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Poverty and Welfare Policies

I pay tribute to my hon. Friend for his work on food poverty and the need for a proper food policy that gives people the right to food. It is an important issue, which we need to address.

We all know that circumstances can change overnight. One day, someone is working and getting by; the next, they need support. There is a health scare, they are caring for a loved one, or they have lost their job and possibly their home. That risk and insecurity should not be part of everyday life for our constituents.

During a debate on the future of personal independence payments, a number of Members, as the hon. Member for Horsham said earlier, claimed that welfare spending was out of control. However, for the last 15 years, UK spending on social security has consistently been between 10% and 12% of GDP, and we regularly spend less on social security than comparable countries in Europe.

Improving the support available through our social security system should be seen as a key part of our economic growth agenda, but we need to recognise that growth that fails to tackle social inequality will mean that all the economic gains remain at the top. In fact, between 2010 and 2019 the UK’s GDP grew by 1.9% every year, but at the same time the wealth gap widened by nearly 50%. As a result, we now have the second highest wealth inequality in the OECD, after the US.

That brings us to the important issue of how we raise revenue. There is a genuine concern that if the Government fail to tax wealth effectively, they will lack sufficient resources to uphold the social contract under which strong public services, an effective social safety net and a healthy economy provide people with a decent standard of living. Failure to uphold that contract will inevitably further undermine trust in our current political system and ultimately lead to support for those with simple answers to complex questions.

In conclusion, there are some key principles that I hope the Government will accept. First, restricting welfare does not reduce poverty; it simply shifts costs on to charities, councils and the NHS as people try to find support elsewhere.