Scotland (Poverty)

Sandra Osborne Excerpts

Wednesday 30th November 2011 Westminster Hall

[Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)]

I am grateful for having been able to secure this debate on poverty in Scotland on 30 November, St. Andrew’s day, which is also the day of industrial action in support of public sector workers and their pensions. Nothing could be more relevant to the working people of Scotland today than highlighting the threat of the growing poverty in our nation and the attack on workers’ rights by this ideologically driven, right-wing coalition Government. As I describe the Scotland I know, the reality of poverty and the threatened growth in poverty which is facing Scotland, I hope that the Minister will reflect and respond from his perspective of Scotland—although I have my doubts that there will be a shared perspective.

We Scots are often portrayed as a bit sentimental about Scotland, especially on occasions like Burns night or St. Andrew’s day. I want to talk about the reality of poverty in Scotland today. I do not think that the Minister will want to use any notes from my speech at whatever St. Andrew’s night bash he graces this evening. The national heroes and heroines to whom I would like to pay tribute are the anti-poverty organisations such as the Child Poverty Action Group in Scotland, the Poverty Alliance, the churches and other umbrella groups, bringing together those committed to seeing a fairer, more equal Scotland. The heroes and heroines to whom I would like to pay tribute are those in the unions and the Scottish Trades Union Congress who stand up for people’s rights at work and who fight the scourge of unemployment and the attack on working conditions. That is the Scotland to which we should pay tribute today.

I would like to acknowledge the excellent work done by John Dickie, head of CPAG Scotland, particularly for producing the book “Poverty in Scotland”, which contains some relevant facts and figures to which I shall refer. How do we measure poverty? People are considered as living in poverty if they live in households with less than 60% of median household income. That is the key measure used by the UK and Scottish Governments and by the European Union. Using that measure, and after housing costs are taken into account, the latest official data show that a single person is in poverty if he or she is living on less than £124 a week. A lone-parent family with two children aged five and 14 are in poverty if they are living on less than £256 a week, as is a couple with two children aged five and 14 on less than £346 a week—which is just over £12 a day, and not a lot to cover food, fuel bills, household goods and transport, never mind school trips, family visits and leisure activities. About 970,000 people in Scotland live in poverty—19% of the population. About 250,000 children live in poverty—25% of all children. Poverty in Scotland and across the UK is significantly higher than in many other European countries. In Denmark and Norway fewer than 10% of children live in poverty, while Germany has a poverty rate of 15%.

One would have thought that poverty levels in this day and age should be falling, but not any more. Yes, real progress had been made specifically among children—the numbers went down by 100,000 between 1996-97 and 2004-05. The number of pensioners in poverty has decreased by nearly two thirds since 1996-97. However, since 2007 there has been no overall reduction in child poverty or in poverty among adults of working age.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

I am grateful to my hon. Friend for giving way and I congratulate her on securing this debate. Given her comments, does she share my disappointment and anger at the fact that 10,000 children in Scotland are likely to be forced into poverty as a result of the tax and benefit decisions made by the Government yesterday?

[Sandra Osborne]

Absolutely. I will come to that point later.

These trends follow dramatic increases in poverty between 1979 and the mid-1990s. Perhaps, like me, the Minister remembers those years and can offer a view on what caused that to happen and on whether we are heading back in that direction, thanks to his Government’s policy. That is exactly the direction in which the Government are taking Scotland. Cuts and reforms currently in train will have a significant negative impact on individuals and communities across Scotland and on devolved issues such as housing, child care, health, social care, equality and anti-poverty policy as a whole.

In June 2010 the Chancellor promised a Budget that would be tough, but fair. He announced an increase in VAT to 20%, a two-year pay freeze for public sector workers, a three-year freeze in child benefit and a tightening of housing benefit entitlements and eligibility for child tax credits, among other austerity measures. Coupled with the comprehensive spending review last October, those measures represent some of the most regressive in living memory. Yet, in the same breath, the Government claim that we are all in this together.

[Fiona Bruce (Congleton) (Con)]

I thank the hon. Lady for giving way. Does she not recognise that if the Government had not had to make these difficult decisions, the position for children growing up in Scotland—and, indeed, their children for generations to come—could have been far worse?

[Sandra Osborne]

My point is that the cuts have not been made in a fair and even manner, as the Government promised. I will develop that point later.

