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Tag Archives: poverty

Cost of Living crisis

By Chris Perry | Fri 3rd April 2026 - 10:01 am

Never a day goes by, or so it seems, without mention of the cost of living crisis and programmes on the television helping people to make their money go further. And yet according to the new Forbes billionaire list Elon Musk added $373.5billion dollars (or £373.5billion) to his fortune in just one year. That is £3.5bn more than the £370bn it was estimated the entire COVID pandemic cost the UK. And according to the Equality Trust, this is the biggest ever increase in one year with Elon Musk’s total worth now the 22nd largest economy in the world, beating Belgium.

According to Oxfam global billionaire wealth increased by £1.5 trillion in 2024. In contrast according to the Office of National Statistics the median household income in the UK for the year ending 2023 was £34,500. This was a 2.5% decrease on the previous year

Widening income inequality and increasing poverty are the great social evils of our time and the root cause of so many of today’s problems. It will, therefore, be very difficult for the Government to achieve its objectives whilst operating within the present system and abiding by the rules when it is the system itself which needs changing.

Unless Government addresses pay differentials, bonuses and excessive profits within the larger corporations, utilities and banks, chasing inward investment in search of growth will make the rich richer and create low paid jobs for the masses as it has for at least 40 years. There needs to be a fairer distribution of income within organisations so that everyone gets a fair and proportionate return for their hard work. Extensive studies by the Equality Trust have found that people are becoming increasingly aware that the economy is a human-made system that can be changed,

In April 2024 there were 4.5m children being brought up in poverty, 70% of whom had a parent in work. Although the removal of the two child cap on child benefit will help it should never have been imposed in the first place as it is a child and not a parent benefit. And although the provision of free school meals is to be welcomed this will not reduce child poverty. The definition of poverty is an income of less than 60% of median household income. Free school meals are not an income which is available if the child is off school.

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Posted in Op-eds | Also tagged income inequality | 24 Comments

Deep poverty rises again: Lib Dems have the policies to fix it

By Katharine Pindar | Mon 2nd February 2026 - 12:43 pm

The new annual report of the Joseph Rowntree Foundation, UK Poverty 2026, makes disturbing reading. Poverty was suffered by 21% of the population in 2023-4, more than 14 million people: the rate of 20-22% had been steady throughout the previous decade. The average person in poverty had an income 29% below the poverty line of 60% of average income. But in its latest measurement, in 2023-4, the JRF found that 6.8 million people, almost half of those living in poverty, were in very deep poverty, with an average income an appalling 59% below the poverty line. This is the highest proportion of the population suffering very deep poverty on record, says JRF. They report that, around 3.8 million people experienced actual destitution in 2022, including around a million children. These figures have more than doubled since 2017.

‘The basic state of benefits continues to be around the threshold for destitution’ states the report.

How has this chronic state of so many of our citizens come to this, and what is the Government doing about it? JRF explain that before the pandemic benefits were being cut, deepening poverty. Then a decade of weak growth in real incomes was succeeded by the pandemic and next the cost of living crisis, driving up the numbers of people lacking essentials and having to rely on emergency charity such as Food Banks (surely no longer considered so much as an emergency as a sadly necessary extra provision today).

The Government’s Child Poverty Strategy is indeed likely to reduce child poverty by 400,000 over the current Parliament. Scrapping the Two Child Limit for benefits, a long-held Liberal Democrat policy, is at the centre of the strategy. Child poverty is indeed a chronic need, but the DWP forecasts that over 4 million children will still be in poverty in 2029-30.

Which are the families most likely to be in very deep poverty? While being in work vastly reduces the likelihood of being in poverty, in-work poverty has been rising. And the JRF states that ‘Economic growth on its own will not reduce poverty.’ Indeed, they point out that growing living standards and falling poverty could be spurs to growth.

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Posted in Op-eds | Also tagged deep poverty, joseph rowntree foundation and social security | 85 Comments

Stand up for poor people: the Chancellor’s Budget must not make things worse

By Tom Reeve | Tue 25th November 2025 - 9:12 am

As the Chancellor prepares to deliver the Budget tomorrow, those with the most to lose are the poorest in our society.

Many of you reading this can hardly imagine living on £20,000 a year before housing costs, yet that is the reality for millions. It is roughly 60% of the median income, the level officially defined as “poor.” While the cost-of-living crisis hurts everyone, it hits low-income households hardest. Food, rent and fuel now swallow almost all their disposable income. Far from helping, the government has made life harder.

About 14 million people – one in five – live in relative poverty after housing costs. That includes 4.3 million children, 8.1 million working-age adults and nearly two million pensioners. The Institute for Fiscal Studies reports that child poverty has risen from 27% in 2010-11 to 30% in 2022-23. More than two-thirds of poor children live in households where at least one adult works. Poverty is no longer confined to those out of work; it has become an everyday feature of low-wage Britain.

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Posted in Op-eds | Also tagged 2025 budget and child poverty | 17 Comments

Government should stop using “working people” and audit income inequality and poverty

By Chris Perry | Wed 9th July 2025 - 10:25 am

When will the Government drop the phrase “working people” which excludes “retired people”, “children”, “people with long term illnesses or disabilities” and people who have had to give up work to become full time carers and adopt something more inclusive. Until they do, they will continue to shoot themselves in the foot.

Congratulations on the Lib Dem stand against cuts to disability benefit. In my experience most people who are off work due to sickness or disability would give anything within reason to be able to work. However, if Government wrongly believes that a financial incentive is required then the answer must lie in increasing their potential earnings and not the threat of increased poverty.

Widening income inequality and increasing poverty are the great social evils of our time. And unless Government addresses pay differentials within companies, chasing inward investment in search of growth will make the rich richer and create low paid jobs for the masses. It will increase income inequality and poverty: not reduce it. As did stopping the winter fuel allowance and cutting disability benefit which added to the hardship of the most vulnerable people in our society and, given the wealth of empirical evidence into the social determinates of health which have demonstrated the correlation between income and health, added to the winter pressures on the NHS at the very time Government was committed to reducing waiting times.

