Oral Answers to Questions

Rachel Hopkins Excerpts

Monday 5th February 2024 Commons Chamber

[Helen Hayes (Dulwich and West Norwood) (Lab)]

6. What recent assessment his Department has made of the potential relationship between increases in the cost of living and trends in the use of food banks.

[Rachel Hopkins (Luton South) (Lab)]

16. What recent assessment his Department has made of the potential relationship between increases in the cost of living and trends in the use of food banks.

[The Minister for Employment (Jo Churchill)]

The Government take food security very seriously and are committed to understanding and addressing food poverty. The reasons that people use food banks are complex and varied. Food banks are independent charitable organisations and the Government have no role in their operation. As such, data on trends are not currently available.

[Jo Churchill]

As I said, the reasons that people use food banks are complex and varied, as all the research indicates. We offer support through cost of living payments and the household support fund, running to hundreds of millions of pounds. The rise in the national living wage, the reduction in national insurance and the local housing allowance further help 1.6 million low-income households. We have a whole of suite of ways to help the very poorest in our society.

[Rachel Hopkins]

Food banks such as the excellent Luton Foodbank have been pushed to breaking point this winter, as more and more people need emergency food due to the Conservatives’ cost of living crisis. It is shameful that we now have more food banks than police stations. What conversations has the Minister had with colleagues in the Treasury about introducing measures in next month’s Budget to support low-income working people facing hardship and to reduce the dependence on food banks?

Oral Answers to Questions

Rachel Hopkins Excerpts

Monday 4th September 2023 Commons Chamber

[Mel Stride]

There is help within jobcentres. There is also Citizens Advice, and a help to claim process available there. When people make genuine errors and when they have been overpaid for various reasons, we are of course sympathetic, to ensure that we do not put them in a position where it is incredibly difficult for them to repay those amounts.

[Rachel Hopkins (Luton South) (Lab)]

15. What assessment his Department has made of the adequacy of its policies on reducing the level of inactivity in the labour market.

[The Secretary of State for Work and Pensions (Mel Stride)]

We are doing a great deal to bear down on economic inactivity. As of August this year, the figures show that over half the increase in economic activity that occurred during the pandemic has since unwound. That is more than 300,000 people into work.

[Rachel Hopkins]

The Secretary of State’s comments suggesting that unemployed over-50s should consider becoming delivery riders clearly show that the Government are failing to help older workers into stable employment. Rather than glorifying precarious work in the gig economy, will he commit to rolling out a plan that gives older workers the dignity, respect and support they deserve to rejoin the workforce?

[Mel Stride]

I think it is very unfortunate when any Member of this House looks down on a certain category of job that is employing hundreds of thousands of people perfectly satisfactorily. In fact, in that interview I said:

“I think as a department we shouldn’t be prescriptive,”—

referring to the over-50s—

“so we’re not here to start pontificating about whether people should or should not go back into work”.

Hopefully that has put the record straight. We are doing a huge amount to support those over 50 who have retired prematurely, including the midlife MOT, returnerships and the tax changes we have made around pensions, and we will continue to support people. That is why we are seeing those inactivity rates above 50 declining quite strongly.

In-work Poverty

Rachel Hopkins Excerpts

Wednesday 28th June 2023 Westminster Hall

[Rachel Hopkins (Luton South) (Lab)]

It is a pleasure to serve under your chairmanship, Sir George. I thank my hon. Friend the Member for Slough (Mr Dhesi) for bringing forward this really important debate on in-work poverty.

Having a job should bring people security, so that they can raise their family, yet we are seeing so many more cases where being in work is leading to in-work poverty. Research from the Joseph Rowntree Foundation found that 61% of working-age adults in poverty live in a household where at least one adult is in work, and 11% of all workers live in a household in poverty. The poverty rate for part-time workers is double that for full-time workers—18% compared with 9%—and self-employed workers are twice as likely to be in poverty as employees, at 21% compared with 10%.

