Making Ends Meet | Alison McGovern

1 Making Ends Meet | Alison McGovern

CONTENTS

FOREWORD 3

A NOTE ON THE PROJECT 4

SUMMARY OF RECOMMENDATIONS 5

CONSEQUENCES 12

PURPOSE OF THE WELFARE STATE AND SOCIAL SECURITY 14

MAKING ENDS MEET: THE RESPONSE LABOUR SHOULD CHOOSE 16

STEP ONE: URGENT PRIORITIES 17

STEP TWO: BETTER INCOMES AND BETTER SUPPORT 20

STEP THREE: STRUCTURAL REFORM 23

REFERENCES 25

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FOREWORD

The Making Ends Meet project be left to volunteers. The role of in specific markets to ensure was borne of frustration. Too the state is to provide this social basic goods such as housing are many ordinary families are now protection. And something has available to all. struggling with poverty. Up gone very wrong in Britain today and down the country, Labour if our Government is unable or With Boris Johnson in Number members and supporters tell unwilling to do so. 10, and the prospect of a no deal how the ideological austerity and Brexit looming ever larger, now degradation of the welfare state Since Beveridge, our social is the time for us to demonstrate by the Conservative party has security system has relied on the exactly how transformational a led to people falling through the contributory principle. We pay Labour government could be; gaps and into poverty. It might in when we are able and take out how a Labour chancellor could be a struggle to find the money when we need. However, this allocate resources to help create for a new school uniform, or principle is now undermined as unity, rather than to exacerbate maybe going without a holiday growing and worsening poverty division. year after year, or constant family robs from a generation the arguments about money. The chance to improve their life and The political conversation is often indignity of visiting a foodbank is contribute to society. This cannot pessimistic. Making Ends Meet now a commonplace experience. stand. Action must be taken now shows that, while our country The signs are everywhere: too to reverse this trend. faces tough challenges, they many of our fellow British citizens should not mean that we are must beg to get by. The following report is a inoculated to poverty, or that combination of people’s lived it is a necessary evil. Policy and Across the UK, people who care experiences – the challenges politics can change lives, and about their communities, and they face and how political whilst the road to a more just care about Britain, have tried to choices taken in Westminster society is long and winding, if we take up the mantle of the welfare have serious consequences – use our collective resources in state. They are community and a menu of potential policy the interests of the whole nation, organisations, faith groups, local solutions. We recognise that we can create prosperity that authorities and individuals who the challenge of poverty in our serves the many. There is not a help run foodbanks and holiday society is a result of structural moment to lose. hunger projects, they are people flaws and has deep roots, but who volunteer their resources – that structural change will neither formally and informally – to help be immediate, and nor is it the people make ends meet. only thing we need. To tackle the reality of poverty we must But whilst this social action use all the mechanisms at our Alison McGovern MP represents a strength in our disposal, from the restoration Member of Parliament country, it cannot be the answer and extension of welfare benefits, for Wirral South to poverty. Guaranteeing a to the provision of high-quality decent standard of living cannot public services, to interventions

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A NOTE ON THE PROJECT

We held roundtables across the country where academics, economists, community organisers and welfare and healthcare providers joined our conversation about poverty in Britain. We discussed experiences, trends and priorities. This was by no means a scientific or quantitative study but we hope to capture here a sense of how communities around the country are trying to tackle the results of poverty and issues in our labour market.

Any errors belong only to Alison McGovern MP, but sincere thanks to

Unite the Union, Mark Hunter, East Ayrshire Council Community Union Anna Baillie, A Menu for Change Project Irwin Mitchell Solicitors Margaret MacLachlan, A Menu for Change Project Hunter Hall Donna Burnett, NHS Scotland Louise MacKenzie, Glasgow City Council Rt Hon Cllr Frank McAveety, Glasgow City Council , London School of Economics Dr Kitty Stewart Pauline McNeil MSP, Member of the Alison Garnham, Child Poverty Action Group Scottish Parliament for Glasgow region Victoria Benson, Gingerbread Liz Willis, Citizen’s Advice Bureau Emma Revie, Trussell Trust Lesley Laird MP, Shadow Secretary of Anjum Klair, Trades Union Congress State for Scotland, Member of Parliament Julie Grant, Unison for Kirkcaldy and Cowdenbeath Diana Holland, Unite David Redpath, Citizen’s Advice and Rights Fife Michael Wheeler, USDAW Sofia Dogan, Fife Voluntary Action MP, Member of Parliament Kathryn Miller, Gingerbread for Stretford and Urmston Caryn Nicolson, Frontline Josephine Tucker, Child Poverty Action Group Pauline Buchan, The Cottage Centre Rt Hon John McDonnell MP, Shadow Chancellor Maureen Closs, Women Together and Member of Parliament Hayes and Harlington Satwat Rehman, CEO, One Parent Families Scotland Ashwin Kumar, Manchester Metropolitan University Thomas Kirby, Chair, Trades Union Council Rt Hon Liam Byrne MP, Member of Chelsea Marshall, A Menu for Change Parliament for Birmingham Hodge Hill Joyce Leggate, Kirkcaldy Foodbank , University of Essex Dr Amy Clair Cathy Hynds, Oxfam , Birmingham Dr Simon Pemberton John Thompson, Dunfermline Foodbank Child Poverty Action Forum MP, Member of Parliament Professor Karen Rowlingson, for Oldham East and Saddleworth University of Birmingham Cllr Abdul Jabbar MBE, Oldham Council , Unison West Midlands Ravi Subramanian Victoria Holden, Partnerships Lorenza Antonucci, University of Birmingham Coordinator, Action Together , Member of Khalid Mahmood MP Sarah Aldred, Head of Income Parliament for Birmingham Perry Barr Management, First Choice Homes , University of Essex Dr Mike Brewer Dr Sophie Wickham, Wellcome Trust Toby North, The Children’s Society research fellow, University of Liverpool James McKenna, Trades Union Congress Cllr Graham Whitham, Greater Alison Spencer-Scragg, Unite Manchester poverty action group Frank Hont Sally Bonnie, The Collective Partnership Cllr Ann O’Byrne, Liverpool Council Sarah Martin, Smart Works Charity MP, Shadow Work and Pensions Cllr Cath Ball, Oldham Council Minister, Member of Parliament for Weaver Vale Neil Smith, GMB John Dickie, Child Poverty Action Group Fazal Rahim, Oldham Interfaith forum Jen Gracie, Child Poverty Action Group Chris Morris, USDAW Rachel Statham, IPPR Scotland Reverend Howard Sutcliffe Deborah Hay, Joseph Rowntree Foundation Peter Mitchell Katherine Trebeck, Oxfam Collette Goulding, The Big Help Dr Mary Anne Macleod, A Menu for Change Project Henna Shah,

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SUMMARY OF RECOMMENDATIONS

Labour’s next manifesto will lead our party into the election with costed pledges for our plans in government. This report represents the views of one backbench Member of Parliament, having listened to many across the UK share their ideas of what our priorities could be for tackling poverty. If the Conservatives wish to spend significant sums – as they have done over the past decade – on tax cuts for the wealthy, Labour members and supporters will have an alternative.