It is all too evident that the impact will fall disproportionately on vulnerable groups and on those who deliver the services on which those groups depend. Those are not just my views; there has been widespread condemnation from campaigning groups and third-sector organisations in Scotland that the budget and austerity measures will further increase poverty and inequality.

As my hon. Friend the Member for Edinburgh North and Leith (Mark Lazarowicz) said, in yesterday’s autumn statement we heard of further measures. The Chancellor announced the expansion of free nursery places for two-year-olds, helping 260,000 children. But, alongside that, he announced that he would be taking more than £1.3 billion a year from families by failing to go ahead with the planned additional £110 rise in child tax credits and by freezing working tax credits.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

I congratulate the hon. Lady on securing today’s debate. This is a very important subject to discuss on St. Andrew’s day. Does the hon. Lady share my concern that the poorest families will suffer a disproportionate impact from these cuts, and that the 20% of the poorest families in Scotland will bear the brunt?

[Sandra Osborne]

That is the whole point of raising this debate today.

All this has happened despite the fact that when the Chancellor announced the rise in tax credits he said that it would support 4 million lower-income families, helping to ensure that there would be no adverse impact on child poverty. As the Minister knows, there is now a law relating to child poverty. The Chancellor has now taken that extra support away from the 4 million families. In its distributional analysis of yesterday’s measures, the Treasury has admitted that, as a result of the decisions taken by the Government, the number of children living in households with incomes below 60% of the median will increase by 100,000 in 2012-13—which will mean more children living in poverty.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

I thank my hon. Friend for giving way and for securing this debate. When we talk about big numbers, medians and so on, it can sometimes be difficult for people to understand how changes impact on their lives. Is my hon. Friend aware of research done by the Union of Shop, Distributive and Allied Workers which shows that, already, some £989 has been taken from a low to middle-income family as a result of changes to tax credits? That is even before this latest broken promise, with £110 being taken from child credits.

[Sandra Osborne]

My hon. Friend is absolutely right. We are concerned about the impact on ordinary people. The quicker they realise exactly what this Government are up to, the better.

Who are these people? Alongside children, certain groups are at particular risk of poverty. They include lone parents, women, people who are not working, people affected by disability and people from ethnic minorities.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

I congratulate my hon. Friend on securing this debate. As one of my neighbouring colleagues, she knows full well the problems of unemployment, particularly among young people. Is that not one of the main areas that should be tackled at an early stage—earlier than this Government intend?

[Sandra Osborne]

Absolutely. I will refer to that later. To say that it is too little, too late would put it very mildly.

Poverty is most prevalent in urban areas, yet there are almost 100,000 income-deprived people in rural areas in Scotland. I would be interested to hear the Minister’s views on what he thinks causes poverty. The Tories are quick to identify individual behaviour as a cause of most social ills, but individual behaviour is of limited value in explaining the extent of poverty in Scotland. The key drivers are inequality, low pay, inadequate benefits, poor-quality work opportunities and lack of support for those with caring responsibilities, ill health or those affected by disability. A lack of money leads to the threat of falling into debt, choosing between necessities, going without basics, frequently being caught up in a cycle of dead-end jobs and being unable to save. For children, it means, for example, having less access to safe play spaces and being less likely to participate in arts and drama, sport or other outdoor activities.

While financial inclusion policies have led to significant improvements since 2007 and access to basic financial products, one third of households with incomes of less than £20,000 still have no savings. Those households are also less likely to have the means to participate fully in society more generally. Over half, for example, still have no internet access or car available to them. What is more, they are far more likely to be living in fuel poverty, spending a disproportionate level of already inadequate income on basic— [Interruption.]

[John Robertson]

(in the Chair): Order. There is a vote in the Chamber. The sitting will be suspended for 15 minutes.

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On resuming—

[Sandra Osborne]

I was about to talk about people who are living in fuel poverty who are spending a disproportionate level of already inadequate income on basic energy bills. Almost 1 million households, more than one in three Scots, now struggle to heat their homes. However, the SNP has cut the budget to help tackle fuel poverty by almost a third, down from £70.9 million in 2010-11 to £48 million in 2011-12. Dr Brenda Boardman from Oxford university, previously lauded by First Minister Alex Salmond, has said that Scotland has some of the worst fuel poverty in the UK. She describes the SNP’s cut in the fuel poverty fund as a real slap in the face for the fuel poor.

