Inflation

Lord Fox Excerpts

Monday 23rd May 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, I acknowledge the point about the differential impact of inflation. That has not always been the case, but according to the IFS’s report it was driven largely by the increase to the energy price cap and rising energy prices. That is where we have focused our support, through the warm homes discount and the £150 council tax rebate that is coming through to people now. In addition, as I said, there is forthcoming support, with a further £200 off people’s energy bills in October.

[Lord Fox (LD)]

My Lords, the Minister’s change of narrative on an energy windfall tax is intriguing, but would she agree that the Government have already received a windfall from increased receipts from VAT and from petroleum duty? Given that much money—perhaps the Minister can tell your Lordships’ House how much extra money has been received—there is a pot available to help the least able. Will she agree that this money should be used now to help the poorest people in this country?

[Baroness Penn (Con)]

My Lords, with regard to a windfall tax, my comments only echoed those of the Chancellor and those of the Prime Minister. On the additional revenue that has come in through VAT receipts and other areas, the noble Lord is right, and we have used additional finance to provide extra support to people that is worth over £22 billion. That includes new help that will flow through to people’s pockets—not yet, but in the future. For example, once the uprating in the thresholds for national insurance is in place in July, people will have more money in their pay packets as a result.