Instead of spending £10 bn on tax cuts for the wealthy, which Boris Johnson pledged during the Conservative Party Leadership election, I believe Labour could re-prioritise that spending like this:

1. £1.3 bn to remove the two-child limit in Universal Credit 2. £1.2 billion to reduce waiting time for Universal Credit payments 3. £2.8 bn to increase child benefit 4. £1.7 bn to improve mental health support 5. £3 bn to support investment in childcare and early education

In the immediate term, getting money to those who are most at risk of poverty, particularly children.

Over the medium term, we need a mixed approach of cash transfers and good quality public services. Particularly with regards to early years support, childcare, mental and physical health support, we need investment over the period of a Parliament to put these services on a stable footing, and to help them develop and change for the future.

And in the long-term, the structure of the UK economy must change. The housing market must serve public need, and the labour market must improve lives, not damage them. Changing the rules of our economy for long-lasting benefit may take another decade, but that work should start now.

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BACKGROUND

This report is a response to the obvious signs of poverty all around us. More people are sleeping rough on our streets. More people are turning up for help at foodbanks, and other social welfare projects. Put simply, today in the United Kingdom, it is too hard to Make Ends Meet.

This section explains the economic context to this change: on the labour market, wages, social security and wider changes in Government policy that over the past decade have brought us to this reality.

DECADE OF CHANGE IN THE LABOUR MARKET AND THE WELFARE STATE

There has been a decade of major changes in the labour market. This has been driven by the priorities of government, changing technology and a changing global economy.

EMPLOYMENT

Employment rate (aged 16 to 64)

Source: Office for National Statistics, time series LF24

Percentage of people aged 16 to 64 in employment Percentage

The Conservatives claim that their record on Technology has also had a massive impact employment is a great success. But look beneath on workers and the labour market. Currently, the headlines and you see a more complicated automation has allowed businesses to use greater picture. The UK now has record employment levels flexibility on the part of employees to increase at around 76 percent, which is the highest since the profitability at the cost of employees’ certainty mid-1970s,1 but more working families are in poverty of income. For example, care workers across the than at any time in the last 20 years.2 country are being paid by the minute. The incomes of some of the lowest paid workers made more And it isn’t just the persistence of poverty despite unstable as technology allows employers to squeeze record employment levels that muddies the picture. margins with ever more precision. The TUC used The world of work is also changing. There are now their recent report A Future that Works for Working over 1.5 million self-employed people working part People to call for technology to be used differently: time. That is almost double the level of 25 years to give workers more control over their lives so that ago. We also have the rise in women working, a the benefits of automation can be shared by all.4 long running trend, but one that is not simple either, as more women have joined the labour market but many working below their skill level.3

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WAGES

Median equivalised household weekly income

Source: DWP, Households Below Average Income: 1994/95 to 2017/18, March 2019

So, high employment is not the success story that around the ninetieth percentile.7 For families on the Government portrays and nowhere is this more benefits, increases in earnings lead to reductions in apparent that in the story of wages over the past benefits, cancelling out some of the value of the pay decade. In September 2018, ten years after the increase.8 crash, the Institute for Fiscal Studies published research showing pay has been held down with IN WORK POVERTY annual wages still £760 lower than they were a decade ago.5 Median real earnings for employees The majority of households in poverty are working were still 3 percent below where they were in households. According to IFS, There are four key 2008 and are 13 percent below where “we might reasons for higher in-work poverty rate:9 reasonably have expected based on rates of growth seen in the years prior to the crisis”. 1. Pensioner incomes catching up with working-age incomes Whilst we are now seeing the pace of wages start to 2. Increases in employment of people with pick up - ONS data shows annual average earnings low earnings e.g. lone parents growth at 3.6 percent in the three months leading 3. Higher earnings inequality for working up to May this year, exceeding the increase in the households cost of living6 - these rises will not make up for 4. Higher growth in housing costs for poorer the value of wages that has been lost over the last households decade. The story is simple: wages did not grow whilst all around us costs were rising. In a survey of its members, USDAW found 9 percent of members earning less than £8.50 an hour say they Furthermore, forecast earnings growth will not have accessed foodbanks in the past five years. This benefit poorer families as much as it will benefit drops to under 3 percent for workers earning over middle-income households because they receive £10. One of USDAW’s members, a retail worker a smaller share of their income from earnings in the North West said, “I never thought I’d be in and a larger share from benefits. According to work and use a foodbank. It’s humiliating. I work in the DWP, earnings account for around a third of a supermarket and I don’t earn enough to feed my gross income for individuals around the tenth family”. 58 percent of those surveyed relied on child percentile compared to 80 percent for those tax credits and 50 percent on working tax credits.10

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According to the ONS , the Some argue that this approach been protected by the triple most frequent reason for was inevitable, that in times of lock, which guarantees that the leaving in-work poverty was for economic hardship, everyone value of the basic state pension employees to keep the same must bear the load. However, will rise by a minimum of either job and number of hours, but Labour’s record in government 2.5 percent, the rate of inflation to increase their hourly pay, proves this is not the case. In or the average earnings growth, accounting for 44 percent the immediate aftermath of the whichever is largest. of those who exited in-work crash, the incomes of those at poverty.11 USDAW’s recent Time the bottom grew. This is because The major changes to the welfare for Better Pay Report (the result Labour chose to raise the value of state include: Universal Credit of a survey of over 10,500 of benefits, recognising that was a (which will affect nearly half of all their members) recognised that way we could protect those at the children in the UK by the time rising hourly wages is the most bottom from being hit badly.12 the full roll out is complete),16 effective way to lift people out the freeze on benefits and the of poverty through work. There is no inevitability about two-child limit. Not only are austerity as a response to more families whose incomes GETTING PROMOTED economic crisis or recession. were propped up by welfare AND BEING PAID MORE Indeed, the Resolution struggling but greater numbers Foundation’s recent report on of children are being pushed There is also a problem in the risks of recession argues that into poverty directly due to these increasing earnings. Frozen macro-economic policy is an policies, which exacerbated the incomes have been a major important tool that governments impact of real terms cuts. Child issue but also cuts and changes can use to mitigate the effects of Poverty Action Group estimates to further education make a recession on the population.13 300,000 children will be pushed training and gaining new skills The Conservative Party into poverty and one million more difficult. It is therefore abandoned the national mission children already in poverty will harder to get a promotion to end child poverty as a central be pushed into even deeper or increase your pay. This part of its response to this crisis. poverty by 2023/24 because of particularly affects parents with The reduction of the value of the two-child limit.17 And it is not many stuck in work below their benefits in real terms, the two- just the two-child limit. According potential skill level. child limit in Universal Credit, the to the House of Commons library, abolition of the family element planned tax and benefit reforms POLICY CHOICES in child tax credit and the family explain around two-fifths of the premium in housing benefit have increase in the proportion of Changes in the wider global contributed to the increase in children in relative low income economy will also affect child poverty.14 after housing costs and around incomes and poverty, as well as three-quarters of the increase in the UK’s own economic outlook. WELFARE CUTS absolute low income.18 But the Government makes choices about how to respond As the labour market has The two-child limit is an example and this has a major impact on shifted, the welfare state has of the Government making wrong household incomes. been hit by huge cuts since the policy choices both in terms of Tories came to power in the practicality and principle. The The decade began in the coalition government in 2010. policy is predicated on the belief shadow of the financial crisis For example, in 2016-17, HMRC that people should consider the that had damaged both the tax credits expenditure was costs of having a child before health of the British economy around £4 billion lower than it doing so. Child Poverty Action and the Government’s balance might otherwise have been had Group estimates that only half sheet. The Conservatives changes not been introduced of parents on Universal Credit in power chose to respond and expenditure on child benefit were unaware of the policy with austerity-driven policies, was around 22 percent lower than before having their youngest arguing that all must accept it might otherwise have been, the child. And the policy clearly the consequences of action to largest reduction of any welfare risks putting some BAME and bring the Government’s budget category in percentage terms.15 refugee families whose cultural back to balance over the first Austerity has predominantly backgrounds mean they are Parliament to 2015. hit families as pensioners have more likely to have larger families

