Economy Update

Lord Liddle Excerpts

Thursday 26th May 2022 Lords Chamber

[Baroness Penn (Con)]

I do not think that is necessarily the case because in the specific circumstances that we are talking about, energy companies have benefited not from greater efficiency in their operations or profitability due to their own efforts, but due to global circumstances. I think that my noble friend and I disagree on green levies and net zero. Actually, our investment in renewable energy has reduced the impact of the current crisis on people’s bills.

[Lord Liddle (Lab)]

I welcome this package, although it is belated, and I welcome its focus on lower-income people, with this exception that it is a universal payment to pensioners, including pensioners who pay 40%— and more—rates of tax, as I am sure is the case with many Members of this House, including me. Do the Government think they are doing enough for poor, working families with children? To give an example, I heard on the radio last week about the impact of inflation on the school meals budget, and how schools are having to reduce the content of food because of the squeeze of inflation on those budgets. Is that not something that the Government should have addressed as a priority, to make sure that children from poor families get at least one decent meal a day?

[Baroness Penn (Con)]

In ensuring that children get decent meals, we have extended free school meals, and we have the holiday support programme that ensures that this is not just during term-time. On the noble Lord’s question about support to pensioners versus families with children, there is a greater deal of support going to those on low incomes, and we have made this a target. There is also a universal payment and a payment for pensioners who are less able to meet rising energy costs. Pension credit take-up in not where I think anyone in this House would want it to be, and simply targeting pension support through pension credit is not necessarily going to reach everyone we need to. We have to have a balance between universal support that ensures that no one slips through the net, and better targeted support that ensures that those who need it most, get the most support. I think we have done that quite carefully in this package and got it right this time.