My Lords, in speaking to the two amendments in my name, I regret that I was unable to raise at Second Reading the issues that they contain. I also regret that, yet again, I find myself tabling amendments to legislation produced by one department in silo, which does not appear to have taken into account that achievement depends on co-ordination with the activities of several other
departments. My amendments, and others in the next groups, are intended both to point out and, hopefully, to rectify what will no doubt be claimed as the unintended consequences of not appreciating the impact of factors for which the DWP is not responsible.
The Minister will no doubt remember a seminar during the passage of the Welfare Reform Act 2012 focusing on the Wednesbury principles. Afterwards, he told the House:
“The department strives to ensure that no decision is influenced by irrelevant factors and that decision-makers act in a rational and fair manner”.—[Official Report, 25/01/12; col. 1061.]
Parts of this Bill—and particularly the proposal to do away with the child poverty targets contained in the Child Poverty Act 2010, which targets Alan Milburn has forecast will be missed by a “country mile”—suggest that, rather than being influenced by irrelevant facts, decision-makers appear to have ignored extremely relevant facts related to the responsibilities of other departments. Rather than acting in a rational and fair manner, they have acted irrationally and unfairly by ignoring what they should have taken into account.
In moving Amendment 22, I must declare an interest as co-chair of the All-Party Group on Speech and Language Difficulties. In 2012, we published a report on the links between social disadvantage and speech, language and communication needs, which included an extremely alarming graph that showed that children with very low IQs from supportive families would overtake children with higher IQs from disadvantaged families at the age of five, unless they were helped. One of our recommendations, discussed with both the Department of Health and the Department for Communities and Local Government, was that every child in the country should be assessed by a health visitor—trained or accompanied by a speech and language therapist—by the age of two so that remedial treatment could be initiated aimed at ensuring that every child could engage with education when starting school. We also recommended regular re-assessments to measure both progress and change of circumstance. This should continue until school-leaving age for those with special educational needs, whose statutory education, health and care plans continue until age 21.
Assessment of a child’s progress at age five provides a critical measure of their cognitive, emotional, social and physical development. In this connection, I should declare two other relevant interests. I am president of the Institute of Food, Brain and Behaviour, which has reported frequently on the vital importance of correct nutrition for brain development, not least before birth, and chairman of the Criminal Justice and Acquired Brain Injury Interest Group, which has campaigned for better understanding of the impact on young people of neuro-disability, which covers a multitude of conditions, including the effects of head injuries. The earlier that you can identify problems, the more likely you are to be able to initiate remedial treatment aimed at ensuring that children achieve the best educational attainment they possibly can and so have the best chance of finding and keeping work, which will help them to break cycles of intergenerational poverty.
What worries me most about the dropping of the targets contained in the Child Poverty Act, inadequate though they are for obtaining a detailed picture of the
actual material condition of those in poverty, is that, now, neither central nor local government are to be required to make strategies for reducing child poverty or preparing and publishing assessments of the needs of children living in poverty. Meaningful improvement can be based only on particularised fact, in which regard much of the official data on which judgments will be based are little better than generalised fudge because they hide so many pockets of problems. The same detailed facts are required not only by the DWP for benefit purposes and by the Prime Minister and Chancellor for strategic purposes but by the Department of Health, the Department of Education, the Ministry of Justice and the Department for Communities and Local Government so that they can sing from the same hymn sheet when planning early years provision and the deployment of social and other remedial workers, to name but two responsibilities.
On Amendment 34, having already voiced my concern that the Bill is yet another example of a department legislating in silo, it appears to me that the Treasury and the DWP have not considered the impact on the mental and physical health of United Kingdom citizens when setting the level of statutory minimum incomes or the cost of treating consequent mental and physical ill-health in the NHS. Provision of the minimum income needed for healthy living is a means of preventing mental and physical ill-health and its cost. Currently, and even more so under the provision of the Bill, too many parents are frustrated in their attempts to provide for their children by inadequate statutory minimum incomes. Understanding the extent of this is exacerbated by the lack of up-to-date information, which Amendment 34 seeks to rectify. The amendment also seeks to open up a debate about the link between inadequate incomes, sanctions and the inevitable and unmanageable debt on the one hand and their impact on the mental and physical health of the poorest citizens on the other.
