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Session 2008 - 09
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General Committee Debates
Child Poverty



The Committee consisted of the following Members:

Chairmen: Mr. Martin Caton, †Robert Key
Baron, Mr. John (Billericay) (Con)
Barrett, John (Edinburgh, West) (LD)
Blackman, Liz (Erewash) (Lab)
Buck, Ms Karen (Regent's Park and Kensington, North) (Lab)
Gauke, Mr. David (South-West Hertfordshire) (Con)
Goodman, Helen (Parliamentary Under-Secretary of State for Work and Pensions)
Howell, John (Henley) (Con)
Keeble, Ms Sally (Northampton, North) (Lab)
Mallaber, Judy (Amber Valley) (Lab)
Morgan, Julie (Cardiff, North) (Lab)
Mudie, Mr. George (Leeds, East) (Lab)
Reed, Mr. Jamie (Copeland) (Lab)
Selous, Andrew (South-West Bedfordshire) (Con)
Stuart, Mr. Graham (Beverley and Holderness) (Con)
Timms, Mr. Stephen (Financial Secretary to the Treasury)
Webb, Steve (Northavon) (LD)
Chris Stanton, Gosia McBride, Sarah Davies, Committee Clerks
† attended the Committee

Public Bill Committee

Thursday 29 October 2009

(Morning)

[Robert Key in the Chair]

Child Poverty Bill

Written evidence to be reported to the House
CP 11 CPAG, Save the Children, Barnardo’s and Gingerbread