In-work poverty does not affect all groups equally. Ethnic minorities have substantially higher in-work poverty and higher child poverty rates. Many ethnic minority groups are more likely to have the types of jobs and working patterns that are associated with in-work poverty. This Conservative Government’s cost of living crisis has seen real-terms pay fall at the fastest rate since 2001, when records began. As we see mortgage rates increase and rents rise, millions face an increased risk of falling into in-work poverty.

I want to focus on housing. Around 2 million households in the private rented sector—around 38% of the total of those in the private rented sector—receive housing cost support through universal credit or housing benefit, yet the Government chose to freeze local housing allowance rates between 2016 and 2020. Although there was a change in 2020, in the pandemic, it has been frozen since that time. Institute for Fiscal Studies analysis shows that in Luton there is now a £100 deficit in the local housing allowance rate, compared with the lowest rents in the area. Office for National Statistics figures show that the median rent paid by tenants in Luton increased by 8% between March 2020 and March this year.

There is also a significant increase in the number of people in a negative budget; they are unable to meet their living costs, despite being in work. The causes of negative budgets are complex, but there are fundamentally two reasons: a low income from being in low-paid work, and having high household costs. Citizens Advice Luton is seeing increasing numbers of people in negative budget, increased personal debt and increased poverty.

I want to press the Minister. What do I say to those families who are working hard, yet struggling to meet their basic living costs? I am deeply concerned that the lack of action on the local housing allowance will mean that more and more of my Luton South constituents will face eviction, as they simply cannot afford their rent.

Budget Resolutions and Economic Situation

Rachel Hopkins Excerpts

Thursday 16th March 2023 Commons Chamber

[Rachel Hopkins (Luton South) (Lab)]

The Budget is an opportunity for a Government to demonstrate their priorities, and what we saw yesterday is a Conservative Government content to oversee the managed decline of the economy while dishing out a bung to the richest 1% and their pension pots, at the same time as working people continue to suffer. The Resolution Foundation has stated that 67% of the childcare and pension tax changes will go to the richest half of households. The policies in the Budget do not amass to a plan that commits to the serious long-term ambition that the UK economy needs, with no belief in the potential of the UK and no plan to tackle the declining living standards of my constituents. Quite simply, the House has been presented with a Budget that barely papers over the cracks of 13 years of failure and makes no attempt to tackle the systemic issues damaging our communities.

Despite the Chancellor’s claims yesterday, the Office for Budget Responsibility downgraded the UK’s long-term growth forecast and confirmed that the hit to living standards over the past two years is the largest since comparable records began. The UK is forecast to be the weakest economy in the G7 this year and the only country that will see negative growth, and we know that it is working people who will pay the price under the Conservative Government, with wages lower in real terms now than in 2010. That decline started with the Conservatives and the Liberal Democrats stripping our economy during the coalition years, which paved the way for the difficulties our communities now face.

This Budget represented a huge opportunity to break from 13 years of stagnation and unlock Britain’s potential, but that opportunity was well and truly ignored. The question for me is, where do yesterday’s announcements leave my Luton South constituents? Will they feel better off under this Tory Government in the months and years ahead? The answer is no. The average yearly wage in Luton is around £2,000 below the UK average. Not only does the Budget fail to take meaningful steps to close this gap; it also allows for more and more people to be forced into hardship. As the Resolution Foundation points out, the freeze to income tax thresholds since 2022-23 means that typical households will be £1,100 worse off by 2027-28, seeing their living standards continue to fall.

I know that many Conservative Members will point to employment levels, but they mask the surge in the number of people who are suffering in-work poverty, many of them relying on insecure contracts in the gig economy or multiple low-paid jobs. Low wages mean that people rely on universal credit and housing benefit to just about keep a roof over their heads. That is increasingly not enough, however, because the Government have frozen housing benefit for three years while rents have risen at their fastest rate in 16 years. Prosperous, thriving communities are not built on insecure, low-paid employment. Instead, pursuing decently paid and secure jobs with strong employment rights should be a key part of a Government agenda that prioritises creating a fairer society and a stronger economy.

