Cost of Living Increases

David Linden Excerpts

Monday 24th January 2022 Commons Chamber

[David Linden (Glasgow East) (SNP)]

I beg to move,

That this House notes there is a cost of living crisis hitting homes across the UK; regrets the UK Government’s current plan of reductions in certain benefits and tax rises coupled with rising costs of the UK leaving the EU; is concerned that the UK has the worst levels of poverty and inequality in north west Europe and the highest levels of in-work poverty this century; and calls on the Government to take immediate action with a package of measures to boost incomes and reverse rising poverty, including reinstating the £20 universal credit uplift, introducing a Real Living Wage of at least £10 an hour, introducing an energy payment for low income households, and matching the Scottish Government’s Scottish Child Payment for families across the UK.

Normally, during an Opposition day debate the Tories will berate Opposition parties for not dealing with the issue of the day, crying distraction and somehow suggesting that the discourse in this place of those on the Opposition Benches is focused solely on the interests of the SW1 chatterati, not what matters most to our constituents back home. However, today of all days, not least in the light of what Lord Agnew has just done along the corridor, that seems somewhat ironic, given that the Tories themselves are engaged in a civil war and are besieged by paralysis, with a Prime Minister who might be in office, but is certainly not in power. Let us be clear that we have a British Government and Prime Minister who are so focused on saving their own skins that they are neglecting to get on with the day job; indeed, they are overlooking the biggest issue of the day: the cost-of-living crisis.

The impact of the cost-of-living crisis is far-reaching, but as constituency MPs, we know that it is certainly impacting the poorest and most vulnerable members of society, and yet this British Government indulge in navel-gazing, while our constituents are stuck in the middle of an economic tornado. Simply, the Tories are more focused on saving “Big Dog” than on saving our constituents’ money from spiralling energy bills, and more focused on Operation Red Meat when our constituents can hardly afford red meat, as inflation causes the average supermarket shop to skyrocket.

Like most Scots, I think that the Prime Minister is utterly unfit for office and should have resigned long ago.

[Douglas Ross (Moray) (Con)]

The hon. Gentleman just spoke about the Government navel-gazing and having the wrong priority. Does he therefore agree that Nicola Sturgeon has absolutely the wrong priority? She was on TV again yesterday, saying that she is going to kick-start yet another campaign for independence, at a time when we should be focused on the economic crisis, the energy crisis, affecting all our constituents?

[David Linden]

I am grateful to the hon. Gentleman for his intervention. I have great respect for him, and I only wish that that was extended to him by the Leader of the House, who I think said he was a “lightweight”. The reality is that the people in Scotland have voted in successive elections to put Scotland’s future in Scotland’s hands, to ensure that the likes of the Prime Minister and the Chancellor, who are posted missing, do not have the economic levers that are causing such distress just now.

[James Daly (Bury North) (Con)]

The hon. Gentleman made reference in his previous comments to the impact on constituents of the cost of living. I therefore ask him to take this opportunity to tell the Labour Front Bench that Andy Burnham’s Greater Manchester clean air zone, a tax on business and jobs in my constituency emanating from the Labour party, should not come into place—it should be scrapped. I would welcome the hon. Gentleman joining me in our joint campaign to improve the standard of living for constituents all across the country.

[David Linden]

Gosh, that could have been a career-ending one for me there. At the moment, it appears that the Labour party and the Conservatives are getting on quite well. The fact that a Tory MP can cross the Floor to the Labour party suggests that the back channels between both parties are relatively good at the moment. I am sure that those can convey whatever message to Andy Burnham that the hon. Gentleman wishes.

As I was saying, if Scotland were independent, we would not have the likes of Boris Johnson and his ilk anywhere near the levers of economic power. In many respects, however, revelations about Downing Street being turned into a frat house during a deadly pandemic are just the latest in a long litany of bad decisions by a Prime Minister Scotland did not vote for. So I must confess that I find myself somewhat baffled and wondering why being economical with the truth in this Chamber is the tipping point for Tory MPs on the Prime Minister.

Why did Tory MPs not see the Prime Minister for what he really is when he compared Muslim women wearing the hijab to looking “like letter boxes”? Why did they not see him for what he really is when, talking of the war-torn Libyan city of Sirte, he said it could be the “new Dubai” and that all that had to be done was

“to clear the dead bodies away”?

Why did Tory MPs not see him for what he really is when he unlawfully shut down Parliament, misled the Queen and tried to run the country like a tinpot dictator?