[Dr Whiteford]

I know that fuel poverty is something that is also taken extremely seriously in my constituency, partly because people do not have access to social tariffs on low incomes. They also often have trouble accessing broadband. But will the hon. Lady accept that the SNP Government have done more than previous Labour Governments ever did to address fuel poverty in Scotland, and are making record levels of investment in their energy assistance package and with other measures?

[Sandra Osborne]

I think that they flatter to deceive. Measures have been cut, including what I have just described. As I say, it is not just from me, it is from a very eminent professional who is an expert in the field. At the end of the day the Scottish Government will decide how to implement the budget in Scotland.

Not surprisingly, poverty means lower levels of mental wellbeing, shorter lifespans and more ill health. Those in the lowest 20% of household incomes, particularly women, are far more likely to suffer from depression, anxiety and attempted suicide, while men living in the most deprived areas have a life expectancy of more than 11 years shorter than those in the 20% least deprived areas of Scotland. The situation in Scotland is very serious. Here I would like to pay tribute to Campbell Christie, the former STUC leader and another truly great Scot, who recently passed away but who chaired the Scottish Commission on Public Services. Its report said:

“Members of the commission have been struck by just how much public spending is skewed by that bottom 20% in terms of poverty, unemployment, health and all the factors that go with it—and how little progress has been made on that bottom 20%.

If you are going to do anything, you should relentlessly target resources at the bottom 20%. That would bring Scotland up overall: it's not just a moral case for social justice; there's a strong economic argument too.”

A recent national survey revealed that six of the 10 worst areas of Britain are on the west coast of Scotland, including areas of Glasgow.

In any debate on poverty, certain key assertions must be made. First, income and material conditions remain the most fundamental determining dimensions of poverty. Political and policy emphasis on non-income dimensions of poverty must not be used to draw attention away from the fundamental causes of poverty—lack of money.

The policy can work. The Labour Government's commitments and policy action that boosted pensions, benefits, tax credits and wages and removed some of the barriers to work have had an impact, with child and pensioner poverty significantly lower than in 1997. Other policy interventions that should be welcomed include a focus on more equal health outcomes and commitment to the idea of a living wage, although when that was put forward in South Ayrshire by Labour, the SNP Tory administration voted it down. We need more investment and income maximisation, statutory commitments to tackle child poverty and improved access to debt solutions.

Labour made huge strides in government, both in Westminster and at Holyrood, to tackle youth unemployment in Scotland. Again, the clock has been turned back. Youth unemployment is rising fast. Behind these figures is a generation of young Scots, rich in talent, full of potential, with a hunger to work. Yesterday’s announcement in the autumn statement was too little, too late. It will be next April before it even kicks in, which has meant two years of inaction, and equates to £121 million a year, a fraction of the £600 million this year alone which Labour would spend on a youth jobs fund through repeating the bank bonus levy.

[Dr Whiteford]

Will the hon. Lady join me in welcoming the initiatives of the Scottish Government to ensure that every 16 to 19-year-old in Scotland who is not in full-time education will have a training place or an apprenticeship or a job?

[Sandra Osborne]

I would very much welcome any measures that are taken in Scotland on youth unemployment, but it does not help when the SNP Government choke off opportunity by cutting funding for the country’s colleges. I attended the graduation ceremony at Ayr college the other week and I was very impressed by the students’ achievements, but the level of cuts that the college was facing—10% this year and 20% over the next two years—was very depressing. There have already been job losses and the college has been told to concentrate on 16 to 19-year-olds. That is fine, except that it takes places away from adult learners.

I received all my education, such as it is, as an adult, and I want young people as they grow older to have cradle-to-grave education, not just between the ages of 16 and 19. That is also needed for the economy.

I refer now to research from the Centre for Regional Economic and Social Research at Sheffield university. It calculates that the headline total of 2.6 million men and women on incapacity benefits is set to be cut by nearly 1 million by 2014. Most of these will be existing claimants who will lose their entitlement. The report shows that, because of the reforms, 600,000 are set to be pushed out of the benefits system altogether, forcing a big increase in reliance on other household members for financial support.

