(2 days, 9 hours ago)
Commons Chamber
Torsten Bell
I completely agree with the hon. Member that families up and down the country are worried about what they are seeing on their TV screens about the conflict in the middle east—maybe because they know people directly, but also much more universally about the effect on all of us and on their budgets—and they expect a Government who take a sensible approach, meaning that we protect household finances, which I will come to, as well as the public finances. That means taking decisions based on recognising the unavoidable uncertainty about how the future of the conflict plays out.
Torsten Bell
I am going to make a bit of progress, but I will give way soon, because Members have been very patient.
I was coming on to the fact that we are not in the business of delivering regime change from the air, but we do need to de-escalate the conflict and we will play our part in doing that.
Oil and gas prices remain below the peaks they reached in 2022 following the Russian invasion of Ukraine, but I do not want to hide the fact that, as we have just discussed, these are significant increases. Oil is up by 40% and gas prices have risen by around 64% since the end of February. The movement in energy markets we have already seen are likely to put upward pressure on inflation in the coming months—exactly as we have just discussed—but the ultimate size of the effects is highly uncertain. What is certain is that in the face of them, this Government will take the necessary decisions to help protect both household finances and, as I was just saying, public finances. I want to make it clear that, given the very real uncertainty, the policy and approach we are taking does give an assurance to households about how we will act.
That is good to hear. As it is under review, it sounds as if, should there be a change, the Government would look to support the British public, and I support that. Is there some kind of framework that the Government are using to make this decision? Is there a trigger point on fuel prices, or on how long petrol prices remain at that level? This relates to the previous question about budgeting. Are the Government using triggers, or is it just finger in the air and wait and see what happens?
Torsten Bell
I understand why the hon. Member is asking that. I would gently point out that the level of petrol prices today is lower than at the time of the election, when the Conservatives had a temporary 5p freeze and explicitly did not include continuing that freeze in their manifesto. I offer that by way of indication of where we are today.
We will keep working towards a swift resolution, one that brings stability back to the region, security to Iran’s neighbours and relief to households in the UK, who are understandably worried about the effect of the conflict.
Torsten Bell
This Government are showing that we care about the living standards of households up and down the country, and that is exactly what we should be doing. Encouraging all retailers to engage in the fuel finder scheme, which I will come to in a second, is very important. On heating oil, we had heard worrying evidence from people—I suspect the hon. Gentleman has, too, from his constituents—about the behaviour of some suppliers.
To further support competition in the market, we are introducing the fuel finder to ensure that petrol stations publish their live prices. That will make it easier for drivers to choose the lowest price. Since the beginning of February, all UK petrol stations have been asked to report price changes for petrol and diesel within 30 minutes.
Almost 90% of retailers have already registered. Last week, officials were instructed to accelerate the integration of fuel finder into major digital map applications, which will make it easier for drivers to use.
This tool sits alongside action to support households who rely on heating oil, as I just touched on. As the Prime Minister announced earlier this week, the Government will provide an additional £53 million of targeted support for the vulnerable households who would struggle to make an up-front lump sum to top up their tanks.
It sounds as though this support will be provided through the crisis and resilience fund, which replaces the household support fund. The problem is that many more people will not fall within that, despite seeing the price of heating oil double, if not triple—plus doubling the amount they have to order. What support is there for them? If those figures are going from £500 to £1,500 overnight, that will be a huge impact, and they will not get the £35 from the Government.
Torsten Bell
The hon. Gentleman is right, at least within England: yes, the funding will be delivered via local authorities, through the mechanism that was the household support fund, which becomes the crisis and resilience fund in a few weeks. We have written to local authorities to make it clear that they do not need to wait for the new fund to be in place and can start making commitments today. The decision on exactly who qualifies as vulnerable sits with local authorities, because one thing we have learned is that different parts of the country have different challenges on this issue.
Torsten Bell
I will make a bit of progress; I have already given way to the right hon. Gentleman.
To reflect the highly uneven geographical spread of heating oil reliance, as highlighted by lots of Members in recent weeks, not least those from Northern Ireland and west Wales, the funding will be allocated on the basis of census data, instead of via usual mechanisms.
I have focused so far on laying out the challenge facing the country and our consistent approach to this conflict, but as this is an Opposition day, it would be rude not to talk a little about the Opposition, who have displayed rank opportunism and incoherence. This week, the Leader of the Opposition has said that she is
“concerned that there isn’t a clear plan behind the strikes”,
which is the opposite of what she has been saying for weeks. She welcomed the strikes and the military action that she now says lacked a clear plan. She called for Britain to get involved in the military action that she now admits lacked clear objectives. She says that her leadership is about consistency, but, on this most important of issues, the whole country can see that she is just making it up as she goes along—a cavalier attitude without a second thought for the consequences for households here in the UK. She does not get to wrap herself up in another country’s flag and play politics with a serious conflict and then pretend she never did so once the consequences for those living in the United Kingdom became clear.
