Spring Statement Affordability Test

Lord Tunnicliffe Excerpts

Wednesday 23rd March 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, the Government absolutely understand that people need support with their household bills now. That is why, previously, we had announced £9 billion to support households with energy costs over the coming year. We consider all recommendations by the Economic Affairs Committee very carefully. Of course, we have provided further support to those on universal credit through cutting the taper rate and increasing the work allowance.

[Lord Tunnicliffe (Lab)]

My Lords, I never thought I would find myself saying this, but I must commend this Question from the noble Lord. It seems to me that it goes to the essence of good government. The Government should try to understand the needs of all sections of our society, particularly those with the greatest needs and the least influence. This morning, we learned that inflation has hit 6.2%—a 30-year high —and is likely to continue climbing. Today’s Spring Statement contained modest changes aimed at working people, but nothing—I repeat: nothing—to ease the very genuine concerns of pensioners and benefit claimants. Those relying on social security face significant real-terms cuts in their payments in just two weeks’ time. Why have the Government chosen, yet again, not to ease the huge cost-of-living pressures faced by some of the most vulnerable in society? Is it because, as individuals, members of the Government cannot envisage the appalling pain of real poverty, and hence believe it does not exist?

[Baroness Penn (Con)]

I am afraid I disagree with the noble Lord. The measures announced today were not modest; they were significant measures in terms of putting money back into people’s pockets to help them with the cost of living. We have taken significant action before today in the energy support package, in the changes to universal credit, in increasing the national living wage, which is rising by 6.6% in April—worth £1,000 to people on the national living wage who are earning full-time. So I am afraid to say I disagree with the noble Lord. I also disagree with the policy that he advocates of cancelling the health and social care levy to pay for our NHS. I listened carefully to his honourable friend Rachel Reeves’s response to the Statement today, and I did not hear her advocate for any changes to benefit levels.