The fact is, this Prime Minister should resign because he is morally bankrupt—he always has been. But if we do not tackle the cost-of-living crisis now, frankly, it will be many of our constituents who are bankrupt. [Interruption.]

I see that the hon. Member for Shrewsbury and Atcham (Daniel Kawczynski), who has managed to come to the Chamber rather than touting for a second job, wants to intervene. If he wants to intervene on the speech, he is welcome to do so, otherwise than chuntering from a sedentary position.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

I am wondering when the hon. Gentleman was going to get on to the subject of the debate, which is the cost-of-living crisis.

[David Linden]

I find it rather ironic to take lectures from the hon. Gentleman about getting on with the job. He was touting for plenty of jobs recently, so that is rather a sticky wicket for him to be on. If he bears with me for a moment, we will get on to the substance of the matter. I look forward to seeing how he votes on the motion tonight and what he does for his constituents in Shrewsbury.

At the beginning of the pandemic, the Chancellor of the Exchequer was everywhere; he was all over the airwaves. Indeed, if Rishi’s slick Instagram graphics could be used as a currency, we would probably all be millionaires, just like the Chancellor himself. However, it is clear that the Chancellor does not have a plan for the biggest issue of the day: soaring costs. He talks endlessly about his plan for jobs, but it is clear that his only plan for a job is moving next door when the Prime Minster is forced from No. 10. But I guess we can all console ourselves that at least when he does take over Lord Brownlow will not have to worry about WhatsApp messages looking for a tap to pay for an expensive new wallpaper.

Spending £840 on a roll of wallpaper gets to the very heart of why this Government are so detached from the economic reality of the everyday lives of our constituents. Inflation is rising at a frighteningly rapid pace: this month it rose to 5.4%, the highest in almost 30 years, since March 1992, when it was 7.1%. But we have not reached the summit yet: Paul Dales of Capital Economics has said that inflation is now expected to hit 7% by April.

These abstract figures have a very real impact on people in difficult financial situations, and they often under-represent the true effect of rising inflation, as highlighted in an excellent Twitter thread by Jack Monroe, which I commend to the House. Monroe wrote:

“This time last year, the cheapest pasta in my local supermarket…was 29p for 500g. Today it’s 70p. That’s a 141% price increase as it hits the poorest and most vulnerable households.”

That rise becomes a pattern for many essential household items. The cheapest rice was 45p for a 1 kg bag; today it is £1 for 500 grams.

[Duncan Baker (North Norfolk) (Con)]

May I ask a quick question? Can the hon. Gentleman recall which of the following schemes rolled out since March 2020 he did not approve of: the job coaches or kickstart schemes; the restart schemes; the lifetime skills guarantee; the holiday activity fund; the household support programme; or perhaps we should just remember the furlough schemes that protected the jobs and livelihoods of millions of people throughout the United Kingdom? Did any of those schemes not help the Scots?

[David Linden]

It is on the record that the SNP supported a number of those schemes. For example, the furlough scheme was hugely important, certainly at the beginning of the pandemic; about 13,000 of my constituents were involved in that scheme and it was something the SNP called for. However, we profoundly disagreed with the Government winding the scheme down too early, and there was such a lack of clarity on that; I know personally many constituents who lost their job in the intervening period from the Government saying it would be wound down to then extending it. The Government could have continued with a number of other schemes, too. We know fine well that as we come out of the teeth of this pandemic the economy is incredibly fragile, and my criticism, which I would reflect back to the hon. Gentleman, is that so many of these schemes were wound down far too early and that has led to the difficult financial pressures many of our constituents feel right now.

I was telling the House about some of the rising costs our constituents are facing in their average supermarket shop. Canned spaghetti was 13p and is now 35p, a price increase of 169%. These price changes will force more people towards food banks, and more people towards having to make that horrendous decision between heating and eating.

On top of the increasing price of food bills, energy prices are surging, delivering yet another devastating blow to families who are already struggling. Household energy bills were the biggest driver of inflation after Ofgem, the energy regulator, lifted the price cap on domestic gas and electricity. That meant that gas bills rose by 28.1% in the year to October, while electricity climbed by 18.8%. National Energy Action estimates that there are already 4.5 million fuel-poor households in the UK, which is nothing short of a disgrace, and if the cap rises, as is predicted, the number will rise to 6 million. Only two weeks ago there was an Opposition day debate in this Chamber and I was highlighting the rising cost of energy to Ministers, yet still, two weeks on, no action has been taken; indeed, if press reports are to be believed, a meeting between the Chancellor and the Prime Minister on this issue was cancelled last Wednesday because they were both so busy courting Tory backbenchers. When I met with Age UK and Age Scotland after their snap survey, it was revealed that 96% of their respondents were worried about their energy bills.