What is in the Budget for the hard-working people of Luton South? Nothing but a continued squeeze on their living standards. Instead of sticking-plaster politics, we need an aspirational plan for the future. As the UK has the lowest business investment in the G7, the Conservative Government should be committed to working with businesses to encourage investment, not just giving out tax breaks and crossing their fingers. Indeed, the Institute for Fiscal Studies has criticised the Government’s lack of long-term certainty as “ridiculous”, and the Resolution Foundation has said that the measures will not increase business investment.

Small and medium-sized businesses in Luton South that have weathered the turbulence of the pandemic now need backing to return to firing on all cylinders. As the Federation of Small Businesses has said, however, yesterday’s measures are almost as though the Government think the small business community does not exist. The UK will benefit from the creation of good, well-paid, future- proof jobs in our communities only if the Government create the environment for businesses to grow.

With Luton’s historic connection to the automotive sector through the Vauxhall plant, we needed the Budget to include support to tackle the increased costs, and to facilitate the transition to manufacturing electric vehicles, all while rules of origin restrictions quickly approach. But Make UK has said that the Budget

“does little to tackle the real and immediate threat manufacturers face with rocketing energy bills”

and the Society of Motor Manufacturers and Traders has said that it includes

“little…that enables the UK to compete with the massive packages of support to power a green transition that are available elsewhere.”

Just look at Spain. Its Government have announced a huge investment into the electrification of automotive manufacturing. Without Government action, we will fail to meet our climate targets or reap the benefits of delivering net zero. The UK and Luton’s proud traditions of automotive manufacturing, and the supply chains, need backing.

We need to build a better Britain, and it is clear once again that Conservatives are just not up to the job. As I said at the beginning of my speech, a Budget is an opportunity for a Government to demonstrate their priorities, but these Conservative priorities are not on the side of my Luton South constituents. We know that a Labour Budget would be, and it would be underpinned by a focus on delivering the highest sustained growth in the G7, creating good jobs and growing productivity across our country. We are ready to deliver the transformative change that communities such as Luton and the UK deserve.

Health and Disability White Paper

Rachel Hopkins Excerpts

Thursday 16th March 2023 Commons Chamber

[Tom Pursglove]

Compassionate and supportive is precisely the approach that I see when I carry out my visits and look at the employment support that is being provided. As I said, I was at the NHS talking therapies service in Tower Hamlets yesterday, and I saw that for myself. It was inspirational to hear the testimony of people who have been through that service about the difference that it has made for them. It has supported those with mental health conditions, in particular, by seeing work as a real determinant of better health outcomes for them and supporting them to work.

My hon. Friend knows more than many Members in this House just how valuable better health is for people. The work that he has done in his professional life means that he has a lot of experience in this area, which I am keen to pick up. I know we are due to meet, and I would be keen to hear his ideas.

[Rachel Hopkins (Luton South) (Lab)]

Waiting times for Access to Work grants have skyrocketed under the Conservative Government, with the average clearance time now more than two months. Although plans to enhance the Access to Work support offer are welcome, how does the Minister plan to reduce waiting times so that disabled people can access the support that is available before an employer pulls a job offer?

[Tom Pursglove]

I am not satisfied with where we are in relation to Access to Work, and that is why I am driving a real effort within the Department, which is resulting in more staff being dedicated to it. We are refining our practice, streamlining processes and reflecting feedback, particularly on workplace assessments and travel claims. Those are two areas where some really constructive ideas have come forward and we are now looking to roll them out.

As I said in relation to PIP, digitalisation is key to this. It is about making sure that processes are easy to access and navigate. When we bring those factors together, they will help us to make a meaningful difference in shifting the dial on Access to Work applications.

Oral Answers to Questions

Rachel Hopkins Excerpts

Monday 5th December 2022 Commons Chamber

[Dame Nia Griffith (Llanelli) (Lab)]

5. What assessment his Department has made of the potential impact of real-term reductions in local housing allowance rates on levels of poverty.

[Rachel Hopkins (Luton South) (Lab)]

6. What assessment his Department has made of the potential impact of real-term reductions in local housing allowance rates on levels of poverty.

[Dan Carden (Liverpool, Walton) (Lab)]

13. What assessment his Department has made of the potential impact of real-term reductions in local housing allowance rates on levels of poverty.

