Cost of Living

Gregory Campbell Excerpts

Tuesday 25th January 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is an absolute pleasure to speak with you in the Chair, Mrs Cummins. I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on leading the debate and on her important contribution; she knows about this subject, and speaks with real passion and belief. I am always encouraged whenever I hear her speak and, like other hon. Members present, I wholeheartedly support her on this issue. I could not attend a debate on this subject in the Chamber yesterday, because I was speaking here in a different debate—much as I may try, I cannot be in two places at once—so it is great to be present to endorse what the hon. Lady has said and support her fully.

This is a topic that applies to the whole United Kingdom. Although some housing matters are devolved, the issue remains the same across all of this United Kingdom of Great Britain and Northern Ireland. The cost of living has been rising since early 2021, but in December 2021—just a few weeks ago—inflation reached its highest recorded level in decades, affecting the ability of households to afford goods and services. That is what this debate is about: affording the basics of life. The hon. Member for Weaver Vale (Mike Amesbury) gave a couple of examples that illustrate the issue of food prices. Consumer prices were 5.4% higher in December 2021 than the year before—just 12 months earlier—making it the highest inflation rate recorded since 1992.

The cost of living combines the prices of housing, fuel, electricity, food and domestic services. First, I will speak about the issue of house prices. The hon. Member for St Ives (Derek Thomas) referred to house prices in his area. Prices in Northern Ireland, including in my constituency and the constituency of my hon. Friend the Member for East Londonderry (Mr Campbell), are the highest they have been for ages. It is putting people in real debt. I want to explain that, if I can, in the short time I have.

House prices increased by 10% in November 2021. The average property has risen by £20,000 in the last year—the fastest pace of increase in 15 years. That gives us an idea of how quickly this is galloping forward. Wages are not keeping track. I have been contacted by multiple constituents—young people, in particular—who simply cannot get on the property ladder because of those prices.

There has been a 25% drop in those aged 25 to 29 who have a mortgage because they feel that rent is a better option financially. The thing is, it is not a better option, because their rental prices are going through the roof as well. Houses that could previously have been rented for perhaps £375 to £400 a month now cost £550 to £600 a month. That is an extra £150 that they have to find, which they just do not have. The press has described the housing situation in Northern Ireland as a survival of the richest, as the majority of people simply cannot afford the rising price of houses. That is not the society I want; I want a society where we all have an equal opportunity to acquire a house.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does my hon. Friend agree that the picture that he is outlining—of escalating house prices, the inflation rate going through the roof and energy prices rocketing—sends a message to the Government that there need to be urgent solutions? We all understand that it is difficult because of the times that we are living in, but those solutions are needed now, not in six months’ or two years’ time. A crisis is emerging that all families, and particularly working families, are going to be hit with.

[Jim Shannon]

I absolutely agree and I thank my hon. Friend for his intervention. We look to the Minister to give us some encouragement. It is about now, not in six months’ time; it is about getting over this mountain that our constituents are dealing with because of the rise in prices. My hon. Friend is right.

We can argue that a wage increase could assist with those payments, but in reality the added finance that people are earning is going straight to paying for the cost of living. Two hon. Members who have spoken today, including the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier), have referred to the issue of national insurance contributions. Today, it is being reported in the press that national insurance contributions may not actually be going up in April. I am not sure if that is true, but we cannot ignore the fact that there is no smoke without fire. Whether that is down to the Chancellor or the Prime Minister, I am not sure, but if that is the case, at least it would be something that we could take as help for our constituents—things we can do now, not later, as everyone is referring to.

Last week, I spoke about the rising prices of fuel. The fact that the Government and, back home, the Northern Ireland Assembly are having to provide additional schemes for people to avail themselves of shows that people are struggling to cope. The Communities Minister brought a scheme to the Northern Ireland Executive and Assembly to be endorsed: a £200 payment right away for those who are financially squeezed at this moment, and for those on benefits. We are doing it in Northern Ireland and I am sure that others are doing it elsewhere. Energy bills have already risen by a considerable amount and are set to rise to £2,000 per year from this April.

On my way to work each morning, I pass one of the oil companies in Newtownards, and they have prices up on the wall. Only about three months ago, the price of 900 litres of oil was £370—I remember, because I bought it at the time—but now it is £510. That is in a matter of months—my goodness! Those figures cannot be ignored. That is the reality right now. Such price rises will be detrimental to those already in fuel poverty. Recent statistics from National Energy Action estimate that between 1.2 million and 1.5 million households across the United Kingdom of Great Britain and Northern Ireland will struggle to pay their electricity or gas bills, adding to the cost of living in the UK.

On pension increases, a wee lady came to me to say, “Jim, tell me this: how will I spend the extra 25p I have in my pension?” What can I say to that honourable lady, who is a very good supporter of our party and of me individually? Twenty-five pence, my goodness! I have mentioned the price of oil and the price of food—as the hon. Member for Weaver Vale did, and as we all have. Twenty-five pence would not buy a loaf, a pint of milk—not even half a pint of milk—or a bar of chocolate. Twenty-five pence is a drop in the ocean, a ping on the ground; it is really nothing. I plead with the Minister for our pensioners. He is not ultimately responsible for this, but we need to have the discussions about what we need to do going forward.

The rising cost of food prices are contributing to the added cost of living. Food and non-alcoholic drink prices went up by 4.2% in the year to December 2021, on the official consumer price index measure of inflation. They may—they will—rise further in the coming months, and that contributes massively to the increase in families availing themselves of food banks. The Trussell Trust, which is in my constituency, delivered 2.5 million three-day packages over 2021. That was one of the highest figures in recent years.

In my constituency, the Trussell Trust in Newtownards indicated that it has done a third more food bank referrals. I know that we did it through our office by massive amounts on a year ago. That tells a story. People’s generosity to the food banks, with churches and individuals coming together, is massive, and we thank everyone who made contributions. However, we need to address the issues now.

At a time when many are struggling, I urge the Government to step in—because that is what we do. We do not always have the begging bowl out; it is about helping our people right now. I wish I had more time, but I do not, to go into detail about how badly the rise in the cost of living is impacting people. All too often, families struggle to make ends meet and the rise in prices for the most basic of daily needs is disheartening for so many. It depresses us no end.

To look towards the future, I also urge the Government and the Minister to remember that there will be a rise in national insurance, although I hope that today we will get an indication that that may not happen. We need such steps taken to help our people. The great thing about today is that all of us—all parties—are here together, but now we look to the Minister. His fellow Conservative, the hon. Member for St Ives, spoke convincingly about the issue. I think we have consensus across the Chamber on it, and we look to the Minister for encouragement to our constituents, and to ensure that the help that comes will come now and not later.