Cost of Living: Support for Young People Debate

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Department: HM Treasury

Cost of Living: Support for Young People

Amy Callaghan Excerpts
Tuesday 18th October 2022

(2 years, 1 month ago)

Westminster Hall
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Amy Callaghan Portrait Amy Callaghan (East Dunbartonshire) (SNP)
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The cost of living crisis is hitting all our constituents hard, but today we are focusing on children and young people, the support available and what is still needed. The bottom line is that, despite ongoing interventions from the Scottish Government, too many children are still living in poverty as a result of decisions made in this place. According to the Joseph Rowntree Foundation, one in five people in the UK live in poverty. That is 4.3 million children.

I praise the incredible work of East Dunbartonshire’s food bank and all its volunteers for the support they provide, but they should not have to do so. Welfare provided by the UK Government should be uprated in line with inflation. Not to do so is a disgrace, but the Government have made their stance on support for students and workers crystal clear.

Angela Crawley Portrait Angela Crawley (Lanark and Hamilton East) (SNP)
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Are young people not being consistently left behind—whether by the benefits system, the fact that they are not paid equal wages, or the fact that the living wage is not a real wage? It is fair to say that not every young person has the support of mum and dad and can live at home, so should we not ensure that universal credit is equalised? The price of a pint of milk is the same, whether someone is over 25 or under 25.

Amy Callaghan Portrait Amy Callaghan
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I welcome that intervention from my very good friend; it is correct that students and young people should be paid the same amount, because goods cost the same regardless of age.

The UK Government’s disastrous mini-budget has caused economic uncertainty and market upheaval, meaning that working families with children to support are now terrified of losing their homes. With one hand tied behind their back, the Scottish Government are doing all they can to help Scotland’s children and young people—through free university tuition, free bus travel for under 22s, free school meals for children in primary 1 to 5, free prescriptions, the young patients family fund, the young carer grant and the rent freeze. With the powers that they have, the Scottish Government are building a wealthier, happier, fairer Scotland. Successive Tory Governments in this place are getting in the way, and that is why Scotland needs independence.

--- Later in debate ---
Richard Fuller Portrait Richard Fuller
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Yes of course, but the hon. Lady did not answer her question. The question is, how do we tap that potential? It is important to design policies that tap that potential. I was struck by a point made by the hon. Member for Glasgow Central about migrant families coming to this country and how they start their life. It is a fact around the world that first-generation migrant families, more often than not, contribute a greater proportion to the growth of the country that they go to than the population that they join. That seems to be a fact. I have not forgotten previous discussions with her before I took this role. The hon. Member for Bath said that we have to focus on people’s potential, but we have to find that strategy to achieve growth.

I remind hon. Members that while tackling these economic challenges, the fundamentals of the UK economy remain resilient. Unemployment is at its lowest in nearly 50 years. Our growth rate since 2010 has been higher than that of Germany, France, Italy and Japan, and it is forecast to be higher than that of any G7 country this year. The Labour spokesperson, the hon. Member for Ealing North, is shaking his hands, but these are the facts.

Our need for competence and stability is not at odds with the help that we are providing to those struggling with the cost of living. That is why the Government are focused first and foremost on helping everyone with the cost of living, most notably the cost of energy. The energy price guarantee and the energy bill relief scheme are supporting millions of households and businesses with rising energy costs. The Chancellor has already made clear that they will continue to do so—

Amy Callaghan Portrait Amy Callaghan
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rose

Richard Fuller Portrait Richard Fuller
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I must finish up, if I may. They will continue to do so from now until April next year. The Government have also announced £37 billion of targeted support for the cost of living this financial year.

Many young people will have benefited as their wages got a boost from the national minimum wage increase. As a result of our changes to the national minimum wage, from April 2022 people aged 21 or 22 saw a 9.8% uplift, to £9.18 an hour, while 18 to 20 year-olds received a 4.1% rise, to £6.83 an hour, and 16 to 17 year-olds had an equivalent 4.1% increase, to £4.81 an hour.