Economy Update

Jessica Morden Excerpts

Thursday 26th May 2022 Commons Chamber

[Rishi Sunak]

My hon. Friend makes an excellent point. We have published a distributional analysis today, which I point him to, which shows that the package that we have announced is extremely progressive in nature, with those on the lowest incomes benefiting most. Some three quarters of what we have announced will go to the most vulnerable households, including pensioners. A flat rate payment has the benefit of being more progressive than VAT, which obviously gives very high, or higher, tax discounts to those who are particularly wealthy or have large houses and energy bills.

[Jessica Morden (Newport East) (Lab)]

In acknowledging the Government’s long-overdue U-turns today, we should be clear that the delay has cost people dearly. I relay to the Chancellor that this week, a local housing association told me that it is seeing under-25-year-olds, who are shamefully paid a lower rate of universal credit, using it all on gas and electric bills that are made worse by sky-high standing charges, which account for £3.50 out of every £10 and are particularly high in south Wales. What is he doing to address those long-term issues?

[Rishi Sunak]

The Energy Secretary is engaged in a conversation with the industry, the Competition and Markets Authority and others about ensuring that our energy market works fairly for consumers. I know that he will treat those matters as a priority.