In-work Poverty

Debate between Sharon Hodgson and Tanmanjeet Singh Dhesi

Wednesday 28th June 2023 Westminster Hall

[Mr Dhesi]

I could not agree more. I remember standing in this very place after I had managed to secure a debate on the Taylor review of modern working practices. In fact, some of the same Members who are here today also took part in that debate, during which we asked for the employment Bill to be introduced. It is shocking that only seven of the 53 agreed areas of legislation were enacted. Such intransigence is what leads to more in-work poverty.

For 13 years, successive Conservative Governments have sought to undermine social security in our country. Universal credit is not protecting working families from poverty. More than a third of children and working age adults in working families in receipt of universal credit are still in poverty after housing costs.

Ms Clarke, one of my constituents in Slough, is a nurse who supported the most vulnerable during the covid-19 pandemic. She is struggling to pay for the loans that she took out for her training and has to claim universal credit. For that, she must take annual leave to attend her appointments at the jobcentre. How is any of that fair or right? She is a nurse and a single mother without the support she clearly requires.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

My hon. Friend is making an excellent speech about in-work poverty. Does he agree that universal free school meals would help alleviate in-work poverty for those at the lower end of the wage spectrum? They are already available in primary schools in Scotland and Wales, and the Mayor of London has announced that they will be extended to primary schools across London. Northern Ireland has a higher earnings threshold of £14,000, which is double the England threshold of £7,400. Does my hon. Friend agree that that would provide a massive boost and really help those people in work who are in poverty, especially the lady he has just spoken about?

[Mr Dhesi]

My hon. Friend is a doughty champion for free school meals. She is known as the all-party parliamentary group queen and has organised various events, including on free school meals. I remember highlighting their importance as we served them alongside dinner ladies and gents. I thank my hon. Friend, because I will bring home that point of view later in my speech.

The punitive benefits system is driving more people to use food banks. At Slough food bank in my constituency, kind and amazing people who undertake much-needed selfless service report that six in 10 of the people they support are on universal credit, and many of them are employed. Charities openly acknowledge that they would rather not exist because they do not want a society where working people are forced to rely on food parcels to survive.

It is worth noting that in 2010 the Trussell Trust operated only 35 food banks. Staggeringly, today that number is closer to 1,300 across the UK, and between April 2022 and March 2023, they gave out 3 million emergency food parcels. That is a third more than during the pandemic and double the number before the pandemic. What a shocking legacy this Government are leaving behind.

--- Later in debate ---

[Mrs Hodgson]

I just want to add some further statistics to the ones that my hon. Friend is very helpfully providing us with on hungry children. On the economics of universal free school meals, PricewaterhouseCoopers did some work on the numbers and found that for every £1 invested in universal free school meals, the return on investment to the economy in savings on health, child poverty, malnutrition and all the rest is £1.71—so every £1 returns £1.71. Does my hon. Friend not think that that proves the policy would pay for itself?

[Mr Dhesi]

I defer to my hon. Friend’s expertise. I am sure that the Minister is listening and will be looking at why that is so important.

We need a Government who will focus on breaking the cycle of poverty, who will ensure that respect and dignity are once more at the heart of our social security system, who will make it easier to own a home and raise a family, and who will put an end to the soaring use of food banks. We need an economy and a system that work for everyone, not just a select few, and that do not embed poverty through low-paid insecure work, leave children without meals or homes, or see the hard-working go hungry.