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than the rest of the population not a flat rate makes it difficult for children. Families are having into more severe poverty.19 families to budget in comparison to work more and more hours This risks further entrenching to tax credits, which were reliable to make ends meet, though intersectional inequalities into payments families could expect evidence shows that simply our communities. The policy every week. working longer hours will not is also wrong on principle for compensate for what has been it chooses to punish children Research carried out by the lost due to welfare cuts. Child from birth for the ‘choices’ of APPG found that 12 months Poverty Action Group found that their parents and it reinforces after Universal Credit has been families affected by the two-child the view that the state should rolled out, the Trussell Trust saw limit could not reach the incomes not bear responsibility for larger a 52 percent average increase they had on legacy benefits when families who are struggling. In in demand on their foodbank working longer hours and on enacting the two-child limit, network compared to 13 percent Universal Credit.22 the Government acknowledge in the areas that have had that having children means life Universal Credit for three months LONE PARENTS costs more. Indeed, the DWP’s or less. own publications state “larger Unsurprisingly, the parenthood families require a higher level of THE PARENTHOOD PENALTY penalty hits lone parents the household income to achieve hardest. The simple question of similar ‘living standards’ (based The rise of insecure work, the time – the number of hours in on a household income measure) squeeze on household incomes the day – restrict your earning to smaller families”.20 and changes to welfare mean capacity far greater than those in families are struggling to make couple families whose childcare UNIVERSAL CREDIT ends meet. Those with young arrangements may be more cost- children are hit particularly effective. The All-Party Parliamentary hard with a third of children Group (APPG) on Universal living in a family where the According to a survey by the Credit published a report in July youngest is aged four or under Family and Childcare Trust, the 2019. The idea of Universal Credit in low income.21 When you have biggest cost for many working is that when income increases, children, life costs more and households with children, Universal Credit payment factors like the cost of childcare after housing, is childcare with reduces. The APPG describes and the general cost of living all types of childcare having this as a “sound principle” but can severely impact one’s ability risen much faster than overall the fact that the payments are to earn while caring for young inflation.23

WEEKLY CHILDCARE COSTS FOR UNDER TWO-YEAR-OLDS IN ENGLAND SCOTLAND AND WALES

Source: Family and Childcare Trust childcare surveys

2017 price if Weekly childcare 2005 price increased at the rate 2017 actual price costs (£) of inflation

England Nursery 70.50 92.72 153.88

England Childminder 63.50 83.52 145.99

Scotland Nursery 61 80.23 145.99

Scotland Childminder 63 82.86 138.10

Wales Nursery 60 78.91 132.84

Wales Childminder 60 78.91 132.84

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DISABILITY The cumulative effect of these since 2010 and the system now policy choices is one that holds individuals as primarily As the Joseph Rowntree entrenches the link between responsible for the adverse life Foundation set out in their poverty and disability, severely situations they experience.”29 2018 report on UK poverty, impacting quality of life and “disabled adults in working-age substantially reducing the The extensive tiered system of families are much more likely to likelihood that disabled people very harsh benefit sanctions and be in poverty than those who and their families receive the fines are the manifestation of are not disabled – 39 percent same opportunities to participate this system of conditionality and compared with 18 percent”.24 in society and the labour coercion. As Dwyer and Wright While there are more people market as other members of the state, “the type and scale of the with disabilities in work, austerity population. conditionality changes within UC and the rolling-out of Universal (particularly in combination with Credit have hit people with PUNITIVE SYSTEM the Work Programme) represent disabilities hardest. In particular, a fundamental change to the the restrictive nature of Personal There have been actual cuts but principles on which the British Independence Payments (PIPs) there have also been tangible welfare state was founded”.30 has signalled a shift to a regime changes to the concepts that that is systematically punitive underpin the welfare state. We The welfare state has always rather than supportive: DWP have seen a massive increase in had elements of conditionality statistics show around two-thirds sanctions and conditionality that within its systems. Citizens have of people on Disability Living have made it harder to claim both rights and responsibilities, Allowance (DLA) have had their and the system more punitive, including the responsibility to payments refused or reduced contributing to a narrative that pay contributions, to participate under PIP, more than a million directly contradicts the principles in appropriate support, or to sanctions have been imposed that should be underpinning provide information. However, on disabled people since 2010, it. When the policies break the the past decade has seen a shift and in 2018, 73 percent of PIP principles, we no longer have the towards a system that is punitive, and Employment and Support service people need nor deserve. punishing those who experience Allowance (ESA) cases that made misfortune, with little evidence it to tribunal were found in favour Karen Rowlingson, University that a punitive system has much of the appellant.25 of Birmingham’s Professor of impact on behaviour. Social Policy, describes the The Access to Work scheme is punitive nature of the system As well as being punitive, not sufficient to provide support as “self-defeating”. Rowlingson there are examples of the for those who are able to enter argues that people respond to administrative system just not the workforce, and cuts to social support rather than coercion. 28 working correctly. According care have severely impact quality Recent research by Pete Dwyer to USDAW, the vast majority of of life. So much so, that the and Sharon Wright shows how workers claiming in-work benefits UN Committee on the Rights punitive the system is: are paid every four weeks (67 of Persons with Disabilities percent). Workers paid every produced a report in August 2017 “UC broadly follows a deeply four weeks have 13 pay days stating that the rights of people embedded tradition in British per year, leading to one month with disabilities in the UK have social security provision, which where they have two payments in been “gravely and systematically to some extent has always their Universal Credit assessment violated”, and raising the fear been designed with personal period and consequently do that austerity was leading to the responsibility and behaviour not receive any Universal Credit institutionalisation of people in mind. The post-war social Payment the following month.31 within their own homes. 26 In security system was based on fact, the Centre for Welfare the principle that productive EXTRA THINGS Reform found that austerity has citizens would contribute to been nine times more likely a universal safety net, which Many parents Child Poverty to be targeted at people with offered comprehensive rights Action Group surveyed can disabilities, rising to 19 times to financial entitlements in no longer afford to pay for more likely for those whose times of need […] Behavioural their children to take part in disabilities are severe.27 conditionality has intensified afterschool clubs, sport and