Clause 8

UK strategies
9 am
Andrew Selous (South-West Bedfordshire) (Con): I beg to move amendment 1, in clause 8, page 4, line 21, at end insert
‘and the promotion of economic enterprise’.
The Chairman: With this, it will be convenient to discuss the following: amendment 50, in clause 8, page 4, line 23, after ‘education’, insert ‘childcare’.
To strengthen the scope of building blocks to ensure that the provision of childcare services which are delivered within a mixed market are included in the measures taken, and to ensure that funding for and delivery of childcare services are safeguarded despite wider economic difficulties.
Amendment 58, in clause 8, page 4, line 23, after ‘services’, insert
‘and improving the well-being of children’.
Amendment 30, in clause 8, page 4, line 24, after ‘housing,’, insert ‘transport,’.
Amendment 2, in clause 8, page 4, line 25, at end insert—
‘(e) reducing family breakdown
(f) assisting children in families with disabilities
(g) assisting children from minority ethnic backgrounds.’.
Amendment 20, in clause 8, page 4, line 25, at end insert ‘, and
(e) the criminal justice system.’.
Amendment 47, in clause 8, page 4, line 25, at end add—
‘(e) childcare’.
Amendment 60, in clause 8, page 4, line 25, at end add—
‘(e) the development of specific policies to tackle child poverty in rural areas.’.
Amendment 67, in clause 8, page 4, line 25, at end insert ‘, and
(e) the provision of services for looked after children.’.
Amendment 68, in clause 8, page 4, line 25, at end insert ‘, and
(e) the provision of services for children of asylum and immigration.’.
Andrew Selous: Good morning, Mr. Key. On behalf of the Committee, I welcome you back to the Chair on the penultimate day of our proceedings.
Clause 8 is the meat of the Bill. In many ways, it is the most significant clause, and the fact that a large number of amendments have been tabled to it shows that there is a lot of interest in it among Committee members. I shall go through the different issues raised by the first group of amendments, and I hope that the Committee will bear with me because that will take a little time.
Amendment 1, tabled by my hon. Friends and me, would add
“and the promotion of economic enterprise”
to the end of subsection (5)(a). When discussing eradicating poverty, it is important philosophically to mention, albeit briefly, the creation of wealth. I recognise that the state has an important role in alleviating poverty, but it cannot perform it alone. It is the wealth creators—the entrepreneurs and the business men and women throughout the country—who create jobs and set up businesses, and they will be at the heart of eradicating child poverty, which is the solution we all want from the Bill.
Ms Karen Buck (Regent's Park and Kensington, North) (Lab): Does the hon. Gentleman agree that one of the best ways of contributing to tackling child poverty is to encourage enterprise to pay above-poverty wages?
Andrew Selous: That is an interesting debate. I remember Robin Cook criticising the predecessors of the tax credits introduced by the Conservative Government to subsidise poverty pay. I think that those were the words he used at the time. Of course, the policy of the previous Conservative Government has been continued and taken further by this Government, but the hon. Lady makes an absolutely fair point: a balance must be struck between the contribution of the state and businesses.
A significant feature of the evidence sessions at the start of our proceedings was that when local authority leaders were pressed on what it would take to eradicate child poverty they first mentioned getting more jobs and businesses going. On 20 October, Paul Carter talked about the need to bring more “wealth and prosperity” into his area of Kent. Richard Kemp, speaking on behalf of Liverpool on 20 October said,
“The thing that will still take more people out of poverty in my city is more and better-quality employment”.
He talked about the 4,500 jobs that were created in Liverpool last year, but made the fair point that not all of them had gone to the group that we are discussing.
Lastly, but certainly not least, Colin Green, speaking from his experience of Coventry said first, in response to a question from my hon. Friend the Member for South-West Hertfordshire, that
“the most important things in this area are those that Richard pointed to, about creating a dynamic local economy.” ——[Official Report, Child Poverty Public Bill Committee, 20 October 2009; c. 62-63, Q136-139.]
That is the perspective of the council leaders who will have an important job on the ground in working with the Government to eradicate child poverty in their areas.
Ms Buck: The hon. Gentleman raises an extremely interesting point. However, before we go too far down a path with those figures, which might be slightly misleading, does he agree that one reason for those intense concentrations of workless parents is the nature of social housing distribution and allocations? The fact that there is much less social housing now than there was 30 years ago means that by definition one concentrates people with disadvantage in small geographical areas, rather than the geographical areas in some way explaining why people are in poverty? We need to look at people rather than at areas, which appears to what the hon. Gentleman implied.
Andrew Selous: I think that the two issues are linked. The hon. Lady makes a fair and sensible point. Housing does play a role, and that is one reason why I have some sympathy with the Liberal Democrat amendment 30 on transport. If there are large concentrations of people with high worklessness in one area, and jobs are created on the other side of town but there are no decent bus routes or it is incredibly complicated to get there, that is where transport comes in.
Let me point to a possible solution to the issue that the hon. Lady rightly highlighted. In the Marsh Farm estate in Luton, close to my constituency, there was just such a set of circumstances. The estate has high levels of worklessness and child poverty, and it was discovered that the people living there spent just under £2 million a year on a range of takeaway foods, all from businesses outside the estate. There was no garage on the estate either, and people had to go some way—to St. Albans, for example—to get their cars serviced. Partly through, I think, some money from the new deal for communities programme, a fast food business and a garage were set up on the estate. I understand that those businesses are now thriving and sustainable, and not in receipt of ongoing taxpayer support. That is a good example of the promotion of economic enterprise within a job desert. Transport could, or would have to, be the solution in some cases, but not everyone can travel long distances to work, so it is important to have a supply of jobs in areas with high concentrations of worklessness.
Ms Sally Keeble (Northampton, North) (Lab): I completely agree with the hon. Gentleman about the need for small-scale statistics, and about the importance of initiatives such as the new deal for communities and estate-based work. I would like some assurances that not only the hon. Gentleman but the rest of his party are signed up to the focus on local poverty indicators. Those of us who were tackling unemployment and poverty in inner London in the 1990s found that the then Conservative Government would look only at the macro-statistics and not at the small-scale area statistics. That was one of the reasons we could never really crack some of the problems. Will the hon. Gentleman assure us that everyone on his Front Bench has changed their mind and is now aligned with what he said?
Andrew Selous: As I read the political tea leaves, localism has had a long overdue renaissance in all the political parties, not least in the Conservative party—perhaps even principally in the Conservative party. That is absolutely right. Local authorities, with the total place concept that is being developed in local government, are getting much more switched on to such an approach. I am happy to be on the record as saying that all poverty is local. The hon. Lady makes a fair point: we shall need a balance of national and local solutions to deal with the important issues.
Julie Morgan (Cardiff, North) (Lab): I strongly support the idea of localism and looking at things in small local areas, but it is important to link that with wider economic strategies. I think in particular of south Wales, where areas are blighted by worklessness, in a large degree due to the end of the mining industry—a catastrophe that we are still trying to get over.
Andrew Selous: The hon. Lady is right. There are many such areas of the country. My own area, for instance, used to make trucks and had a big motor component industry, but all that is gone now. My area, like hers, is having to think how to earn its living in a new and changing world. That is always part and parcel of economic life. However, the hon. Lady makes a fair point and I am sure that such issues are rightly occupying the minds of her local authority leaders and of the Welsh Assembly.
Amendment 50 mentions child care—to which the hon. Member for Regent's Park and Kensington, North will no doubt refer shortly. She is right to try to put the issue in the Bill. The whole area of flexible working needs to go in alongside that—the National Children’s Bureau was keen to see it in the Bill. The NCB has drawn attention to the fact that we are clearly not going to get many families—single parent families in particular—into the labour market without making absolutely sure that we have adequate child care.
Mr. Graham Stuart (Beverley and Holderness) (Con): We are debating an issue on which there has been a change of focus in Conservative policy. Flexible working is another such issue—perhaps in the past it was seen as imposing too much of a requirement on companies, and that to allow flexibility in working would be against business interests. On the contrary, it has opened up the work force and allowed more people to access work and has been a positive measure that the Government have taken forward and that the next Conservative Government will be able to build on.
Andrew Selous: I am grateful, as always, to my hon. Friend for putting that on the record. I have always thought it slightly bizarre that, as an employee, one is given such an all or nothing option: to sell either all of one’s time to an employer or none of it. We need to get away from that general concept, because that is not how many people’s lives operate. We are all agreed, across the Committee, that work is the best way of getting people—including children—out of poverty. We have to do further thinking on that area.
Mr. Stuart: May I pay tribute to the Government for some other progress they have made? The use of tax credits has made work—typically for around 16 hours a week—easier, for lone parents in particular. However, there are disincentives to work more hours than that and for those for whom 10 hours might be more appropriate than 16. We have a rather fixed system that dictates how millions of people live. Does my hon. Friend think that progress can be made to create a smoother and more graduated system to ensure that people are able to work the hours that are most appropriate to them and best suit their circumstances, including child care?
9.15 am
 
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