Food Banks

Debate between Rachel Reeves and William Bain

Wednesday 18th December 2013 Commons Chamber

[Rachel Reeves]

My hon. Friend makes an incredibly important point. While we all applaud and thank the food banks, the volunteers and the people who donate food, that is not how our basic needs should be met. The basic need for food should be met through wages and a social safety net when it is needed. The basic need for housing should be met by our wages or by a social safety net when it is needed. The basic need to be able to heat one’s home and turn on the lights should be met by having a decent wage or a social safety net when it is needed.

[Mr William Bain (Glasgow North East) (Lab)]

Has my hon. Friend seen, as I have, the study by the Children’s Society showing that under this Government the real value of the adult national minimum wage is 50p an hour less than it was when Labour was in office? Is this low pay crisis not one of the key drivers of the explosion in the use of food banks?

[Rachel Reeves]

I thank my hon. Friend for that intervention. The national minimum wage was one of the proudest achievements of the previous Labour Government. It lifted millions of people out of poverty pay, the majority of them women, and employment increased when Conservative Members said that unemployment would increase as a result. We also know today that the real value of the national minimum wage has not kept pace with average earnings or with the rising costs of energy, food prices and everything else, and so people who are in work are increasingly having to turn to food banks to be able to make ends meet.

Although we welcome today’s unemployment numbers, we know that a record number of people are working part time who want to work full time, and that for 41 of the 42 months that this Prime Minister has been in office, prices have risen at a faster rate than earnings. For all those reasons, my hon. Friend is right to point to the problems with the minimum wage, which has not kept pace with the rising cost of living and is not even being enforced. With more than 5 million people being paid less than a living wage, we know that we need to redouble our efforts to ensure that more people can support themselves and their families, rather than having to turn to food aid.

Seventy years ago, William Beveridge spoke of the five giants that he said a civilised country must overcome: squalor, ignorance, want, idleness and disease. Under this Tory-led Government, those giants are rearing their ugly heads again. We need a Labour Government to slay them.

Living Standards

Debate between Rachel Reeves and William Bain

Wednesday 4th September 2013 Commons Chamber

[Rachel Reeves]

I thank my hon. Friend for that intervention; she is absolutely right. The Resolution Foundation produced an excellent report, published this morning, warning about low pay becoming entrenched. It does not just affect workers at the start of their careers; low pay this year results in low pay the next year and the year after that, which is particularly worrying.

Zero-hours contracts often mean that workers are vulnerable. As my hon. Friend the Member for Wigan (Lisa Nandy) said, they are unable to plan for the future and unsure of their ability to pay the rent or the bills each month. Let it be remembered that no Tory MPs or Liberal Democrats, apart from the Minister responding, could be bothered to turn up to debate that issue.

As my hon. Friend the Member for Westminster North (Ms Buck) mentioned, we learnt today that 4.8 million people are now earning less than the living wage. Figures I commissioned from the House of Commons Library show that almost 60% of new jobs created since the spring of 2010 have been in low-paid sectors. This is the economy that the Tory-led Government are building: low-paid, part-time and insecure, making life tougher for families.

[Mr William Bain (Glasgow North East) (Lab)]

Three in 10 of my constituents who are in work earn less than the living wage. Two weeks ago I spoke with a constituent from Robroyston. He had been a construction worker before the crisis started but is now in insecure, part-time work and facing child care bills of £200 a week. Is it not the case that under this Government the economy is just not generating the number of good-paying jobs that allow families to meet the cost of living?

[Rachel Reeves]

Two thirds of children growing up in poverty have parents who are in work. I think that goes to the heart of the issue of low pay and its impact on families. It is no wonder that payday lenders are among the fastest growing businesses on the high street. Some of them charge interest rates as high as 7,000%. Families, desperate to pay the rent and provide for their children, are being dragged into debt because they are not being paid enough.

The use of food banks—I am not sure whether the Minister has visited one—continues to rise. In my constituency the main food bank is struggling to find larger premises because demand has outstripped all expectations. St Bartholomew’s church in Armley in my constituency is now distributing food parcels to many desperate families. Its work, and that of St George’s Crypt, is a wonderful example of the active citizenship and community spirit in Leeds, but food banks are damning evidence of the Government’s record on living standards.