In 2022 / 23 there were 4.3m children in the UK being brought up in poverty – 2/3rds of whom had a parent in work. In March 2023 there were 107,317 children in the care of the local authority in the UK – the highest number ever. In December 2023, 112,660 homeless households were living in temporary accommodation in England, including 145,800 children. A record-high for both categories. Despite low detection rates the courts could not keep pace with demand and prisons were bursting at the seams. There was concern about rising knife crime amongst young people.

Two million older retired people were living in poverty in the UK in 2024. The state pension had fallen further behind average earnings (23% in 2025 from 24.5% in 2020). This was because the “triple lock” was suspended in 2022 /23 and the state pension increased by 3.1% instead of 8% had it been applied. Stopping the “winter fuel allowance” in 2024 represented a further cut of 3% in the income associated with the universal state pension having been part of older retired people’s income since 1999. It was restored for some in 2025 not, it would seem, because of the hardship it caused or because of the increased winter pressures on the NHS, but because of the opinion poll ratings and loss of votes in the local elections. Retired people got no benefit from the two pre-election cuts in National Insurance but do have to pay more income tax due to the freezing of the tax-free personal allowance and lost their free TV licence in 2022. Therefore, after ten years of catching-up due to the “triple lock”, introduced by the Coalition Government in 2010 to reverse the year-on-year erosion since the earnings link was replaced by a prices link in the 1980’s, older people were again being left behind.

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Posted in News | Also tagged inequality | 10 Comments

Poverty and inequality? Not apparent priorities for this Labour government

By Katharine Pindar | Sun 2nd February 2025 - 12:55 pm

However, our party is committed to poverty reduction by our Constitution and our policies. So it was good to hear that Deputy Leader and Treasury Spokesperson Daisy Cooper has spoken out not only about the depth of poverty left by the Conservative Government but also the inadequacy so far of our Labour Government’s approach to it.

She has stated:

This deep poverty is a scar on the nation made by the Conservative party, but the Labour government has so far just sat on its hands.

She highlighted the Government’s refusal to scrap the two-child benefit cap as well as the winter fuel pay cut for thousands of pensioners.

She could say much more, and hopefully will press the theme. The latest report of the Joseph Rowntree Foundation on poverty in Britain finds that relative child poverty rates are projected to rise this year, from 30.8% in England to 31.5%, and in Wales from 32.3% to 34.4%. Moreover, the JRF chief executive Paul Kissack was quoted in Wednesday’s Guardian as stating

“Any credible child poverty strategy must include policies to rebuild the tattered social security system”

Our party has recognised the need, stating on page 51 of our 2024 Manifesto our intentions to:

Tackle child poverty by removing the two-child limit and the benefit cap
Set a target of ending deep poverty within a decade, and establish an independent commission to recommend further annual increases in Universal Credit to ensure that support covers life’s essentials, such as food and bills.
Support pensioners by protecting the triple lock so that pensions always rise in line with inflation, wages or 2.5% – whichever is the highest.

There is much more, some of which is set out on page 52. Such as, ‘Scrapping the bedroom tax and replacing the sanctions regime with an incentive-based scheme to help people into work.’

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Posted in Op-eds | Also tagged daisy cooper and joseph rowntree foundation | 34 Comments

Tell the Chancellor – don’t let the inflation rate fall be bad news for the poorest

By Michael Berwick-Gooding and Katharine Pindar | Fri 18th October 2024 - 2:29 pm

The fall in inflation to 1.7% this week from 2.2% in August should be good news for borrowers, but it could result in a blow to benefit recipients. Although the rate is expected by the Resolution Foundation to rise shortly again to 2.2%, the September inflation rate is that which determines the annual uprating of welfare benefits next April.

For all the difficult decisions facing the Chancellor as she finalises her Autumn Budget, for her to increase the annual uprating of benefits above the rate of inflation should be demanded by our party. If the increase was 2.2% instead of 1.7% this would give a couple over 25 more than £30 a month extra.

The rate of Universal Credit is already inadequate, as our party’s policies in its Fairer Society motion recognised. Now this is starkly spelt out again in a new report from the Trussell Trust, the major food bank provider, called The Cost of Hunger and Hardship. It says that record numbers of people in Britain, 9.3 million or 14% of the population, including 3 million, 20.9%, of children are facing hunger and hardship, which they define as being more than 25% below the Social Metrics Commission’s poverty line (which the SMC define as the amount ‘people actually have to have to cover daily living costs’).

Universal Credit is failing to protect people, the report asserts (p.24), ‘Almost four in ten (39%) people in families claiming Universal Credit (5.4 million) face hunger and hardship’. ‘Over half of people living in hunger and hardship – 58% – live in a working family, while 35% live in families where no-one is working, and 5% are in retired families’ (p 25).

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Posted in Op-eds | Also tagged universal credit | 58 Comments

8 October 2024 – yesterday’s press releases

By Mark Valladares | Wed 9th October 2024 - 11:55 pm

Water companies revealed to escape fines as Lib Dems force new sewage vote in Parliament
Water Bills: Govt must enforce tougher restrictions on water companies
Cole-Hamilton calls for support as thousands of NHS staff off on long term sick
Action needed on Welsh water quality
Cole-Hamilton: A&E in permacrisis under SNP
Drug deaths crisis brings untold suffering
Rennie responds to Swinney’s poverty comments
Chairman of scandal-hit water regulator quits

Water companies revealed to escape fines as Lib Dems force new sewage vote in Parliament

Liberal Democrats to force parliamentary vote on outright ban on water company bosses bonuses

New Freedom of Information Request reveals Ofwat has failed to levy any fines against disgraced firms and employs just 8 full time staff on sewage investigations

Ed Davey slams government decision to let Ofwat decide new water company bosses bonuses

The Liberal Democrats plan to table an amendment which outlaws water company bonuses as the government’s new Water Bill enters Parliament tomorrow (9 October).

It comes as a shocking new Freedom of Information request by the Liberal Democrats found that Ofwat admitted “we have not issued any fines in connection with how water companies manage their sewage treatment” Since they launched their investigation into water companies’ sewage discharges in November 2021. Instead, Ofwat is still in “consultation” with the water companies it aims to fine.

The new findings revealed by the Liberal Democrats goes on to state that Ofwat’s investigation into sewage treatment works has a staffing of just 8.5 full-time employees, “many” of whom are working on the report “alongside other projects”.

