Select Committee on Scottish Affairs Minutes of Evidence


Examination of Witnesses (Questions 300 - 311)

TUESDAY 20 FEBRUARY 2007

MR BRIAN GORDON, MS MYRA MACKENZIE, MR JIM MILNE AND REV ERIK CRAMB

  Q300  Mr Walker: Just to follow up on that, you would not know the answer to this but a ball park figure, are there a number of families in Dundee who are on low wages but both partners are working? Are there high levels where there is a single wage earner on low wages and many households where there are no wage earners whatsoever?

  Mr Milne: I honestly do not know. We do have stats for that but I cannot pluck them out of my head just now, I do not know.

  Q301  Mr Walker: Does work tend to be concentrated in certain households, do you feel?

  Mr Milne: I honestly do not know. I think the majority of two parent households will have someone working and the vast majority will be the case but a lot of other families have people who are in receipt of benefits and in receipt of Disability and Incapacity Benefit.

  Q302  Mr Walker: You would say the vast majority of two parent households have one parent working but what about single parent households, is that where you see a lot of problems with worklessness?

  Mr Milne: If you are a lone parent you are not subjected to worklessness, I am sure you have got your hands full all the time but you are not in paid employment. There are very high levels of lone parents in Dundee who do not work who are carers and are looking after their children. The average age of a lone parent in Scotland is 35. People think it is feckless young teenagers who got pregnant when they were in their teens but that is not the case, the average age is 35 in Scotland of a lone parent.

  Q303  Ms Clark: You will have seen in the national press that there are proposals to encourage more and more lone parents back to work when their children are younger. How do you think that is going to work in Dundee? Do you think that is a good idea or do you think a lot of those lone parents in reality would be better off working if the jobs were there?

  Mr Milne: I think it is a good thing if the services are there, good quality childcare that is accessible and affordable, and that is an area the Employability Framework Group are looking at in Dundee as well. The problem is we have had the welfare reform proposals, the Green Paper, and we are now seeing ministers drip feeding information that gives us a great deal of concern. Looking at lone parents, for example, saying, "We have got to get more lone parents back into work", what is going to be the outcome of that? Is it going to be that the services and support are there or is it going to be we are going to be taking benefits from them if they do not go into jobs that they do not think are suitable for themselves? We have got a situation where people who do not speak English have been told now that if they are not going to learn English there is a chance their benefits will be withdrawn. There is a whole host of information coming now that gives us concern in the sense that an element of compulsion will be what is going to be used, it will be the stick and not the carrot. I think it is important that we do provide people with the opportunities to get back into work, including lone parents, but we need the whole host of support mechanisms and services there that they can access and take benefit from to ensure they can get back into work.

  Q304  Ms Clark: At the moment in Dundee is there a support mechanism in terms of childcare, for example, for lone parents who want to return to work?

  Mr Milne: Dundee does receive Working for Families funding from the Scottish Executive and that has been relatively successful in funding some childcare support for families and support to get back into educational training and that has been good. It was very limited when it was established at first but it has been more generous over the past period. There are a lot of things being done that were not there in the past but more needs to be done.

  Q305  Mr MacNeil: Just on the European network that you alluded to earlier, do you see any parallels or any differences between attitudes towards mothers of young children and going into work?

  Mr Milne: When the minister was speaking about lone parents the other day asking how it is in Sweden that 80% of lone parents work and in the UK it is a lot less than that, of course they were not comparing apples with apples. The reality is as soon as you have a child in Sweden there are nursery services from being months old right through to pre-school and primary school, the services are there. In Scandinavia and Europe there is a lot more being done than there is in this country. If you can afford it you can purchase it but there is no guarantee that you can get nursery services or pre-school services unless you have got the cash to pay for it.

  Q306  Mr MacNeil: Just following that up, from the European network again, and you have said in Scandinavia, is there a country that is much worse to be poor in than other countries?

  Mr Milne: The UNICEF report the other day said we are at the bottom of the pile. We are worse than Poland and Portugal and over a whole range of indicators the UK is absolutely crap. That is the situation that we have got to look at and accept and ask how can we do things better, how can we improve the lot of the children who are going to be the future of this country because we are failing them badly. That is not something we are saying as an Anti Poverty Forum campaigning organisation, that is what UNICEF is telling us.

  Q307  Mr Walker: You said something quite interesting, Jim, because I think having a job is very important but also being a parent is very important and I do not think it should be work above all else. There should be a choice for parents if they want to work but we should not stigmatise those parents who are doing a very good job raising their children, what we should ensure we do is when they want to go back to work there are the mechanisms and training in place to help them re-enter the workforce. I wonder if that would be your view as well.

