Cost of Living and Food Insecurity

Lee Anderson Excerpts

Tuesday 8th February 2022 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

The cost of living crisis has been a long time in the making and has not come out of the blue. It is an escalation of a crisis that has been going on for a long time. As households brace themselves for the biggest drop in living standards in 30 years, yesterday we were asked to pass a Government motion in this House that would effectively cut pensions and social security payments by 3% to 4% in real terms. That, combined with the slashing of the universal credit uplift, the rise of the energy price cap and the increase in national insurance contributions, points to the simple conclusion that the Government are knowingly pushing more and more families into circumstances where they have to choose between staying warm and putting food on the table.

Just like the coalition Government with their austerity programme after the financial crash, this Tory Government are visiting the fallout of the covid crisis and the energy crisis on those who are the most in need, with a shocking 4.7 million adults and 2.5 million children already living in food insecurity. Two out of five children in my Middlesbrough constituency were in poverty before these latest insults.

It is both those in work and those out of it who are suffering. In-work poverty has hit new heights, with one in six working households now below the poverty line, thanks to the pitiful levels of the minimum wage, which despite the rise to £9.50 in April is plainly not enough to get by on. Statutory sick pay is so low, at just £96.35 a week, that during the pandemic many workers have been left with no option but to go into work when they are ill. Unlike in Germany, where SSP covers 100% of workers’ salaries, in the UK it is a measly 19%. No wonder we have some of the worst covid death rates in Europe and now this cost of living crisis.

This desperate situation for so many has come about because of the erosion of their rights over the decades since the assault on working people began under Thatcher. From the end of the second world war until 1979, about 85% of workers across the country had their rights protected by collective bargaining agreements. Such agreements bring about great benefits for workers, primarily by preventing the undercutting of terms and conditions by setting minimum standards across a sector. With the changes to Government policy brought in since 1979, collective bargaining coverage has been driven down to about 23% of workers—one of the lowest proportions in Europe, where the average is about 60%.

[Lee Anderson]

The hon. Gentleman mentions collective bargaining, but will he say how successful that was in the 1970s, when the lights were out?

[Andy McDonald]

I think a lot of people would swap now for the 1970s, when people could afford a home and food and had decent terms and conditions. Perhaps the hon. Gentleman should recall the clapping for care workers throughout the crisis—the very people who should be benefiting from sectoral collective bargaining and fair pay agreements that give them a decent standard of living. We will take absolutely no lectures from Tory Members on that subject.

With the fall in these agreements, many workers have seen a similar dive in their rights and pay, undermining their ability to put food on the table. Almost four in five workers are now at the mercy of the labour market and the whims of their employer, with no means by which to bargain collectively—a situation only exacerbated by bogus and discriminatory classification of workers. There are a number of categories of worker, with different degrees of employment rights. Some workers—employees—are entitled to all the pathetic statutory rights that are currently available if they have been employed long enough, while others, including the bogus self-employed, limb (b) workers and agency workers, are denied many of the basic rights they should be entitled to.

That is why I am pleased to introduce in this House the Status of Workers Bill, which was guided through the other place by my noble Friend Lord Hendy. The Bill would merge all the categories so they would all be classified as workers with statutory employment rights giving them the freedom to bargain for a decent wage. I implore the Minister to allow the Bill the necessary time to pass through this House to make this fundamental change to workers’ rights, which will bring about the changes we need to solve the cost of living crisis.

Like many in this Chamber, I have been inundated with cases of constituents who are struggling in the present circumstances. Lisa, a single mum, is in terrible circumstances. She has no money left. She has 10 days to go before she can get money to put food on the table for herself and her son, who is suffering from covid. I have pensioners who, proud as they are, refuse to go to food banks. That is a damning indictment of the current situation in modern Tory Britain. It has got to change—there must be fundamental change for the benefit of our constituents.

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[James Wild (North West Norfolk) (Con)]

I welcome the opportunity to speak in this debate on an issue that really matters to my constituents and the constituents of Members across the House: the cost of living increases. Contrary to some of the contributions we have heard today, the reality is that the challenges we face in the UK are the same as those facing other major economies—global inflationary pressures as the world economy rebounds after covid. That is undoubtedly causing strain on families and their ability to pay bills, and it is right that we support those most in need. I think it bears repeating that the best way to help people is to support those who can work to move into jobs. Our record is strong, with more than 400,000 people on payrolls now than prior to the beginning of the pandemic. We need to help them to gain skills to move into even more highly paid roles.

As a Conservative, I want to see people keep more of the money that they earn. To help the lowest paid people do that, we are increasing the national living wage to £9.50 an hour from April for workers aged 23 and over. That represents an extra £1,000 a year for a full-time worker. Nearly 2 million families on low incomes will benefit from £1,000 a year through the cut in the universal credit taper and increases to work allowances. However, we also need to redouble our efforts to help people without a job to move into one of the 1.2 million vacancies across the country. In my constituency, there are 1,800 people on unemployment-related benefits. Although that represents a lower rate than the national average, it still represents untapped potential for individuals. Employers in my area, whether in food processing or in other parts of the economy, are crying out for staff, so I welcome the newly launched Way to Work scheme to match people to roles that exist in North West Norfolk and across the country. It is also important to recognise the direct support through the half a billion pound household support fund to help low-income households with the cost of food and other essentials, as well as the increase in the value of Healthy Start food vouchers, which the Minister referred to.