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school trips, affecting their Credit Full Service Survey suggests “interventions focused children’s wellbeing; they feel which identified “four in ten exclusively on food provision guilt and shame at being unable claimants […] were experiencing may be misplaced, as many to maintain a ‘normal’ family difficulties keeping up with bills households using foodbanks are life for their children’.32 Any approximately eight to nine also facing housing insecurity and calculation of the minimum a months into their claim. Just poor housing conditions”.35 family income should provide over a third were experiencing should include some provision housing payment arrears, and Housing market dysfunction, for these types of activities. for 44 per cent the situation had exacerbated over the past JRF’s report, A Minimum Income deteriorated between the two decade, is undoubtedly worthy Standard for the UK 2008-2018: surveys”. 34 of extensive attention, beyond continuity and change helps to the scope of this report. Labour’s define what this could look like: There could be a link between important policy developments housing and foodbank use. Dr in this area are mentioned later. “social and cultural Amy Clair, Research Fellow at participation continues to the University of Essex, suggests Notwithstanding that, this be an important part of the rise in foodbank use has background shows that the what members of the public matched the trends in rising changes made to our labour consider a minimum income housing costs, rates of eviction market, welfare state and the standard, including the and homelessness. Clair’s article policy choices made in ten years opportunity to take part in on this issue is co-authored with of Conservative Government activities: to have a low-cost, Jasmin Fledderjann, Doireann have given rise to the common one-week annual holiday in Lalor and Rachel Loopstra and foodbank use we now see. the UK, to give presents and is based on a survey of 598 Destitution has risen, which to have some modest meals foodbank users. 32 percent of is a visible consequence of out.”33 respondents reported facing an decisions taken in Whitehall and increase in their housing costs Westminster. And so has the HOUSING COSTS in the three months prior to discomfort of regular poverty, attending foodbanks. Indeed, which may not result in a person The rising costs of housing and Department for Communities sleeping rough, but which may, changes to the welfare system and Local Government data from time to time cause a person through UC have meant that (2017) states rental arrears among to need to use a foodbank, and housing costs are now a direct foodbank users were much experience the consequential, cause of debt. In June 2018, higher than rates observed in the life-limiting, indignity of begging the DWP published Universal overall population. Clair’s article for food.

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CONSEQUENCES

Child poverty is the most urgent lacked two or more of these And entitlement isn’t the whole and stark representation of essentials over the past month, story. The respected IFS says that everything that is wrong with or alternatively, if their income is under the Universal Credit system our economy. William Beveridge less than £70 a week for a single – as is the case under the system argues in his 1942 report, which adult. it replaces – only about half of was so influential in the founding children in the poorest fifth will of Britain’s welfare state, that The level of rough sleeping be entitled to free school meals. protecting childhood should be is an important indicator for So there is a much bigger group a crucial aim of the social security destitution, as those without of children at risk of holiday system.36 access to housing are often hunger than just those who lacking the other essentials receive free school meals. The UK RISING FOODBANK USE described above. The numbers parliamentary group on hunger are shocking: according to acknowledges that even those The rise in foodbank use is a Homeless Link, there were (on who work are at risk. The group tangible sign of the problems in average) 4677 people sleeping estimates 3 million children are our labour market. Ultimately, rough in Britain on any one night, at risk of holiday hunger across people do not have enough an increase of 165 per cent since the UK, which “comprises over money to feed their families. 2010.37 a million children growing up in According to the Trussell Trust, poverty who receive free school foodbank use is up four-fold The factors that contribute to meals during term time, as well since 2012. The organisation’s rough sleeping and destitution as an estimated two million who end of year statistics show more broadly are unsurprising. are disqualified from free school 2018/19 saw a record 1.6m Most significant is the erosion of meals because their parents work foodbank parcels given to the welfare system, in particular for their poverty”. people in the past year. A means-tested benefits – e.g. nineteen percent increase on the sanctions, stringent eligibility SCHOOL UNIFORMS previous year. More than half a requirements, and the botched AND SCHOOL ACTIVITIES million of these went to children. roll-out of Universal Credit. On In the last five years, foodbank the cost side, housing, fuel and The associated costs of going to use in the Trussell Trust network harsh debt recovery schemes school hit the poorest families increased by 73 percent and (both private and public) have a hardest. The Children’s Society, this summer, the network was role to play. which conducts a regular survey urged to prepare for the busiest into the effect of the cost of summer yet. HOLIDAY HUNGER school uniform on families, found in its latest report in 2018 that DESTITUTION AND The UK Government’s decision school uniform was having a ROUGH SLEEPING to freeze the income threshold significant financial impact, with for universal credit claimant’s 13 per cent of parents surveyed Another impact of our broken eligibility for free school meals is saying they were going into debt system are the levels of pushing more and more children to pay for school uniform, a rise destitution within our society, into poverty. Taking away free of 6 per cent on 2015. The costs and especially, the number school meals means that even if also have an impact on children of people without access to you work hard work does not pay. themselves, with 10% of parents adequate housing. Although saying they had sent their child to the issue of homelessness A lower proportion (14.2 percent) school in the wrong size uniform has several dimensions, it of pupils in England are claiming as a result of cost. is useful to consider rough free school meals than at any sleeping specifically, due to its time in the last decade (this School uniform isn’t the only visibility. The Joseph Rowntree figure excludes alternative associated cost that poorer Foundation has a working provision). The proportion of families struggle with. The definition of destitution that children claiming free school Child Poverty Action Group has considers the essentials of life: meals in Scotland has fallen conducted surveys and focus housing, food, heating, clothing, every year since the Scottish groups looking at the impact of shoes, and basic toiletries. Government extended free these costs on those from low- People are destitute under this school meals to all children in income households. According definition when people have primary 1,2 and 3 (2015).38 to their research, 71 per cent of