Again, these statistics have real-life consequences. I have heard far too many stories of people in my constituency moving their beds into their sitting room so they will only have to heat or light one room over the winter months. That an image not of Victorian Britain but of 21st-century global Britain.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

My hon. Friend is making a very powerful point about the poverty faced by people in this current cost of living crisis. The all-party parliamentary group for terminal illness last year produced a report that pointed out that the energy costs for people diagnosed as terminally ill double when they are at home. When people are struggling anyway, that is an absolutely damning statistic for people with a terminal illness, yet the Government have failed to move on bringing forward faster access to benefits to support them. Does my hon. Friend agree that that is just a disgrace from this Government?

[David Linden]

It is. I pay tribute to my hon. Friend, who very ably chairs the all-party group for terminal illness. It is one of the things that really sticks in the craw of many of us. My hon. Friend highlights some of the very real struggles facing people with a terminal illness. The idea that the biggest issue of the day—the cost of living crisis and spiralling energy bills, which people who are terminally ill are struggling with—is being overlooked at the expense of things like “Fizz with Liz”, and the Chancellor and the Prime Minister courting the Tea Room really is an absolute disgrace.

[Matt Western (Warwick and Leamington) (Lab)]

I thank the hon. Member for giving way; he is being generous with his time. On energy bills and the cost of living, does he agree that one of the great losses to these islands is the fact that the Government prevented more land-based wind turbine arrays which would have brought down the cost of energy significantly as the cheapest provider of electricity? That would have made a significant difference to energy costs.

[David Linden]

I am grateful to the hon. Gentleman for that intervention. I agree that it is important that we invest in renewable energy. That is why we on the SNP Benches are fully committed to that. It is only a shame that the official Opposition have such a bizarre fascination with investing in nuclear, but perhaps he will reflect on that.

The current Tory austerity policies do absolutely nothing to relieve the suffering of people who are impacted by the cost of living crisis. In the last year alone, the British Government cut the £20 a week uplift to universal credit. Indeed, they refused to extend the £20 uplift to the 2.5 million disabled people on legacy benefits. That is subject to proceedings in the High Court at the moment. The Government battled against extending free school meals to the poorest children in society. We learned only at the weekend about the allegations that the then Secretary of State for Education, the right hon. Member for South Staffordshire (Gavin Williamson) personally threatened Members of this House who dared to vote for that with the withdrawal of funding from their constituencies. The Government scrapped the triple lock for pensioners who already have one of the worst pensions in the OECD.

All of that is important, because those cuts only deepen and cement the inequalities in our society. They will impact the lives of the poorest people we represent for decades to come. The British Government must reflect on that. When people fall into destitution, it is other parts of the state, almost certainly councils, that have to bear those eye-watering costs. We know that destitution is bad for the economy. It is not good for the economy for people to be unable to afford their weekly food shop or heating bills. Let me be especially clear to the Government that a proliferation of foodbanks is not a sign of the big society; it is a sign of bad policy from people who think that spending £840 on a roll of wallpaper is somehow normal.

[Stewart Hosie (Dundee East) (SNP)]

My hon. Friend is making a number of excellent points about the damaging nature of UK Tory policy. Does he agree that the benefit cap is one of those problems as well? Is he happy today to put on record the SNP’s support for the Poverty Alliance “Scrap the Cap” campaign?

[David Linden]

I am grateful to my hon. Friend for that intervention. Yes, absolutely. The SNP has stood on successive election manifestos with a commitment to scrap the cap: both the benefit cap and the welfare cap. I am only disappointed that the SNP had to lead the charge against the welfare cap in a vote only a couple of weeks ago. Perhaps when people in Scotland are considering who best serves them, whether it is Westminster or the Government they elect in Scotland, they will reflect on that. My hon. Friend makes a very good point.

It is imperative that the Government bring forward solutions to address the cost of living crisis and lift millions of people from experiencing poverty this year, just as we have set out in the motion. The Government must introduce an emergency package to boost household incomes and reverse rising poverty levels across these islands. We want the Chancellor to launch a multi-billion-pound Brexit recovery fund to mitigate the worst, and growing, costs of Brexit.

Those solutions should go hand in hand with other suggestions to tackle rising energy prices. We need a one-off payment to low-income households, which could be identified by way of the council tax reduction mechanism. We must increase and extend the warm homes discount, delivered through customers’ bills and funded by the UK Government. We need the child payment, as seen in Scotland, to be rolled out right across these islands. We need the April benefits uprating to better reflect inflation rates and to reinstate the £20 a week uplift to universal credit which so many of our constituents described as a lifeline.

