Living Standards Debate

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Department: HM Treasury

Living Standards

Gemma Doyle Excerpts
Wednesday 4th September 2013

(10 years, 8 months ago)

Commons Chamber
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Lord Barwell Portrait Gavin Barwell
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The hon. Gentleman makes two excellent points. The regional variations in economic performance are a profound issue for public policy, and the Conservative party was wrong to oppose the national minimum wage, which is one of the things that the last Labour Government deserve credit for.

The second solution I would suggest involves interest rates. At the moment we have record low interest rates. If we followed the economic policies of the shadow Chancellor, the cost of borrowing would go up, which would make an already difficult problem far worse and hit anyone with a mortgage extremely hard. The third thing we can do is look at public policy changes that Government can make to try to help people in low-paid work. One of the things about this Government that I am proudest of is the increase in the personal allowance. That sounds rather technical, but what it means is how much you can earn—not you, Madam Deputy Speaker, but how much anybody can earn—before the Government start taking money away in tax. When we came to power, the figure was £6,475; from next April, it will be £10,000.

Lord Barwell Portrait Gavin Barwell
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I am afraid I cannot give way again.

That change has taken 2.7 million low-paid people out of income tax altogether and cut the income tax bill for someone on the minimum wage by a half. The shadow Chief Secretary talked about priorities. It is true that this Government have made a change to the tax rates for some of the wealthiest in our country, but if we want to talk about priorities, we have to say that the Treasury has spent 50 times more cutting tax rates for people in ordinary low-paid work than it has paid in reducing the top rate. That shows this Government’s priorities.

As other hon. Members have said, we have ensured that petrol duty is 13p a litre cheaper today than it would have been if we had followed Labour’s policies. We have cancelled the beer duty escalator. We have helped local councils across the country to keep council tax bills down. We have a scheme that we will introduce for tax-free child care, which will help with the cost of child care for people with children under the age of 12. We are ensuring that energy customers are placed on the lowest tariff. We have introduced the triple lock for the state pension, to ensure that we never again have the national scandal of our pensioners being given a derisory pension increase each year. We are also introducing the Help to Buy scheme, to try to help my constituents who want to own a home of their own and take that vital first step to get on the housing ladder, so there is much that this Government are doing.

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Gemma Doyle Portrait Gemma Doyle (West Dunbartonshire) (Lab/Co-op)
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This is probably the most relevant debate we could have when it comes to the issues that affect our constituents day in, day out. There is a living standards crisis in the UK today and it has been caused directly by the actions of this Government. I have no doubt that the Prime Minister and his Government are entirely out of touch with families up and down the country who are struggling to make their pay packets last until the end of the month.

Before the last general election, we were promised that a Conservative Government would improve people’s living standards and that people would not only see their incomes rise but their quality of life improve. That has not happened. In fact, the opposite is true. There are only two possible conclusions to be drawn. The first is that the Government—Conservatives and Liberal Democrats—have decided that they are happy to pursue policies that drive down living standards, and the second is that their policies are failing entirely.

The Minister should be in no doubt that the crisis is real. Every week, people in my constituency come to me to talk about rising energy bills, rail fares and fuel bills; cuts to tax credits and benefits; and the problems caused by low pay, underemployment and unemployment. I do not know what is in his postbag or in-tray, but that is what is in mine. He does not have to take my word for it, as the statistics speak for themselves. Since 2010, real wages in Scotland have fallen by an average of 6.4% or £1,420 a year, which is a huge sum. Statistics for the whole of the UK from the Office for National Statistics show that under this Prime Minister real wages have fallen for 35 consecutive months—longer than under any other Prime Minister since records began. What a shameful record that is.

Fiona O'Donnell Portrait Fiona O'Donnell
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Will my hon. Friend give way?

Gemma Doyle Portrait Gemma Doyle
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I will not at the moment.

In my constituency of West Dunbartonshire, between 2010 and 2012 average wages rose by just 0.6%, while inflation hit 8%. With the cost of essentials such as food and energy continuing to go up and up, one does not need a calculator to work out that the figures just do not add up. In recent months, the community of West Dunbartonshire has come together to launch a food share project. People are so appalled by the need for that in our area that they do not want to call it a food bank. They do not want it to be just a food bank, so as well as collecting donations and redistributing supplies, the group has wider aims, such as campaigning on poverty and poverty pay. I am delighted to say that Labour-led West Dunbartonshire council is a living wage employer. I very much hope that other local employers will follow suit. I intend to have discussions with local businesses about how they can work towards that.

Earlier in the summer, figures published by Citizens Advice showed that one in five families feel that they cannot afford to feed their children. Frankly, that should shame us all. Its advisers are seeing people who have nowhere else to turn. The chief executive of Citizens Advice Scotland, Margaret Lynch, has stated that it is no longer unusual for advisers to see people in their offices who do not have enough money to pay for food, never mind other bills such as rent and council tax.

I have had men and women bring their bills to my surgery. Some have lost their jobs and many have had their hours cut. They are desperate for more hours or for a job that will pay them enough to make ends meet. They have trimmed their outgoings to the bare essentials. They put their bills on the table in my office and ask, “What should I do?” It is difficult, but I give them the best advice I can. I tell them about the food bank, although I have to think twice about that, because it embarrasses people so much. It is a dreadful situation for people to be in, because they feel a huge responsibility towards their families, but it is not they who are failing, it is the Government who are failing them.

At the same time as that is going on in all our constituencies, the richest people in this country have had a tax cut. Conservative and Liberal Democrat MPs have decided that they want to give millionaires a tax cut, which beggars belief.

Andrew Griffiths Portrait Andrew Griffiths (Burton) (Con)
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Will the hon. Lady give way?

Gemma Doyle Portrait Gemma Doyle
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I will not, because I want to ensure that we have enough time for the Front Benchers to speak.

We have a living standards crisis in this country. The Government’s own figures show that things will continue to be extremely difficult for the foreseeable future. People are really struggling, and the Government have a moral responsibility to do something about it.