In-work Poverty

Debate between Tanmanjeet Singh Dhesi and Dan Poulter

Wednesday 28th June 2023 Westminster Hall

[Mr Dhesi]

My hon. Friend has eloquently explained what the experts across our country are explaining: this is happening before our very eyes and we should not allow the situation to deteriorate any further.

As many will know, housing is a huge and growing driver of in-work poverty. Thanks to the Government’s failure to build enough new and affordable homes and new social housing, last year the gulf between price of houses and earnings in the UK was the worst since 1876. We really are back in Victorian times under this Government.

One of my Slough constituents privately rents and wrote to me for help. As many other private renters have experienced, they have been served with a section 21 no-fault eviction notice. Their partner works full time, but they themselves cannot work full-time hours because they have cancer. High rent costs mean that they cannot now find anywhere that is affordable. Although the family are on universal credit, it does not cover the basic cost of living. Even if they did find somewhere with an affordable rent, the need for a large deposit and a guarantor has erected huge barriers to finding new, long-term accommodation.

The supply of social housing has continued to plummet. The Government’s promise—cancelled, then reinstated—to build 300,000 new homes each year has not materialised. As my right hon. and learned Friend the Leader of the Opposition said at Prime Minister’s questions today, house building has collapsed and the Government are nowhere near their target, which means that more people are trapped in private rented accommodation as rents go through the roof. In turn, that means that people are taking longer to save for their first house. That is why levels of home ownership are down and private renting is up. Those who have been fortunate enough finally to buy a home after years and years of saving now face mortgage misery the likes of which we have not seen in generations or perhaps longer, thanks to this Government’s inability to get to grips with inflation.

Perhaps if Ministers were more focused on supporting those impacted by their child benefit cap than on removing the cap on bankers’ bonuses, and more focused on spending public money to invest in our public services than on giving away billions in failed personal protective equipment contracts to their mates and cronies, our economy would be in a much better place. Sadly, so many people are in dire straits. On top of stagnant earnings and unaffordable housing, we have a cost of living crisis, driving ever more people into in-work poverty. With food prices soaring and energy and utility bills going through the roof, many working people find themselves unable to put meals on the table, heat their home, pay their bills or provide for their families.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

The hon. Gentleman will not be surprised to hear that I have a slightly different interpretation of some of the issues that he has presented today. However, one thing that we certainly agree on is that a lot of public sector workers have seen real-terms reductions in their pay; I draw the House’s attention to my entry in the Register of Members’ Financial Interests as a practising NHS doctor. Does he agree that it is particularly important that the Government implement the recommendations of the national pay review bodies about public sector pay?

[Mr Dhesi]

I thank the hon. Member for his intervention. We may disagree about certain things, but hard-hitting facts are hard to ignore, especially when the truth hits us. I agree that the work of the independent pay review bodies is very important, but even this week we have seen the Government, including the Prime Minister, not accepting their recommendations. The Government are very selective in when they agree to the recommendations of the independent pay review bodies. That must change. They should either comply with them or completely disregard them; they cannot do both to suit their needs as required.