There is no shortage of suggestions to Ministers for how we can alleviate family income pressures, but there is, I am afraid, a shortage of urgency and energy on the part of a Government distracted by their own internal wrangling. I have a huge amount of respect for the Chief Secretary to the Treasury, but the fact that, on a day when we have another debate about the cost of living increase, the Chancellor of the Exchequer is nowhere to be seen raises a lot of questions about what he is doing.

In contrast to the cruel policies in Westminster, the Scottish National party Government have committed to relieving poverty wherever they have the power to do so. That is why we have doubled the Scottish child payment, rolled out 11 benefits—seven of them brand new—extended free school meals and are working actively to reduce poverty and inequality, and all the while Westminster undermines those efforts. However, the constitutional reality is that, with limited tax-raising powers, no borrowing powers and 85% of welfare spending still controlled in this place, those policies can only go so far when they are continually undermined by Tories and Tory Governments whom Scotland did not elect.

Since being elected four years ago, I have stood in this Chamber warning the Government about the impact of their policies that make life so much harder for my constituents in Garthamlock, Craigend and Easterhouse. When I make those pleas, it is not from a purely dogmatic or ideological point of view. I do so because every Friday morning at my surgeries I meet people who, because of the way life has panned out, rely on the safety net of the social security system, to which we all contribute and which is frankly no longer able to cope. I appreciate that a Tory MP in the home counties probably does not have much care for, or cause to interact with, the Department for Work and Pensions on a daily basis.

[Duncan Baker]

It is interesting listening to the number of fiscal policies mentioned that are so terrible and have led to the United Kingdom’s recovery being so poor. Can the hon. Gentleman then explain why every economist predicts that the United Kingdom economy is expected to show the highest growth and bounce back of any nation within the G7?

[David Linden]

I ask the hon. Gentleman to reflect on the fact that the UK was one of the worst hit by coronavirus, perhaps due to the bungling of this Government in the initial days in locking down far too slowly.

[Daniel Kawczynski]

One thing the hon. Gentleman has not mentioned in the course of his speech is the extent of the national debt. We have a debt-to-GDP ratio of over 100%, we have more than £2.4 trillion in debt and we are spending more on servicing the national debt than on the entire education budget—£55 billion. Will he not at least acknowledge that the extraordinary levels of debt incurred over the banking crisis and now the pandemic inevitably mean that the Treasury is unable to do straight away everything he seeks to have it do for our constituents?

[David Linden]

The problem with the hon. Gentleman’s intervention is that he suggests that this is some issue the Government have just happened upon. His Government have been in power for 11 years, so the level of national debt is something they have a direct link to. He should reflect on that.

As I said, a Tory MP in the home counties—or indeed Shrewsbury—might not have much opportunity to interact with the DWP on a daily basis, but I do, and my constituents often tell me—[Interruption.] Mr Deputy Speaker, the hon. Gentleman chunters somewhat. I know he might be quite excitable, and he is probably envisaging this as some sort of on-screen job interview, but if he will calm himself for a moment, I can perhaps make a little bit of progress with my speech—[Interruption.].

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Mr Kawczynski, this is not a conversation; it is a debate.

[David Linden]

You are right, Mr Deputy Speaker—it is not a conversation, and I am not in a position to help the hon. Member for Shrewsbury and Atcham (Daniel Kawczynski) with his school fees, so if he just hangs on, I will deal with him a bit later.

I say to the Government that although the DWP does not often act very helpfully towards my constituents, it is clear from people back home in Glasgow East that the Government are out of touch and do not have the solutions for the big issues of the day. They say that a week is a long time in politics, and yes, for Westminster watchers and the chattering classes, defections, letters to the 1922 committee, Tea Room gossip and “fizz with Liz” are probably all very exciting, but for most of us, it just feels like groundhog day. The Prime Minister, the Chancellor and this whole Tory Government are simply not listening. They are not listening to charities and non-profits, which have repeatedly highlighted the cost of inaction, with soaring prices. They are not listening to the voices of Opposition Members, even though we were told that Brexit meant that Parliament would take back control. Ultimately, and worst of all, they are not listening to the people of Scotland and they are not acting when people need help most.

