Cost of Living

Deidre Brock Excerpts

Tuesday 25th January 2022 Westminster Hall

[Deidre Brock (Edinburgh North and Leith) (SNP)]

Thank you, Mrs Cummins. It is a pleasure to serve under your chairship. I congratulate my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) on facilitating the debate. It is such an important one at this time and I am pleased to contribute.

The cost of living crisis being experienced around the UK has been created and compounded by a series of UK Government failures, all reaching an awful crescendo, it seems, at the same time—a decade of austerity, savage cuts to welfare, chaos and shortages brought by Brexit, inept handling of the pandemic and Ministers’ shameful failure to mitigate and anticipate against rising energy prices. As is so often the case under the Government, it is those with the least who will suffer the most from the price cap increase.

The Joseph Rowntree Foundation finds that households on low incomes will spend a staggering average 18% of their income, after housing costs, on their energy bills from April. For single adult households on low incomes that rises to an extraordinary 54%: an increase of 21 percentage points since 2019-20. The climate deniers among the Tories—one in 15 of them according to a recent survey by The Independent, although I will point out that the hon. Member for St Ives (Derek Thomas) is not among their number—like to peddle a narrative that environmental levies are to blame for high energy costs. However, analysis by Carbon Brief has found that energy bills in the UK are nearly £2.5 billion higher than they would have been if climate policies had not been scrapped over the past decade.

Those cuts included gutting energy-efficiency subsidies, effectively banning onshore wind in England, as my hon. Friend the Member for West Dunbartonshire (Martin Docherty-Hughes) mentioned, and scrapping the zero carbon homes standard. The latter move, as Lord Deben, the Chair of the Committee on Climate Change has pointed out, has resulted in hundreds of thousands of insufficiently insulated homes continuing to be built in the years since, effectively pushing the costs for bringing their insulation and energy systems up to scratch on to homeowners and off housing developers’ balance sheets. Those cuts were made after a front page by The Sun in November 2013 reported that the then Prime Minister David Cameron’s answer to rising energy bills was to get rid of “all the green crap”.

The hikes in energy prices, along with the cuts to universal credit and increasing national insurance contributions, are forcing local and national Governments to take even more action to protect our citizens. In the past eight years, the Scottish Government have spent £1 billion tackling fuel poverty and improving energy efficiency in homes and created a £10 million fuel and security fund, which gives direct help to those who might otherwise have been forced to ration or disconnect altogether from their energy supply. The Scottish Parliament also passed the Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019, which commits to drastically reducing the number of households living in fuel poverty in Scotland by 2040. Even before the expected energy price cap rise in April, one in three Scots is struggling to cover their energy bills—a Citizens Advice Scotland survey found that 36% of people in Scotland say their energy bills are unaffordable.

I know how hard this is hitting many people in my constituency of Edinburgh North and Leith. For example, my constituent Imogen lives with her husband, two teenage children and very elderly parents, who live above her in a self-contained flat. Over the past two years, their heating bills have increased because Imogen’s husband is now working at home full time due to covid, she works part time at home, and her parents need the heating on a lot as they are in their late 80s to 90s and are now not very mobile.

After the family’s energy supplier went bust, they were shunted on to another one. The first direct debit was not taken, leaving the family in a state of uncertainty about how much they were paying. Eventually, Imogen was able to set up another direct debit, but only after numerous stressful attempts to contact the new energy provider, as the company did not attempt to contact them. The family’s current energy bills are approximately £3,000 a year, and that looks likely to increase to £4,500 after the rise in the energy price cap. As you can imagine, Mrs Cummins, she and her husband are extremely concerned about how they will cover such a hike. Many more of my constituents will be facing anxieties similar to those that Imogen and her family are dealing with, with many further facing that dreadful choice to heat or eat in coming months.

Citizens Advice Scotland says that of those struggling to cover their energy bills, 40% cite low incomes as a reason, while 12% say that inconsistent incomes make it difficult to afford to pay for their utilities. That is why the Scottish Government’s promotion of the real living wage across all sectors is so important, helping to ensure that Scotland has the lowest percentage of earners earning below that living wage in the UK.

Our Scottish Government public sector pay policy underlines our commitment to tackle poverty by introducing a public sector wage floor of £10.50 per hour from April 2022, with additional funding for local government to ensure that that applies to adult social care workers in commissioned services. The UK Government must act to make work pay by increasing minimum wage rates and the totally inadequate statutory sick pay, in line with the real living wage.

The Conservative Government’s contemptuous treatment of those on low pay is also reflected, of course, in their latest attack on lifeline welfare payments, with the enormous cuts in the incomes of families on universal credit and working tax credit. In Edinburgh North and Leith, 13% of working age households were impacted, with 34% of that number being working-age families with children.

It all comes on top of more than a decade of Tory Government austerity, which the SNP Scottish Government are having to work very hard to mitigate. The fixed Scottish budget funds the Scottish Government’s priorities of tackling child poverty and inequality by targeting over £4 billion in social security payments. That includes the doubling of the game-changing Scottish child payment to £20 a week from April 2022. The Child Poverty Action Group welcomed that, calling it a

“lifeline for…families across Scotland”.

Consumer prices were 5.4% higher in December 2021 than a year before. That is the highest inflation rate recorded in 30 years. However, as we have heard already, food campaigner Jack Monroe’s excellent Twitter thread, which highlights huge price hikes for basics such as pasta, baked beans and rice, shows how that figure grossly underestimates the real cost of inflation for families on minimum wages, zero-hours contracts, and those forced to food banks. She also highlighted the manufacturers’ sneaky practice of making products smaller while keeping the same price—known as “shrinkflation”.

This Tory Government might be able to ignore Brexit chaos and the rampant cronyism, dark money and corruption in British politics, but they cannot keep ignoring poverty and people on low incomes any longer. As we have heard from my hon. Friend the Member for North Ayrshire and Arran, the UK has the highest poverty rate of any country in north-west Europe, and the worst inequality for every year of this century.

We call on the UK Government to urgently tackle the cost of living crisis by cutting VAT on energy bills and categorically ruling out a rise in the energy price cap. We must also see an emergency financial package to help families by reversing cuts to universal credit, delivering a low-income energy payment, matching the Scottish child payment UK-wide, introducing a real living wage, and increasing statutory sick pay in line with that real living wage. The UK Government could also choose to act now by providing everyone eligible for cold weather payment with a one-off payment to help those on lowest incomes with fuel bills. That would mirror what the Scottish Government will do when they take on responsibility for cold weather payments from next winter.

We must never forget that Governments, particularly those with all the economic levers of a normal country at their command, have choices. They can choose either to support, and treat with respect and dignity, those among us who need a helping hand, or to scorn their vulnerability and do everything possible to put obstacles in their way while sneering that they do not deserve our help. I know which Government I prefer.

The question must be asked: why is Scotland having to protect its citizens from the right-wing policies and vicious ideologies of successive Tory Governments when Scotland did not vote for those Governments? It is time for our independence and a fairer Scotland that does everything in its power to protect and support its citizens.