This scant, part-time staffing raises serious questions over the regulator’s resources and powers to properly scrutinise water companies it oversees – particularly given that Ofwat’s CEO called the project “the largest and most complex investigation” the watchdog has ever undertaken.

Ofwat told the Lib Dems that “many of the people working on the investigation do so for a portion of their time alongside other projects”, and that the regulator is “in the process of recruiting further staff”.

Under the government’s new Water Bill, water company executive bonuses will be determined by key test indicators established by Ofwat. Liberal Democrat Leader Ed Davey is calling for Ofwat to be scrapped as a failed regulator which should have no role in determining water company bonuses.

Analysis of Company House records by the Liberal Democrats has found water company executives have made £35 million in bonuses since 2021.

Liberal Democrat Leader Ed Davey said:

It is time for Parliament to stand up and take action on the sewage crisis after years of failure under the Conservatives.

The new government’s attempt is sadly a job half done. A toothless and tired regulator will fail to end the scandal of multi-million pound bonuses for sewage dumpers.

We need water company executive bonuses banned until the sewage dumping stops. This disgraced industry has shown it is not worthy of any bonuses.

Conservative MPs spent years voting against a ban on sewage bonuses and propping up a failed regulator. It is time to rip up the industry, with companies which no longer put profit before the environment, and a proper regulator with real power.

Liberal Democrat MPs standby ready to work with the government to make sure the new Water Bill protects local communities from foul sewage.

Water Bills: Govt must enforce tougher restrictions on water companies

Commenting on the latest Ofwat reports, which revealed that water firms have been told to cut bills over poor performance, Liberal Democrat Environment Spokesperson Tim Farron MP said:

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Posted in News, Press releases, Scotland and Wales | Also tagged a and e waiting times, Alex Cole-Hamilton, drug use, ed davey, jane dodds, NHS staffing, regulators, sewage dumping, tim farron, water companies and willie rennie | 1 Comment

As inflation rises again, let’s speak up for all the unheard

By Katharine Pindar | Fri 16th August 2024 - 10:43 am

The latest report from the IFS this week, ‘Cheapflation and the rise of inflation inequality’, found that in the years 2020 to 2022 inflation hit the poorest hardest. Their staples such as milk, butter and pasta rose more in price in supermarkets than did higher-priced foodstuffs. They paid 29.1% more for their groceries, compared with 23.5% for better-off households. The IFS calculated that if the poorest 25% of households had faced the same inflation rate for groceries as the richest 25%, their annual food bills would have been cut by £100.

While food price inflation has reduced in the last 18 months or so (rather contrary to many people’s perception) the slight rise in general inflation, now at 2.2%, seems expected by economists to continue. That is likely to continue to affect the less well-off more than the better-off because of their need to spend a greater proportion of their income on basics, whether foodstuffs or gas and electricity.

Households with unpaid carers are among those most likely to be affected. Carers UK reported in 2022 that there may be 10.6m unpaid carers. With the cost of living crisis, the charity reported, carers were facing unprecedented pressure on their finances, with a quarter cutting back on essentials like food and heating, and 63% extremely worried about managing their monthly costs. Some 44% of working-age adults who are caring for 35 hours or more per week are in poverty, according to the Joseph Rowntree Foundation in its 2022 UK Poverty report, cited by Carers UK.

Research from the TUC reported widespread poverty among workers in the care economy a year ago. It found that 62% of childcare workers and social care workers were earning less than the real living wage. Social care workers were earning only about 65% of the median salary for all employees, £21,500 a year compared with £33,000, while child care workers only earned £18,400, 56% of the median salary.

TUC research in June this year also reported on low wage growth generally, finding that over the past 14 years, child poverty has increased by, on average, an additional 1300 children a week in households with at least one working parent. The TUC said a ‘“toxic combination” of pay stagnation, rising insecure work and cuts to social security have had a “devastating impact on family budgets”’.

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Posted in Op-eds | Also tagged child poverty and cost of living crisis | 54 Comments

LibLink: Claire Tyler The time for radical reinvention is now

By NewsHound | Wed 22nd May 2024 - 8:20 pm

Our Claire Tyler has written an essay for a Make Every Adult Matter publication on the next steps for policies to tackle multiple disadvantage. These issues are important to think about as we head into the General Election on 4th July.

Claire wrote about the need for local, joined up services alongside a much stronger safety net.She set out the problem:

The accepted post-war norm has been for successive generations to experience better lives than their parents. That is not true anymore for the younger generation, as they are experiencing worse outcomes in terms of pay, security and housing. And the two-child limit for benefits continues to hold many families in poverty. The Marmot Review: 10 Years On highlighted that in the past decade, people can now expect to spend more of their lives in poor health. This is a crisis that will grow rather than fade without radical intervention.

What would the Liberal Democrats do about this?

Liberal Democrats would finally put mental health on the same footing as physical health, and invest in public health and prevention so that fewer people get ill and need treatment. We would break the cycle of reoffending by improving rehabilitation in prisons and on release. We would commit to building 150,000 social homes a year by the end of the next parliament. And we would set a target of ending deep poverty within a decade with a major anti-poverty strategy. Crucially, Liberal Democrats also understand that radical reform will take more than just good policies in each government department. We also need to reform our public services, taking a coherent, joined-up approach so that they work for those who are most in need. In tackling multiple disadvantage, this means committing to action in three key areas: leadership from the heart of government, local autonomy and co-production, and shared outcomes that endure for the long term.

And decisions being made locally is really important:

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Posted in LibLink | Also tagged claire tyler, health care, lib dem lords and social security | 3 Comments

21 March 2024 – today’s press releases

By Mark Valladares | Thu 21st March 2024 - 10:00 pm

Interest rates: Families are still facing a mortgage cliff edge
Khan ‘failing’ on Met Police reform – Lib Dems slam mayor’s record on first anniversary of Casey report
Cole-Hamilton challenges Yousaf on SNP Government’s climate record
Rennie responds to poverty statistics
Water Industry Commission for Scotland branded an embarrassment

Interest rates: Families are still facing a mortgage cliff edge

Responding to the Bank of England’s decision to keep interest rates at 5.25%, Liberal Democrat Treasury spokesperson Sarah Olney MP said:

This is cold comfort for millions of homeowners who still face massive hikes in their mortgage bills after Liz Truss crashed the economy. Many families still face a mortgage cliff edge despite this news.