The motion refers to sustainably high quality food, which is precisely what Norfolk excels in producing. Now we are liberated from the bureaucratic inflexible common agricultural policy, we are free to reform our agricultural sector and champion British produce internationally. I know from my discussions with the Minister that the food strategy, which we look forward to seeing soon, will have much more to say on that, on procurement and on food security.

Turning to the motion’s reference to the energy crisis, it claims that Britain is

“uniquely exposed to a global gas crisis.”

What a load of nonsense. The clue is in the word used by whoever drafted the motion, “global”. Other countries face the same challenges from the rise in wholesale gas prices that we are facing. Some 80% of the increase in the energy price cap here comes from wholesale prices. The motion is silent on Labour’s moratorium on nuclear power, which meant that our nuclear fleet has not been replaced as rapidly as it should have been. I was advising the then Energy Minister in the then Department of Energy and Climate Change when the deal for Hinkley Point C was being negotiated. That power station is on track to open in 2026. With the financing legislation passed in this House recently, we can unlock further investment in the new nuclear we need.

[Lee Anderson]

My hon. Friend talks about nuclear power. It is quite interesting, actually, because I wonder if he can recall that, in 1997, the Labour manifesto said, “We can see no economic case for the building of any new nuclear power stations.” Does he think now, moving on 20-odd years, that they regret that?

[James Wild]

I do remember and we are dealing with the consequences. Eight advanced gas reactors are coming offline in the next few years and we do not have enough capacity to replace them rapidly enough. That is why the work the Department for Business, Energy and Industrial Strategy is doing to bring forward the regulated asset base model to get financing into nuclear power is so important.

What did the Government do in the face of increased energy price caps? They came forward with a £9 billion package to help reduce their impact on people. That is the political choice that we made on the Government side of the House. Some 88.75% of properties in my constituency will receive £150 off their council tax bills in April. Then, in October, there will be a £200 rebate through energy bills. For the people in my area living off the gas grid, that will be paid through energy bills, so they benefit too. However, those people are facing an issue with the steep increases in the price of domestic oil, which is not subject to a price cap.

A constituent contacted me last week to say that before the pandemic they were paying 19.6p per litre but last week they filled up at 55p a litre. So I ask the Minister to communicate with the Department for Business, Energy and Industrial Strategy to ask whether it can consider a referral to the Competition and Markets Authority to address those concerns about increased costs. Furthermore, councils will get £150 million to give targeted support to people not getting the council tax rebate. Others have spoken about the warm home discount, winter fuel payments, cold weather payments and other support measures that exist. In contrast, the Labour party proposes a regressive tax cut that would benefit the richest households most.

The challenges that individuals and families are facing are real. However, today, once again, we have heard arguments that pretend we can in some way be immune to the global pressures driving increased costs; that somehow we alone can keep energy prices artificially low. The British public are wise and realise that that is fantasy economics. In contrast, this Conservative Government will continue to help people with the day-to-day costs they face and drive economic growth, jobs and investment.

[Ian Lavery (Wansbeck) (Lab)]

I want to put some human context into this debate. I saw on social media this weekend a comment by a single parent. She said:

“It’s difficult to imagine without experiencing it is how tiring being skint is. How you’re so utterly consumed by financial hardship that it affects every decision you make on a daily basis. It takes up every thought and you can’t escape. No wonder there is a mental health crisis”.

[Lee Anderson]

Will the hon. Gentleman give way?

[Ian Lavery]

That comes from a single parent and it sets the tone for this debate. The country is badly fractured and, sadly, broken. Kids cannot eat and pensioners cannot eat, yet sales of luxury yachts have gone through the roof.

[Lee Anderson]

Will the hon. Gentleman give way?

[Ian Lavery]

If we have a look at the grotesque inequality in this country, and at those who have and those who have not, we see that there has been a 500% increase in the number of billionaires since covid began, a £2 trillion increase in FTSE stock market value and £3 trillion increase in housing stock—

[Lee Anderson]

Will the hon. Gentleman give way?

[Ian Lavery]

And then we look at the other end of the political spectrum, where we see 14 million people in this country, the sixth richest economy on this planet, living in poverty.

[Lee Anderson]

Will the hon. Gentleman give way?

[Ian Lavery]

UK wages are at the lowest they have been and they are a 15-year standstill. Wages are gone and energy bills are going through the roof—I will come on to that. Poverty is a political choice. Hunger is a political choice. I am sick and tired of debates in this place where people from all parts are basically reducing hungry and cold families and individuals to mere balance sheet statistics—count them as human beings. The debate often gets dragged into whether this is absolute poverty or relative poverty.

[Lee Anderson]

Will the hon. Gentleman give way?

[Ian Lavery]

That does not matter to people who are suffering greatly in our communities. If they are sitting at the table with nothing to eat in the morning or at teatime at night, they are not aware of whether they are in abject poverty, absolute poverty, relative poverty or overall poverty. They might not even know that they are in poverty, but they know they are hungry. I think we will all probably have experienced being behind the person in the local newsagent who has the key to put £5 on their electricity bill—

[Lee Anderson]

Will the hon. Gentleman give way?

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I do not believe Mr Lavery is going to give way, so please save your voice for the rest of the speech. [Interruption.]

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[Mr Deputy Speaker]

Please withdraw that word.

[Lee Anderson]

Mr Deputy Speaker, I am sure that the hon. Member is not a coward.