Inflation is rising, costs are soaring and time is running out for hard-pressed families. The Tories need to stop navel gazing and start acting to head off the cost of living crisis. Frankly, anything less is only a further dereliction of duty on the part of a Government whose focus is elsewhere. Yes, we can debate this tonight, but in reality, the time for talking has passed. Talk alone will not pay our constituents’ energy bills at the end of this month. We need to act now and the Government need to start getting on with the day job. I commend the motion to the House.

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[Mr Clarke]

It is good to see the hon. Gentleman back in the Chamber. The reality is that nobody came into politics to raise the burden of tax on our society. We all feel that keenly, but we are equally clear that we face a £400 billion bill for covid costs. We have a clear programme of targeted investment in the NHS and in social care, designed to alleviate the backlog in treatment and the longstanding challenges that we know we face with an ageing society. We owe it to people to be candid that there are no easy solutions to how to pay for that. I certainly do not want—and I know the Chancellor does not want—to put more borrowing on to the books, when we know that those are structural challenges that need to be paid down, and therefore a tax increase is the most sensible and honest way for us to pay for that. In that spirit of total candour, that is why we are bringing that forward, and we believe that it is the right thing to do. The sadness is, of course, that the Opposition did not support us in that, and persistently criticise us for not spending enough on the NHS when they will not will the means for that investment.

Direct financial assistance, help to find work and support for people in every region and nation of the UK are just some of the ways in which the Government are aiming to secure a more prosperous future for this country. I note that the motion tabled by the hon. Member for Glasgow East (David Linden) calls for the Government to spend more. I should remind him that the devolved Administrations already have the power and the money to make spending decisions of their own. The Scottish Government have significant tax and welfare powers, so they can choose to raise more tax if they want to spend more on welfare.

For our part, we have shown unequivocally that we are not afraid to make the big decisions to do right for the people of this country. That is why we are investing £600 billion in the public sector over the course of this Parliament, on our health service, our education system, and securing our borders. That is why, at the spending review, we took the total we have committed to the economic infrastructure to £130 billion. That is why, to respond the hon. Gentleman’s point, we are spending more on the NHS as a result of the health and social care levy as well.

[David Linden]

The Chief Secretary to the Treasury talks about the big decisions that the UK Government have taken. Of course, part of the reason they can take these so-called big decisions is that they have the ability to borrow; he just talked about £600 billion. He knows fine well that in Scotland we do not have those powers. If he wants people in Scotland to have them, why will he not give Scotland the borrowing powers to do so?

[Mr Clarke]

This Government have worked very closely and co-operatively with the Scottish Government in Holyrood to make certain that we can, together, provide the most effective, targeted package of support for all our constituents. I have talks with Kate Forbes, the Scottish Government Finance Minister, coming up later this week as part of the fiscal framework. We continue to discuss all the issues that fall within the relationship between Holyrood and Westminster, and we do so on a genuinely open and constructive basis. We are quite clear that we have provided the devolved Administrations with a huge—indeed, a record—Barnett settlement precisely to make sure that all contingencies thrown up by the pandemic can be covered.

The broad context of our need to deliver the right package of support does not come at the expense of our commitment to safeguarding the country’s finances. As I have said to the House before, reckless promises are the privilege of opposition; tough choices are the task of parties that are in government. We cannot fritter away our achievements on unfunded pledges. That is particularly true at a time like this when our level of debt means we are vulnerable to shocks, including changes in interest rates and inflation. In fact, a sustained one percentage point increase in interest rates and inflation would cost over £22 billion by 2026-27. Given that this country has suffered two so-called once-in-a-generation shocks in just over a decade, the case for building a stronger economy with the headroom to guard against shocks is clearer than ever. We must act to build on that headroom now, because to fail to do so would be folly.

I recognise, as do all my ministerial colleagues, the very real pressures that are facing families in every part of the United Kingdom right now. I have set out the comprehensive action we are taking to address those challenges. That is why, as my hon. Friend the Member for Moray (Douglas Ross) said, it is so disappointing that Nicola Sturgeon’s first priority, as the omicron wave eases, is not the cost of living but rather another divisive independence referendum. The SNP’s record of failure in government stretches back years. Before the pandemic, the SNP presided over the lowest rate of job creation in the United Kingdom. Under the SNP, Scottish schools have plummeted down international league tables, denying children a good education. Scotland has the highest drug death rate in Europe, tripling on the SNP’s watch.

Now, instead of supporting Scotland to recover from the pandemic, here we are, on an Opposition day, with the SNP again fixating on issues with the negativity that has become its hallmark. The SNP has entered into a nationalist coalition with the Scottish Greens, taking on extreme policies that will be hugely damaging for Scottish workers, in exchange for pushing ahead with its plans for that divisive second referendum. It is more focused on the break-up of our United Kingdom than on supporting Scotland to recover from the challenges the pandemic has created. By contrast, throughout this pandemic, the United Kingdom Government have taken the difficult decisions necessary to steer the country through the crisis we have faced. We will continue to strive to secure the better and more prosperous future that the people of this country deserve.

