Living Standards

Debate between Rachel Reeves and Helen Goodman

Monday 5th March 2012 Commons Chamber

[Rachel Reeves]

My right hon. Friend is entirely right. This country will be one of the few that does not support families with children across the income distribution. Having children is expensive, and it is right that when people bring up a family, and when they retire, the state is there to provide that bit of extra support when they need it. The Government’s changes go entirely in the wrong direction.

That is a shocking illustration of the Government’s failure to come to grips with the crisis that our country faces—the crisis that is putting families under strain is the crisis in jobs, incomes and living standards. The cost-of-living crisis does not hit the headlines like a banking crisis or a currency crisis perhaps because it is a crisis from which those with the loudest voices can too easily insulate themselves. For the vast majority of people, however, trying to keep going and keep their heads above water is one of the toughest challenges that they have ever faced. Every day is a battle in a long war of attrition.

[Helen Goodman (Bishop Auckland) (Lab)]

Does my hon. Friend agree that those at the top of the income scale do not mention the crisis because they are not facing a crisis? The RBS bonus pool was £785 million.

[Rachel Reeves]

My hon. Friend is right to say that those on the lowest incomes and modest and middle incomes are being hardest hit by the changes to taxes and benefits that the Government have instituted.