Working from Home
Debate between Baroness Penn and Lord Howarth of Newport
Lord Howarth of Newport
To ask Her Majesty’s Government what assessment they have made of the impact on (1) the economy, and (2) society, of increasing numbers of people working from home.
Baroness Penn (Con)
The pandemic resulted in an unprecedented increase in the proportion of people working from home—from 19% pre-pandemic to a peak of roughly 50% in June 2020. It has since fallen back to 38%. It remains unclear whether this will persist, and the long-term impact of greater remote working is highly uncertain. The Government are monitoring this closely.
Lord Howarth of Newport (Lab) [V]
As someone whom your Lordships have kindly permitted to work from home—I wish it was not necessary in my case—I ask the Minister whether the Government accept that the advantages of hybrid working include improved work/life balance, well-being and the ability to care for family and home; enhanced productivity; the retention of more people in the labour market; opportunities for high-quality employment across the regions; a better balanced housing market; revived high streets and stronger communities; and reduced emissions from commuting. Will the Government therefore embrace home and remote working in the Civil Service and the public sector, in the tax and social security systems, and in their levelling-up, digital and net-zero strategies?
Baroness Penn (Con)
My Lords, the Government will accept some of those benefits set out by the noble Lord. However, we also need to think about some of the other effects—for example, evidence also indicates lowered innovation and knowledge-sharing in the workplace due to remote working. So the Government support the ability to work flexibly and support businesses in finding the right approach for them. I think there are many benefits to home or remote working, but those need to be balanced against some of the negatives we can also see.
Inflation
Debate between Baroness Penn and Lord Howarth of Newport
Lord Howarth of Newport
To ask Her Majesty’s Government when and at what level they expect inflation, as measured by the consumer price index, to peak in the United Kingdom.
Baroness Penn (Con)
The independent Office for Budget Responsibility set out the official inflation forecast in its March economic and fiscal outlook. It expected CPI inflation to peak at 8.7% in the fourth quarter of this year, before falling back towards the 2% target. We understand how rising costs are impacting the costs of living. The Government are providing support worth over £22 billion this year to help families with these pressures.
Lord Howarth of Newport (Lab) [V]
My Lords, we know that there is worse to come, but do we not need decision and action now? The cost of living crisis is with us now, hitting the poorest the hardest, with one in five households already in fuel poverty and 2 million adults who cannot afford to eat every day. Does the noble Baroness understand that bromides do not warm or feed anyone? Procrastination is inexcusable and it is insufferable that action is delayed because of bickering between No. 10 and No. 11. Will the Government immediately increase benefits in line with actual inflation?
Baroness Penn (Con)
The Government are putting in place support now. It is worth remembering that the household support fund is open, it is ready, it is there for people to access. It is also worth remembering that national insurance thresholds will increase in July, putting more money back into the pockets of the lowest-income households. It is also worth remembering that the rebate on people’s energy bills, worth £200, is yet to come—it will come in October. We are keeping the situation under review, we are standing ready to do more, but more action is already committed to by the Government that will flow through to people’s pockets over the coming weeks and months.