Inflation

Baroness Kramer Excerpts

Monday 23rd May 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, I absolutely agree with the noble Lord on supporting investment and putting our efforts towards growing the economy. He will know that we have cut business rates by 50% for eligible retail, hospitality and leisure businesses this year. We have increased the employment allowance from £4,000 to £5,000, cutting the cost of employment for 495,000 small businesses, and we have increased the annual investment allowance to £1 million. I know that there is more to do, but I agree with the sentiment in terms of increasing investment in our economy.

[Baroness Kramer (LD)]

Do the Government recognise that those on low incomes are experiencing inflation much closer to 13% rather than CPI? Will they step away from the practice of masking the true damage by constantly using the CPI number and therefore recognise the urgency, for example, of increasing universal credit by at least £25, as has been recommended by civil society groups?

[Baroness Penn (Con)]

My Lords, the Government recognise that inflation can have a differential impact. The ONS suspended its publication of inflation by income level during the pandemic due to trouble accessing the data. That has now been reinstated. The Government also recognise that differential impact in the support they provide to people; for example, extending the warm homes discount, increasing the work allowance on universal credit, and, as I said before, having the household support fund in place.