The petition of residents of the constituency of Cynon Valley,
Declares that the economic hardship created by the cost-of-living crisis is incredibly concerning.
The petitioners therefore request that the House of Commons urge the Government to hold consultations, ahead of the autumn budget, on fairer funding for Wales, inflation-proofed increases in pay, pensions and social security, controls on prices in essential household goods, increased taxation of wealth, increased emergency payments to households funded by a windfall tax, and a programme of mass home insulation.
And the petitioners remain, etc.—[Presented by Beth Winter, Official Report, 12 October 2022; Vol. 720, c. 222 .]
[P002773]
Observations from The Chief Secretary to the Treasury (John Glenn):
The Government thanks the hon. Member for Cynon Valley, Beth Winter MP, for submitting the petition alongside the corresponding online petition.
The Government understand that people are worried about the cost of living challenges ahead. That is why decisive action has been taken to support households across the UK through cost of living challenges ahead, whilst remaining fiscally responsible. On the 17 November, the Government announced further support for next year designed to target the most vulnerable households. This cost of living support is worth £26 billion in 2023-24, in addition to benefits uprating, which is worth £11 billion to working age households and people with disabilities.
Her constituents have called for inflation-proofed increases in pay, pensions and social security.
In the autumn statement the Government committed to protecting the most vulnerable in society, many of whom face the biggest challenge making their incomes stretch, by increasing benefits in line with inflation. This means that they will rise by September consumer prices index (CPI) inflation, 10.1%. More than 10 million working age families will see their benefit payments rise from April 2023. From April 2023, the Government will also increase the benefit cap levels in line with inflation.
As announced in the autumn statement nearly 12 million pensioners in Great Britain will benefit from a 10.1% increase to their state pension in April 2023, in line with the triple lock. The Government will also protect 1.4 million of the poorest pensioner households from inflation by increasing pension credit by 10.1%, rather than in line with average earnings growth.
The Government remain committed to ending low pay. From 1 April 2023, the national living wage (NLW) will increase by 9.7% to £10.42 an hour for workers aged 23 and over, the largest ever cash increase for the NLW. This represents an increase of over £1,600 to the annual earnings of a full-time worker on the NLW and is expected to benefit 110,000 workers in Wales. This is in addition to the previously announced reversal of the Health and Social Care Levy which will have saved the average worker £310 in 2023-24.
Young people and apprentices on the national minimum wage (NMW) rates will also see a boost to their wages. Rates will be increased for people aged 21-22 by 10.9% to £10.18 an hour, for those aged 18-20 by 9.7% to £7.49 an hour, for 16-17 year olds by 9.7% to £5.28 an hour, and for apprentices by 9.7% to £5.28 an hour.
Her constituents have called for increased emergency payments to households funded by a windfall tax. The actions taken by the Government in the autumn statement mean that over 8 million of the most vulnerable households across the UK will continue to be supported through next winter via additional cost of living payments. The Government will provide households on means-tested benefits with an additional cost of living payment of £900 in 2023-24. In the same year, pensioner households will receive an additional £300 cost of living payment, and individuals on disability benefits will receive an additional £150 disability cost of living payment. And the Government are continuing to provide support to all households through the energy price guarantee, which will save the average UK household £500 in 2023-24.
This support for 2023-24 is in addition to the generous support already in place to support households this winter. In addition to the energy price guarantee, the Government have announced £37 billion of support for the cost of living in 2022-23. As part of this financial year's cost of living support millions of the most vulnerable households will receive £1200 of support this year through the £400 EBSS, and one-off £650 cost of living payment for those on means-tested benefits, with additional support for pensioners and those claiming disability benefits.
At autumn statement, the Chancellor confirmed that, from 1 January 2023, the rate of the energy profits levy (EPL) will increase by 10 percentage points to 35%, and confirmed it will remain in place until the end of March 2028. With these changes, the EPL is expected to raise over £7 billion in 2022-23. These changes have been made to ensure oil and gas companies benefitting from sharp increases in prices continue to provide the nation with a fair return in exchange for use of our vital natural resources, while enabling the government to balance the books.
Her constituents have called for fairer funding for Wales as part of the autumn statement. As a result of UK Government tax and spending decisions confirmed at the autumn statement, devolved Administration funding is increasing by around £3.4 billion over 2023-24 and 24-25. This includes around £1.2 billion for the Welsh Government.
Her constituents have called for controls on prices in essential household goods. CPI inflation in October reached 11.1%, increasing from September's rate of 10.1%, the highest rate since 1981. The energy price guarantee (EPG) directly reduces CPI inflation. The ONS estimate that October inflation would have been 13.8% without the EPG. Similarly, the OBR in their November economic and fiscal outlook estimate that inflation would have been around 2ppts higher without the EPG.
Her constituents have called for increased taxation of wealth. The UK system is designed to ensure among other things that the richest in our society pay their fair share on their wealth and assets, with the tax system taxing wealth across many different economic activities, including acquisition, holding, transfer and disposal of assets and income derived from assets. These tax levers generate substantial revenue, including inheritance tax revenues of £6.7 billion, capital gains tax revenues of £15.9 billion and property transaction taxes of £17.1 billion (OBR's November economic and fiscal outlook).
The 2020 Wealth Tax Commission's (WTC) report, an independent report published by a non-governmental organisation, found that, if considering inheritance tax, capital gains tax, stamp duty and stamp duty land tax, the UK is among the top of the G7 countries for wealth taxes as a percentage of total wealth.
Her constituents have called for a programme of mass home insulation. At the growth plan, we announced the expansion of the energy company obligation by £1 billion over the next three years from April 2023. From then, all households in council tax bands A-E in Wales in poorly insulated homes will be eligible for Government funded energy efficiency measures by contacting energy suppliers. Households which receive this support will save an average of £320.
On top of this, at the autumn statement 2022, the Chancellor announced a new long-term ambition to reduce the UK's final energy consumption from buildings and industry by 15% by 2030 against 2021 levels.
To lead this national effort, a new energy efficiency taskforce will be established. £6 billion of new Government funding will be made available from 2025 to 2028, in addition to £6.6 billion allocated this Parliament. This provides long-term funding certainty, supporting the growth of the supply chain and ensuring we can scale up our delivery over time.
Thank you for taking the trouble to make us aware of these concerns.