Poverty (Hansard, 25 October 1984)

§ Q3. Mr. Andrew F. Bennett
asked the Prime Minister what new steps the Government are taking to reduce poverty in the United Kingdom.

§ The Prime Minister
A better standard of living depends upon our success in creating more wealth in the country as a whole. This year's gross domestic product is now at its highest ever level, and income is higher than at any time under the last Labour Government. Resources have also been provided for a real increase in social security benefit rates of £2.75 billion since 1979. The retirement pension is at its highest ever level; so is the child benefit; so is spending on benefits for the sick and disabled; so are heating allowances. The Government intend to continue with the policies which have achieved these results.

§ Mr. Bennett
Does the right hon. Lady realise that that answer will be of little comfort to the poor in Britain? Is it not true that under her Government the number of people living in poverty has increased and that the length of time that they have to live in poverty has also steadily increased? Will she consult her handbag to find out whether she has any unpaid bills for major items such as clothing, and reflect on the fact that for a large number of people living in poverty the unpaid bill is a nightmare and that many of them have less to spend in their annual budget for clothing than people in this House spend on one such item?

§ The Prime Minister
There are certainly more people on supplementary benefits than there were. There is an increase in the number of pensioners, but the main increase has been in the number of unemployed who have resort to supplementary benefits. The benefits which those on supplementary benefit receive are, in real terms, greater than they ever were under the previous Government.

§ Mr. Douglas Hogg
Does my right hon. Friend agree that because there is such a close and obvious connection between poverty and unemployment, the most useful thing that the trade unions could do would be to abate their wage demands?

§ The Prime Minister
My hon. Friend is correct in making the connection between wage demands and unemployment. Those countries with the lowest unemployment rate are those with the lowest unit wage costs. The essential thing is to have a connection between wage demands and increased output. If we are to get unemployment down, it is also essential not to have the number of strikes that we now have.