Liz Truss’s disastrous mini-budget and the Conservative party’s economic vandalism has put intolerable pressure on people’s finances.

This Conservative government has no good story to tell on the economy.

The only way to break this cycle of stagnation and financial hardship is to kick this out of touch government out of office. Rishi Sunak needs to stop his desperate attempt to cling on to power and call an election.

Khan ‘failing’ on Met Police reform – Lib Dems slam mayor’s record on first anniversary of Casey report

A year on from the publication of Baroness Casey’s damning report on the Met police, London Mayor Sadiq Khan has made “no or only slow progress on key issues”, according to analysis by the Lib Dems.

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Posted in London, News, Press releases and Scotland | Also tagged Alex Cole-Hamilton, climate change, interest rates, metropolitan police, mortgages, rob blackie, sarah olney, water industry and willie rennie | 10 Comments

Polly, the Liberal Democrats are on the case already

By Katharine Pindar | Thu 29th February 2024 - 4:02 pm

In the Guardian on Tuesday (February 27) Polly Toynbee wrote a powerful Opinion piece entitled (in the print version), ‘The Tories have miscalculated: Britons do care about poverty’. Quoting the Institute for Public Policy Research’s figures, that despite the increase in the local housing allowance from April, more than 800,000 renting households receiving housing benefit will still have to fund the gap between their rent and their benefit, Polly also cites a new Action for Children report finding that many families are falling below the breadline, even when both parents work full-time on the minimum wage.

‘The gap between what universal credit provides and what a family needs to survive is growing by the month’, she reports, with Citizens Advice apparently counting 5 million people trapped ‘on a negative budget’, with incomes that will never cover their bills, and 2.35 million going hungry. This ‘national emergency’, so named by the Child Poverty Action Group, has escalated sharply in the last two years.

It was in the York Spring Conference last year that our party passed motion F12, ‘Towards a Fairer Society’. This was based on the policy paper 150 of the same name, drawn up by a party policy working group in the previous winter. The motion states that Conference welcomes the paper’s proposals to ‘End deep poverty, including a radical overhaul of the welfare system, so no family ever has to use a food bank in Britain, by

Taking immediate steps to repair the safety net, including restoring the £20 uplift to Universal Credit, introducing emergency grants (not loans) and stopping deducting debt repayments at unaffordable rates and
Following this up in the longer term with fundamental reforms to the welfare system’.

Conference then decided to introduce a Guaranteed Basic Income by increasing Universal Credit to the level required to end deep poverty within a decade and removing sanctions. It was already party policy to remove the benefit cap.

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Posted in Op-eds | Also tagged child poverty and polly toynbee | 50 Comments

Poverty in the UK is deepening – how should Lib Dems respond?

By Katharine Pindar | Wed 24th January 2024 - 8:40 am

Poverty in the UK is deepening.

We knew this, we can see it all around us in the rise of expanded food banks, the active community charities, the special price reductions on basic supermarket foods and the increase of homelessness. But now Joseph Rowntree Foundation in its annual report on poverty levels reveals the grim facts.

More than one in five people in the UK, 22%. 14.4 million, are living in poverty, having less than 60% of the UK average for the type of household they are in after adjusting for housing costs. And 6 million of them were in very deep poverty at the last count, having less than 40% of the UK average – a category that has increased by 1.5m over the past two decades.

The report says:

A couple with two children under 14 living in very deep poverty would need an additional £12,800 a year – more than double their household income – to get out of poverty.

Of the 14.4 million people living in poverty, 8.1 million were working age adults, 4.2 million were children, and 2.1 million were pensioners. Around three in every ten children in the UK live in poverty, and the proportion rose between 20/21 and 21/22, as did overall poverty. The report says that poverty rates across the different groups has returned to around their pre-Pandemic levels.

Of the different groups affected, informal carers were much more likely that those households with no caring responsibilities to be living in poverty: 28% compared with 20%. In 2021/2 nearly one in ten adults, 4.8 million people, were informal carers.

Around two-thirds of working age adults in poverty lived in a household where someone was in work, evidently unable to get out of poverty through employment.

Among the worst affected groups were Pakistani and Bangladeshi households, around half of whom were living in poverty, compared with 19% of households headed by someone of white ethnicity.

After recording these grave findings, the Report says:

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Posted in Op-eds | Also tagged featured, joseph rowntree foundation and social security | 75 Comments

Make it known – we are a party of CAN-DO and Care

By Katharine Pindar | Thu 4th January 2024 - 1:57 pm

Liberal Democrats care about our country’s problems. We have solutions for them. And we know how to pay for them.

A new Labour Government coming this year? They are going to need our help. And what they failed to address in their manifesto; we will need to persuade them to fix.

Some of our country’s worst problems were brought home to me in a Guardian front-page story last Friday. It was reporting on a survey from MDDUS, a medical defence organisation, of 1671 doctors from the four home nations. The survey found that 65% of doctors overall, including nearly four in five GPs, had been experiencing ‘moral distress’ because of the situations they had encountered in their NHS work. The leader of the BMA, Professor Philip Banfield said, “There’s barely a doctor at work in the NHS today who doesn’t see or experience this distress on a daily basis.” It is because the NHS is “impossibly overstretched”, with its thousands of vacancies for doctors and has a quarter fewer doctors per head of population than Germany. “In practice”, he continues, “that means we can almost never give the standard of care we would want, only ever the care we can manage.” This causes doctors the ‘moral distress’ described, and affects their own mental health.

The research shows that doctors are aware of how the cost of living crisis is damaging many patients’ health, with the long waits for treatment, and the facts of poverty or bad housing making people ill.

Backing this analysis up – as covered in the same Guardian edition – Citizens Advice has reported record numbers of people needing homeless services, food banks and energy bill support this past year. They referred more people to food banks and other charities between January and November this year – 208,000, more than in the whole of 2022 – and helped record numbers of people unable to top up their energy prepayment meters, together with record numbers of homeless people – 41,554 of them in 2023, up by 17% from the number in 2022.

