Inflation

Lord Howarth of Newport Excerpts

Monday 23rd May 2022 Lords Chamber

Asked by

[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.