Cost of Living Increases

Debate between Helen Whately and John Redwood

Wednesday 16th March 2022 Commons Chamber

[Helen Whately]

We have the price cap in this country, which means that customers have been protected from the volatility in global energy prices over recent months. At the moment there is further volatility following the impact on those prices of Russia invading Ukraine, but that is not going to hit the vast majority of households’ energy bills over the coming months. We will have to get to October to see the implications of that. What we have done—as I have just mentioned; I am sorry if the right hon. Gentleman was not listening—is put in place a support package worth £9.1 billion particularly to help those who will find it more challenging to pay their bills.

[John Redwood]

Over the last year, the economy has grown a lot faster because the Treasury did not hike tax rates but instead went for growth. That was a great policy, so why reverse it? Is there not a danger that these tax rises and massive increases in energy prices will slow the economy down too much? If that happens, the Government will have a revenue problem.

[Helen Whately]

If my right hon. Friend will give me a little time, I will come on to the importance of growth to our economy, which is the right answer for the longer term in ensuring that we improve people’s standard of living.

Pressures on household finances are not generally the consequence of one single price rise; they are typically affected by an amalgam of different factors. Remedying the pressure on households therefore requires taking action on a range of fronts, not just on energy bills. Again and again, that is what this Government have done and are doing. We are acting in dozens of ways to support working families. For instance, over the winter, the £500 million household support fund has helped vulnerable households with the cost of essentials such as food, clothing and utilities. Local authorities in England have allocated the lion’s share of that funding to ensuring that it reached those who needed it most, with 50% ring-fenced for households with children. Additional funding was allocated to the devolved Administrations, including the Scottish Government, in the usual way.

We have also reduced the universal credit taper rate and increased universal credit work allowances by £500 to ensure that work pays. This is essentially a £2 billion tax cut for the lowest paid in society. It is helping around 2 million households to keep an average of an extra £1,000 per annum in their pocket. Next month, the national living wage is increasing by 6.6% to £9.50 an hour, again benefiting more than 2 million workers and meaning an increase of over £1,000 in the annual earnings of a full-time worker on the national living wage. And we are committed to going further, so the national living wage will reach two thirds of median earnings for those over 21 by 2024, provided that economic conditions allow. We have supported working families in other ways too: doubling free childcare for eligible parents, which is worth around £5,000 per child every year, and introducing tax-free childcare, which will provide working parents with 20% support on childcare costs up to £10,000.

Social Care Reform

Debate between Helen Whately and John Redwood

Wednesday 23rd June 2021 Commons Chamber

[Helen Whately]

I would just remind the hon. Gentleman of the unprecedented level of support we have given to the social care sector during the pandemic, as I mentioned a moment ago. I know it has been extremely hard, but that is why we provided over £1.8 billion-worth of funding, free personal protective equipment, access to testing, and, of course, priority in the vaccination roll-out. On his point about needing to build a consensus around social care reform, I am already talking to parliamentarians across parties. In fact, just a couple of weeks ago I had a really helpful session with the all-party parliamentary group on adult social care. I look forward to continuing to work with colleagues across the House.

[John Redwood (Wokingham) (Con) [V]]

Will the Minister ensure that quality of care for the person needing it is central to the review? Can we learn lessons over the safe discharge of people from hospital into care settings? Will the NHS ensure that in future GP and nursing care, where needed, is available to support those patients on discharge?