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 Gordon Brown 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 Kate Green 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 Debbie Abrahams 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 Mike Amesbury 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, Progress
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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)