Income Equality and Sustainability

Lord Livermore Excerpts

Wednesday 6th May 2020 Lords Chamber

[Lord Livermore (Lab)]

My Lords, it is a privilege to pay tribute to the most reverend Primate the Archbishop of York, whose commitment to equality shone through in his opening speech, as it has done throughout his career. I hope that he will continue his campaigning work in the years ahead.

Britain is a deeply unequal society. Income inequality is the fifth highest in the OECD, and there are vast inequalities in wealth, opportunity, education and life expectancy. It is tempting to believe that the Covid-19 pandemic is a great leveller, yet these inequalities have become greatly magnified. The economic effects of the pandemic are disproportionately experienced by the low paid and the young. Those working in shut-down sectors are seven times more likely to be the lowest paid, and those under 25 are three times more likely to work in hospitality or retail—sectors that have closed entirely. The health risks are disproportionately borne by the poor, those from black and minority-ethnic backgrounds, and women, because they are more likely to be key workers, live in cramped accommodation, or have an underlying health condition.

Alongside exposing the inequalities in our society, this health emergency also risks exacerbating them further. Unemployment will be concentrated in the lowest-paid sectors, potentially scarring future employment and earnings. Those soon to leave school or graduate will enter a labour market in severe recession, with lower job prospects and wages. For school-age children, prolonged periods out of the classroom are particularly damaging to those from poorer backgrounds.

Despite this bleak picture, the response to the virus has shown us a better way. While homelessness has doubled over the past decade, funding has now been found to house more than 90% of rough sleepers. Meanwhile, air quality has dramatically improved, as nitrogen dioxide levels have halved. No one, of course, would choose for life to continue as now, but we do face a choice about the society we want to be. As we commemorate VE Day, let us remember how that victory signalled a desire for change, and go forward with the same determination to build a new social contract, fit for the future.