Cost of Living: Public Well-being

Baroness Merron Excerpts

Thursday 20th October 2022 Lords Chamber

[Baroness Merron (Lab)]

My Lords, as the cost of living continues to spiral, I congratulate my noble friend Lady Drake on securing this timely debate focusing on the most pertinent issues of the day and speaking up for the many people whose health and well-being are deeply affected by a crisis that can only be said to have been made in Downing Street. I thank my noble friend for the incisive, informed and comprehensive way she set out the situation.

Over the course of the debate, I have been very struck by the way that noble Lords have so powerfully highlighted the inextricable link between the cost of living and our well-being. I have also been struck that throughout the debate I have kept coming back to just one question: how did the Government consider this link, if at all? Perhaps the Minister can offer some reflection on this point.

With inflation hitting over 10%, food inflation running at over 14% and millions worrying about their household finances, there is no sense that the Government have done anything other than make decisions that have sent costs through the proverbial roof. As my noble friend Lady Drake said, by choice the Government have made everything worse. The Prime Minister may have resigned, but the Government remain in office. As my noble friend Lady Smith said in the Chamber earlier today, this Government now have no mandate. As a number of noble Lords have said, it is time for the people of this country to have their voices heard and their votes counted.

We know that good nutrition, shelter and the ability to lead a dignified life are essential foundations of good health. If unaddressed, rising living costs will leave people in health-harming—even life-threatening—situations in the short term, while embedding a public health time bomb for the future. It is not now just economists but public health leaders who are sounding the alarm about the health consequences of failing to protect communities and individuals from the cost of living crisis engulfing our nation. So I ask the Minister: what assessment have the Government made of the short-, medium- and long-term effects of the cost of living crisis? I am also interested to hear his response to the proposal from my noble friend Lord Sikka for an inquiry, especially given the anticipated extent of further cuts to public services in particular.

We know that the impact of the cost of living crisis is not felt equally or fairly: quite simply, those who have less suffer more. This have been borne out by the Office for National Statistics, which reminds us that the extent to which the rising cost of living has a financial impact on different households is very much based on

“factors including their expenditure patterns and their ability to absorb increased outgoings.”

This was referred to by my noble friend Lady Drake, who also emphasised the impact of the lack of financial resilience of lower-income households.

Analysis from the Institute for Fiscal Studies shows that the least well off are experiencing higher rates of inflation, while the New Economics Foundation confirms that the costs of the poorest are nine times higher than those of the richest 5% of society. Of course, key to addressing much of this will be the health disparities White Paper. The Minister will remember that last week I asked whether reports were true that this White Paper was not going to be published. Perhaps he might be good enough to provide a response today. If the reports are not true, when can we expect it to be published?

As my noble friends Lady Sherlock and Lord Monks and other noble Lords outlined, for those relying on welfare benefits, whether they are in work or not, inflation is not their friend. The Joseph Rowntree Foundation tells us that, if the Government uprate benefits by earnings rather than inflation, they will push a further 450,000 people into poverty. This will also increase poverty among working families by 350,000 more people, and families with a disabled person by a further 250,000, of whom a quarter are children. Could the Minister tell your Lordships’ House what discussions there have been with the Department for Work and Pensions about the health impact of failing to uprate benefits to reflect the reality of the cost of living? Following on from the comments of my noble friends Lord Hendy and Lord Pendry, where is the workforce plan to address low pay and record vacancy rates in the NHS and social care workforce—something that has been raised repeatedly in your Lordships’ House?

Many health conditions are caused or exacerbated by cold homes, and the cost of living deeply affects how people use their heating at home. Often, homes are heated less frequently and to a lower temperature to try to save money, and this can be a particularly acute problem for those who are older and disabled. Children and young people living in cold homes are more likely to suffer from respiratory and mental health problems. Cold homes can also have an adverse effect on the educational attainment of young people and increase the risk of social isolation.

Overall, cold housing costs the NHS in England an estimated £1.36 billion per annum and contributes to the excess winter deaths which take place every year in the UK. Can the Minister tell the House how he will deal with this rise in unheated homes? Can he share any analysis that the Government have completed regarding the consequences of fuel poverty for public health and death rates this winter and beyond?

When prices rise across the board, it is eminently understandable that households may choose the cheapest, and often the unhealthiest, food and drink, something that the noble Baroness, Lady Gohir, spoke of. The Food Foundation has found that 50% of people are buying fewer fresh vegetables and less fresh fruit. We know that people are paying £571 more on average for their groceries this year than last year and, as my noble friend Lord Howarth referred to, the latest data from the Food Foundation shows that nearly one in five households experienced food insecurity last month, which manifested in eating less or going a day without eating.

We know that food poverty is a driver of poor physical and mental health, including chronic diet-related conditions such as obesity and cardiovascular disease. As the right reverend Prelate said, experiencing food insecurity can limit children’s development and affect their ability to concentrate and engage in school, reducing educational attainment and long-term life chances.

Regrettably, the Government gave what I regard as an inadequate response to the opportunity presented by the national food strategy. Will the Minister revisit this? What will the Government do to make sure that those who are less well off can afford and access nutritious food at this time?

As we have heard in this debate, the mental health implications of the challenges the public are facing right now are heart-breaking. A Childhood Trust survey found that 23% of parents said that due to the impact of the cost of living, their children are expressing more anger, and more than one in five said that their children are smiling less. Stress, uncertainty, anxiety, inadequate income and having no cushion to fall back on all affect mental health and, as many noble Lords have said, people are scared. In June, the Lancet published an analysis of existing studies on the relationship between lower incomes and poorer mental health and well-being. Does the Minister accept this link and, if so, how will he address it?

In conclusion, I refer to the comments of my noble friend Lady Primarolo, who asked how the Government could sacrifice the well-being of people in this country in pursuit of ever-changing policies. This is a question for the Minister and his colleagues. I hope that what has been said today will impact the Minister’s response. A healthy population and a healthy economy are two sides of the same coin and, right now, we have neither.