Cost of Living

Marion Fellows Excerpts

Tuesday 25th January 2022 Westminster Hall

[Marion Fellows (Motherwell and Wishaw) (SNP)]

It is a pleasure to serve under your chairmanship for the very first time, Mrs Cummins. I congratulate my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) on securing this timely and important debate, and thank all Members who have taken part. We have had a wide range of contributions, highlighting various factors concerning the cost of living these days.

This Tory Government are proud of their success in getting people into work—it is trumpeted at every turn. However, what is the point of getting people into work if doing so does not help them to support their families to get the basics in life? A pretendy living wage just does not do that; it does not help them when they become sick and have to rely on an absolutely ludicrous statutory sick pay, and it does not help if they are a pensioner on the most meagre pension in the western world, or a WAPSI woman waiting and waiting for her pension to arrive.

The UK is one of the richest countries in the world, but the gap between the richest and poorest in our society continues to grow. Many of my constituents in Motherwell and Wishaw suffer under this Government. Energy bills will rise by 45% from April. “That is a worldwide issue,” say this Government. That is true, but what makes the difference is what a Government do to mitigate poverty. What do this Tory Government do? Very, very little. As my hon. Friend the Member for North Ayrshire and Arran said, National Energy Action estimates that 6 million UK households will be living in fuel poverty by April—a 50% increase from April last year. I ask the Minister: what will be done about that? Inflation is rising, but the headline figures of predicted rises do not give the full picture. The think-tank Reform has said that inflation is hitting poorest families hardest.

Lorna Cooper from Paisley, the author of “Feed Your Family For £20 A Week”, prepared a shopping list and meal plan for January 2021 and then made a comparison this month. In 2021, the shopping list for the meal plan cost £20.21. This year, the cost is £25.88, which is a 23% increase. As we all know, many supermarket basic ranges no longer exist, and there cannot be many of us who have not already heard of the 141% rise in the cost of basic pasta.

This UK Tory Government have failed to address a cost of living crisis that will disproportionately affect disabled people. The Joseph Rowntree Foundation found that 49% of those living in poverty in the UK are either disabled people, or live in a household containing a disabled person. The Disability Benefits Consortium estimated that 2 million eligible claimants have missed out on support due to the decision to exclude legacy benefits claimants from the £20 uplift—a decision that now faces legal challenges. It also found that even if disabled people had received the £20 uplift that they were denied, it would still not be enough to meet the real needs of disabled people who rely on benefits.

Research by Scope says that life already costs those who are disabled £583 more a month on average, and that families of disabled children

“On average, face extra costs of £581 a month”.

It adds that

“For…24%...of families with disabled children, extra costs amount to over £1,000 a month.”

Disabled people have been disproportionately impacted by the pandemic and the covid restrictions, from rising food and energy prices to the emotional toll of shielding, but disabled people have been forgotten about in this Tory covid recovery plan.

Providing unpaid care is pushing thousands of families into poverty, and will have a lasting impact on their finances and quality of life. That was the case before covid-19, but the situation has now been exacerbated by the pandemic. Now such families face a cost of living crisis.

The Family Fund found that in 2021, 75% of families with disabled children reported that the overall support available to them had decreased since the beginning of the pandemic, and 76% reported that their overall financial situation had become worse as a result of the pandemic—and now the cost of living is increasing daily.

Carers UK has found that carers are using their own income or savings to cover the cost of care, equipment or products for the person they care for. On average, carers spend an estimated £1,370 a year on services or equipment for the person they care for. It also found that 35% of carers who provide 35 or more hours of care a week have been or are in debt. These are the words of a carer:

“I don’t have luxuries, can’t afford life insurance, car insurance or house insurance. At 60 I shouldn’t be using food banks and made to feel inadequate because I can’t afford petrol.”

Another carer has said:

“Crippled further by heating/electric going up even further to £177 a month. We have managed without heating in the past, I suspect we will again now”

Think about that—it is 2022. This situation is appalling.

What can be done about all this? The UK Government must introduce an emergency financial package to support the most vulnerable and to help families to cope with the Tory cost of living crisis. Here are some suggestions, based on what the SNP Scottish Government are doing, using their devolved powers to support disabled people—and, as my hon. Friend the Member for North Ayrshire and Arran has said, they are doing so on their fixed budget.

The Scottish Government have extended child winter heating assistance to include young people aged 16 to 18. In total, they will support severely disabled children, and young people and their families, through a £202 payment to help with heating bills. This benefit is unique in the UK.

The Scottish Government’s child disability payment opened for new applications in November last year. It is the first of three complex disability benefits to be introduced nationwide by the Scottish Government; the adult disability payment will be introduced at the end of this year. This new payment replaces the UK Government’s disability living allowance for children and provides money to help with the extra care and mobility costs that children and young people with a disability may have. The Scottish Government will provide disabled people with a fundamentally different experience, based on dignity and respect. They will also ensure that individuals who face the greatest inequalities and risk of long-term unemployment are at the forefront of those benefiting from support.