Opportunism is the word for the Opposition on fuel duty, too. For all the froth from the shadow Minister, the truth is that the previous Government did not budget for any extension of the 5p cut—they explicitly said that it was temporary. Here is the truth on the level of fuel duty: through their entire 14 years in office—
Torsten Bell
Wait for it; I am going to come to come to those 14 years. The hon. Gentleman is going to regret saying that. Through the Conservatives’ entire 14 years in office, fuel duty was never lower than it is today. In fact, it was higher than it is today for 80% of the time they were in office.
(1 month, 3 weeks ago)
Commons Chamber
The Parliamentary Under-Secretary of State for Work and Pensions (Torsten Bell)
It has been confirmed that those whose income is only the basic level of the basic state pension or the new state pension will not be required to pay tax next year, because the level of personal allowance has been set above the level of the new state pension. What the Chancellor said at the Budget was that in future years we will make sure that no pensioner will be required to fill in a self-assessment form, or indeed a simple self-assessment form, for any tax that is due because the new state pension level is above that of the personal allowance.
(9 months, 3 weeks ago)
Commons Chamber
Torsten Bell
Because Labour Back Benchers support and have total trust in their Front Benchers. All they would have said is everything that I am about to say about the record of this Government, of which we are very proud.
I will come on to the labour market, which the hon. Member for Harborough, Oadby and Wigston raised. The hon. Member for Richmond Park (Sarah Olney) asked about employment and changes to national insurance, and several Members claimed that there is a direct relationship between changes to national insurance and changes in vacancies in the labour market. Let us introduce some facts to the debate—[Interruption.] While the shadow Secretary of State chunters, here are some facts: vacancies in Britain have been falling for 34 months, there has been a Labour Government for 10 months, and there has been a national insurance change for one month. Those are the facts. We cannot let the Conservative party escape from their disastrous record by reinventing history.
One fact is that the claimant count and unemployment rate in Swansea West have gone up by 4% on the previous year. What does the Minister say to his constituents when they confront him because they are losing their jobs and the unemployment rate has gone up?
Torsten Bell
The most important fact for my Swansea West constituents is that wages at the end of the Conservatives’ period in office were stuck at the same level as when they came into office in 2010—14 wasted years for my constituents. To respond to the hon. Gentleman’s question about unemployment, I would not use the claimant count at that level because the data is not as robust as it should be. Several hon. Members have, over the course of the debate, talked about increases in the unemployment rate in recent months. Why has the unemployment rate gone up? It is not because employment has come down, but because the inactivity that shot up on the Conservatives’ watch has started to decline. That is what is going on beneath the numbers.
Why do Conservative Members not want to talk about their disastrous record on the labour market? It is because they left us as the only G7 economy whose employment rate still had not returned to pre-pandemic levels. They left us with 2.8 million people out of work through long-term sickness, and 1 million young people not in education, employment or training—more than one in eight young people were left on the scrapheap by the Conservatives.
Let me turn to the labour market today, which hon. Members have mentioned. Some 200,000 jobs have been created since the Government took office. Pay has outstripped prices, with the strongest real pay growth for years. Let me pause on the question of wages, because for many people, what they get paid is the economy. Here is a fact so staggering that it tells us all we need to know about the failure of the previous Government and the progress made under this one: wages have grown faster in the first 10 months of this Government than they did in the first 10 years of Tory Governments from 2010. That is what a country turning a corner looks like.
(1 year ago)
Commons ChamberI am terribly grateful to the Minister. He made the point about there being 235,000 applications, which was great. In my written question, I asked about that and he came back and said 117,800 claims were awarded, but 114,500 were not. Those were clearly people who felt they were entitled to pension credit but who will now struggle. What support is available for those people, who are clearly right on the cusp and are now not eligible and do not have pension credit?
Torsten Bell
The hon. Member makes an important point. We should encourage people to apply, even if a percentage of those will always not qualify. The criteria under which people have been assessed are those put in place by the previous Administration for pension credit. However, he is right; we want as many people as possible to apply, even if some of them are not successful, for exactly the reason raised by the right hon. Member for Aldridge-Brownhills (Wendy Morton)—we need awareness of pension credit to be higher and we need to encourage claims, because a lot of people who are entitled are missing out. It is not always absolutely clear whether someone is entitled, for example if they are in receipt of attendance allowance.
All the progress since September that I have spoken about is a real achievement, but I am the first to say very clearly that it is far from job done. Far too many people are still missing out on pension credit. We are already building on this winter’s campaign, and that includes writing to all pensioners who make a new claim for housing benefit and who appear to be entitled to pension credit. In the longer term, this Government are committed to bringing together the administration of pension credit and housing benefit, making it easier for pensioners to get support. That was also a policy of previous Administrations at different times, even if delivering it was not prioritised.
We will also undertake new research on what helps boost take-up—that goes to the question asked by the right hon. Member for Aldridge-Brownhills. There is a slight misunderstanding about people wanting to apply but being reluctant—the evidence does not support that significantly. The key problem is awareness of the system.
(1 year, 1 month ago)
Commons Chamber
Torsten Bell
I think that remark was directed at the hon. Member in a previous life.
We have committed to 100% first year allowances and to maintaining that going forward, but unless we deliver secure energy, generated at home through cheap renewables, there is no energy security to be had in the years ahead.