Child Poverty in the UK (Target for Reduction) Bill

Wendy Morton Excerpts

2nd reading: House of Commons
Friday 3rd February 2017 Commons Chamber

[Dan Jarvis]

My hon. Friend is absolutely right. A great deal of extremely constructive work is being done, not only in Wales but in Scotland and other parts of Britain. I think that, collectively, we all have a responsibility and a duty to learn from that work, and spread best practice throughout the country.

I was talking about accountability. The Bill would require the Government to lay before Parliament a strategy setting out the measures that they will take to meet the target and, crucially, to report on progress towards meeting it. Now is the time to make an unambiguous commitment to reducing child poverty, and to measure our progress by setting a target. The social and economic costs of failure are too great to risk. A target will also help to co-ordinate an approach across Government: poverty reduction should be incorporated in strategies that are being developed on social justice, housing and industrial policy.

[Wendy Morton (Aldridge-Brownhills) (Con)]

The issue of child poverty affects Members on both sides of the House. I welcome the Bill, and congratulate the hon. Gentleman on introducing it. Does he acknowledge that poverty involves many other factors as well as income? Rural poverty, for instance, affects many children throughout the country.

[Dan Jarvis]

The hon. Lady is right. So far I have been outlining the moral case for action on poverty, but I think there is a sound economic case for it as well. We should recognise that that focus is necessary if we are to build an economy that works for everyone. Action on child poverty today can strengthen our economy, improve productivity, and reduce pressures on the public purse. Both the International Monetary Fund and the OECD have emphasised that poverty acts as a drag on economic growth. Reducing poverty will strengthen our economy, not least because the less well-off households spend more of the money that they receive than those that are better off.

When we hear about those who are, as Prime Minister described them, just about managing, we must all seek to understand the reality of those people’s lives. Many families are just one bill away from finding themselves struggling. Those families have been feeling the squeeze for years: 50% of households have received no meaningful pay increase since 2005. Over the last decade, real earnings have fallen by more than 10%, which, as the TUC has pointed out, leaves the United Kingdom at the bottom of a league table of OECD nations, equal only with Greece. This has been the longest pay squeeze for more than a century.

Poverty also increases demand on the public purse. It is responsible for £1 in every £5 of public spending. To put it simply, poverty will make it even harder to balance the books in the future.