6. Debate: Analysis of the Impact of the UK Government's Welfare Reform on Households in Wales

Part of the debate – in the Senedd at 4:35 pm on 19 March 2019.

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Photo of Huw Irranca-Davies Huw Irranca-Davies Labour 4:35, 19 March 2019

It's a pleasure to take part in this debate, but I wish we didn't have to, in many ways. John F. Kennedy once said:

'If a free society cannot help the many who are poor, it cannot save the few who are rich.'

I think that is the essence of what we are looking at here—it's how a society looks after those who face disadvantage. And by the way, disadvantage is not something that is a million miles away from any of us. The repeated analyses that have looked to see how many of us are one or two paychecks away from penury and from poverty is a reality. I myself—when I was working at the height of a former career in leisure management, doing exceptionally well, and the company was taken over and a whole raft of management was just stripped out by the new company—found myself in my mid-20s facing redundancy, in the City of London, paying high rent, still with myself and my wife there, and I spent six months not only getting my head together but also working as a night-time security guard on 12-hour shifts in the City of London surrounded by the wealth and the affluence of the mid 1990s in London, and working before the minimum wage through those long 12-hour shifts. I had a great time and met a lot of great people as well. But it just shows that, actually, for many of us—and those people who turn up in foodbanks are often people who are either in work or they've been working recently and a couple of incidents in their lives have pushed them beyond the brink. And at that point we expect the welfare and the tax system to support them to allow them to get back to work, and when they get back to work to actually make work pay. That is not happening, despite the very best ambitions—and I'm being generous here—at one time, of Iain Duncan Smith, who held this portfolio in Government, who went to the Glasgow housing estates, who spent six months there learning what it was like, who put in place a well-funded, at the time, proposal to actually turn around those communities, and then when he came back to Government George Osborne ripped the check book up and said, 'You can do all the stuff around the sticks, you can do some of the stuff around the carrots, but there'll be no money to do this.' It absolutely undermined what could have been a compassionate, thoughtful, well-structured, evidence-based way to actually help people back into work, give them the support that they need, and actually make work pay. That hasn't happened. We are here where we are now. 

I want to pay tribute to the many housing associations, local authorities, the credit unions, organisations like Christians Against Poverty and others, who are out there now on a day-to-day basis providing debt advice, money management advice, financial budgetary advice, holding people's hands as they try to reconstruct their lives, often because the tax and welfare reforms have pushed them into poverty. I also want to thank, of course, all those who volunteer week in, week out, not simply when we turn up as politicians to help them on one Saturday now and then, but actually those who every week, every day of every week, contribute within foodbanks like Bridgend foodbank, the Trussell Trust, the churches, the community organisers and others, who provide not only physical sustenance and literally food and nappies and deodorants and everything else to help people balance their budgets—this is in the sixth-most prosperous country in the world—but they also provide friendship and support as well. I want to thank as well all the local homelessness charities at this point, including Emmaus, The Wallich, Centrepoint and Shelter and the many others in Bridgend and throughout Wales as well. But we shouldn't be here—if a free society cannot help the many who are poor, it cannot save the few who are rich. 

The simple facts are, Mark, and I heard what you said, and I really appreciate the work you do as an individual Assembly Member, taking up cases on welfare and benefits for your constituents, as I do and as many others do—but the simple fact is these tax and welfare reforms have been deeply regressive. Even after the amendments, the analysis shows they are still deeply regressive. They're most deeply regressive because they hit those who are least able to defend themselves. It is women, it is particular ethnic communities, it is the young, it's those who do not have a voice—who need to come to you and me to ask for help. But do you know we're helping them against the system, despite the system? Why did not—? When I was a Minister, when I and Julie James and others wrote the letter to the UK Ministers to say, 'Do your own evidence-based cumulative impact assessment. Work out what the impact of these are.' 'No, there's no need to do it.' 'Why, what are you afraid of?' They're afraid of the very fact that it will show that these are punishing the poor. 

This has never been to do with balancing austerity on the shoulders of those who can most afford it—it's being done on those who can least afford it, and it is damaging them and it is damaging communities. When we talk about the distance, as was mentioned in a previous debate there, between the elite, the politicians, can you wonder why, when in a constituency like mine you have affluent areas who do not see this at all, it doesn't touch their lives, and yet in Caerau and in Gilfach and in other places, there are whole communities now who are suffering under this, and it will get worse? And I can't go through the details of the submissions that you will have seen, and I will have seen, and everybody will have had from Age Cymru on some of the changes that are yet to come and how they will impact on some of our older recipients of PIP and so on. I simply say to compassionate Conservatives, to people who genuinely really care about their constituents—we cannot hide our head in the sand any longer. This is punishing people, and if we think the distance isn't going to grow larger, it is. If a free society cannot help the many who are poor, it cannot save the few who are rich. We have a duty to acknowledge the facts out there before we can actually come forward with the solutions.