The researchers also show that by far the largest impact will fall on the older industrial areas of the north, Scotland and Wales, where local economies have been struggling for years to cope with job loss and where the prospects of former claimants finding work are weakest. Glasgow looks set to be hit 10 times harder than, for example, Kingston upon Thames. In common with many of my colleagues here, these are just the types of areas that we represent where it has been very difficult to recover from industrial decline in the past. This is not going to help.

[Mrs Anne McGuire (Stirling) (Lab)]

Does my hon. Friend accept that it is not just the loss of individual or family income, but the loss of a significant amount of spending power within already deprived communities which will have an impact on the wider community and not just on the individual family?

[Sandra Osborne]

These issues affect the whole community, which is why in many ways high unemployment is a false economy. It would be far better invested in the communities. Professor Steve Fothergill, who co-authored the report, said:

“The large numbers that will be pushed off incapacity benefits over the next two to three years are entirely the result of changes in benefit rules. The reduction does not mean that there is currently widespread fraud, or that the health problems and disabilities are anything less than real.”

He then goes on to say that

“the estimates show that the Coalition Government is presiding over a national welfare reform that will impact principally on individuals and communities outside its own political heartlands.”

The Minister will be painfully aware that Scotland certainly meets that description.

I do not have time this afternoon to go into the detail of the Government’s Welfare Reform Bill, but behind the stated intention of rolling up most means-tested benefits into a universal credit and making work pay, there are significant increases in the conditions attached to entitlement, and draconian sanctions for those who fail to meet these conditions. Welfare benefits cuts of £18 billion over the next three years, in conjunction with the proposals in the Welfare Reform Bill, will have a hugely negative effect on Scotland’s poorest communities, families and individuals. These measures will be across the whole of the UK, but will also cut across a whole raft of devolved responsibilities. They deserve the united resistance of Scottish MPs and MSPs.

Attention must be refocused on to the privileges and lifestyles of the affluent and rich as much as the more disadvantaged. The Government must tackle the banks and fuel companies rather than focus on hitting public sector pensions.

Recently my constituency Labour party launched a plan locally at a public meeting in Ayr: Labour’s five-point plan for jobs. We heard a compelling argument for why this is needed from STUC deputy Stephen Boyd. He said that in Scotland we have a huge full-time employment deficit; that is the deficit that the Tories do not want to talk about. There are more than 150,000 people who want to work in full-time jobs but are currently unemployed. There are also the underemployed, and the economically inactive but wanting to work. There is a total of almost half a million Scots who want to be in full-time employment but are not. Jobseeker’s allowance claimants in East Ayrshire are up 86% on last year, and they are up 65% in South Ayrshire. These are frightening figures. The number of claimants in the last six months in these areas is up 300% and 400%.

[Mr Alan Reid (Argyll and Bute) (LD)]

I am grateful to the hon. Lady for giving way. I sat through her speech, which contained a lot of criticism of the Government, expecting her to come forward with solutions, but they have been lacking. For all of these spending projects that she has talked about, will she tell us by how much she wants to increase Government spending? What taxes will she put up to find the money? The only source of revenue she indicated was a bankers’ levy bonus tax; will she tell us how much that would raise and the rate at which it would be set?

[Sandra Osborne]

I do not have the figures to hand, but I actually referred to a number of policy initiatives that could be taken and were taken by the last Labour Government. I could go back into my speech and read out Labour’s five point plan for jobs, but I am aware that other Members would like to speak and I was genuinely trying to curtail my remarks. I will let the hon. Member know about it later.

I firmly believe that there is more than one Scotland, just as there is more than one Britain. In the end, how you see Scotland depends on your perspective, your politics and your priorities. To paraphrase Nye Bevan, socialism is a language of priorities, just a very different set of priorities. The trouble with the SNP is that, for all its rhetorical nationalism, there remains a single priority: independence. Today should be a day for getting away from the tired, endless wrangling over constitutional issues and the protracted debate over the long-time-coming independence referendum. It should be a day for getting away from the SNP’s dangerous lottery, playing with people’s jobs, incomes and life chances, ignoring all of the warnings, crossing their fingers and hoping for the best. Today is a day for concentrating on the real Scotland—a country of huge achievement and potential, and a country rich in diverse cultures, but a country that also knows the reality of poverty and the risk of increased poverty to come unless it gets the political leadership and policies it needs for a better way forward.

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

It is a pleasure to serve under your chairmanship for the first time, Mr Robertson, and to reply from the Opposition Front Bench to this important debate.

