(3 years, 3 months ago)
Commons ChamberMy hon. Friend is spot on. It is indeed a perfect storm, with all those factors coming together at the same time.
Petrol and diesel are also more expensive, costing more than they have since 2013, and the cost of buying a home has skyrocketed in Newport East. Home-Start Cymru has highlighted the huge rise in prices in Monmouthshire, and we have seen the same in Newport. That has put the opportunity to buy beyond many people, particularly our local young people trying to get on to the housing ladder. Housing insecurity has increased, with more mortgage arrears and more people pushed into renting. My hon. Friend the Member for Houghton and Sunderland South mentioned the research carried out by Zoopla, which has reported that rental prices have risen by 5% in the last 12 months, while wages have remained stagnant for many. Average rail fares are rising three times faster than wages, and are 50% higher than they were in 2010. Studies by the Office for National Statistics suggest that those who commute to work are set to experience the steepest increase in rail fares next January. As we heard from my hon. Friend the Member for Reading East (Matt Rodda), it is all coming together in a perfect storm.
There are further problems on the horizon. This week we have seen the crisis in energy costs and soaring prices. Fuel debt is already the third most common type of debt with which people seek help. The energy price cap for October—just as the cold weather sets in, furlough payments end and the universal credit uplift is scrapped—is set at £153, higher than the warm home discount payment, which has been set at the same rate since 2014. As Martin Lewis has said on his website, that payment should be increased in the Budget, and I hope that the Ministers are listening to that too.
The CAB estimates that 2 million households are already behind in paying their energy bills. As I have mentioned the CAB, it is important to note that while demand for debt advice has gone up and up, funding for debt advice services has decreased. If the Government do nothing else as we come into the autumn, they should at least look at properly funding our debt advice services.
The cutting of the universal credit uplift will be the biggest overnight cut to social security, with 8,630 households in Newport East alone seeing their money cut by £20 a week. I know at first hand from my constituents, as many hon. Members do, how the uplift has been a lifeline for those struggling to buy essentials.
I have heard from One Parent Families Scotland that single parents are often overlooked and stigmatised, and that an overwhelming number of one-parent families are headed by single mothers. On top of the day-to-day worries of increased energy and food costs, they also worry about providing a happy Christmas or a fun birthday for their children, and will push themselves into debt to do so. The £20 universal credit uplift is a lifeline for single parents. Does the Member agree that it is not enough to be barely getting by, and that it is also about quality of life?
The hon. Member makes a really valid point. Added to that is the fact that single parents who are under 25 get a lower rate of universal credit because they are perhaps deemed to be living at home, which is deeply unfair. They will also be deeply hit by these cuts and changes.
We know that 40% of those who will be hit by this cut are in work. That is an inconvenient truth for Ministers, who ignore the fact that universal credit is as much an in-work benefit as an out-of-work benefit. A cut of £1,040 a year alongside the increase in national insurance contributions says everything about where this Government’s priorities lie. Action for Children has said that
“you can’t level up the country by pushing down the living standards of some of the hardest working families in the country.”
The Joseph Rowntree Foundation estimates that 300,000 more children will be pushed into poverty. Families who are just about keeping their heads above water will be plunged into poverty.
In the face of this crisis, the Government choose not to help but to make things worse, wasting huge amounts of taxpayers’ money on outsourcing and crony contracts while hitting the same group of people over and over again. I hope that Conservative Members will do better tonight than they have in previous votes. I hope that they will stand up for constituents who need them, and show that they understand what life is like for many in this country.