Cost of Living Debate

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Cost of Living

Andrew Gwynne Excerpts
Tuesday 14th May 2013

(11 years, 7 months ago)

Commons Chamber
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Caroline Flint Portrait Caroline Flint
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The Prime Minister promised change, but things have got worse, not better. He inherited an economy in which growth had returned, inflation was low, unemployment was falling and borrowing was lower than forecast. Today the economy is still flatlining, with more people out of work than when he became Prime Minister, the slowest economic recovery for more than 100 years, prices rising faster than earnings and real wages down £1,700 since 2010, while energy bills, train fares and the cost of a weekly shop have spiralled out of control.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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My right hon. Friend is right to mention train fares. The Government talk a lot about reducing the cap to 1%, but is not the truth that they have removed the ban on so-called flexibility, meaning that train companies can now increase their ticket prices by as much as 5% above the retail prices index, which was something the Labour Government removed?

Caroline Flint Portrait Caroline Flint
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My hon. Friend is absolutely right, which is why our amendment puts forward an alternative to the Government’s proposal that would help commuters.

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Huw Irranca-Davies Portrait Huw Irranca-Davies
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Nothing but, and never anything else!

I should have liked to see, in the rather light luggage that we are carrying, a consumers Bill to tackle rising energy costs, train fares and so forth. I should have liked to see a housing Bill that would take action against the real scandal in housing: rogue landlords and extortionate fees and charges in the private rented sector. At present, when people come to my constituency office and complain about that, I have to say that we can do little about it.

The Bill that I should really have liked to see, however, is a jobs Bill that would have given the long-term unemployed a duty to go to work, but would also have guaranteed that jobs would be there for them. That would have been a good way to tackle an unemployment rate of 2.56 million—or whatever the figure is now—and the massive youth unemployment that we see in my local communities.

Let me make a point that I suspect Nye Bevan would have made if he were here today. Let me give the House a reality check. For many people in my constituency—not all of them, because some are weathering the storm very well—the main problem is under-employment. They cannot secure the hours of work that they want so that they can put food on the table. Wage reductions are forced on them, or they have to accept them because of the economic climate.

I had thought that the scandal of zero-hour contracts had disappeared a decade ago, but they are back. People are being told “We will pay you when you are on the till; but then you must go home and sit in a corner, and we will pay you when a customer comes through the door again.” It is an utter scandal. We did not crack down sufficiently on the abuse of the national minimum wage ourselves when we were in government, but my goodness, we need to crack down on it now. Yes, we are seeing jobs being created, but my goodness, we are seeing jobs being lost.

A Government Member of the House of Lords, who claims that he was misreported, recently said, in effect—in the context of that long litany of problems, such as the driving down of pay and conditions—that this was a good time for someone to take the opportunity presented by those problems and set up a business, because it could now be done on the cheap. Let me say this to Government Members as well as those on the Opposition Benches: yes, let us encourage start-up enterprises—we rely on small and medium-sized enterprises in this country—but let us not do it on the backs of others. Let us ensure that people are properly rewarded. Let us consider those who, if they had the right jobs and the right pay in their hands, would be spending money like there was no tomorrow, because they would actually have to.

Andrew Gwynne Portrait Andrew Gwynne
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Is it not an absolute scandal that since the Work programme was introduced long-term youth unemployment in this country has risen by 355%? That is disgraceful, is it not?

Huw Irranca-Davies Portrait Huw Irranca-Davies
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It is an absolute scandal, and if we had a Labour Government now, that would be on the front page of the papers every single day—and it should be, because that is the real scandal. We all want to see people in jobs, so let us get them those jobs and put them into those jobs. We can attach conditionality to welfare to ensure that they take those jobs if they have been unemployed, but give them the jobs, for goodness’ sake.

A Welsh Government study published in February estimates that the benefits changes—and two thirds of the people affected are in work—will suck nearly £600 million out of the Welsh economy in 2014-15. The impact will be felt not only on wages and standards of living, but on public health, on levels of debt—thousands of people must now be flooding through MPs’ constituency offices every week—and on overcrowding and housing; there will also be an increased demand for emergency bail-outs and emergency services. It really is a tragedy.

Although we were not on track—we were slightly slipping—Labour in government lifted 1 million children out of poverty. Unsurprisingly, the Child Poverty Action Group has already forecast that 1 million children will be put back into poverty because of the benefits changes. Not only are Labour Members giving this message, but the Institute for Fiscal Studies, the Rowntree Trust and others are repeating it. Everyone is saying that we are going backwards at a rate of knots.

In debates in this Chamber, Members of Parliament have a duty to stand up not only for people in their constituencies who are managing, but for those who are suffering. I will finish with a quote, because what we should be doing today is discussing the cost of living and what is missing from this very light Queen’s Speech; Nye Bevan said:

“This is my truth, tell me yours.”

This is my truth, and it is the truth for my constituents. In all of this debate, all the good things being applauded by the Government Members are not being seen by my constituents, who are struggling. They are struggling in food banks and struggling to pay the bills—it is not everyone, but it is a large and growing proportion. Can we not work together to deal with that, as well as with all the good things that the Government Members have been applauding?