Welfare Spending

Alison McGovern Excerpts
Tuesday 15th July 2025

(2 days ago)

Commons Chamber
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Alison McGovern Portrait The Minister for Employment (Alison McGovern)
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Well, there we have it—as ever, all politics and no economics. The Conservatives come to this House to talk not about the people of this country, but about themselves. In March, we found out the truth of the Tory record on child poverty, which is highly relevant to their motion today. From 2010 to 2024, the number of poor children skyrocketed by nearly 1 million. After 14 years in office, the Conservatives left us with 4.5 million of our children growing up without the ability to make ends meet. That is what Tory Governments do, just as they did from 1979 to 1997, when child poverty more than doubled, leaving 4.2 million children in relative poverty. The Conservatives can come to this House to defend the failures of the last Government as many times as they like, as their motion does today. Every single time, we will remind them of their record.

Alison McGovern Portrait Alison McGovern
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I will give way if the hon. Gentleman apologises to the 4.5 million children in this country growing up in poverty.

Graham Stuart Portrait Graham Stuart
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The Minister and Labour Members are in absolute denial about the state of the country. The Government came in with growth as their No. 1 mission, and what have they done? They have brought growth to an absolute, shuddering halt. They have done what every Labour Government do, which is to increase unemployment. Who does that hurt the most? It is the poorest. From an age point of view, who does that hurt the most? It is the young. An increase in youth unemployment of 45% was a scar on this country that the last Labour Government left. It was the Conservative Government that outgrew Germany, France, Japan and Italy over the 14 years we were in power. She should be ashamed of her record, even though it is only 12 months old.

Alison McGovern Portrait Alison McGovern
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I thank the right hon. Gentleman for that lengthy intervention. I deeply regret that he does not feel the need to look his own record in the face and, more than anything, that he has nothing to say to the 4.5 million children in this country without the means to make ends meet.

Emergency food parcels distributed by Trussell Trust food banks have increased by 164% over the past 10 years, and 1.1 million children are living in households that have gone to a food bank over the past 12 months. In this country we now have more food banks than police stations. Are the Conservatives proud of that record? I hope not.

Nobody in this country should be begging—no child should face that indignity. The consequences are serious. Over 80% of parents say they struggle to get basic support, such as a GP appointment, or to see a health visitor. Schools are in an attendance crisis, with one in five kids now missing a day a fortnight or more, and it is worse for poor kids. That is the Conservatives’ record. These failures for our children will echo down the years and will turn up in our nation’s life expectancy, the benefits bill they say they care about and, worst of all, in the sense of hopelessness that far too many people in this country now have.

Do the Conservative Opposition have a response on their record? As we have heard, no, they do not. Have they apologised to families in the UK? As we have heard, no, they have not. Have they reflected on their record? As we have heard, no, they have not. They bring a motion to this House to do none of the above, but to agree with the Tory party policy from 10 years ago. They are the same Conservative party that created the mess we are in now, and they have no regrets. Their motion talks of a benefits trap, and the hon. Member for Faversham and Mid Kent (Helen Whately) just repeated that. They will be awfully cross when they find out who spent £3 billion on the universal credit system that they now say traps people in poverty. They promised that universal credit would get people into work; instead, it pushed people into incapacity benefits.

Paul Holmes Portrait Paul Holmes (Hamble Valley) (Con)
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I gently say to the Minister that she and her Back-Bench colleagues do not have a monopoly on talking about poverty. If she really cared about poverty, she would not have allowed a policy to be brought before this House last week that, before it was changed, would have put 150,000 extra children into poverty. If she genuinely believes in tackling poverty, why is she still standing at the Dispatch Box as a Minister, because she should have resigned for putting more children into poverty under her proposals?

Alison McGovern Portrait Alison McGovern
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I do not believe for a moment that it is just people in the Labour party who care about poverty in this country. Former Conservative Members of this House who were discharged from their duties by previous Prime Ministers, and many other Members of different parties over many years, have cared about poverty. We should deal with facts in this place, and I am merely repeating, for the benefit of the House, the Conservative Government’s record on poverty. I will cover the details of the child poverty taskforce in my speech. If the hon. Gentleman wishes at any point to make representations to the taskforce of Ministers dealing with child poverty in this country, I will happily receive them.