--- Later in debate ---

[Mel Stride]

I would just say to the hon Lady that there is the household support fund as well, which she did not mention. That is there to provide support in the circumstances that she described, along with the discretionary housing payments that I set out and the fact that, in 2020, we did indeed raise LHA to be in line with the 30th percentile of local rents.

[Rachel Hopkins]

The reality is that a family in one of the cheapest three-bedroom homes in Luton have faced a shortfall of about £2,300 over the last year, and that gap increased by £650 from five months earlier. That proves that the growing gap between housing benefit and the cost of the cheapest private rents is forcing people into poverty. When the Secretary of State chose to freeze local housing allowance for another year, did he consider how that might make more and more families across the country homeless?

[Mel Stride]

I did of course very carefully consider the points that the hon. Lady has made, just as I very carefully considered the extent to which there should be an uprating of benefits more generally; they went up by 10.1%—the level of the consumer prices index at that time. I also considered very carefully what the uplift in pensions should be and, again, that was 10.1%, the level of CPI. For pensioners, we also stood by the triple lock.

Oral Answers to Questions

Rachel Hopkins Excerpts

Monday 11th July 2022 Commons Chamber

[Chloe Smith]

The helpful thing I can add here is that disabled people can, of course, also benefit from the package previously announced in the spring statement, which continues in the format of the household support fund. Many millions of pounds have already been allocated to local authorities, which are best placed to direct help to those who need it most.

[Rachel Hopkins (Luton South) (Lab)]

T2. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

At this moment, I am delighted to have a team who are making sure that the wheels of government keep turning. That is particularly true given that we are the biggest delivery Department in Whitehall, on which so many vulnerable people rely.

It is certainly my focus to deliver help for households. As the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Norwich North (Chloe Smith) pointed out, we will be sending out the first instalment of the £650 cost of living payments, starting from this Thursday.

We are also building on our successful Way to Work scheme, having smashed our ambition to get half a million people into a job in just five months, thanks to help from my hon. Friend the Member for Mid Sussex (Mims Davies). Dare I say, Mr Speaker, that that is way to go for Way to Work!

We are now putting more focus on those further from the labour market who are economically inactive or most at risk of inactivity, whether through the lifetime MOT offer or the £1.3 billion-worth of employment support for disabled people. That will help to grow the economy and ensure that more people are on the path to prosperity and prospects through work.

[Rachel Hopkins]

Many of my Luton South constituents are struggling to make ends meet. In fact, across the east of England, 50% of Citizens Advice debt clients are in a negative budget, with their monthly expenditure on essentials exceeding their income; that is up 12% from the same period in 2019. Does the Secretary of State still think that it is a good idea for the Government to raise taxes this year, when the UK is the only G7 country to do so?

[Dr Coffey]

The hon. Lady will be aware of the £37 billion package that is going to households, £15 billion of which is being deployed this year. People will already have received some elements of that through council tax support, and I have outlined the cost of living payment support. I could add to that the lifting of the national living wage to £9.50 an hour and the reduction in the taper rate to 55% for people who are working and on universal credit. We are targeting support at the most challenged low-income households, and we will continue to do that. Meanwhile, we will continue to try to do what we can to grow the economy to help households, so that we can tackle inflation overall.

Cost of Living Increases: Pensioners

Rachel Hopkins Excerpts

Monday 21st March 2022 Commons Chamber

[Rachel Hopkins (Luton South) (Lab)]

Pensioners across the country are on the brink of financial hardship. Currently, nearly one in five pensioners—2 million people—live in poverty and over half a million have been forced into debt over the past decade. The number of older people renting rather than owning their homes has reached an all-time high. At its heart, this is a class issue. The most vulnerable people are left to suffer. It is a class issue exacerbated by over a decade of Tory rule. The public share the utter indignation of those of us on the Opposition Benches: more than 80% of respondents to a YouGov poll commissioned by the Centre for Ageing Better stated that the Government are failing to ensure a decent life for older people.