I pay tribute to my hon. Friend the Member for Ayr, Carrick and Cumnock (Sandra Osborne) for securing this debate and for speaking with such passion and commitment about the effects that material inequality, lack of money, lack of resources and lack of opportunity have on the quality of life of her constituents and many thousands of people across Scotland. She referred in her speech to a historical figure—Nye Bevan, of course. Today, it might be fitting to recall the words of another historical figure, former US President Franklin Roosevelt, who once said:

“The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have little.”

That is what the Government are failing to do in its policies today.

I also pay tribute to the contribution from my hon. Friend the Member for Glasgow North (Ann McKechin), who spoke movingly about the impact that housing benefit changes and lack of money are having in driving up levels of food poverty in Glasgow, and also to my hon. Friend the Member for Aberdeen South (Dame Anne Begg) and my right hon. Friends the Members for Coatbridge, Chryston and Bellshill (Mr Clarke) and for Stirling (Mrs McGuire), who spoke with great passion and eloquence about the effects of deindustrialisation in Scotland and the damaging effects of the Government’s reforms of disability, housing and sickness benefits. My right hon. Friend the Member for Stirling impressed the House this afternoon with her historical sweep and with the notion that she very ably tied between equality and liberty—the fact that they go together and that one simply does not exist without the other.

I recently had the privilege of attending a briefing arranged by the Resolution Foundation, which is hosting the Commission on Living Standards. The presentation gave some staggering statistics from the foundation’s ongoing work. There is an increasing dislocation between growth and living standards. In the past three decades, for every £1 of growth generated in our economy, just 12p is going into wages in the lower half of the income scale, which is a fall of a quarter. Those trends have been exacerbated by the squeeze on jobs and the squeeze through increased taxes and lower tax credits that have been in the Chancellor’s Budgets so far and, sadly, in the autumn statement yesterday.

From that event, there also emerged three themes that are necessary to drive an increase in living standards and reductions in poverty in coming years: full employment, the importance of income transfers—including the tax credits system—and rising wages. The foundation has estimated that the squeeze on living standards that is being imposed by this Government—the steepest since the 1920s—means that to make good the gap, the level of the minimum wage would have to rise to £6.29 per hour by 2015. That is the extent of the squeeze that is impacting on people in this country today. The words of the US economist Lane Kenworthy are very important, reflecting that income transfers—the tax credits system—have been critical in this country and across the western world to seeing an improvement of the living standards of those in the lower half of the income distribution scale.

I also want to endorse some of the findings of UNICEF Scotland’s recent report, which points out the damaging effects of failing to tackle asset-based inequality. The Government have scrapped the child trust fund and introduced an inadequate replacement in the form of junior ISAs, and we will see damaging effects for young people in their failing to build up that nest egg of savings that would help them go to college or university, to start a job and to pay for the necessary expenses for a good start in life.

The key to tackling poverty and to seeing a fairer distribution of wealth in our society is to increase levels of good jobs in our economy and to aim for full employment. Yesterday, the Office for Budget Responsibility downgraded its forecasts for levels of employment throughout this Parliament. It revealed that 710,000 public sector workers will be thrown on to the dole queues in this Parliament. Overall, unemployment will surge by a further 500,000, destroying the lives of people who are claiming benefits when they could be providing services and paying taxes instead.

Scotland will suffer hugely through the absurd economic theories that underpin such devastating choices. As a result of the Chancellor’s failure to change course on public spending and to introduce a proper plan for jobs and growth, Scotland is likely to suffer from rising unemployment, lower growth and the biggest attack on the living standards of ordinary people since the 1940s. The Chancellor said yesterday that he would like to tackle the causes of poverty, but he has slashed support for hard-pressed Scots families who are burdened by big rises in child care costs.

This week, the Social Market Foundation stated, in its report entitled “The Parent Trap”, that average families face an increase in child care costs of more than £600, a rise of up to 62%, which is more than the cost of a family Christmas for average families in Scotland. Yesterday, the Government failed to cut VAT to boost consumer confidence and failed to increase demand amid slumping growth.

[Sandra Osborne]

My hon. Friend is answering some of the questions of the hon. Member for Argyll and Bute (Mr Reid), who seemed to think that the Labour party had no alternative proposals to put forward. I am pleased to hear my hon. Friend telling the House about what we would do if we had the opportunity.

