The Economy and Living Standards

Jack Dromey Excerpts

Thursday 12th June 2014 Commons Chamber

[Jack Dromey (Birmingham, Erdington) (Lab)]

“What planet does the Chancellor live on?”, said the Stockland Green mother. “Does he begin to understand people like me? My husband has been made redundant three times, and each time the new job is on a lower rate of pay. Do they know, up there, what life is like for us down here?”

That goes to the heart of what the shadow Chancellor said earlier about an era of discontent and disconnection. There is discontent because life is hard for most of my constituents. Living standards are squeezed and people are worried about their kids and concerned about vested interests—energy companies, for example—taking advantage of them. They say to me time and again, “Jack, it just ain’t fair.” The disconnection is because there is mistrust of politics and politicians, and incredulity when people are told that recovery is under way. Time and again I hear, “Recovery—what recovery?” My constituents say to me that this Government simply do not understand their lives, because for too many of them, life is hard and there is insecurity in the world of work. I meet constituents on zero-hours contracts and those in the building industry who complain about being undercut. One said, “Jack, they are exploiting the migrants and undercutting us.”

[Debbie Abrahams]

Is not the increase in the number of people on zero-hours contracts an absolute shame? The Chancellor was not even able to provide a figure for that number.

--- Later in debate ---

[Jack Dromey]

My hon. Friend is absolutely right. One of the people I met was a young lad of 22. He said, “Jack, I’ve just had a baby. We are trying to bring up our kid as best we can but I cannot plan from one week to the next because of my zero-hours contract.” A woman, Rachel, poured out her heart to the Leader of the Opposition on the Castle Vale estate about what life is like trying to bring up a young child on the minimum wage. There is insecurity at home. One in two people in Stockland Green in my constituency live in the private rented sector and most cannot plan from one year to the next where they send their kids to school or manage their households budgets, because like Cathleen they have contracts that last six months at a time.

Some people are struggling to buy a home, such as the young family who came to see me and said, “We’re desperate to buy a home, Jack, but we simply cannot afford it. It costs six or seven times what we earn combined to buy a home in this area.” Others struggle to maintain their living standards. One family said, “We’re worse off now than we were in 2009, and for us, holidays are a thing of the past.” Barbara and Jim Brown are struggling, and they are typical of so many of my constituents who can no longer afford to pay their energy bills. Local businesses are struggling to get loans from banks. One civil engineering company said, “Jack, it would be easier to break into my bank than get a loan from it”.

Mums and dads are anxious about their sons and daughters, such as the wonderful woman in the Castle Vale area who said, “I love my son, Jack. He’s got learning difficulties and he has never worked. He is desperately frustrated and I want to see him get on.” Now, at last he is getting on. Why? Because Birmingham city council’s youth jobs fund has funded a job for him in the upcycle project. You should see the smile on his face, Madam Deputy Speaker.

The council has also driven an apprenticeship programme with 1,500 apprentices thus far. The biggest builder of homes in Birmingham is tackling some of the problems in the private rented sector and driving the living wage to transform the city into a living wage city. However, faced with the biggest cuts in local government history, what can be done by local government is important but limited.

In conclusion, the message from this debate is this: if people want an economy that works, decent wages that reward hard work, a higher minimum wage, a living wage and an end to undercutting; if they want security in their home or the security of knowing they will be able to buy a home, and if they want the next generation to get on, including building a new generation of badly needed homes, creating jobs and apprenticeships—the kind of wonderful young apprentices I see at Willmott Dixon in my constituency; if they want to be confident that they can heat their home, and to have an honest Government who will not promise the moon but will move mountains on their behalf, stand up for them and be on their side; and if they want a Government who are fair, without the grotesque contrast between the tax cut for millionaires and the bedroom tax being introduced on the same day; if they want a Government who will reverse that and put the burden on the broadest shoulders and abolish the bedroom tax, and if they want a strong economy and fair society, they want a Labour Government.