My constituents and the wider public recognise the increased hardship for what it is: a political choice by this Conservative Government. Spiralling inflation, soaring energy bills, rising petrol prices, a real-terms cut to the state pension and a tax rise on working pensioners—this toxic combination will have a devastating impact on pensioners’ living standards, and threaten the health and wellbeing of those most vulnerable. The Government’s state pension real-terms cut alone will mean that individual pensioners will be £222 worse off per year and couples £335 worse off per year.

Abandoning the pension triple lock in the midst of the cost of living crisis is irresponsible policy making. That is before we even consider the energy crisis, which will disproportionately impact older people as they are more likely to live in the least energy efficient homes. According to House of Commons Library estimates, the energy price cap, which has already gone up by 12%, may increase significantly more to 29% in April. This would mean energy bills increasing by around £341 a year per person for a typical household aged 65 and over. Working pensioners are likely to be £1,400 worse off over the next two years due to a mix of soaring prices, a tax hike and a lower state pension. That is 1,170,000 working pensioners across the east of England out of pocket. Even before the pandemic, 40% of over-50s had savings of £3,000 or less. What are the Government doing to ensure that older people will not be forced to run down their savings during this cost of living crisis?

The Conservative party seems incapable of devising solutions to fix the cost of living crisis. Older people across the country need concrete action in Wednesday’s spring statement. Without a plan, the Government will knowingly leave older people exposed to the crisis. They must consider measures like those in Labour’s plan, which would cut household energy bills by up to £600, scrap the unfair tax hike and commit to protecting pensioners’ financial situations in the long term. After a lifetime of contributing to our country, older people deserve security and prosperity.

Regional Inequalities: Child Poverty

Rachel Hopkins Excerpts

Wednesday 2nd March 2022 Westminster Hall

[Rachel Hopkins (Luton South) (Lab)]

It is a pleasure to serve under your chairship, Dr Huq. I congratulate my hon. Friend the Member for Blaydon (Liz Twist) on securing this important debate.

It is truly shameful that in the 21st century, poverty has become part of everyday life for many in our country. Families are choosing between heating and eating, and food bank usage continues to rise. Where a child is born dictates their future opportunities—a postcode lottery.

While we have heard pertinent points about regional disparities, particularly from northern MPs, we must also consider that there is poverty across the UK and in regions that, overall, would not necessarily be considered deprived. My constituency is in the east, which is a net contributor to the economy. However, according to estimates from Her Majesty’s Revenue and Customs and the Department for Work and Pensions, in Luton South, a shocking 8,130 children live in poverty, which is 10% above the national average. Free school meal eligibility has risen by 44% since 2015-16. There are constituencies in the eastern region with a child poverty rate below 10%.

With Luton being a super-diverse town, it is important to note the research by the Child Poverty Action Group that found that children from black and minority ethnic groups, as well as those form lone-parent families, are more likely to be in poverty. Let me take this opportunity to say to all children, whatever their circumstances or background, that they are valued and deserve the best opportunities. That is why I am here today, and that is why we are here today.

The Tory Government’s mismanagement of the economy means that work no longer provides a guaranteed way out of poverty. Some 70% of children growing up in poverty live in households where at least one person works, according to Department for Work and Pensions figures. The Tories are culpable for rising child poverty. The Tory austerity programme, which slashed 60p in every pound of local authority funding between 2010 and 2020, led to the cutting of services that are crucial to supporting residents and tackling child poverty in our communities. Tory cuts to Luton Borough Council’s funding over 10 years resulted in key services, such as our children’s centres, being cut. We have heard from hon. Friends about the impact of that on our children’s health.

Child poverty is set to be exacerbated by the Tory Government’s failure to tackle the cost of living crisis. Energy bills, petrol prices, rail fares and national insurance are increasing but wages are stagnant, and in some sectors people are suffering real-terms pay cuts. Responding to a YouGov poll last October, 50% of respondents said that they could not afford an additional £50 a month increase to their cost of living—an additional £600 a year.

