amendment of the law

Debate between George Howarth and Crispin Blunt

Tuesday 25th March 2014 Commons Chamber

[Mr George Howarth (Knowsley) (Lab)]

It is a pleasure to follow the hon. Member for Reigate (Crispin Blunt), who stressed the importance of getting independent advice. That advice was well worth giving, but I simply observe that in the past people have had independent advice but it has not always turned out to be to their advantage. There are two kinds of independent advice: good advice and bad advice. How we distinguish between the two will be—

[Crispin Blunt]

The important change is that independent advice is now definitively independent advice—the era of relationships, commission and so on between financial advisers and providers has gone, and that is an important benefit.

[Mr Howarth]

I agree, but my concern is that the people giving the advice need to be competent; it is not necessarily a question of whom they are connected to.

I want to use the time available to me to talk about the Budget and poverty, but first I wish to refer to my experience of volunteering in our local food bank—the Big Help Project—last Saturday at the Tesco supermarket in Prescot, in my constituency. The first point to make is how generous the response of shoppers was to the appeal. It was so overwhelming that at one point the volunteers struggled to keep up with the number of bags of groceries that were being given to us, and that is a great tribute to everybody involved. Secondly, from talking to volunteers and supporters it became clear that they did not take a prescriptive view of people who, unfortunately, have to rely on the services of a food bank to feed their family. The statistics bear out why people are right to be sympathetic. The Big Help Project has had 6,000 referrals over the past 12 months, 73% of which are the result of benefit changes, benefit delays or low income. The project has a vital job to do, but we need to be mindful of the reasons why people find it necessary to go to a food bank.

I want to talk specifically about poverty, and not about welfare. We have sometimes managed to confuse those terms, but they sometimes go together and sometimes do not. According to the Joseph Rowntree Foundation,

“the most distinctive characteristic of poverty today is the very high number of working people who are also poor.”

Again, the food bank experience in Knowsley bears that out, as 22% of those referred are in employment but they are so poorly paid that they are forced to rely on the food bank to make ends meet. The other two main groups relying on the food bank are people who are dependent on the benefits system and who are affected either by benefit changes or by delays in payments. In some cases, these people find themselves with absolutely no income at all, and often that is as a result of sanctions, which in some cases are arbitrarily put on people who are trying to make a claim.

The trouble with the Government’s approach to welfare reform is not just that it is morally flawed, but that it is based on the subjective view that welfare dependency is, in some way, a choice that people can make. If it were as simple as that, it would be a relatively straightforward phenomenon to resolve—but it is not as simple as that. The reality is that people who want to re-enter the labour market are often confronted with a complex web of barriers that can, in some cases, be impossible to negotiate without help that is tailor-made to their particular circumstances.

Research from the Department for Work and Pensions itself has concluded that what matters for poverty reduction is not the aggregate employment rate, but the share of working age adults and children in workless households. In other words, an increase in the number of people in the labour market will not necessarily reduce poverty if it consists of people entering the labour market from households which are not already in poverty. So, even if employment rates are rising—I acknowledge that they are—below the surface there is a highly polarised employment structure, with a high number of double earners and a high level of zero-earner households. The Secretary of State referred to that in his opening speech.

What the Government’s approach fails to take into account are the barriers that those in zero-earner households have to surmount to become earners—certainly at a level that does not lead to their still living in poverty. Time forbids me from going into too much detail, but let me offer two examples of the barriers that people experience. The first is the recruitment practices in many companies. A UK Commission for Employment and Skills report in 2010 concluded that employers increasingly use informal channels of recruitment rather than the jobcentre, which further disadvantages those who are unemployed and, as a result, they do not have the informal contacts needed to be in the know. That approach is probably even more commonplace now in my constituency than it was at that time.

The second barrier is the increasing use of zero-hours contracts by employers. There are varying estimates as to the level of their use, with between 500,000 and 1 million people thought to be affected. I do not intend to get into a discussion about which figure is correct, but that barrier, taken together with the unreliability of agency contract work, makes it difficult for families to abandon the benefit system altogether. That is because the employment available is so insecure and unreliable as to be too risky to contemplate—certainly for families. Indeed, it presents the very real possibility that by finding a job someone will be plunging their family into even greater poverty than they were experiencing already.

Although there are obvious improvements in the economy and in the levels of employment, poverty is stubbornly persistent in this country, to a wholly unacceptable degree. I am afraid that I am bound to conclude that because the Government do not understand the causes of poverty, they have not addressed it at all in this Budget.

Sentencing

Debate between George Howarth and Crispin Blunt

Monday 23rd May 2011 Commons Chamber

[The Parliamentary Under-Secretary of State for Justice (Mr Crispin Blunt)]

I am grateful for the chance to have a few minutes to reply to the debate and to present a set of arguments to explain why the Opposition motion is a good example of how not to debate or approach public policy in this area. It was my answer to a question here last Tuesday from the right hon. Member for Blackburn (Mr Straw) that led to the debate last week and, as that has developed and as we have heard this afternoon, there is a growing appreciation and understanding that the simplicity of the Opposition motion cannot do justice to the complexity of the issues and factors we must reconcile. The motion is outside any proper context and is premature, prejudging proper consideration of our policies as a whole. It is also rather instructive that it has come forward after a prompt from media coverage and the right hon. Gentleman. I would have thought that our policy inheritance from the previous Government would have given today’s Opposition Front-Bench team pause for thought before they tabled the motion.

A real reason for regret is that the Opposition motion indicates that a window might be closing on a unique opportunity for Parliament to show collective leadership in a difficult, complex area that is wide open to misrepresentation. We might be missing an opportunity to engage in a responsible debate and support a process in which policy is agreed on the basis of the evidence for its enduring benefit, not designed to deliver maximum short-term appeal, with evidence arranged to suit. Such support requires an exercise of principle and restraint from all of us.

[Mr George Howarth]

rose—

[Mr Blunt]

I must apologise to the right hon. Gentleman but in order to reply to those who have contributed to this debate, himself included, I will not be able to take interventions if I am to do justice to the speeches that have been made.

Last year, when the right hon. Member for Doncaster North (Edward Miliband) distinguished his leadership campaign, so successfully managed by the shadow Justice Secretary, by taking a sensible position on criminal justice, moving away from the populist approach of the previous 13 years, it was greeted with enormous relief by many Labour supporters with a deep and continuing interest in criminal justice. As my hon. Friend the Member for Ipswich (Ben Gummer) reminded us, the right hon. Gentleman reiterated the position at his party conference speech immediately after his election as leader. So I hope sincerely that we can sustain a level of examination of these issues in this House that we can be proud of in the years to come and not just regret a unique period when we had a great chance of delivering a more effective criminal justice policy of some durability but bottled it. Happily, a number of speakers did actually make a constructive contribution this evening.