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young people from low-income The psychological and physical choose what they want for their families said they had missed impact of poverty of parents is families rather than receiving out on school trips because they also felt by children. Research by food parcels regularly. Mandy could not afford them. Their the JRF has shown that working and Bev explained that many focus groups described students age adults in the poorest fifth people in their area – including being excluded from everything of the population are three many in employment – need help from high-cost residential and times more likely to have none on a regular basis. Both felt that international trips, to being or one close friend than those a foodbank should be used in an unable to go swimming because in the richest fifth. The JRF has absolute emergency and not to they cannot pay £1 for a locker. also researched the relationship plug the gap between people’s There was also significant between parenting and poverty, incomes and the necessities. At discussion of the hidden cost of noting that the academic its heart, the project contained all trips, where even if excursions literature shows that poverty the principles that should guide are subsidised, students are tends to make parents more our welfare state: dignity, choice often not able to bring the stressed, depressed or irritable, and control over one’s own life. correct equipment/clothes e.g. and this is supported by the Child Ultimately though, were the waterproofs, sleeping bags etc. Poverty Action Group’s research welfare state functioning in its Students also described the which suggests that a key proper way, initiatives like It’s your stigma they face asking for help experience of children in poverty choice would not be needed. and how, even where help is is anxiety about their parents and available, they find themselves frustration about their situation, feeling isolated as a result. alongside the insecurity and exclusion among their peer Even more stark is the impact group noted elsewhere. that cost has on restricting students’ choice and opportunity THIRD SECTOR when it comes to the school day. PLUGGING THE GAP CPAG found that 14 percent of students in low income As part of this project, we families had their subject choice visited a project in Fife set up by affected by the associated costs, two single mums to help their especially when it came to community with the costs of creative subjects such as art or food called It’s Your Choice. The music. 39 project is supported by A Menu for Change, a joint venture by FAMILY TIME Oxfam Scotland, Child Poverty Action Group in Scotland, Aside from its impacts on Nourish Scotland and The children and young people Poverty Alliance which “aims to specifically, poverty has a evolve the emergency response significant effect on the ability of to food insecurity in Scotland”. families to function and spend time together. Research by the Founders Mandy and Bev trade union USDAW shows that have established a non-profit 60 percent of its members have business, where they order food been unable to go on holiday in and other essentials. People the past year. As well as this, the become members and have increased precarity as a result of a certain number of items per more flexible contracts means it week based on a points system. is difficult for parents to plan to All items are set out like a spend time with their children, supermarket. The initiative has and people who find themselves been incredibly popular, with trapped in low-wage jobs without clients queueing each day the guaranteed hours may find shop opens. At the heart of themselves unable to carve out the idea is that people who are quality time at all. struggling should be able to

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PURPOSE OF THE WELFARE STATE AND SOCIAL SECURITY

How then, do we put this might otherwise fall short is now COMBINATION situation right? If Government covered by Universal Credit. OF CASH TRANSFERS has been part of the problem, Unfortunately, the practical AND PUBLIC SERVICES then the Government can be way in which this benefit is now a part of the solution. The being delivered does not match But whilst incomes are supported purpose of the welfare state is the Beveridge ambition. At every with cash transfers, it is also the to smooth incomes when the Making Ends Meet roundtable, case that those at risk of poverty potential for earning is reduced participants talked about the experience a range of challenges at certain points over a person’s stigma of Universal Credit. We for which they also need the lifetime. need to replace this stigma with support of public services. dignity for all those who are Whether it is a health condition, The Beveridge report – the supported by the system. And or the education needs that foundation of modern social there is a further reason to pay families from lower income security in the UK - states “the attention to cash transfers, and backgrounds have, in tackling main feature of the plan for who receives them. According poverty, we should also take a social security is a scheme to the ONS, cash benefits were mixed approach when it comes of social insurance against most effective at reducing to the balance between benefits interruption and destruction of income inequality, although their and public services. earning power”. The state ought overall impact has diminished to spend money so people can over the past seven years due to This is also consistent with take out of the system when their fall in their value relative to Beveridge’s approach, as his their income is low and pay incomes.41 report was written on the basis in when their income is high. that the Government of the This is what is meant by the COMBINATION day would also be providing contributory principle that our OF UNIVERSAL comprehensive health services welfare state was built on. The VS MEANS TESTED and a public education system need for this system is as clear in both free at the point of access. 2019 as it was in 1945. Some parts of social security are provided on a relatively Public services are a vital The success of our welfare universal basis: the state response to the experience of state – of the DWP – needs pension for example, and are poverty, and its long-lasting to be measured against this often popular because of the consequences. Whether it principle. Are the actions of our straightforward nature of the is the impact on a person’s Government currently living up benefit. mental and physical health, or to this promise? Re-assessing the potential for education to whether the welfare state is fit Other parts are designed to ameliorate the severity of poverty for purpose was a crucial process target those who are most at by raising incomes, we need a that Beveridge identified risk of poverty. There is no mixed response from the state himself: “the principles doubt that targeted support that takes into account both the underlying any practical is more effective at reducing benefits system and broader reform can be judged only by poverty in income terms. public services. seeing how they would work in However, there can also be practice”. 40 If the policies are stumbling blocks, as the A further role for Government is breaking the principles of our process for applying for benefits its place in changing the labour welfare state, we must change that are means-tested can be market and the structure of the policies. cumbersome. Means-testing society more broadly, including also risks a them and us culture in relation to housing costs and Both cash transfers and public – those that pay into the system availability of good places to services are ways in which and those that take out. live. This is covered in the next the state can support people. section. Both have taken a hit in the last In the UK, we have a decade. combination of universal and means-tested cash transfers The part of our welfare state – often called ‘progressive that is supposed to provide universalism’ and the proposals better incomes when people below support that approach.

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NOTE: IS THE PROBLEM FOOD PRICES?

It is important to understand that foodbanks are a problem with incomes, not the cost of food: “In relative terms, the British grocery shop remains one of the cheapest in the world. Britons spend an average of 8 percent of their total household expenditure on food to eat at home. This is less than any other country apart from the US and Singapore, according to data from market research firm Euromonitor”.42 And according to EU body Eurostat, household food shopping in the UK is the cheapest in western Europe costing 8 percent less than the EU average.

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MAKING ENDS MEET: THE RESPONSE LABOUR SHOULD CHOOSE

Labour members and supporters This is a significant amount of So, this report offers three tiers who participated in Making Ends money for the UK Government to of suggestions for change: a set Meet in the summer of 2019 are commit to any political project. of immediate recommendations sick of the indignity of poverty. Making Ends Meet conversations taking a mixed approach of They were full of praise for all have confirmed that the tax cuts targeted and universal help for working to help people through that Boris Johnson has in mind families; a set of medium term foodbanks, holiday hunger are the wrong priorities. At the recommendations taking a projects, community work, in point of publication, it is unclear mixed approach to cash transfers public services, and through faith whether an emergency budget or and universal good quality and community organisations. an Autumn budget will carry out public services; and a structural But they expressed much regret these cuts. However, Johnson’s approach reforming housing and that this work was needed to fill suggestion of this policy in the the labour market, that can help the holes left by the Tories in the Conservative leadership contest put an end to poverty for good. welfare state. offers us an opportunity to articulate a different path. Social security – like the National Health Service, and our public Therefore, the recommendations education system – is a vital begin in response to the means by which we unite the following question. How could country. Most people will need a Labour Chancellor, writing it at some point in our lives: as a a Labour budget, use that new parent, as a pensioner, or at £10billion differently? Where a time of sickness or mental ill- should our immediate spending health. There is no shame in that. priorities be? What is urgent?

The only shame belongs to the The second set of priorities Conservative party in power. It is consider the actions that a they who have tried to take our Labour Government might take social security system apart. Now across a longer period. How is the time for the Labour party to could a Labour Government reset get into Government and repair our anti-poverty efforts over a it, once and for all. We need Parliament? to end foodbank demand. We need to stop child poverty rising. And finally, the Making Ends We need a different attitude and Meet discussions also considered approach to helping people work structural change that the UK their way through the challenges needs. Many problems that life throws up from time to time. lead to poverty have deep roots. Much change that is The following recommendations needed requires action that are designed to articulate may not see immediate impact, political priorities. During the but that should be considered, Conservative leadership election nonetheless. In the end, we want of 2019, Boris Johnson MP, a society that designs out the risk now the Prime Minister of the of poverty. Structural responses United Kingdom, pledged to rebalancing power, wealth (as slash income tax by increasing well as income) and opportunity the threshold for the 40p rate are needed, alongside policy to £80,000, which would cost an change to undermine the estimated £9.6 billion a year. brutality of poverty we see today.