  Mr Milne: The element of choice is important and people should have the ability to go into work if they feel that is for them at any given time. If they do not want to do that, if they want to raise their family, a man or a woman, it does not really matter, they should have the option to do that and not to be disadvantaged by that process.

  Q308  Mr McGovern: Your memorandum rightly points out that benefits are a reserved matter and both yesterday in informal discussions and today we have heard about things like the National Minimum Wage, Tax Credits, New Deal, et cetera. In your memorandum you say there are a number of areas that could improve the plight of people in poverty and, Jim, you have already quite comprehensively covered the school uniform grant but you also mentioned school meals, access to travel, Credit Unions, et cetera. Would you like to expand on some of these suggestions?

  Mr Milne: There are two things there, Chairman. We did have a brief discussion yesterday about the question of universality and when you look at where we have got universal benefits, they are the most successful benefits we provide. In Scotland we provide free travel for the elderly, free care for the elderly, child benefit on a UK basis, all these things are very, very successful and the point I made yesterday was that we have £900 million of benefit fraud in this country but that is only the tip of the iceberg compared with the level of benefits people do not get because they are either ignorant of the benefit levels they are entitled to or they just do not know how to go about applying for them. We can see that universality is quite important because everybody gets them whereas we have got a situation at the moment where people are not getting what they are entitled to. That is one element of that. When it comes around to services for people, whether it be financial services, which are very important, people being better trained to manage the resources they have, and that is important, we should not lose sight of the fact that we do not want people to learn how to be poor and educate them how to manage in poverty, I think that is the wrong message. What we want to do is improve financial services to move people out of poverty. The Credit Union has got a major role to play in that and a lot of work has been done locally to promote Discovery Credit Union and getting people to join and take advantage of the financial services they can offer. Obviously when it comes to benefits, and we have discussed the National Minimum Wage, as to the whole question of income adequacy that I spoke about yesterday and touched on this morning, that is how you are poor, it is about how much you have got coming in and if you have got nothing in your purse at the end of the week and you have kids to feed and meters to feed. That should not exist in modern society. At the present time we are a very, very wealthy country and it is a big argument to get into the question of redistribution but I think that needs to be looked as well.

  Q309  Mr Davidson: Given that we are here from Westminster, are there three things in particular that you think we ought to be going back to press should be done that would help alleviate poverty in Scotland? If you cannot think of them now maybe you can drop us a note saying what the three are.

  Mr Milne: The Chairman asked us that yesterday and we said a couple of things about policy-proofing and—

  Q310  Mr Davidson: It is a question of this being on the record.

  Mr Milne: We have got five. Very quickly we have five. We think it is really important that people are involved in shaping policy. As I said earlier, the experts on poverty are the people who have experienced poverty, so this part of the consultation exercise that we are going through we very much welcome and we think it is important that more of that happens at local level as well as at national level because people will be able to come up with solutions. When you look at the report that we are going to send down to you there is a whole raft of ideas that people came up with themselves on how things can be improved for them. Income adequacy I have already mentioned but a lot more needs to be done to ensure that people have got either a living wage or an adequate income to ensure they are not living in poverty. More support for people who are essential in society, like carers as I spoke about earlier, people who get scant regard in the world for the excellent work that they do. There are hundreds of thousands of people in Scotland and millions across the UK who are saving the country an absolute fortune and a lot more needs to be done to support them. We do not disagree about work being a vehicle out of poverty, we very much agree, but it has got to be focused on the basis of more childcare, adequate and affordable childcare, a flexible benefits system, support for people who have got particular barriers to getting into work, tackling the low wages by looking at the National Minimum Wage perhaps and making it more generous, tackling discrimination because it is still the case there are a great many people out there who are disabled and have other barriers to getting into employment who are discriminated against in society, so that needs to be looked at, and obviously training and structure within the job that you have that is going to give you some career prospects. Lastly, to reinforce the case for Dundee, Dundee is an absolutely smashing place, it has got so much natural beauty that people are really resilient, and I think that was what Erik was saying earlier on, and very enthusiastic about the city and that needs to be understood. A lot of people think it is an image thing that is the problem with Dundee, but it is not. Dundee is a smashing place. There are measures that can be brought into place that can make Dundee better and assist the council and the Dundee Partnership to do more by ensuring that they have got adequate resources to develop and provide the services people need in the city based on the discussions that we had earlier about major job losses and levels of poverty across a whole range of indicators that people are suffering from. More needs to be done.

  Q311  Chairman: Can I thank the witnesses for their attendance. Your evidence will be very useful and helpful to us when we compile our report. We will certainly send you a copy of our report and recommendations. Thank you very much for your attendance.

  Mr Gordon: We also thank you, Chairman, for coming to Dundee and hearing the problems that arise.

  Chairman: Thank you.




 
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