Commons Sense

House of Commons · Westminster Hall

In-work Poverty

28 June 2023 · 12 other contributors · 8,991 words

Opened by Tan Dhesi Lab Slough

Responding minister: Guy Opperman

EducationEmploymentBenefits & Welfare

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Tan Dhesi raised concerns about in-work poverty in Westminster Hall. A government minister responded.

Key points

  • The MP is concerned about the increase in in-work poverty in the UK, with data showing one in five people in relative poverty in 2021-22.
  • The MP highlights earnings stagnation, housing affordability issues, and high costs of living as contributing factors to in-work poverty.
  • The Minister noted that the Government plans to spend 30 billion on housing rental support in 2022-23, which is 1.4% of GDP.

Key requests to Government

The MP calls for a focus on breaking the cycle of poverty, ensuring respect and dignity within social security systems, making it easier to own homes and raise families, and reducing reliance on food banks. They advocate for an economy that works for everyone rather than embedding poverty through low-paid insecure work.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Tan Dhesi Lab Slough

The MP is concerned about the increase in in-work poverty in the UK. Data from the Department for Work and Pensions shows that one in five people in the UK were in relative poverty in 2021-22, with after-housing-cost figures revealing that 71% of children and 57% of working-age adults who are in poverty are doing so despite being employed. The MP highlights the role of earnings stagnation, housing affordability issues, and high costs of living as contributing factors to this problem. They also mention that six out of ten people supported by Slough food bank are on universal credit and many are employed, indicating the failure of current policies in addressing poverty among working individuals.

Other contributors (12)
  • Chris Stephens SNP Glasgow South

    I congratulate the hon. Gentleman on securing the debate, mentioning the gig economy and three reasons for in-work poverty: insecure work, zero-hours contracts, bogus self-employment and low wages.

  • Daniel Poulter

    While having a different interpretation, I agree on real-terms pay reductions for public sector workers and the importance of implementing the recommendations of national pay review bodies.

  • David Linden SNP Glasgow East

    I confirm that Labour would implement the recommendations of the public sector pay review bodies. In-work poverty exists because people do not earn enough; highlighting staff struggling with poverty pay in the Department for Work and Pensions who rely on food banks. Proposes improving statutory sick pay rates and fixing universal credit issues to address this problem. Mr David Linden asked the Minister to provide details on when free school meals would be implemented in Scotland.

  • Debbie Abrahams Lab Oldham East and Saddleworth

    Intervened to note that work is no longer the route out of poverty, questioning the impact of government proposals on in-work progression.

  • Ian Lavery Lab Blyth and Ashington

    Ian Lavery criticised statements made by the Prime Minister and the Governor of the Bank of England, questioning their understanding of in-work poverty. He highlighted that many workers have to use food banks despite having jobs and asked why public sector employees are struggling with basic needs.

  • Jim Shannon DUP Strangford

    Jim Shannon provided a Northern Ireland perspective, noting that over 100,000 children in the region live in poverty despite one parent working. He raised concerns about the impact of poverty on children's health and education and gave an example of a single mother who struggles even after receiving wage increases due to changes in universal credit.

  • Karen Buck Lab Vauxhall

    Ms Karen Buck highlighted the increase in in-work poverty exacerbated by cost of living issues, including food inflation and housing costs. She cited statistics showing that despite a decline in workless households, child poverty has increased since 2010-11.

  • Matt Rodda Lab Reading Central

    Families in Reading Central are struggling with rising food and housing costs, particularly mortgages for three-bedroom properties costing an extra £800 a month. The area also sees increased rent prices and poorly insulated homes, putting pressure on young families and those impacted by the cladding crisis.

  • Rachel Hopkins Lab Luton South and South Bedfordshire

    She discussed research showing 61% of working-age adults in poverty live in households with at least one adult in work, with part-time workers twice as likely to be in poverty compared to full-time workers. She highlighted the lack of action on local housing allowance rates and rising rents, leading to an increased risk of falling into in-work poverty.

  • Ruth Jones Lab Newport West and Islwyn

    She highlighted the impact of increased mortgage costs and inflation on her constituents, with 9,500 people in Newport West facing an additional £2,400 per year. She shared a constituent's story about working two jobs while struggling to pay for bus fares and feed her children, stressing that in-work poverty is worsening despite the efforts of individuals.

  • Sharon Hodgson Lab Washington and Gateshead South

    My hon. Friend suggests universal free school meals would help alleviate in-work poverty, citing statistics from PricewaterhouseCoopers indicating a £1.71 return on investment for every £1 spent.

  • Stephanie Peacock Lab Barnsley South

    I congratulate my hon. Friend and note the tripling of food bank demand in Barnsley due to Government policies, affecting 35% of children who are growing up in poverty.

Government Response

Guy Opperman

The Minister stated that the Government projects to spend £30 billion on housing rental support in 2022-23, which is 1.4% of GDP and higher than when they came into office. He noted that 2.2 million additional homes have been built since coming into power, and housing starts are double those inherited from the Labour Government in 2010. Regarding education, the Minister highlighted that under benefits-based criteria, 2 million disadvantaged pupils are eligible for free school meals, a number which has increased by almost 1.3 million infants since the introduction of universal infant free school meal policy in 2014. He mentioned spending over £1 billion annually delivering free lunches to more than one-third of schoolchildren. The Minister also discussed welfare support, noting that around £276 billion will be spent through the welfare system in Great Britain for 2023-24, including £124 billion on people of working age and their children. He highlighted various cost of living payments made to low-income households, with an average of more than £3,300 per household. The Minister stated that there are now nearly 1 million fewer workless households compared to 2010. He also mentioned the increase in the national living wage by a record level of 9.7% to £10.42 per hour from April 2023, representing an annual earnings rise of over £1,600 for full-time workers. The Minister concluded with announcements on childcare support increases and funding expansions aimed at helping working parents.

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