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STEP ONE: URGENT PRIORITIES

The difference between foodbanks and other measure On the other hand, the damage Conservative priorities and that are plugging the gaps in the done by universal credit means Labour choices is clear. Boris welfare state. Many people in that the system for support Johnson claimed in his successful the UK want an immediate end has acted in a manner that is leadership bid that increasing to the need for foodbanks and unkind, and decisions taken the threshold for the 40p rate to other kinds of emergency help by politicians, for example on £80,000 would help “stimulate” that too many are being forced sanctions, have undermined the the economy. Other Conservative to rely on. relationship of respect between politicians such as Jeremy Hunt the United Kingdom citizen also emphasised “turbo charging We should adopt policies that and their Government. The the economy” with corporation protect incomes, with two Conservatives in government tax cuts and increasing defence priorities in mind: have taken decisions that can spending, which would cost a justifiably be considered cruel. total of between £37-68 billion.43 1. Effective use of resources to reach those There is an urgent need Economists know that the who incomes are lowest to restore this relationship argument that directing and most at risk between citizen and state. For resources to the wealthy 2. Effective use of this reason, a mixed approach stimulates the economy is resources to improve to resolving the immediate nonsense. Poorer people have family incomes with low problems is recommended. We a higher marginal propensity administrative burden or need to undermine the stigma to spend. So, if a Government stigma now established that damages wanted to use fiscal measures those who receive working-age to ‘turbo-charge’ the economy, These two priorities capture the support from the Department they would be better advised need to combine two approaches for Work and Pensions, and to target the less wealthy. In to immediate improvements we also need to get cash to any case, the evidence given to to the welfare state. On the those who need it with a simple the Making Ends Meet project one hand, as described above, administrative system that suggests that we should reject we know that some families – can relieve some of the hassle this approach, and instead particularly lone parents and associated with social security. immediately adopt anti- those affected by disability – This means a combination of poverty policies that could help have lost out the most from the both universal and targeted tackle the immediate need for Conservative cuts to support. support for incomes.

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POLICY PRIORITIES

Electing a Labour Government that could spend £10billion on ending the need for foodbanks rather than tax cuts for the already wealthy could and should make an immediate difference.

Change Cost Impact

1. Remove 2 child limit £1.3 bn Around 250,000 children would have support restored

Approximately 700,000 families would benefit in the long run.44

2. Reduce waiting time £1.2 bn Prevent worsening debt, rent arrears and mental health for universal credit stresses associated with financial difficulty. payments About 100,000 households are forecast to be affected each year.45

Reduction in destitution

3. Increase child benefit £2.8 bn Would lift 500,000 people out of poverty and 300,000 children out of poverty.46

4. Disability £1.7 bn Improve mental health support

5. Childcare £3 bn Investment in childcare supply, focussing on areas of greatest disadvantage. Reconstruction of the Sure Start model improving educational outcomes as well as offering greater flexibility to both earn and learn.

SCRAP BORIS -£10bn Existing tax rates stay the same JOHNSON TAX CUTS

1. THE COST OF SCRAPPING cost of making an additional rate tax-payers through the THE TWO-CHILD LIMIT payment equal to ongoing tax system. However, it is monthly awards to all making a straight-forward to administer This would potentially cost in purely new claim for universal and – if less effective than a the region of £540 million in credit would be £6.1 billion means-tested benefit in poverty 2019/20, rising to over £1.3 in today’s terms by the end of reduction – it has high take-up billion a year from 2022/23 2024, with an annual cost of rates. onwards, not accounting for around £1.2 billion in each of any interaction with the Benefit the four financial years 2020/21 [For mental health and childcare Cap.47 to 2023/24 inclusive. If you were services: see next section] to continue to make additional 2. THE COST OF payments to new UC claimants These priorities represent REDUCING WAITING after the completion of the a mixed approach of both TIME FOR UNIVERSAL roll-out, there would also be an targeted and universal benefits. CREDIT PAYMENTS ongoing cost. This is in order to balance the priority of maximising the There is no clear way of 3. INCREASING number of children helped calculating the costs of CHILD BENEFIT to escape poverty, and also ending the five week wait for begin to address the high universal credit payments. The Child benefit is no longer a administrative burden many average monthly UC award for universal benefit, given the families face, which could be households receiving a payment reform by George Osborne eased by more simple and is currently £658.71.48 The total to claim it back from higher straight-forward cash transfers.

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ENDING THE stigma of claiming a benefit does of time. They could form part PUNITIVE SYSTEM not prevent its value accruing to of an initial budget as soon the people who need it. as a Labour Government was Across the country, those working elected. They would not solve all with the welfare state described So, alongside the changes of the United Kingdom’s poverty how cumbersome, difficult above, DWP must immediately challenge. But they would have a and punitive it has become. cease punitive methods such as significant impact and contribute So further work is required to sanctions and forcing people to immediately to ending the need accumulate the learning that take on work that is unsuitable, for foodbanks. exists in local government and such as work on zero or minimum devolved institutions with regards hours contracts. DWP should to the automation of benefits and reform its systems so that people simplifying application systems. are treated with dignity and Universal credit was hailed as respect and recognise that a making the benefits system growing number of people that simpler. Yet the practical reality they work with will have mental is nothing like that which was health challenges for which the promised. Government should provide support, and not worsen. When policies change, it is not enough to make help available, The above policy changes are we need to make sure that take- urgent, but also practical and up rates improve, and that the achievable in a modest amount

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STEP TWO: BETTER INCOMES AND BETTER SUPPORT

We need to take immediate of Sure Start Children’s Centres period of a Parliament. But it steps to undermine poverty risks and rising access requirements is not a complete list. There in the UK. However, we also for social care and mental are other public services – know that foodbank use has health support. In the medium particularly those provided by not only risen due to income term – for example – across a local authorities – that are also levels, but also due to the Parliament, the next Labour an essential part. Poverty is changing nature of work, and Government will need a mixed different across the UK, and well- that recipients of food support approach in supporting incomes resourced devolved and local and other short-term help also and good universal public institutions play a very important have longer term needs. Cash services that help people tackle role in achieving better incomes transfers through the welfare challenges in life and maximise and more affordable lives for state are necessary now but opportunities. their populations. aren’t sufficient to improve the future life chances of those at risk The two examples below There is a gender aspect to this. of poverty. give a flavour of the kind of We know that women are over- public services that could represented in low-paid, low The poverty crisis has been be re-invigorated to help a productivity jobs, and need good exacerbated by cuts to public Labour Government end the public services to support their services, for example closures need for foodbanks over the ability to earn and to increase