Ever since the national minimum wage was introduced, successive Governments appear to have ignored that the crucial income for health is the minimum wage after housing costs have been deducted. That amount is constantly being reduced by ever-increasing rents in the chaotic British housing market, the enforcement of debt collection—to which court costs and bailiffs have now been added—and the cost of council tax. According to the Office for National Statistics, 14.5 million people are now in absolute poverty after housing costs have been deducted. That is 4.1 million more than before their deduction. In other words, 4.1 billion additional people lack the ability to buy the food, fuel, clothes and other necessities that are essential for physical and mental health and well-being. That must surely concern a Government who pride themselves on their compassion.
The national minimum wage is based on the assumption that £6.70 an hour is paid for a 37.5-hour week. My amendment would also enable the Government to assess the impact of zero-hour contracts and part-time working on the health of employees working less than 37.5 hours a week. The Chancellor has now announced that the national minimum wage is to be replaced by a national living wage of £7.20 per hour from next April, rising to £9 per hour by 2020. In the absence of
any known research into the minimum income needed for healthy living, he appears to be using the word “living” without substance. By contrast, I pay tribute to Reverend Paul Nicolson. I am most grateful to him and Taxpayers Against Poverty for telling me, among other useful information, that it was robust research for the Living Wage Foundation carried out by the Joseph Rowntree Foundation that led to the London living wage of £9.40 an hour and £8.25 per hour outside London, which 724 employers, up from 429 last year, are now paying. Boris Johnson, the Mayor of London, has already announced:
“Paying the London living wage is not only morally right, but makes good business sense too”.
More than 2,200 employees working for companies with contracts from the Greater London Authority are now benefiting from the London living wage. In another report, published on 23 November, the Rowntree Foundation showed that 51% of those living below the absolute poverty line lived in households in which at least one adult was in work. My amendment is not so much about the actual amount but to point out that because the Government’s proposed national living wage is so inadequate, it will condemn too many households to absolute poverty, with the inevitable consequences for their mental and physical health.
The DWP cannot claim that this information has not been readily available, or that it has not been brought to the Government’s attention. In addition to the activities of the organisations with which I am associated, the link between debt and mental illness has been highlighted in a report by the Royal College of Psychiatrists, confirmed in a peer-reviewed study by the University of Liverpool. The Institute of Brain Chemistry and Human Nutrition has highlighted the link between poor maternal nutrition, low birth weight and developmental brain disorders in children. The Centre for Mental Health, as vice-president of which I must also declare an interest, has calculated that the economic and social costs of mental health problems in England were £105 billion in 2009-10, taking into account costs of health and social care, loss of output and human costs. Many now consider this to be an underestimate.
Those of us who voted in favour of the amendment proposed by my noble friend Lady Meacher to the tax credits statutory instrument have been accused of acting unconstitutionally. My reason for doing so was to try to persuade the Chancellor to think again. I do not believe that anything in our current parliamentary process is as unsatisfactory, if not unconstitutional, as the Committee system in the other place, where Governments have a built-in majority of nine to seven, meaning that virtually no opposing amendment has a hope of being agreed. There have been numerous examples of admittedly imperfectly scrutinised legislation being sent to this House because the Committee, as composed in the other place, had neither time nor the necessary expertise to complete that process. Having read the Committee proceedings in the other place, I believe that to be true of the Bill.
In putting forward these two amendments, like my noble friend over tax credits, I ask the Minister to think again about this part of the Bill, and particularly
the decision to scrap the strategic requirements in the Child Poverty Act 2010 and its proposed renaming. Life chances are being eroded by child poverty, which fact ought always to be in the forefront of government minds. In order to improve life chances, everything possible must be done to alleviate child poverty, and in order to achieve this essential, whichever Government is in power will need the information that my amendments seek to ensure is available on a regular basis.
Again, like the noble Lord, Lord Kirkwood of Kirkhope, on an earlier amendment, and remembering the Minister’s willingness to discuss contentious issues in earlier Bills, I and, I am sure, other colleagues would be very happy to meet him to discuss this. I beg to move.
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