Cost of Living

Baroness Smith of Basildon Excerpts

Tuesday 12th October 2021 Lords Chamber

Asked by

[Baroness Smith of Basildon]

To ask Her Majesty’s Government, following the end of the Universal Credit uplift, increasing energy prices and rising inflation, what steps are they taking to avoid a cost-of-living crisis for households.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

My Lords, we recognise that there are transitory global pressures on costs, including energy. We are maintaining the energy price cap and helping low-income households with fuel bills, and our new £500 million household support fund provides vulnerable households in England with additional help to cover essential costs this winter.

[Baroness Smith of Basildon (Lab)]

My Lords, is that it? I was expecting a bit more from the noble Baroness. Every home in the country is facing sharply rising costs, with hikes not just in energy bills but in food and fuel prices. A lack of HGV drivers has led to empty supermarket shelves, and there are queues outside petrol stations. Ministers are reported to fear that their Government’s inaction could lead to the country facing “a nightmare Christmas”. Families and businesses are struggling. I know that the Minister is not unsympathetic, but she knows that for some this winter it will be a choice between heating and eating, and for some families it will be a choice between the parents eating and the children eating.

I have two questions for the Minister. First—I heard the Answer she gave but it did not fully answer my Question—what will the Government do to protect, for example, the family of four hit by inflation to the tune of £1,800 by the end of the year, or pensioners having to find an extra £1,000? In addition, given this unfolding cost-of-living crisis, how can she, as a DWP Minister, think that this was an appropriate time to cut universal credit?

[Baroness Stedman-Scott (Con)]

We are quite aware of the difficulties that inflation and rising food and energy costs present. We have introduced this household support fund—I am not being difficult—which is worth £500 million and which covers up to the end of March, which is six months, and, as ever, the Government will continue to assess the situation. That is the best that I can give the noble Baroness right now. On the universal credit uplift, I and others are absolutely aware of the angst and frustration about this decision. I have to repeat myself: it was temporary and it has come to an end. For people who are not able to work, there is one job to do. However, for people who can work, the labour market has never been so optimistic and we must work with them through that.