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their skills and their earnings not receive their entitlement child benefit, therefore is potential and self-fulfilment. And till many months afterwards, good for gender equality as it women also work in public or creating a cost barrier to labour compensates women for the publicly funded services and have market participation. This is in care work they do in the home, felt the blunt end of austerity in addition to the freeze on child specifically by paying them for terms of their job prospects and benefit since 2015, meaning the childcare they perform. earnings. families have seen a real terms decrease in the support they Another potential policy remedy 4. CHILDCARE receive, despite rising prices. to these challenges is the INFRASTRUCTURE introduction of universal basic AND EARLY YEARS Structurally, early years provision childcare – Labour’s current has also suffered significantly policy. This would enable all Child poverty is on the rise. from austerity. Research women to participate in the According to the Institute for consistently demonstrates that workforce whilst ensuring that all Fiscal Studies, 27 per cent of early years interventions have a children receive quality care. It children were classified as being marked developmental impact would also recognise the burden in poverty in 2010, rising to 30 on children, in particular those of care work that is placed upon per cent (or 4 million) in 2015/6 – who come from disadvantaged women and compensate for that a figure that is projected to rise backgrounds.49 Cuts to SureStart by freeing up their time. The to 36 per cent (or 5.1 million) by and changes in the way people current childcare support system 2012/2. Not only does this reflect pay for childcare e.g. post- is complex in administration, fundamental injustice in our payment and payment in arrears, and often doesn’t work well with society, limiting opportunities for have made significant impacts an almost entirely privately-run children from the very beginning on the quality and quantity of system of delivering childcare. of their lives, but the degradation childcare people are able to A Labour Government could of state support for (e.g. via access. – over the medium term – child benefit) and state run (e.g. fundamentally change the sure start) childcare exacerbates Moreover, while the ‘cliff edge’ landscape in childcare funding broader societal inequalities. has been smoothed for parents and provision. Labour’s National working smaller numbers Education Service aims to offer a While increased flexibility in of hours, support has often proper public service that could the labour market has, to an decreased for those working help people not only access extent, empowered women who more hours which penalises support for their children, but wish to return to work or work single parents and second integrate this help with support alongside caring and domestic earners, who disproportionately for parent’s own skills. responsibilities, a lack of tend to be women. This is affordable childcare still creates important because, not only As part of the recommendations a significant barrier to those who are childcare and wealth made above, money that the wish to be part of the labour transfers for children important Conservatives would spend on force. Furthermore, changes to to combat child poverty and tax cuts could be re-prioritised the welfare system have made to provide all young people towards early education, families with children worse off. with the opportunity to live rebuilding the Sure Start network. fulfilling lives, but they also help This is a proven means by which Firstly, the transition to universal advance the cause of gender parents can receive support, and credit, while helping smooth the equality. Care work, work that also educational disadvantage be ‘cliff edge’ for those working is disproportionately done by tackled. fewer than 16 hours a week, women, is work. While wins like has had an impact on childcare an increased per hour wage 5. HEALTH INFRASTRUCTURE: provision, firstly, with the may ameliorate the challenges MENTAL AND PHYSICAL inclusion of the two-child cap and faced by those in the workforce, secondly, as both housing and the fact that the burden of care As detailed above, we know that council tax benefits disregarded work falls on women means disability is a serious risk factor childcare costs. Furthermore, their ability to earn is necessarily when it comes to poverty and the administration of the credit restricted, and they cannot those who came to Making Ends means parents often have to pay benefit from pay gains in the Meet roundtables consistently childcare costs upfront and may same way as men. Generous spoke of health problems

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experienced by those in poverty social security operates so that it widen the choice of therapeutic using foodbanks, and other is helpful to, rather than a danger options available through the crisis support mechanisms. More to a person’s mental health. NHS. evidence can be found in a Trussell Trust report from January In meeting the challenge of Labour will protect the NHS 2018 found that substantial ending the need for foodbanks, budget reserved for mental numbers of people with we need a mixed approach in health services nationally, so disabilities, particularly mental improving family benefits but that we can guarantee increased health conditions, are now being also recognising that those in funding to the frontline. We will referred to their foodbanks, and or at risk of poverty need good also invest in early intervention they cite ‘difficulties applying for quality public services too, by increasing the proportion of and accessing benefits; income including mental health support mental health budgets spent on shocks due to benefit changes and treatment. Achieving better support for children and young and delays; and an apparent lack mental health in the UK will people and will ensure that of understanding and flexibility require a holistic approach, access to a counselling service within the system towards people with a changed labour market, is available for all children in with mental health conditions’. education system, and better secondary schools. life chances. But we also need a Whilst physical disabilities still well-funded health infrastructure represent significant challenges that means true parity of esteem for people in the labour market, for physical and mental health people with mental health issues conditions. Instead of Boris make up just over half of all Johnson’s proposed tax cuts, we people accessing Government should invest in mental health support for those with disabilities. services to offer a range of So, we all must accept the therapies, in line with Labour’s responsibility to change the way policy to ask the National that support for those accessing Institute for Clinical Excellence to

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STEP THREE: STRUCTURAL REFORM

Urgent reform of the United market cannot be fixed in a As a matter of urgency, the next Kingdom’s welfare state is needed. vacuum. Local communities must Labour Government will give all But whilst the Making Ends Meet have powers to fix the problems workers equal rights from day discussions in the summer of they know most about. To this one, whether part-time or full- 2019 heard that people wanted end, he advocates scrapping time, temporary or permanent action now, long-term and deep- the development rights that – so that working conditions are rooted change was also a priority. were introduced in 2013, which not driven down and outlaw zero Unfairness in British society hurts have allowed developers to hours contracts. This should us all and whilst it may be the get around the usual planning bear down on the extreme work of a generation to change process by making housing out flexibility that is too often it, in the end, it would benefit us of commercial spaces without required of UK workers, but all to do so. councils’ approval, leading to without proper compensation or poor-quality housing as well as equal flexibility on behalf of their HOUSING an estimated loss of over 10,000 employer. affordable homes in the last three The structure of the housing years.53 The next generation needs a market has driven wealth very different plan for the labour inequality. The Labour Party Healey’s other policies such market, and not just on pay. recognises that housing is as ending spiralling costs for Too many people have little an issue at the heart of the leaseholders and committing influence over their work and the UK’s poverty crisis. And the Labour to ending rough sleeping population of working people Party’s policy ideas in this area over the course of a five-year who enjoy the benefits of trade rightly make the point that parliament demonstrate the union membership is aging. This a combination of measures party’s commitment to tackling means a power imbalance that aimed at shifting the market another very visible sign of the has created a negative culture in in favour of those needing UK poverty crisis: homelessness. which people are expected – by homes, strengthening the role of Indeed, Labour’s record in the Department for Work and local government and tackling government on these issues Pensions and others – to accept homelessness could improve proves we are the party to fix it. zero hours contracts or other matters. forms of hyper flexibility that LABOUR MARKETS makes incomes unpredictable As John Healey, Labour’s and life harder to plan. This must Shadow Secretary of State for In order to provide the income change, and as well as a range Housing, explained at last year’s smoothing effect that Beveridge of legislative changes to support conference, linking average first envisioned, the social trade unions as civil society local incomes to housing security system needs to interact organisations, we also need costs is the cornerstone of our with the labour market in order to profound structural change in the party’s housing policy.50 This provide decent incomes. UK labour market. would redefine what is deemed ‘affordable’ instead of rents and However, there will always be What’s more, there are great house prices being determined a limit to the effectiveness of opportunities to improve by a market that is out of social security if the rules that longer-term productivity if the reach for many workers. In the govern the labour market does United Kingdom changes its context of the rising number of too little to protect workers from labour market to recognise households in the private rented unscrupulous practices that the crucial role that employees sector (2.8 million in 2007 to 4.5 increase short-term profitability collective voice can play in million in 2017),51 and with private at the expense of employees. modern business. In addition, renters spending an average of as well as good management 40 percent of their income on The National Minimum Wage and leadership, people in Britain rent in London and 28 percent in legislation has done a great deal need more time to get the the rest of the country,52 the state to improve wages, however, in chances that will help them move should intervene to cap prices in recent years too many employees on. This means universal good line with local incomes. are at risk of not being paid quality childcare, and a labour enough due to the increase in market that understands equality, Healey’s housing policies zero hours or minimal hours diversity and positive mental recognise that the housing contracts. health.

