Working People’s Finances: Government Policy — House of Commons, 2021-09-21
Topic: Social Welfare
Stephen Nathan Kinnock (Labour, Centre-left): It is a pleasure to follow my hon. Friend the Member for Liverpool, Wavertree (Paula Barker), who made such a powerful and passionate case, so rightly pointing out the false economy that inequality represents. Thousands of families in my constituency, like families across the UK, have taken a real buffeting over the past 18 months, and this month could bring the perfect storm for them as the furlough scheme ends, the universal credit uplift is scrapped and the cost of living spirals upwards. The pandemic has had a significant impact on household finances, which have been stretched to breaking point, and not everybody is able to weather the storm as easily as others Conservative Members like to claim that their Government have fixed the roof while the sun is shining, but the reality is that the Tory roof is made of straw and a cold wind is blowing. Worrying research from the Bevan Foundation has found that one in three Welsh households does not have enough money to buy anything beyond everyday items, while more than one in five households with a net income of less than £20,000 have seen their income drop since January. The planned cut to universal credit will only deepen these inequalities, as those on the lowest incomes will be pushed into poverty and destitution In Aberavon alone, more than 7,000 households receive universal credit. For those families, the £20-a-week uplift has been a lifeline, protecting those who have lost income and preventing them from slipping into poverty or having to visit the food bank to feed their families. It is important to note that of the 7,000 households in Aberavon that are on universal credit, 2,000 have registered since the start of the pandemic. The idea that the removal of the uplift is somehow not a cut is deeply disingenuous, because the 2,000 households that have registered since the start of the pandemic have certainly not known any other rate of universal credit. The Government’s claim is blatantly and deeply disingenuous The uplift has made a real difference to family budgets. My inbox has been filled with emails from residents telling me how it has helped them to meet the cost of essentials and allowed them to pay their bills, make the rent, put food on the table and switch the heating on. To some, £20 a week may seem like a small amount of money, but to the families I am talking about it makes a world of difference and would have been crucial to help them with rising energy bills and the escalating cost of the weekly shop. They are now deeply anxious about their precarious finances and worried about how they will make ends meet without the uplift The reality is that we are potentially moving into an age of anxiety. The anxiety that is now afflicting so many millions of families and households throughout the country saps the strength from the recovery and defeats growth. It is a brake on growth, which is why the Government’s policies are so deeply damaging. They are not only the wrong thing to do in a civilised society but the definition of a false economy because they are putting a brake on growth and holding back the recovery Some of those who contacted me are shopworkers and carers who worked through the pandemic and now face the cut to universal credit. That is no way to thank them for what they have done. Members on the Government Benches stood on their doorsteps applauding our key workers; now they reward them with this cut and a cost-of-living crisis. Their hypocrisy is breath-taking.