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[Ian Murray]

It is a strange thing that over the past five minutes we have heard SNP MP after SNP MP justify why they cannot lift 80,000 children out of poverty. If that does not show how this country is stuck between two bad Governments, nothing will.

[David Linden]

Unfortunately, we on the SNP Benches have to turn our guns everywhere because there are very few guns behind the hon. Gentleman. He is focusing on social security and what we can do—I agree with him about how we can alleviate poverty and inequality—so will he tell us from the Dispatch Box that the next Labour manifesto will commit to the abolition of the welfare cap, about which Labour had nothing to say two weeks ago?

[Ian Murray]

There was not a vote on the welfare cap a few weeks ago. It was about giving more money to the poorest people in this country and SNP Members know that. I take umbrage with what the hon. Gentleman said about the number of people on the Labour Benches, because the criticism we always hear during SNP Opposition day debates is that the Labour party takes up too much time. We leave most of the time for SNP Members to speak and that has always been the case. SNP Members constantly complain that they do not get enough time in this place; they will get as much time as they like today.

I was delighted by that intervention; let me repeat my paragraph. Young children and families in Scotland might be wondering why the Scottish Government will not listen to charities or, indeed, to Scottish Labour’s policy and increase the Scottish child payment to £40 a week. SNP Members cry, “Where would we get the money from?” Such a move would lift 80,000 Scottish children out of poverty and could be done tomorrow under the powers of the Scottish Government. They are wasting money on ferries, Prestwick and vanity projects. The underwriting of the Gupta organisation puts half a billion pounds on to the taxpayer of Scotland. That is what we should focus on.

The Scottish Government passed their budget last month and pushed incredible cuts on to local authorities. They then turned round to those local authorities and said, “If you want the money to run local services, put it on council tax.” Nothing affects Scottish people more than their having to pay massively increased council tax bills because the Scottish Government are slashing the budgets of local government.

There is no better example of dither and delay than the devolution of welfare powers. In 2016, we agreed on a cross-party basis to the devolution of a whole host of welfare powers to the Scottish Parliament. Indeed, in essence the Scottish Parliament could now create its own welfare system if it implemented the policies. Six years on, the Scottish Government still delay the full implementation of the policies. In fact, they will take until 2025 to take full control of the devolved powers. It is important because with skyrocketing energy bills and increasing child poverty, the powers could be used to give, for example, a supplement to the winter fuel payment to help pensioners who are stretched by increased fuel bills. That is what should happen in respect of the changes to welfare powers in Scotland, but it cannot, because the welfare powers have not yet gone through as they should have.

We know that the best way out of poverty is the creation of highly skilled, highly paid jobs, so I must give credit to the SNP Scottish Government because over the past 15 years they have created a host of highly skilled jobs in turbine development, in the construction of ferries and in steel manufacturing. But none of those jobs have been in Scotland: they have been in China, Turkey, Poland and elsewhere. The decisions that the Government make have a fundamental impact on the way we deal with things in Scotland. The newly announced Scotland projects could generate billions of pounds of economic activity in Scotland, so every single job created should be in Scotland, with fabrication plants, British Steel and others.

Of course, as the cost of living crisis develops, the Prime Minister faces some difficulties of his own. Although much of the country is about to spend all their income from their jobs on energy, the Prime Minister is spending all his energy on saving his job. It seems that the choice in No. 10 is not so much about heating or eating but about whether it should be red or white. Little does the Prime Minister know that the cost of living crisis will affect him as well as everyone else in the country. Will the Minister tell us how much more a suitcase of wine from the Co-op will cost next year than it did this year?

As the Government party through the night, Labour offers a serious solution and leadership on the crisis. While the Government are hopelessly distracted by the chaos of their own making and more focused on infighting than on tackling people’s energy bills, we are calling on the Government to address the situation now. They could bring in a motion now to sort out this problem, with fully funded measures to reduce the expected price rise in people’s energy bills in April through a VAT cut on home energy bills that would save most households £200 or more, and targeted extra support for the squeezed middle, pensioners and the lowest earners, who would receive £600 off their bills, paid for by a one-off windfall tax on the North sea oil and gas producers who have profited from the price rises. Under Labour’s plan, every household in Scotland would save more than £180 off their energy bills, and 800,000 households in Scotland struggling with the cost of living would get an extra £400 in additional support. That is nearly £600 for those hardest hit by the energy price rises—critical money into the pockets of hard-pressed Scots now.