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Posted in Op-eds | Also tagged labour and NHS | 22 Comments

Ending deep poverty by April 2029

By Michael Berwick-Gooding | Fri 6th October 2023 - 12:34 pm

At our Spring Conference in York we passed a policy which stated, we would ‘end deep poverty within the decade’.

This commitment has made it into the pre-manifesto passed at Bournemouth along with establishing ‘an independent commission to recommend annual increases in Universal Credit to achieve it’.

Also at York we passed that we would fundamentally reform the welfare system ‘by introducing a Guaranteed Basic Income by increasing Universal Credit to the level required to end deep poverty within the decade and removing sanctions’.

Ending deep poverty in the UK means ensuring that no-one has an income below the deep poverty level. Every year the Joseph Rowntree Foundation publish a UK poverty report. And on page 115 of this year report they set out the deep poverty thresholds:

Household type	Deep poverty threshold (50% of median) weekly
Adult, with no children	£137
Lone parent with two children, one 14 or over and one under 14	£283
Couple with no children	£236
Couple with two children, one 14 or over and one under 14	£382

The current levels of Universal Credit for people over 25 are:

£85.09 a week for a single person and £133.57 for a couple.
Child benefit is £24 a week for the first child and £15.90 for each child after that.
The child elements of Universal Credit are £72.69 a week for the first child if born before 6^thApril 2017 and £62.21 for the second child.

This means that a lone parent with two children as above receives £259.89, which is £23.11 below the deep poverty line, and a couple with two children receives £308.37, which is £73.63 below the deep poverty line.

Our policy is to increase Universal Credit and the legacy benefits by £20 a week as soon as we are in government. If we then increased the single person’s rate by the rate of inflation in April 2025 and by £7.98 a week plus the rate of inflation every April thereafter, by April 2029 they would receive £137.01 in real terms. The couple rate would need to be increased by £20.61 a week for the four years after 2025, plus the rate of inflation, taking their rate to £236.01 a week in real terms.

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Posted in Op-eds | 132 Comments

Surviving not living?

By Katharine Pindar | Fri 15th September 2023 - 9:57 am

It was shocking to hear Prime Minister Rishi Sunak say again at Prime Minister’s Question Time on Wednesday, as he said before, that there are fewer people living in poverty in this country today thanks to Conservative governments. He will not face the fact that poverty is actually worsening for millions of people in the UK.

Last week an independent cross-party group called the Poverty Strategy Commission reported that six million low-income families are ‘surviving not living’, forced to endure unacceptable levels of poverty. The report, an interim one A New Framework for Tackling Poverty, states in its Foreword that:

Poverty in the UK is too high, and the experiences of many people in poverty are now getting worse.

In the Executive summary it continues,

Despite significant action from governments of all colours, particularly over the last three decades, the overall rate of poverty in the UK has remained stubbornly high, (with) a third of children in poverty, and 7% of the population in deep poverty.

It adds,

Deep poverty has become more prevalent.

They write,

… a social contract does not currently actually exist in the UK. However, broad principles of an implicit social contract can be inferred from existing government policy choices.

They also state that benefits are set at a level that are insufficient for those who rely on them to avoid poverty.

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Posted in Op-eds | Also tagged Poverty Strategy Commission and rishi sunak | 32 Comments

What on earth is Keir Starmer playing at by refusing to remove two child limit?

By Caron Lindsay | Wed 19th July 2023 - 8:43 pm

One of the cruellest things that the Conservatives introduced was limiting benefits claims to two children.

Just last week, the Child Poverty Action Group and other children’s charities wrote to all party leaders highlighting the impact of this dreadful measure and calling for its removal. They said:

The two-child limit is a discriminatory policy which is a clear breach of children’s human rights under the United Nations Convention on the Rights of the Child.

The two-child limit robs children of the basic joys of childhood. It forces parents to take out a loan to buy a school uniform. Children give up hobbies because of the costs associated, and they miss out on birthday parties as they cannot afford to bring a gift for a friend.

The cost of living crisis has made the impact of the policy even more acute. The number of affected families struggling to pay for gas, electricity and food has risen sharply in the last 12 months.

The two-child limit has a devastating effect on families like Joanna’s. Joanna works full-time and lives with her partner and three children. Her partner is too unwell to work at the moment. They lose out on £270 a month due to the two-child limit. Joanna has struggled to keep up with rent payments and, in June 2023, her landlord was granted an outright possession order to evict the family. They have just 14 days to leave their home.

Scrapping the two-child limit is the most cost-effective way to reduce child poverty. It would lift 250,000 children out of poverty and mean 850,000 children are in less deep poverty. This single policy change would transform the life chances of 1.5 million children across the UK, children like Joanna’s, who are currently facing homelessness.

Children deserve the chance to thrive, but continued inaction will permit a cohort of children to grow up in poverty, to miss out on play, to be held back at school and denied a better future. If nothing is done, over half of children in larger families will be growing up in poverty by 2027/28.

So I was genuinely shocked to see Keir Starmer tell Laura Kuenssberg on Sunday that Labour would retain this regressive, poverty increasing measure.

Of all the bad things the Tories have done, surely to goodness this would be one of the first to go?

For the avoidance of doubt, Liberal Democrats would get rid of it. We opposed it when the Tories brought it in and continue to do so.

UPDATE 20 July 9 am

In fact here is Ed telling Kay Burley exactly that yesterday.

Would Lib Dems scrap the two child benefit cap?

Here's party leader @EdwardJDavey #KayBurley FC pic.twitter.com/HP5IuUjO7X

— Kay Burley (@KayBurley) July 18, 2023

As well as being the wrong thing to do morally, Starmer has now put himself in a position where he has picked an unnecessary fight with his party. Scottish Labour MSPs Monica Lennon and Pam Duncan Glancy expressed their frustration on Twitter:

Scottish Labour will always oppose the heinous two-child benefit cap and rape clause.

It’s not acceptable in Scotland or any part of the UK, and @UKLabour party policy must always reflect this. @labpolicyforum https://t.co/i6YsiSwt2a

— Monica Lennon MSP (@MonicaLennon7) July 17, 2023

They were joined by constituency Labour Parties, MPs and other MSPs.