Desmond Swayne Portrait Sir Desmond Swayne (New Forest West) (Con)
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On the question of facts, will the Minister give way?

Alison McGovern Portrait Alison McGovern
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Let me make a little progress, if I may.

The official Opposition’s motion speaks of a “benefits culture”. I simply ask them this: who made that culture happen? Who was in charge for the past decade and a half? Either the last Tory Government were powerless to stop that culture being created, or they were responsible for it—which is it? Until they can see the consequences of their own time in office and accept the damage that they did, which they clearly cannot, no one will hear a single word that they say.

There are, however, people in this country who deserve a hearing: those who have experienced childhood under the last Tory Government. As the hon. Member for Angus and Perthshire Glens (Dave Doogan) mentioned, we heard last week from the Children’s Commissioner —who, I point out, was appointed under the Conservatives—on her work capturing the opinions of children who have grown up in poverty because of the policies espoused by Conservative Members.

Paul Waugh Portrait Paul Waugh (Rochdale) (Lab/Co-op)
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The Minister is making an important speech with which many Labour Members will agree. She will be aware that 59% of families with more than two children and which are on universal credit are in work. That is far from the feckless parent caricature that we have heard from the Conservatives. More importantly, does she agree that the children should come first, so we should urgently scrap the two-child cap as quickly as possible?

--- Later in debate ---
Alison McGovern Portrait Alison McGovern
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As my hon. Friend rightly points out, in the speech by the shadow Minister, the hon. Member for Faversham and Mid Kent (Helen Whately), we heard yet again from a Tory party that wants only to ignore the facts in favour of dividing people in this country, as it did for the many years it was in government. That is not what people want. People want this country to move forward together.

Alison McGovern Portrait Alison McGovern
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I will mention a few contributions by the Children’s Commissioner for England, and then I will give way further.

We heard from the commissioner that children think that free breakfast clubs and school meals are important. That is why we have begun the roll-out of free breakfast clubs in all primary schools and last month announced the expansion of free school meals to all on universal credit, lifting 100,000 children out of poverty by the end of this Parliament.

Young people told the commissioner about how they absorb their parents’ money worries. One 16-year-old girl said:

“I worry about money quite a lot. I see myself as quite approachable to my mum so my mum will tell me absolutely everything.”

Children need to grow up without that stress, so we have introduced the fair repayment rate for universal credit households, so that a debt to the Government does not keep families poor, which will help 700,000 households with children.

John Hayes Portrait Sir John Hayes
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I am mindful of two of her predecessors in Birkenhead. The first is F. E. Smith, the great Tory, who talked about “all must have prizes”. Sometimes, in our modern Britain, it feels that all must have state support. The second is the late Frank Field, who is much regarded and revered in this House for his honesty about welfare reform. The Minister is right that successive Governments have failed to grasp this nettle. The truth is that the relationship between the state and the individual has changed over time. We need a welfare system that focuses support on those in the greatest need. She surely believes that, and that requires bold welfare reform. Is she up for that or not?

Alison McGovern Portrait Alison McGovern
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I thank the right hon. Gentleman for his intervention and for reminding me of two of my predecessors. I cannot claim to have known the former, but I did know Frank Field very well. Frank and I talked many times, particularly with regard to Birkenhead, about his belief in the value of work. He wanted to see our shipyard thrive and young people in Birkenhead grow up with the pride of employment. I like to think that when the Prime Minister came to Cammell Laird shipyard recently to talk about the value of good work in Birkenhead, Frank would have felt very proud.

Alison McGovern Portrait Alison McGovern
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I will continue for just a moment.

All the young people who spoke to the commissioner could not have been clearer about the challenge of learning in overcrowded bedrooms. They were clear and direct about the shame of not always being able to keep clean because of a lack of hot water. I am deeply proud that we have committed funding for social housing to get children out of temporary accommodation, and expanded the warm home discount for all those on universal credit who are eligible. To ensure that the next generation of families experience a friendly face and have a place to play, we have expanded Best Start family hubs to every local authority.