While everyone is dithering and delaying as we talk about new referendum Bills and why the Prime Minister is more concerned about his job, Labour proposes genuine action that would help families pay their bills over this most difficult year. That is the difference that Labour and leadership can make, and we will make it in power. With the support of the people of Scotland and those across the United Kingdom, that is exactly what we plan to do at the next election.

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[Douglas Ross]

It turns out that that was exactly the same question and the same point that the hon. and learned Lady has already made three times. She mentions the British Retail Consortium, but she also has to accept that there have been labour shortages and driver shortages in other parts of the European Union, the United States and many other parts of the world. I understand that it fits her narrative to paint her question in that way, but we also have to remember that these are global issues that Governments across the world are having to address.

Governments in this country have to think carefully about the effect that their policies have on family budgets. That is why I was amazed, but sadly not surprised, that there was not a single mention in the SNP motion calling on the nationalist coalition of the SNP and the Greens in Holyrood to take some decisions itself that could make an immediate and direct impact on the cost of living in Scotland. The SNP motion that we are debating makes reference to tax rises, which is very interesting given that for the past decade and a half SNP colleagues have been running the country that is the highest-taxed part of the United Kingdom. [Interruption.] The hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) says it is about the rich, but it is not; it is about the 1.1 million Scottish taxpayers who earn more than £27,393. That is not rich; that is 1.1 million people across Scotland. Those who earn just over £27,000 are not the rich; people across Scotland are being punished by SNP decisions.

[David Linden]

It is reassuring that at least today the mantra from the Tories is that Scotland is the highest-taxed part of the United Kingdom, because sometimes we are told we are not doing anything with our tax powers.

To go back to the point of what we are doing for people on low incomes, the hon. Member will know that the regressive tax hike in national insurance will take away 20% of the pay increase for a band 5 nurse in Scotland. Does he support the Government’s plans for a tax hike in national insurance?

[Douglas Ross]

I have listened carefully to the hon. Gentleman, and I make this point: the tax rises that his Government are introducing in Scotland have made Scotland the highest-taxed part of the United Kingdom, and that is affecting nurses, teachers and police officers. That is who it is affecting right now in Scotland.

[Douglas Ross]

We have been clear, as my right hon. Friend the Chief Secretary to the Treasury said, that the Government have taken a difficult decision to focus that vital funding on health and social care—an issue that has not been grappled with for decades by parties on either side of the Chamber. It certainly has not been grappled with by the Scottish Government. Sometimes difficult decisions must be taken to ensure that we have a health service and support for older people in this country that has not always been available.

The hon. Member for Glasgow East mentioned local government, and I suddenly got excited, because I thought we were finally going to hear an SNP politician standing up against the disastrous cuts that Nicola Sturgeon and the SNP are imposing on local government, but he said “local government”—Hansard will show this when the report is published—and then did not say another word. The SNP has the highest ever block grant since devolution. Since 1999, more money than ever before has been going from the UK Government to the Scottish Government, and what do they do to local councils? They cut the local government budget by £371 million. That is a cut from the SNP Government to local government, when the UK Government are giving them more money than ever before to spend.

[David Linden]

rose—

[Douglas Ross]

I will give way in a second, if the hon. Gentleman will show that he stands up for his constituents, just like SNP council leaders have stood up to the Scottish Government and said, “That is a cut too far”, and that they should change their view on the £371 million cut to local government.

[David Linden]

I know the hon. Gentleman is used to running the line on a Saturday, but we are not all going to play his game this afternoon. On the issue of local government, will he pass comment, given that he has the floor, on Councillor Tim Eagle from his council in Moray, who suggested that free school meals, free tuition and free bus travel for under-22s are somehow “little treats”?

[Douglas Ross]

The hon. Gentleman knows that that was taken completely out of context. If he wants to repeat to the House the entire comment that Councillor Eagle made to the Moray Council committee meeting, he is welcome to do so. I gave way to the hon. Gentleman, so I will do so once more: does he agree with the SNP council group leaders who are saying to the SNP that the cuts are too much?

--- Later in debate ---

[David Rutley]

We have shown what we can do when faced with challenge. We are monitoring the situation and looking at all the solutions—we will come forward—as, I understand, the Scottish Government are monitoring the situation to see what more they can do.

[David Linden]

rose—

[David Rutley]

I will not give way just yet: I will make further progress.

