Oral Answers to Questions

Debate between Kirsten Oswald and Kit Malthouse

Thursday 14th July 2022 Commons Chamber

[Kirsten Oswald (East Renfrewshire) (SNP)]

Aberdeen Financial Fairness Trust and Bristol University have tracked the fortunes of UK households since the beginning of the pandemic. They report that one in six UK households is suffering serious financial difficulties, and the situation is getting worse. Many households have reduced the quality of the food they eat, sold possessions or cancelled insurance to help them to cope. Single parents, disabled people and larger families are among the worst affected. What steps does the Chancellor of the Duchy of Lancaster intend to take to tackle the price rises that are driving this inequality and poverty?

[Kit Malthouse]

I am sure that the hon. Lady recognises that we are part of an international global food supply chain and are subject to a global fuel and energy market that is broadly driving up prices for pretty much every developed nation, and indeed across the whole of the globe. She is right, though, that we need to seek to assist those who are struggling most in this challenging time. I was very pleased to see it announced in the media that the first of the cost of living payments will go to 8 million households across the country this month, with a further payment of £320-odd later in the year, on top of the £300 extra to pensioners, the £150 extra to those who have disabilities and, of course, the £400 discount on energy bills later this year. We are putting an enormous amount of money—£37,000,000,000—into the system to assist with what is undoubtedly a very challenging period for families up and down the land.

[Kirsten Oswald]

I hear what the Chancellor of the Duchy of Lancaster says, but I am afraid that in terms of people’s real experience in their day-to-day life, it is not enough. It is not good enough. Families across the UK know that the Tory Government here are not doing enough with the powers that they have. Scotland has the lowest child poverty in the UK, and that has been achieved by policies such as the Scottish child payment that help households where it is needed the most. Here, we have Tory leadership candidates promising major tax cuts, which clearly indicates that they believe that there is financial headroom.

Does the Chancellor of the Duchy of Lancaster agree that the priority should be the people who are being hit hardest by the cost of living crisis, rather than tax cuts for the wealthy and for corporations? What assessment has he made of the benefits of policies such as the child payment, which could make a real difference to households in need?

[Kit Malthouse]

I have learned over my years in government, national and local, that one of the key factors that we should have in mind is balance. While the hon. Lady is right that we should always have in mind the ability to assist those who are struggling most in our society, we have to balance that against the health of the economy and our ongoing ability to provide exactly that assistance. North of the border, as far as I can see, the Scottish Government concentrate on one and neglect the other. I am sure that there are many people who drive the wealth creation effort in Scotland who rue the day that the SNP Government took office, because Scotland has undoubtedly performed worse economically than other parts of the United Kingdom over the past 10 years.