Monica Lennon later wrote in the Daily Record:

Knowingly plunging children and their families into hardship is heartless and with the cost-of-living crisis hitting low-income families hard, it’s never been more vital to scrap the cap.

Many of those affected are working families, who despite grafting to provide for their kids, struggle to put enough food on the table in our unequal society. Single mothers are hit the hardest.

It’s no wonder many people are feeling scared and hopeless because the choice between heating and eating is no choice at all.

I agree with every word of that.

Starmer has given himself a problem he didn’t need to have.

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Posted in Op-eds | Also tagged child poverty, featured, keir starmer and labour | 69 Comments

One in six parents say they have gone hungry to feed their children as food prices soar

By Mark Valladares | Wed 24th May 2023 - 7:30 am

Shocking poll finds some parents of young children have stopped buying both fruit and meat over the past year

Parents far more likely than non-parents to have skipped meals and changed spending habits due to high food prices

Ahead of new inflation figures to be released, Liberal Democrat Leader Ed Davey calls for expansion of free school meals and more support for farmers

A new poll commissioned by the Liberal Democrats has revealed parents with children under the age of 18 have been hardest hit by rising food prices.

As a result of high food bills, a staggering one in six (17%) parents …

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Posted in News | Also tagged ed davey | Leave a comment

Unwarranted Conservative complacency at PMQs

By Michael Berwick-Gooding and Katharine Pindar | Fri 28th April 2023 - 12:36 pm

It was astonishing to hear the Prime Minister, Rishi Sunak, announcing with pride during his set-to with Labour Leader Keir Starmer at Wednesday’s Prime Minister Questions that “Two million more people have risen from poverty in the years of the Conservative governments.”

Poverty is normally measured relative to near contemporary median income. This is the most commonly used measure. For example the latest figures are for 2020/21 and 13.4 million are in relative poverty, after housing costs (as reported by the Joseph Rowntree Foundation), where relative poverty is 60% of median income. Rishi Sunak is using absolute low income which is based on 60% of the median income back in 2010/11, uprated by inflation. This is not a good way to measure poverty as the base year seems arbitrary. In 2010/11 there were 13.1 million people living in poverty using both measurements.

There was a decline in the number living in relative poverty in 2020/21 because of Covid. Down from 14.5 million and 22% in 2019/20. This was because median income fell due to the work furlough scheme, where the Government paid 80% of the salary of those on furlough because of Covid, and those on Universal Credit and Working Tax Credit received an extra £20 a week.

Poverty in Britain has in fact remained stubbornly high at around 20% of the population during the past decade. When housing costs are taken into account, the estimated number of people in relatively low income households dropped from 13.5 million (22%) to 13.4 million (20%) between 2009/10 and 2020/21.

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Posted in Op-eds | Also tagged joseph rowntree foundation and rishi sunak | 57 Comments

Poll highlights need for Lib Dems to develop compelling narrative

By Caron Lindsay | Sat 18th February 2023 - 11:23 am

A poll of “blue wall” seats this week should make senior Lib Dems charged with delivering our next election campaign pause for thought.

Field work carried out by Redfield and Wilton Strategies last weekend shows Labour 7 points ahead of the Tories in seats the Conservatives currently hold in the south of England, but the party of Government gaining 2% and us going down 2% since the last poll a couple of weeks before.

Of the 42 seats that Redfield and Wilton count as the Blue Wall, there are not that many that we are seriously targeting so our 17% polling figure should not alarm us too much. However, the Tories are fixing their attention and massive resources on defending those seats and will not miss the opportunity to persuade people that these seats are between them and Labour not them and us. We will obviously be countering that where we are strong with local messaging so that people are in no doubt that it’s a two horse race between us and the Conservatives. We’ve been building very strong foundations in those seats over the past few years. However, we don’t want even a few people in the likes of Winchester and Esher and Walton thinking that they should be voting Labour to get rid of the Tories. If they do, then we’ll have Tory MPs, and surely nobody wants the likes of Dominic Raab in Parliament for another five years.

As Lib Dems we know the importance of targeting our resources very carefully. This, however, shouldn’t come completely at the expense of our national poll rating. The national mood music is very important both in our target seats and beyond. We need to be thinking about the political landscape for the next election and the one after that. Only by getting ourselves into more second places can we hope to properly break through. There is no point in winning a handful of seats in 2024 and ending up with the north face of the electoral Eiger to climb everywhere else.

Our national poll rating remains stubbornly low. We haven’t recovered from our coalition lows, except for that brief period when we were actually saying things that excited people in the early part of 2019. Capturing the imagination with a strong message and giving people a reason to vote for us is a good thing and we shouldn’t shy away from it.

We seem to be so terrified of saying anything that might upset the voters in the blue wall that we end up not saying anything at all. And those progressive minded voters who we need to back us need to hear us talk about the things that matter to them too. And in truth, the things that matter to them matter to us.

I sense a frustration amongst activists in Labour facing areas that the increasingly centralised national Lib Dem campaign machine is not bothered enough with them.

We need to recover our boldness, passion and sense of indignation at what the Tories have done to this country super quick. We need to start using the P word, the S word the B word and the C word to show how the country can be a much better and happier place to live. We need to talk about ending poverty. We need to sympathise with the aims of our public sector workers who are striking for a decent pay rise and less stressful working conditions. We need to be much more robust in talking about the failures of Brexit which are damaging virtually every aspect of our lives. And we need to win the culture wars, not stand cowed as people are marginalised and demonised by the right wing media.

As Liberal Democrats we care deeply and instinctively about inequality and tearing down the barriers that people face that suck opportunity from them. That everyone should have enough food, safe and warm shelter and the resources to participate in life to the full should not be as controversial as the right wing media makes out every day, yet we don’t challenge them enough. We should be riding a coach and horses through the Conservative narrative which sets people against each other. We want people to have a decent share of the pie, not fight each other for an ever decreasing pile of stale crumbs. So we need to start talking about ending poverty and giving people a fair crack of the whip.

