Inequality and Social Mobility

Stephen Timms Excerpts

Wednesday 12th June 2019 Commons Chamber

[Amber Rudd]

If Members will forgive me, I shall make some progress, and then I will take some more interventions.

Let me talk for a moment about the Government’s record. The hon. Member for Wirral West (Margaret Greenwood) went on at some length about that, so let me make some points to her in reply. I will begin with our record on employment. We have helped more than 3.6 million people to enter work; we have reduced unemployment to its lowest level since the 1970s; we have supported nearly 1 million more disabled people into work, and women’s employment is now at record levels.

Those jobs are not just in London or the south-east; more than 60% of the employment growth since 2010 has taken place in other parts of the UK. Nor—I can already hear the suggestions coming at me from the Opposition Front Bench—are they just part-time and temporary jobs. The jobs that make up this increase are overwhelmingly full-time, permanent roles, giving people the dignity and security of a regular pay packet. Behind every employment statistic is a person or family whose mental health, wellbeing and life chances are improved by participation in the workforce. This increased employment means that 660,000 fewer children are growing up in workless households, which makes them less likely to grow up in poverty.

[Stephen Timms (East Ham) (Lab)]

The Secretary of State will know that the number of food parcels distributed by Trussell Trust food banks increased by 19% last year. Does she recognise the close link between the growth of that problem and the roll-out, with its current flaws, of universal credit?

[Amber Rudd]

I know that the right hon. Gentleman has been very engaged in this subject. He will be aware that there are many reasons why people turn to food banks. There were some issues with the early roll-out of universal credit in terms of the timeliness of the payment. That has been corrected, and between 85% and 87% of recipients are now paid on time, which compares favourably with the previous legacy system.

Let me now talk for a few minutes about income inequality. Since coming to office, we have lifted 400,000 people out of absolute poverty. Another key fact that I can give in response to the Opposition motion is that household income inequality is lower now than it was in 2010. However, that is not enough for us; we need to build and do better.

Our safety net is one of the strongest in the world. We deliver the fourth most generous level of welfare support in the OECD. In this financial year, total welfare spending will be more than £220 billion[Official Report, 15 July 2019, Vol. 663, c. 5MC.]. As has been acknowledged by the Institute for Fiscal Studies, thanks to the benefits system, overall income inequality has remained stable, even as earnings have increased for the most well paid. That is because we have what the IFS has described as a highly redistributive tax and welfare system. We have deliberately taken action, through the tax system, to ensure that income inequality is reduced.