In-work Poverty — [Christina Rees in the Chair]

The speaker highlighted the issue of in-work poverty and the lack of wage growth despite high vacancies. She criticized government policies for creating barriers to better pay and career advancement, mentioning issues like childcare costs, transport problems, and a skills crisis. Just to remind the Minister, when will the Government respond to the in-work progression report?

Mr McDonald criticised the Government's economic model, stating that one in six working families is now in poverty, a record high. He pointed out real wages dropped by 1.5% over the past year, which he described as the worst fall in eight years. Additionally, Mr McDonald highlighted the impact of policies such as cutting pensions and social security payments, slashing universal credit uplifts, rising energy prices, and increased national insurance contributions on pushing families into poverty. The MP questioned the philosophy that progression out of one's current job is the only way to improve life, arguing it lacks dignity for those in key jobs.

He defined in-work poverty using multi-modal models, highlighting affordable housing and childcare as major issues. He pointed out that affordable rents are the number one cause of homelessness risk in his constituency and argued for more generous childcare provision and support for those on benefits.

I am surprised at a recent article showing that 20% of jobs advertised on the Department for Work and Pensions website paid under the national minimum wage rate of £9.50, calling for an inquiry into this issue. Chris Stephens highlighted the high levels of in-work poverty, particularly affecting lone parents, disabled people, and carers. He criticized the deduction from universal credit claims as a 'poverty tax' and called for reforms such as replacing advances with upfront grants and writing off debts over six years old. Stephens also pointed out that 31% of full-time jobs and 50% of part-time jobs on the DWP website pay less than the real living wage, citing examples like Burger King at £6 an hour. Will the Minister look at the issue of pursuing debts that are over six years old? It seems a nonsense that we still pursue people who have had a debt for longer than that period, and then taking a deduction.

Discussed the national insurance hike, highlighting its disproportionate impact on young and low-income earners. Raised concerns about statutory sick pay adequacy during the pandemic, suggesting it needs reform. Criticised age discrimination in minimum wage standards for apprentices, noting they can be paid as little as £4.30 an hour.

Mr Shannon highlighted the increasing poverty and cost of living issues impacting working-class families, noting that 14.5 million people were in poverty in 2020 and that inflation rates are at their highest since 1992. He cited fuel prices rising by 50% and food prices by 25%, affecting almost 60% of the UK population and 220,000 working-age adults in Northern Ireland.

In-work poverty undermines the social contract that evolved after World War II, as people are now working but unable to afford basic living costs due to a low-wage economy. The situation was exacerbated by high rents and the current cost of living crisis, leading to unaffordable housing and energy expenses.

She highlighted that in-work poverty is a significant issue, with the majority of those living in poverty being part of households with some form of paid work. Margaret Greenwood cited statistics from the Institute for Public Policy Research indicating 65% of working-age adults in poverty are in working families across the UK and north-west England, with even higher percentages in other regions like east England (70%) and south-west England (72%). She criticised the Conservative belief that work is a solution to poverty. Margaret Greenwood also addressed the impact of rising food prices and energy costs on low-income households.

The cost of living crisis is deeply affecting constituents, leading to high levels of in-work poverty. Two-thirds of working-age adults in poverty live in households where an adult is employed. In-work benefits like universal credit are insufficient for lifting people out of poverty, and the cut of £20 per week to universal credit was cruel given the known hardship it would cause.

Employment is the best route out of poverty, and evidence shows that full-time work substantially reduces the chances of living in poverty. The Government has accepted four recommendations from the Low Pay Commission, increasing the national minimum wage to £9.50 per hour. Additionally, improvements have been made for those on universal credit with an increase in the work allowance and a reduction in the taper rate. In response to Chris Stephens' speech, Peter Gibson shared his personal experience as a former employer who had to increase wages during times of high demand to attract employees. He noted that employers in his constituency are also increasing wages to fill vacancies.

More than half of those in poverty are in working households, with low-income families at highest risk since 2004. The proposed national insurance contributions increase and expected inflation will worsen the situation, potentially causing a significant benefits cut. She urges the Government to implement an industrial strategy, improve wages, strengthen workforce voice, and introduce renters' reform Bill.

He criticised the Government's economic policies, noting increasing energy costs and tax rises affecting millions. He cited statistics about rising wealth among billionaires while ordinary people face hardships. He called for an emergency plan including a national minimum wage of £15 per hour, restoration of universal credit uplifts, and free school meals for all schoolchildren.

The MP highlighted the severe economic challenges faced in Bolton, noting that 56% of people living in poverty are working—a significant increase from 1998. She cited examples such as taxi drivers struggling to earn minimum wage due to self-employed status and regulations, and emphasized that real wages have not recovered since the financial crisis while executive pay has risen sharply.