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Posted in Op-eds | Also tagged blue wall, brexit, culture wars, featured, party strategy, polling and strikes | 70 Comments

Conference highlights horrific impact of cost of living crisis on women

By Caron Lindsay | Sun 5th February 2023 - 2:00 pm

This week a Conference organised by the Women’s Budgeting Groups in all 4 nations of the UK looked at the specific and disproportionate impact of the cost of living crisis on women.

Women were described as the “shock absorbers of poverty” as evidence showed how they often went without essentials, including food, in order to lessen the impact of soaring prices on their families.

We heard some harrowing accounts of the toll this takes on women’s physical and mental health.

Steffan Evans, from the Bevan Foundation in Wales, described the results of YouGov polling they had commissioned to try to understand the impact. The number of people cutting back on food had gone up from a bad enough 26% in July to 39% in January.

The impact was worse amongst households on benefits, renters, lone parents, households with children and disabled people.

He expressed concern about impact of withdrawal of Government support in April.

He also highlighted the impact on long term health of living with no heating and condensation and mould.

He concluded that we need to fix the system, not ameliorate with short term cash payments

Next up was Dr Laura Robertson, from the Poverty Alliance who talked about the research carried out in Scotland by the Scottish Women’s Budgeting Group.

They interviewed 30 women from a range of backgrounds who were on low income and conducted a diary exercise with 8 women who submitted weekly diaries.

They found deepening experience of destitution and poverty, of people going hungry and cold

Rural households dependent on oil and households on prepayment meters were struggling most with energy costs

Mothers mentioned struggling to provide nappies, formula, clothes and school uniform for their children and said that school holidays were really difficult.

There was a negative impact on physical and mental health, increased isolation as they couldn’t afford leisure activities, guilt, shame and stigma of not being able to afford basics.

Coping strategies shared by women to manage rising costs include extreme cuts to household expenditure – skipping meals, looking for discounted items in supermarkets, cutting back on energy use – including heating and turning off fridge and freezer, stopping social activities.

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Posted in Op-eds | Also tagged cost of living crisis and women | 1 Comment

An Alternative Budget – a budget for the poorest in society

By Michael Berwick-Gooding | Mon 25th October 2021 - 10:20 am

Embed from Getty Images

Rishi Sunak will be presenting his autumn budget on 27^th October. Currently inflation is rising with wages increasing up to 7% in some sectors, quantitative easing is due to end at the end of the year. Rishi Sunak has stated he wants to reduce the deficit.

The economic outlook is not clear, but I think Rishi Sunak should assume that the increase in inflation will only be short-term and the government and the Bank of England will not need to take any action to reduce inflation. The ending of the Covid support schemes will reduce government spending by £100 billion. While household savings have increased, I don’t believe all of these savings will be spent into the economy next year, or will be large enough to make up for the £100 billion being removed from the economy.

Therefore I believe that the Chancellor should not remove all of the £100 billion from the economy but should commit to continue to spend up to £40 billion of it. I suggest he should make the following changes above the normal upgrades and what has already been announced.

Benefits are due to increase in line with the inflation rate of September which was 3.1%. The triple lock on pensions has been suspended for next year, so instead of pensions increasing by 8% (the expected increase in earnings) they will be increased by 3.1%. As the party now supports a UBI we should be moving towards the idea that a couple receives twice the amount as a single person. Therefore I would make an exception for the couple’s Guaranteed Pension and instead of increasing it by 3.1%, increase it by 8% to £291.92 a week. This would move it from being 1.53 times the single rate to 1.6.

Party policy to scrap the ‘bedroom tax’ and the benefit cap should be implemented.

If the Local Housing Allowance rate was restored to the 50^th percentile more than 32,000 households would be lifted out of relative poverty including more than 35,000 children (based on Crisis 2019 figures). Therefore the Local Housing Allowance should be increased to the 40^th percentile from April 2022 and the 50^th from April 2023.

These four measures should remove many pensioners from poverty.

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Posted in Op-eds | Also tagged budget 2021 and rishi sunak | 44 Comments

We need to argue for public investment in neglected UK areas AND a generous international aid budget

By Lord William Wallace | Tue 1st December 2020 - 12:45 pm

It’s not a surprise that a You Gov opinion poll showed 66% of respondents supporting the government’s plans for a ‘temporary’ cut in the foreign aid budget. Spending on foreign aid has been consistently unpopular with the British public for years; when pollsters ask what sector of public spending should be reduced, foreign aid outstrips all others.

Liberal Democrats hold to the argument that supporting overseas development is both a moral obligation and a foreign policy priority. But when we face so strong a negative response, we need to think carefully about how we make the case for development spending. And we need also to understand the bitterness of the ‘left behind’ in the former industrial towns of the Midlands and the North, as public spending has been cut and their local authorities have had to close more and more facilities.

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Posted in Op-eds | Also tagged international aid | 30 Comments

Our party can seize on the spirit of the times

By Katharine Pindar | Fri 13th November 2020 - 9:59 am

Embed from Getty Images

Liberalism’s answer to populism, I believe, is to give people what they really want, not what the forked tongues of populism tell them they want. Hopefully in the USA a majority has now chosen a President to give them what they really want.

But here in Britain we still have a populist Prime Minister with his inadequate government. There is still Lockdown, winter weather and seasonal colds and ‘flu yet to come – and the looming problems of Brexit, with or without a last-minute trade deal, before most of us can expect to share in a new vaccine.

There is some comfort in the government’s U-turn on providing vouchers for free school meals in each holiday, and in the continuation of the furlough scheme till March. We have been surprised at seeing a Tory government abandon their previous obsession with running down the Deficit, instead increasing it vastly, to save jobs and livelihoods and retain some spending power in the economy.

Yet this coming winter is likely to be a hard one, with many working-age people poorer if they have been on furlough, and especially if they have been made unemployed and are struggling to find a new job or restart their self-employment business. What will the government do then?

We know the Tory instinct will be to put up taxes – not to affect the wealthiest much, naturally, but to ask most people to contribute more. And among them, the millions of people now on welfare benefits will be expected to tighten their belts and ask no more than they can get now, inadequate as that is to prevent people falling into poverty.