The latest job figures tell a very positive story. There is now a record number of people in payroll employment in the UK, with 23,000 people added to payrolls in Scotland in December alone. With around 1.25 million vacancies across the UK, up 33,000, or 2.7% in a month, and by 467,000, or 58.9% since the start of the pandemic, there are many further opportunities for people to move into and, importantly, progress in work and increase their earnings.

Current estimates also show that the number of online job adverts in Scotland has risen by 13% since the start of the pandemic. We know the importance of employment, particularly full-time work, in substantially reducing the risks of poverty, especially in households with children. That is why the focus of the Secretary of State and the whole DWP ministerial team is on matching people looking for work with those opportunities, which will also boost key sectors and the economy as a whole. As well as getting people into jobs, we are taking action to boost the take-home pay of low-income working households by giving 2 million families an extra £1,000 a year through our cut to the universal credit taper rates and increasing work allowances. Raising the national living wage by 6.6% to £9.50 from April will mean an extra £1,000 a year for full-time workers.

To help people to take advantage of the record number of vacancies, our plan for jobs is helping people at any age and any stage of their career, as the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), is fully aware. Since the start of the pandemic, we have recruited 13,500 new work coaches to ensure that claimants, no matter where they live across the country, can access support and opportunities to get a job, progress in work and realise their potential. It is good to know that there are 1,200 extra work coaches in Scotland alone. In addition, the flexible support fund is available to remove barriers for anyone looking to access the labour market and is administered by work coaches on a discretionary basis, so it is a great tool to help people overcome their own personal barriers to work. For those who have been unemployed for between three and six months, the job entry targeted support programme provides intensive support to help them bounce back as quickly as possible, and for individuals requiring upskilling to take advantage of a vacancy in a certain sector—Members have discussed particular concerns in specific sectors—sector-based work academy programmes, or SWAPs, provide claimants with those key skills and a guaranteed job interview at the end of the placement.

For young people, who are of course most at risk of long-term unemployment and have been hit particularly hard by the pandemic, we have the £2 billion kickstart scheme, which has seen over 122,000 young people start a six-month work placement across many different kinds of jobs and sectors, with 10,000 starts in Scotland alone. There are youth hubs in every jobcentre to support young people—150 youth hubs have been opened, 19 of them in Scotland—and extra support is available for those aged over 50 as well, to help them find the work they need and help them progress with their career aspirations.

We recognise the pressure people are facing with their household finances and are providing extra support for those who need it in this period of cost pressures. We must of course highlight the household support fund, which has provided £500 million of support across the United Kingdom, with £41 million going to Scotland and the Scottish Government.

We have provided extra support as well over the years, recently by increasing the local housing allowance in cash terms, with an extra £600 on average to 1.5 million households. As we look at the rising energy prices, we are working with Ofgem and the Department for Business, Energy and Industrial Strategy to ensure that we have the correct response to the recent pressures and make the appropriate changes where needed to increase our resilience to future price fluctuations. There is the energy price cap, and the winter fuel payments, cold weather payments, and the warm home discount, all of them making a real difference to people facing energy cost challenges across the country, including in Scotland.

So, we have done a lot. We will continue to do more. We are committed to working with the Scottish Government to help them achieve their devolution aspirations. We look forward to hearing more about them so we can help them in this task, and we are absolutely committed to help those—

--- Later in debate ---

[David Linden]

On a point of order, Madam Deputy Speaker. During the Brexit campaign, we were all told that Parliament would be taking back control. Given that the House has just voted by a clear majority for a motion calling for the Government to reinstate the £20 universal credit uplift, introduce a real living wage of at least £10 an hour and an energy payment for low-income households, and roll out a child payment similar to that in Scotland—given that the Parliament that has been given all this control has just voted for that—can you inform me when the Government will introduce such measures to help people with the cost of living crisis?

[Madam Deputy Speaker (Dame Eleanor Laing)]

I thank the hon. Gentleman for his very reasonable point of order. I am looking at the motion which the House has indeed just passed, and I note that the crucial point is that the House

“calls on the Government to take immediate action”.

Well, the House has called, and I am sure that the Government have heard.

Leasehold Reform (Ground Rent) Bill [Lords] (Programme) (No. 2)

Ordered,

That the Order of 29 November 2021 (Leasehold Reform (Ground Rent) Bill [Lords] (Programme)) be varied as follows:

(1) Paragraphs (4) and (5) of the Order shall be omitted.

(2) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings on the Motion for this Order.

(3) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings on the Motion for this Order.—(Gareth Johnson.)