[Mr Bain]

My hon. Friend is entirely right. Yesterday, the OBR’s figures revealed that if we had followed the public spending plans of my right hon. Friend the Member for Edinburgh South West (Mr Darling), borrowing would be £37 billion less. There is an alternative—based around growth and job creation—that would not have visited the damaging effects of increased poverty and inequality which this Government are waging on the people of Scotland.

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[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

Thank you, Mr. Robertson. I welcome the opportunity to appear under your chairmanship, and it is particularly appropriate that you are in the Chair for this debate on St. Andrew’s day. I pay tribute to the hon. Member for Ayr, Carrick and Cumnock (Sandra Osborne) for instigating this debate. She and other hon. Members who have contributed to the debate are correct to say that there should be more discussion and debate of these issues in relation to Scotland, and that there should be more discussion and debate in this Parliament in respect of the reserved issues for which this Government are responsible in Scotland. Scotland has two Governments, both of which play a significant role and both of which should be held to account.

I also agree that the two Governments should work more closely together on many of the issues that have been touched on today. Sadly, for reasons also touched on by many hon. Members, principally the obsession of the SNP Government in Edinburgh with independence and constitutional issues, it has not always been possible to have the dialogue that would serve the people of Scotland best—on substantive matters in relation to policy objectives and outcomes, rather than the debate constantly being about who did what.

We have had a number of detailed contributions to the debate, particularly by the hon. Member for Glasgow North (Ann McKechin), and the hon. Member for Aberdeen South (Dame Anne Begg), who chairs the Select Committee. I give them a firm commitment that I will take away the points that they have made, and raise them with Department for Work and Pensions colleagues and I will write back to them on their specific points. While we might not be in agreement on the policy prescription, or whether the policies of the Government of which they were a part delivered much of what the hon. Member for Ayr, Carrick and Cumnock set out, I am in agreement with them that the issues that they raised are important and significant.

As ever, I commend the right hon. Member for Stirling (Mrs McGuire) for the passion in her contribution. Again, the issues that she raised are worthy of much more significant debate, especially in relation to the concerns about the impact of hidden poverty, which is not just a financial issue. There would be agreement across the House on that. I listened to the points made by the right hon. Member for Coatbridge, Chryston and Bellshill (Mr Clarke). I do not necessarily agree with what he had to say, but I sense his passion on the issue, and he has a long track record of fighting the cause of the poor, and that is to be commended. My hon. Friend the Member for Argyll and Bute (Mr Reid) did not make a speech, although it felt as if he did. It will not surprise you to learn, Mr. Robertson, that I agree with most of the points that he made in his interventions. I am sure that, over the Christmas period, when he reflects on such matters, as he was asked to do by the right hon. Member for Stirling, he will reflect on the many achievements of the coalition Government in taking forward their agenda. When he intervened on the hon. Member for Glasgow North East (Mr Bain)—I welcome him to the first real exchange that we have had since he took his position—my hon. Friend the Member for Argyll and Bute make the most significant point, which is how the various aspirations that were expressed during the debate would be paid for. We did not hear anything about that. We heard again about Labour’s five-point plan. As far as I am aware, that is a £20 billion black hole for which no funding has been identified.

[Sandra Osborne]

Does the Minister agree that a far more effective way of solving the youth unemployment problem would be a £2 billion tax on bank bonuses, which would fund 100,000 jobs for young people?

[David Mundell]

The hon. Lady knows that the Government have moved forward with a bank levy, which has raised more than the tax on bonuses that her Government set out. It is populist to say, “tax the bankers,” but that does not set out where the money would come from that would create the funding she suggests.

I hope the hon. Lady will join me in welcoming yesterday’s announcement on the youth contract—a significant step forward in tackling what everyone accepts is the serious problem of youth unemployment. Of course, it was not acknowledged in today’s debate that youth unemployment rose under the previous Labour Government. Youth unemployment is a serious issue, on which we should be trying to work on a cross-party basis. That is why I was pleased to be part of a seminar in Ayrshire with the hon. Member for Central Ayrshire (Mr. Donohoe), bringing together the UK Government and the Scottish Government to look at the underlying problems of youth unemployment. That is why I am pleased that my right hon. Friends the Secretary of State for Scotland and the Secretary of State for Work and Pensions will host a national meeting in Scotland with John Swinney to focus on youth unemployment in Scotland.