This Tory Government had a chance specifically to include tackling child poverty in their levelling-up White Paper. The 12 key missions do not include tackling child poverty or investing in early years, nor does the White Paper focus on wellbeing and health inequalities. As the joint statement from Save the Children, The Children’s Society, Barnardo’s, Action for Children and the National Children’s Bureau said, levelling up is not just about spreading opportunities but about tackling

“the underlying issues that persistently deny children fair access to these opportunities.”

Can the Minister explain what contribution he and his Department made to the levelling-up White Paper and the agenda to tackle child poverty?

--- Later in debate ---

[Rachel Hopkins]

The Minister was talking about job opportunities and people being able to access them. When he makes statements such as that, does he take into account the significant cuts to bus services and the fact that many of my constituents are not able to travel far as they do not have a car?

[David Rutley]

There are barriers to work, and that is why we are focusing on issues such as childcare. We have the flexible support fund. I urge constituents of the hon. Member who have challenges such as that to go to their jobcentre, particularly as they start to find new work. The flexible support fund is genuinely flexible. It breaks down all those barriers. It can help with childcare and travel costs as well. I thoroughly recommend that individuals have those meetings, and I can help make introductions if required.

The plan for jobs is a multibillion-pound initiative that will bring targeted tailored support to jobseekers of all ages in all these regions. One of the key initiatives is the job entry targeted support scheme, which helps get people back into work as soon as possible. Over 94,000 people, including 26,600 in the north-east, have started the programme since April last year.

The hon. Member for North Ayrshire and Arran (Patricia Gibson), who regularly holds me to account—in a forthright manner, I hasten to add, but I love her none the less—wants to know what is new, and I will reveal to hon. Members some new and important stuff we will be doing to help people into work—indeed, we do not just want to help people into work; we want to help them progress in work as well. We will be going further over the next month. We will be extending the support we provide in jobcentres to a national model of support to help approximately 1.7 million working universal credit claimants in Great Britain to overcome barriers that hold them back from progressing, increasing their earnings and moving into better paid jobs. Across every jobcentre, claimants will be able to access work coach support to address any skills gaps or wider barriers to progression, and we will be appointing specialist progression champions, who will make connections between employers, local authorities and skills providers.

Despite our political differences, I encourage all hon. Members present to engage with their local jobcentres—I know that my shadow, the hon. Member for Westminster North (Ms Buck), regularly does so—particularly on the issue of in-work progression, because that will be a way to help tackle regional inequality and the challenge of child poverty, which are priorities for all present.

At this point, I have said the things I needed to say in response to much of the debate. I am conscious that the hon. Member for Blaydon wants to come back in as she has a couple of minutes to wind up.

Oral Answers to Questions

Rachel Hopkins Excerpts

Monday 13th December 2021 Commons Chamber

[Mims Davies]

My hon. Friend is such an assiduous Member of Parliament in standing up for Ynys Môn—I salute her for that. We have been working through the local jobcentre. In fact, she helped reopen the jobcentre and make sure it was safe, alongside the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman). Working with local employers and the jobcentre, she has made sure that there are buses and that people can access the jobs that are there. We will continue to work with her and the jobcentre on that.

[Rachel Hopkins (Luton South) (Lab)]

4. What steps her Department is taking to support benefit claimants in meeting increased living costs.

[Stephen Timms (East Ham) (Lab)]

6. What steps her Department is taking to support benefit claimants in meeting increased living costs.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

The Government are taking action to make work pay for low-income households. As was announced at the Budget, we are reducing the universal credit taper rate and increasing the work allowance so that working people can keep more of their earnings. We have introduced a £500-million household support fund so that local authorities can help those on the lowest incomes with their food and utility costs.

[Rachel Hopkins]

About 12,000 households in Luton South are claiming universal credit, and one in 10 people say that they could not afford a £5 per month increase in their cost of living. Does the Minister accept that his Government’s failure to tackle increasing rents and energy costs will impact the poorest in society more and push more of my constituents into poverty?

[David Rutley]

I think the hon. Member will welcome the fact that the vast majority of the nearly 6,000 claimants in work will gain from the reduction in the taper rate and the increase in work allowances in the Budget, which is terrific. For those who are vulnerable, £1.8 million has been made available to local authorities to help them through the household support fund.