Social Mobility and the Economy

Rachel Maclean Excerpts

Wednesday 28th March 2018 Westminster Hall

[Rachel Maclean (Redditch) (Con)]

It is a great pleasure to follow the hon. Member for Glasgow East (David Linden) and a pleasure to serve under your chairmanship, Mr Davies. I congratulate my right hon. Friend the Member for Putney (Justine Greening) on securing this important debate.

It is a pleasure to follow colleagues who have spoken so eloquently on this critical subject. In a similar way to other Members, I come at it from my experience and my life’s journey. I attended a comprehensive school in a normal part of the west midlands, and I now find myself in this place. What a great privilege that is, but it is incumbent on all of us to continue the fight. My right hon. Friend the Member for Putney is setting out a marker and providing great leadership, which I am delighted to be able to follow, on the practical work that we can all do in our constituencies. I very much come at the issue from a place-based perspective.

Statistics from the Social Mobility Commission show that Britain is divided and that a child’s prospects are affected not only by how much their parents earn and their ethnicity but by geography. The west midlands is particularly poor in social mobility, as I saw as an employer in Birmingham before I came into this place. I saw a lack of aspiration and a social mobility divide in practice in that city.

To tackle that, I set up my own charity, Skilled and Ready. We were instrumental in bringing together local employers to create an awards programme that was delivered in local schools, to help students recognise and develop employability skills. I am very proud that that delivered change for the young people who went through the programme.

When I became an MP, I was mindful of the fact that our area is behind in social mobility indicators. More than a third of areas in the west midlands are social mobility coldspots, and that unfortunately includes my constituency of Redditch. I started to engage as a priority with schools, colleges and businesses in the constituency, and it became clear to me that there is deprivation on a number of indicators, which other hon. Members have referred to. There is also the issue of aspiration. Like my right hon. Friend the Member for Putney, I firmly believe that, while the Government have a role to play, businesses do too. They are instrumental. I welcome this debate because it identifies some practical things that we can all do.

I am working with the Mayor’s mentor scheme, set up by the current Mayor of the West Midlands, Andy Street, to create a Redditch mentors programme. I pay tribute to the schools that have already signed up—Heart of Worcestershire College, Tudor Grange Academy, Trinity High School, Ridgeway High School and Arrow Vale. Some fantastic businesses have also indicated their support, including Simon Hyde from Faun Zoeller, Julie Dyer from Heller, Darren Houlcroft, Keith Gardner from MSP and Nicola Hall from Bellis Training. They have all signed up and committed to becoming mentors for local schools in my constituency. I thank them most sincerely for what they are doing. It is a fantastic commitment and investment of their time to help young people in Redditch.

I very much welcome the initiative that my right hon. Friend the Member for Putney has laid out in her social mobility pledge. I will be taking that on board and encouraging the pioneering businesses in Redditch that have already committed to this agenda to follow that lead and to add their names to the campaign.

I have been inspired by the hon. Member for Barnsley East (Stephanie Peacock) and the hon. Member for Glasgow East to think about what more I can do as a Member of Parliament, because we have a unique opportunity to spread the message about how important this work is.

I do not believe that maintaining the status quo is an option. It is not fit for purpose. The issue of social mobility is not just about creating a fairer and equal society. It is about addressing social, educational and economic divisions, which are unsustainable and are having a detrimental impact on our labour market and our competitiveness as a country.

--- Later in debate ---

[Lyn Brown (West Ham) (Lab)]

It is an absolute pleasure to serve under your chairmanship, Mr Davies. I think we would all agree that we have heard some excellent contributions today from both sides of the Chamber. I thank the right hon. Member for Putney (Justine Greening) for securing this debate. She knows that I have a very high regard for her, and that I think she is a real loss to the Government. I agree with much of what she said. In her creditable time as Secretary of State for Education, she set out a genuinely engaged geographical disadvantage agenda, for which the former social mobility commissioners argued. She deserves our thanks for moving the debate forward in that way.

I have been in my job for only a few short weeks, and I will admit that this debate is a little early for me, but it gives me an opportunity to say a little about where our work on social mobility is going. This week, the Children’s Commissioner for England released a report called “Growing up North”. She argued that regional development plans, such as the northern powerhouse, must consider necessary infrastructure such as good schools and appropriate post-16 routes to be just as important as rail and roads. I want to quote what she said, because it expresses a broader truth about social mobility:

“Children growing up in the North love and are proud of the place they live. They want a future where they live near their family and community and they want jobs and opportunities to rival anywhere else in the country.”

She is right. For too long, in too many places, social mobility has meant literally moving away. It is a hard truth, but if young people do not have the opportunity to realise their potential in their home towns, many will go away to university or find jobs elsewhere, and will stay away. We do not have an economy that works for all parts of our country. We force people to move out of their communities, because the basic infrastructure to enable economic growth is lacking in our regions.

[Rachel Maclean]

I very much agree with what the hon. Lady is saying. As a representative of a midlands constituency, I have personally seen that exact pattern. Does she agree the Government could look at further devolving spending on further education, higher education and apprenticeships to local areas to address those challenges?

[Lyn Brown]

Talking about the education brief is a bit beyond me this morning. I am sure the hon. Lady will understand if I just duck that and move on. I think honesty is always the best policy.

As this is a Treasury debate, I will start with a bit of Treasury stuff. May I gently say that the Government’s record on the economy, and certainly on social mobility, is not at all good? Average pay is still £15 a week lower in real terms than it was before the financial crisis. Not long ago, the Government confidently predicted a minimum wage of £9 an hour by 2020, but downgrades to economic forecasts have taken their toll, and the Office for Budget Responsibility now expects it to be just £8.57. A real living wage—one based on what people actually need to live—is already higher than that. Planned statutory wage increases will not meet the burden of rising living costs. Two thirds of the children living in poverty today have parents in work.

I know this has been said before, but it is true nevertheless. In the 20th century a contract was understood in this country: each generation was better educated, and had higher incomes, greater home ownership and a longer, healthier life than the previous generation. Even if working class kids—I am grateful to the right hon. Member for Putney for introducing class into the debate—did not succeed educationally, they could still expect higher incomes than their parents, and the dream of home ownership coming into reach. That is clearly no longer the case.

The housing crisis is now one of the biggest barriers to social mobility in our big cities. My borough of Newham is ranked second worst of all local authorities in England and Wales for adult social mobility indicators, a consequence of low pay, high living costs and insecure rented housing. The most recent quarterly statistics show, for the sixth time running, an increase in the number of households in England living in temporary accommodation and, since the end of 2010, a 75% increase in the number of children living in temporary accommodation to 120,000. Hon. Members know what a problem that is: a safe, warm, healthy and secure home is so important to childhood.

I was privileged to live in a council flat in east London.