UK Parliament / Open data

Welfare Reform and Work Bill

Proceeding contribution from Paul Scully (Conservative) in the House of Commons on Tuesday, 23 February 2016. It occurred during Debate on bills on Welfare Reform and Work Bill.

I should like to speak to Lords amendments 1 and 8. In looking at child poverty, I am worried about the numbers for the income targets that we have discussed. My concern is that the Government are effectively just managing the situation, rather than tackling the problem. The Bill seeks to refocus our approach so that we concentrate solely on tackling the root causes of poverty, rather than wringing our hands and looking at the symptoms.

Between 2003 and 2008, the Government spent roughly £300 billion on child poverty, but the figures remained broadly unchanged. Such examples show that we need a different approach. We have heard that the reporting of incomes has had a perverse effect on child poverty. In a recession, poverty can decrease. Conversely, in periods of economic growth poverty can go up.

Let us concentrate on those root causes. The deadline for the elimination of child poverty has been discussed, but we need to think how we would meet an arbitrary deadline if we do not understand what we are trying to tackle. We need to understand the root causes of poverty, and focus on those.

The Minister has made a commitment to continue to publish the figures on low incomes in the annual report on households below average income. The report uses national statistics, so it is guaranteed on that basis. As I have said, we have heard the Minister’s commitment to publishing those figures every year. We have been asked by the Opposition if the figures can be reported alongside information on life chances. However, that reinforces the perverse consequences that can result, so it is important that we focus solely on what will help to eliminate child poverty.

Turning to changes to ESA, 61% of people in WRAG want to go back to work. The majority of people who are out of work want to go back to work, so it is important that we focus support and help people. We should offer a safety net for people who cannot go back to work, and we should do everything that we can to support people who can go back to work and want to do so. WRAG was set up with good intentions, but unfortunately it has not been effective enough. It is not right that we have a system in which only one in 100 people can find work, whereas one in five JSA claimants go back to work.

The intermediate WRAG arrangement has become a long-term waiting room, entrenching worklessness, because it focuses on the symptoms, not the root causes. That is why I am keen that we take the cash—up to £100 million a year by 2020-21—and repurpose it to address the needs of the people in that group.

I understand the concerns of colleagues about what will be in the White Paper and how the process will work, but as a member of the Committee considering the Bill I have seen the dedication of providers, disability charities and support groups, their commitment to the people they seek to help, and the skills and experience they have. That is why I know that the taskforce that is being set up will help to bring in the expertise of the charities, providers, support organisations, think-tanks and local authorities. I ask colleagues to have faith in the experience and expertise of those people, which will give us a solid basis on which to spend that money.

As the national living wage and personal allowances increase, we have an opportunity to tackle childhood poverty and bring people into work. We must make sure that work pays more than benefits, and that the system supports vulnerable people and is fair to people in work who pay their taxes.

Type
Proceeding contribution
Reference
606 cc226-7 
Session
2015-16
Chamber / Committee
House of Commons chamber
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