However, the tide is turning. The British Social Attitudes Survey new annual report shows that the hardening of views on social security of the last few years has started to go into reverse. Their survey reveals attitudes have changed and this year more members of the public agree with the statement, ‘benefits are too low and cause hardship’ than last year. And fewer believe that ‘benefits are too high and discourage work’. This survey was conducted between July and October last year, so its findings are likely to be even more affirmed this year, when since March the number of people receiving Universal Credit has doubled to six million.

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Posted in Op-eds | Also tagged welfare benefits | 61 Comments

We need to campaign against poverty

By Michael Berwick-Gooding and Katharine Pindar | Wed 28th October 2020 - 9:15 am

The preamble to our constitution, to quote Adrian Sanders in Liberator 400 (April 2020), “starts with the eradication of poverty as the first action point”. Though both leadership candidates stated they wanted to achieve this, our party is not campaigning on it.

It’s not just that children from families receiving benefits need free school meals in the holidays. It is that 100,000 more children were living in poverty in this country in 2018-19 than in the previous year (DWP figures) and that an estimated 4.3 million children are living in poverty today (Social Metrics Commission).

Former homelessness adviser to the government, Dame Louise Casey, in a BBC interview (https://www.bbc.co.uk/news/uk-politics-54545158) warned that the UK faces ‘a period of destitution’ in which families ‘can’t put shoes on’ their children. That’s happening now. A single-parent family living on Universal Credit will find it difficult to find the money to cover the cost of new trainers for two children who have grown out of their old ones, as children do.

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Posted in Op-eds | 93 Comments

Education prospects worsen for UK children in poverty

By Katharine Pindar | Wed 2nd September 2020 - 5:05 pm

As most children go back to school this week, fears that disadvantaged children will have fallen behind in their schoolwork in the months of COVID lockdown seem confirmed by interviews conducted with more than 3000 teachers and heads at about 2000 schools in England and Wales by the National Foundation for Educational Research. Their study, reported yesterday, found that, while the average learning lost was reckoned to be about three months for all pupils, teachers expect that more than half of pupils in schools in the most deprived areas have lost four months or more.

But the educational outlook was sadly worsening anyway for around four million children who now, according to the Joseph Rowntree Foundation are living in poverty in the UK (jrf.org.uk/report/uk-poverty-2019-20). A new report has found worsening educational inequality already, stating that “there is disturbing new evidence that the attainment gap between disadvantaged pupils and their peers has stopped closing for the first time in five years.” This report, from the Education Policy Institute (epi.org.uk/publications-and-research/education-in-england-annual-report-2020), finds that disadvantaged pupils in England are 18.1 months of learning in English and Maths behind their peers by the time they finish their GCSEs. This is the same gap as five years ago, and the gap at primary school increased for the first time since 2007.

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Posted in Op-eds | Also tagged child poverty and education | 50 Comments

Tax carbon and reduce poverty

By Julian Hawkins | Wed 5th August 2020 - 11:45 am

The 2019 Autumn Conference approved a generally good Policy Motion F29 Tackling the Climate Emergency, listing actions which reduce UK emissions to net zero within a few decades. It included point 2d – “Greening the taxation system to make the polluters pay and to reward progress towards net zero.”

This appears to be a statement of intent rather than a genuine action point. I believe that we should go further, committing to a carbon tax designed to:

reduce carbon emissions – globally
fight poverty
protect the UK economy against unfair competition from overseas polluters

This might sound a classic trilemma (three mutually incompatible goals), but one policy can deliver all three. Here’s how.

We currently have a mishmash of carbon pricing measures (Climate Change Levy, Fuel Duty, etc.) which affect specific sectors.

These only exert downward pressure on fossil fuel consumption in some sectors, and prices are generally too low to drive rapid reductions.
They are potentially regressive, impacting the poor more than the rich.
They risk carbon leakage – when emission reduction policies in one country lead to increases elsewhere.

The solution is a carbon tax, dividend and border adjustment.

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Posted in Op-eds | Also tagged Carbon Tax and climate change | 8 Comments

Budget Response: The most vulnerable are being left out in the cold

By Layla Moran MP | Thu 9th July 2020 - 11:00 am

Back in March, at the very outset of the crisis, the chancellor Rishi Sunak said that: “Now more than at any time in our history, we will be judged by our capacity for compassion.” That was true then and it is true now. Yet the mini-budget announced yesterday regrettably showed that the government has failed that test. At a time when millions of people across the country are facing the threat of poverty and unemployment, this plan fell far short.

There were some important and welcome measures, in particular, the £1,000 incentive to persuade employers to keep on furloughed staff. But the decision to reduce stamp duty for landlords and second homeowners, for instance, the wrong priority at a time when so many are struggling to get by.

The total projected cost of cutting stamp duty is £3.8 billion. That is money that could have been spent on helping the hundreds of thousands of families being pushed into poverty by this crisis. This measure will disproportionately benefit the wealthiest, while poorer households that rent have been left out in the cold.

While a landlord buying an additional home costing £500,000 or more will now pay £15,000 less in stamp duty, a family of for relying on universal credit will struggle to get by on little more £280 a week. A discounted meal at a restaurant will be little comfort to those struggling to pay their rent each month.

Figures I uncovered yesterday, reported in the Mirror, show the number of families struggling to pay bills has more than doubled since the coronavirus outbreak, rising to almost one in nine. The Government needs to step up and provide extra support to these hard-pressed families, including by scrapping the heartless two-child cap on benefits which is projected to push one million children even deeper into poverty by 2023-24.

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Posted in Op-eds | Also tagged budget | 6 Comments

15 June 2020 – the overnight press releases

By Mark Valladares | Mon 15th June 2020 - 8:15 am

Govt must not use new commission to avoid tackling racism straight away
Govt must support struggling families

Govt must not use new commission to avoid tackling racism straight away

Responding to the Government’s announcement of a cross-governmental commission to address the inequalities that BAME communities face, Liberal Democrat Equalities Spokesperson Christine Jardine said:

Too many people’s lives are blighted by discrimination, inequality and injustice. The Government must move further and faster to redress institutional racism in the criminal justice system and many other parts of our society.

The Liberal Democrats have joined with BAME communities in calling for a government-wide race equality strategy, so this

…

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Posted in News and Press releases | Also tagged christine jardine, coronavirus, ed davey and racism | 1 Comment

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