for a proper assessment and proper universal credit payments to be made, but I say this to the Minister: if anybody seeks to take out a loan in the normal course of events, they go to a bank and ask for a loan. Their creditworthiness and ability to repay is assessed, and that determines whether they will be given the loan. People on universal credit waiting for the five-week payment are not assessed. They are given loans when it is clear that they are not able to repay them. Attempts to repay the loan shove them further into poverty and despair, and that pushes them further away from the world of work. It is simply not on. It is not working. The Government really need to look at the transitional payments, which are actually loans. Those payments should not be loans. People need support during those five weeks.

The Child Poverty Action Group has said that it is time—I am sure the Minister is aware of this—for the UK Government to use their powers, as the Scottish Government have done, in an equally positive way to develop a wider UK child poverty strategy, so that both Governments can work together to make child poverty history across the UK. I cannot understand why anybody would object to that. I am sure the Minister will want to think carefully and reflect on that.

We have the phenomenon of in-work poverty. The Scottish Government support the real living wage, and many employers, with the Scottish Government’s encouragement, have signed up to paying it in Scotland. The Minister will be interested to hear that employers who have decided to pay the real living wage have reported increased productivity and reduced sick leave, so valuing people is important. It gives me no pleasure to say this to the Minister, but the UK Government have sought to deceive with their pretendy living wage. Nothing should be called a living wage unless it is based on the cost of living. The Government’s pretendy living wage is not, so it should not be called that. This pretendy living wage has led directly to the scandal of in-work poverty, which is absolutely appalling.

The cruel and austere policies of the UK Government are deeply damaging and dangerous for children in my constituency, and they must not go unchallenged. I recently participated in a debate in the Chamber on— I cannot believe I am saying this out loud—childhood hunger. The fact that that is even a thing, that it even exists, is embarrassing and shameful. I do not know how the Minister feels, but if I was part of a Government who presided over childhood hunger and had the ability, as a member of the Government, to do something about it, I would not hesitate. I cannot understand the reluctance. The Government really need to get their act together and take real measures to support children, instead of punishing those who need support. Eradicating child poverty needs to be a priority; it is as simple as that. It cannot be an afterthought or an add-on. It needs to be a priority, and it cannot be considered inconvenient. If we cannot invest in our children, and cannot go to bed at night safe in the knowledge that children are not going to bed hungry, we are doing this all wrong.

I want the Minister to tell us today what serious attempts he is prepared to make, as a member of the Government, to address what can only be described as a scandal. I will make a commitment to him today. Any measures that he takes to tackle child poverty in the UK will find support on the Scottish National party benches. Scotland’s children need and deserve better.

--- Later in debate ---

[Will Quince]

It is not the case that we have just pushed people into low-paid and insecure, part-time work—I do not know whether that is the point the hon. Lady is making. However, it is important to stress that around three quarters of the growth in employment since 2010 has been in full-time work. We know, because I shared the statistics, that being in full-time work substantially reduces the risk of being in poverty. There is only around a 7% chance of a child being in relative poverty if both parents work full time, compared with 66% for two-parent families with only part-time work.

Several hon. Members raised universal credit, which I do not think I have time to touch on in the detail I would like. However, universal credit supports full-time work through smooth incentives to increase hours, a general expectation that lone parents and partners should work—unless caring for young children or a disabled person—and generous childcare subsidies. It is important to note that we have also gone much further to support working families than previous Governments.

[Patricia Gibson]

I thank the Minister for giving way; I know he is short of time. He touched on universal credit. Will he commit to looking at the five-week wait and people having to take out loans, which pushes them further and deeper into persistent poverty? People’s ability to repay them is not considered, and families and children suffer tremendously as a result. Will he commit to taking that up with the Secretary of State for Work and Pensions?

[Will Quince]

I look closely at all elements within my portfolio. Universal credit is probably the largest element of my portfolio, newly added in the most recent reshuffle. On the first assessment period, it is important to stress that it is not a loan but an advance of the first indicative award, and it is interest-free and repayable over a 12-month period. We are already going further, because that will go up to 16 months, and I am exploring ways in which we could potentially increase that further. At present, around 60% of people take that up. The issue the hon. Lady raises is often raised with me by a number of the stakeholders and organisations that the Department works closely with. I am looking at it, of course, but fundamentally we can have a system based either on advances or on arrears.

We now also have a two-week roll-on of housing benefit for those moving on to universal credit, and as of 2021 that will include a two-week run-on of income support, jobseeker’s allowance and employment support allowance. This month we are reducing the maximum level of deductions from 40% to 30%. We are listening and we do make changes, but those changes can only be made within fiscal events. Of course, as I mentioned at the beginning, it will come as no surprise to the hon. Member for North Ayrshire and Arran to hear that I am looking at a number of measures ahead of the next fiscal event to improve universal credit, because we do listen to Members from across the House and to the stakeholders that feed into the Department.

I am conscious of the time, and I want the hon. Member for Coatbridge, Chryston and Bellshill to have an opportunity to wind up the debate, so I will conclude. I reaffirm our view that the long-term approach that we are taking is the right one if we are to deliver lasting change. However, we are not complacent; this is an area of real focus for me and the Department. The Government believe that work provides economic independence, pride in having a job and improved wellbeing. I look forward to continuing to work with colleagues from across the House, the Scottish Government and other devolved Administrations and charities to tackle poverty in all its forms.