As I said earlier, those are just some of the changes being brought about thanks to the child poverty taskforce chaired by my right hon. Friends the Secretaries of State for Work and Pensions and for Education.

Stuart Anderson Portrait Stuart Anderson (South Shropshire) (Con)
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The family hubs are a great thing. The Minister said that they have gone to every local authority, but, if I have read the data correctly, none has gone to South Shropshire. Will she look into that and see whether we can get them there?

Alison McGovern Portrait Alison McGovern
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I will ask the Minister with responsibility for family hubs to write directly to the hon. Gentleman and work with him on that suggestion.

From the word go on taking office, the Prime Minister wasted no time in setting up the taskforce of Ministers to analyse the situation for our children in poverty.

Stephen Flynn Portrait Stephen Flynn
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If I recall correctly, from the get-go, the Labour party suspended seven Members of its parliamentary party for voting to scrap the two-child cap. The Minister’s colleague, the hon. Member for Rochdale (Paul Waugh), asked her very clearly whether she believes that the two-child cap should be scrapped, but she did not answer. Perhaps now she will. Does she believe that the cap should be scrapped—yes or no?

Alison McGovern Portrait Alison McGovern
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I will come to the two-child limit in a moment, but let me correct the right hon. Gentleman: the issue then was Members voting to amend the King’s Speech.

From the word go on taking office, the Prime Minister wasted no time in setting up the taskforce of Ministers to analyse the situation for our children in poverty and to identify the most cost-effective ways of helping them to experience better childhoods. Our child poverty strategy will be published later this year, but, as I have said, we have already taken steps that we believe will help to mitigate the worst effects of 14 Tory years. Just yesterday, the Chancellor announced the better futures fund, the world’s largest social outcomes fund, which will be backed by £500 million of Government funding over 10 years to support vulnerable children, young people and their families.

None Portrait Several hon. Members rose—
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Alison McGovern Portrait Alison McGovern
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I have given way a lot, Madam Deputy Speaker, and I am worried that you will be quite cross with me if I keep giving way, so I will make progress.

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Alison McGovern Portrait Alison McGovern
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I did say that I would give way to the hon. Gentleman, so let me do so before I finish my speech.

Jamie Stone Portrait Jamie Stone
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The Minister is extraordinarily gracious. She has rightly talked about universal credit, and what she says is very interesting indeed. I have constituents on legacy benefits who are—I think this is the right word—“migrating” to universal credit. The trouble is that they have to wait five weeks until they get their first cash. How will they make ends meet? What about the direct debits? I worry about that. Perhaps the wonderful group of Ministers considering these matters could look at that situation, because people are really caught in a trap.

Alison McGovern Portrait Alison McGovern
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The hon. Gentleman is not the only person who worries about it, and I will receive his intervention as a submission to the child poverty taskforce.

The child poverty taskforce is looking at all the levers we can pull—across income, costs, debt and local support—to prevent poverty, including social security reform. Our universal credit review is considering ways that the system can improve in order to stabilise family finances and provide roots into good work.

On the two-child limit specifically, the consequences of the Conservative choices made over the past decade and a half are clear for all to see. We have rightly said many times that we will not commit to any policy without knowing how we will pay for it. Taxpayers in this country—who include many parents, grandparents and those who care deeply about the fortunes of the next generation—have the right to know that they have a Government who will help grow our country and our economy. Poverty creates stony ground for that growth. It robs people of the dignity of being able to look after themselves and the choices about how to live their own lives. It robs children of what should be a worry-free time and makes them less able to take risks and try new things as they grow up.

This makes bad beginnings for a country that needs its next generation to be innovators, to be inventors and to build our future. I say this as one of three in a family with hard-working parents where money was tight. We knew every day in those years when I was growing up that the Tory Government at the helm did not give a stuff about people like us—we knew that every single day. Families in this country who are struggling should know that this Labour Government think about them every day. We have taken action to improve life for our kids, and we will keep fighting for that every single day.

Nusrat Ghani Portrait Madam Deputy Speaker (Ms Nusrat Ghani)
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I call the Liberal Democrat spokesperson.