What will this UK Tory Government do to help those most in need? Will they roll back the benefits cap, the two-child limit and the cut to universal credit of £20 per week—removed as the cost of living rises and never given to those on legacy benefits? Will they cut back on the rise in national insurance contributions from April, which will affect the lowest paid, but not those living off dividends and property rentals? Will they provide real help with energy costs and housing costs, which have been mentioned a lot in this debate? I should like to think that they will, but I doubt it.

As a bonny lass from Ayr, it would be remiss of me to let today go without a bit of Burns, so here is the “Selkirk Grace”:

“Some hae meat an canna eat,

And some wad eat that want it;

But we hae meat, and we can eat,

And sae the Lord be thankit.”

It was true in Burns’ day that there were haves and have-nots; it is a disgrace that this state of affairs still exists in the UK in 2022. People and organisations across Motherwell and Wishaw, and the whole UK, are fighting the effects of poverty day and daily. It is time for this UK Government to step up and do the same.

--- Later in debate ---

[Alison McGovern]

I thank the hon. Member for his intervention, and to a degree, I agree with him: any of us could end up needing to go to a food bank. This can happen to any of us, but important though food banks have become, I want a Government that seek to end the need for them. Is that too much to ask? Do we just have to accept food banks as a permanent feature of our country now, or might we one day have a Government that set out to end the need for them?

As much as I agree with some of the points made by colleagues from the SNP, I have to challenge them. How are they going to meet their own goal set in 2017 of child poverty reduction? It was made without qualification. We all want to see an end to child poverty and therefore it is important that that goal is met. I feel strongly that the Tories in Westminster made the wrong choice in getting rid of Labour’s national goal to end child poverty and wiping the Child Poverty Act 2010 from the statute book. It is equally important that those who have made commitments to the people of Scotland stick to them.

[Marion Fellows]

The way the Scottish Government will do this is through independence and the control of our own economic levers—it is as simple as that. We make commitments and we hope to be able to achieve them, because then we can do things the way they should be done and in the way that is best for people in Scotland.

[Alison McGovern]

I look forward to hearing how that is going to work. I think the way to tackle poverty everywhere in the United Kingdom is through co-operation and the use of the redistributive force of the United Kingdom Treasury. Members rightly mention the bad impact of the botched Brexit deal on our country’s economic fortunes. I would hate to see any part of our country go through the same thing with the loss of access to the United Kingdom single market, so I look forward to hearing more in future debates about how that will work.

I turn to the UK Government and the issue of inflation. Members have mentioned that the headline inflation rate in no way represents the specific forces of inflation that are faced by those with the least. I think people who suffer poverty must be some of the finest economists in the country, because they are able to monitor prices and make every penny they have stretch further when they need to. The Government should take some responsibility here. What has the Minister asked of the Office for National Statistics, in respect of its measuring and reporting, so that we can know exactly what situation is faced by the people who have the least in this country?

I point the Minister to the comments of the chief executive of Iceland, who says that he is losing customers not to his competitors but to food banks. That should tell the Minister that we really do have a problem with prices in this country that cannot simply be understood from the headline rate of inflation.

Secondly, on work, does the Minister accept that whatever the intention of a jobs plan that set aside £9 billion for a job retention grant that was then cancelled; whatever the intention of a jobs plan that had a kickstart programme that was supposed to get jobs for 250,000 of our young people but failed to do so; and whatever the intention of a jobs plan that was supposed to bring older people back to the workforce, given the level of vacancies in our country now, that jobs plan was a failure?

Does he further accept that when it comes to people’s wages—the other side of the cost of living crisis—a crucial part of the problem is that people have too little choice about the job they do? The OBR says that one in five people is working below their skill level. They could get a better job, but they have not. The Government have much more to do to improve people’s prospects at work. I would bet the Minister agrees that the best route out of poverty is work. Why do we have a Tory Government that are failing to get people jobs that can pay for their bills and shopping? It is an outrageous situation.

Finally, I turn to some of the other ways in which people need help. If we think about people’s ability to earn more, some of the things that are holding them back are those facts about our economy that we have known about for far too long. The childcare system in this country is expensive and complicated. What steps has the Minister taken to simplify it? People trying to make ends meet on a lone parent’s income, for example, are limited by the cost of childcare and whether it is available at all. I think again of the one in five people who work below their skill level. A lot of them have caring responsibilities for children or older relatives and cannot work longer hours in their jobs because they do not have care support. What conversations has the Minister had about solving that?

I also want to mention the simple fact that in too many parts of our country it is hard to get around on public transport. The price of buses has gone through the roof in recent years, and in some parts of the country people cannot travel to a job because there is no public transport. Yes, the price of motoring has gone up, but it is hard to get a better job if someone relies on public transport in areas that have too little.

It would be remiss of me not to mention the fact that too few people are members of trade unions in this country, and that limits their ability to bargain for better wages.

The Labour party has put forward some simple, compelling and obvious ways in which the Government could take steps today to tackle the cost of living crisis. Whether it is cutting VAT on fuel or extending the warm home grant through a windfall tax on oil and gas, we know there are steps that we can take now. However, I want to hear from the Minister about the bigger structural changes that we need to fundamentally shift our economy so that every family in this country can truly make ends meet.