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Too often, people have too little hours whilst pay and living time. We need to give people standards are maintained. In the the opportunity to spend more long term, this could profoundly time with their family, or study change the structure of our whilst working if they choose. labour market for the better. In the end, this is how people make the most of their lives. Equally, the Skidelsky report for More information about the the Shadow Chancellor, ‘How kind of structural change that to Achieve Shorter Working could help people have better Hours’ also indicates a way working lives can be found in forward, suggesting a job the TUC’s 2018 report A Future guarantee scheme, investment that Works for Working people in the public sector, and state which recommends an expansion interventions such as use of of trade union membership, public procurement, statutory collective bargaining, duties on companies, and further introduction of new technology legislate on to shape the labour with consent of employees so as market to improve earnings in to secure a reduction of working the long-term.

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REFERENCES

1 ONS, Employment and Labour market statistics time series, 10 September 2019. 2 IFS, Poverty and Low pay in the UK: the state of play and the challenges ahead, 6 March 2019. 3 ONS, Trends in self-employment in the UK, 7 February 2018. 4 TUC, Future of Work Report, 2018. 5 IFS, 10 years on – have we recovered from the financial crisis , 12 September 2018. 6 ONS, Average weekly earnings in Great Britain, July 2019. 7 DWP, Households below average income : an analysis of the UK income distribution : 1994/95-2017/18, 28 March 2019. 8 DWP, Households below average income : an analysis of the UK income distribution : 1994/95-2017/18, 28 March 2019. 9 IFS, Living standards, poverty and inequality in the UK : 2019, 19 June 2019. 10 USDAW, Time for Better Pay, 23 January 2019. 11 ONS, Persistent poverty in the UK and EU: 2017, 6 June 2019. 12 Hills, John., Cunliffe, Jack., Gambaro, Ludovica., & Obolenskaya, Ludovica (London School of Economics). Who won and who lost as the economic crisis hit? Changing inequality in the UK 2007-2010, July 2013. 13 Resolution Foundation, Failing to Plan = Planning to Fail 14 IFS, Impact of Tax and Benefit reforms on household incomes, April 2017 15 House of Commons Library, Welfare Spending 2010-11-2020-21, July 2016 16 APPG on Universal Credit, What Needs to Change in Universal Credit?, July 2019 17 Child Poverty Action Group, All Kids Count: the impact of the two child limit after two years, June 2019 18 House of Commons Library, Poverty in the UK: statistics, February 2019 19 Child Poverty Action Group, All Kids Count: the impact of the two child limit after two years, June 2019 20 DWP, Household below average income, March 2019. 21 DWP, Household below average income, March 2019. 22 Child Poverty Action Group, Universal Credit: What needs to change to reduce child poverty and make it fit for families?, June 2019. 23 Family and Childcare Trust, Childcare Survey 2017, 2017. 24 Joseph Rowntree Foundation, UK poverty 2018, 4 December 2018. 25 Department for Work and Pensions, PIP official statistics, 14 December 2016. 26 UN Nations Committee on the Rights of persons with disabilities, Disability Rights in the UK: submission to the UN committee on the rights of persons with disabilities, 23 August 2017. 27 Centre for Welfare reform, Extreme Poverty in a time of Austerity, September 2018. 28 Rowlingson, Karen (University of Birmingham). Rebuilding a just social security system (submission to Labour Party National Policy Forum), 28 June 2019. 29 Dwyer, Peter,. Wright, Sharon,. Universal Credit, ubiquitous conditionality and its implication for social citizenship, Journal of Poverty and Social Justice, Feburary 2014. 30 Dwyer, Peter,. Wright, Sharon,. Universal Credit, ubiquitous conditionality and its implication for social citizenship, Journal of Poverty and Social Justice, Feburary 2014.

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31 USDAW, Time for Better Pay, 23 January 2019. 32 Child Poverty Action Group, All Kids Count: the impact of the two-child limit, 26 June 2019. 33 Joseph Rowntree Foundation, A Minimum Income Standard for the UK 2008-2018: continuity and change, 2 July 2018. 34 Department for Work and Pensions, Universal Credit Full Service Survey, 8 June 2018. 35 Clair, Amy,. Fledderjohann, Jasmine,. Lalor, Doireann,. Loopstra, Rachel,. The Housing Situations of Foodbank users, 27 May 2019. 36 Beveridge, William. Social Insurance and Allied Services, November 1942. 37 Ministry of Housing, Communities and Local Government, Rough Sleeping Statistics Autumn 2018 England, 25 February 2019. 38 Department for Education, Schools, Pupils and their characteristics, January 2019. 39 Child Poverty Action Group, The Costs of Going to School from Young People’s Perspectives, April 2014. 40 Beveridge, William. Social Insurance and Allied Services, November 1942. 41 ONS, Effects of taxes and benefits on UK household income: financial year ending 2018, 30 May 2019, 42 Chakraborty, Ratula,. Dobson, Paul. BBC News: Why the UK has such cheap food, 1 October 2018. 43 IFS, Jeremy Hunt’s tax and spending policies: what would they cost and who would benefit?, 27 June 2019. 44 House of Commons Work and Pensions Committee, Two Child Limit, Twenty-Third Report of Session 2017-19, 9 January 2019. 45 Letter from Amber Rudd to Frank Field dated 24 April 2019. 46 Joseph Rowntree Foundation, Could the Government have done more to enable people to escape poverty?, 1 November 2018. 47 House of Commons Library, Two child limit in Universal Credit and child tax credits, November 23 2018. 48 House of Commons Library, Department of Work and Pensions Stat-Xplore, accessed 27 August 2019. 49 House of Commons Education Committee, Tackling disadvantage in the early years, ninth report of session 2017-19, 29 January 2019. 50 Healey, John. Labour Party Conference speech, Liverpool, 24 September 2018. 51 ONS, UK Private rented sector: 2018, 18 January 2019. 52 IFS, The cost of housing for low-income renters, October 2017. 53 Local Government Association, Results of LGA permitted development order survey 2018, 27 November 2018.

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