Poverty: Food Costs

Mark Spencer Excerpts

Wednesday 1st March 2023 Westminster Hall

[The Minister for Food, Farming and Fisheries (Mark Spencer)]

It is a pleasure to serve under your chairmanship, Mr Dowd. I congratulate my hon. Friend the Member for Ashfield (Lee Anderson) on securing the debate. Given the time restrictions, it will be difficult for me to respond to all the points that have been made, but I will start by recognising the impact that high food prices are having on household budgets.

High food prices are a result of many different factors, including agrifood import prices, domestic agricultural prices, domestic labour and manufacturing costs, the exchange rate for sterling—and not least, of course, Putin’s illegal war in Ukraine and the aftershocks of the pandemic, which are having a global impact, with food prices rising at home and abroad. Other countries are experiencing high food price inflation, with 16% being recorded in the euro area in December last year. Rising food prices are a big contributor to the high levels of inflation that people are currently experiencing. However, we have seen a slight fall in the official food price inflation figures for January. We will continue to watch and monitor the situation as food price inflation continues to move around.

Given the impact of high food prices, tackling inflation is the Government’s No. 1 priority. We plan to more than halve inflation this year, and we are monitoring all key agricultural commodities so that we can work with the food industry to address the challenges that it faces. Low-income households are most affected by high food and energy prices, which is why we have provided a package of support to help people with rising food costs. The Government have already committed £37 billion to support households with the current exceptionally high cost of living, £1 billion of which has gone towards help with the cost of household essentials.

Looking forward to April, the Government will uprate benefit rates and the state pension by 10.1%. The benefit cap levels will increase by the same amount in order to increase the number of households that can benefit from these uprating decisions. In addition, for 2023-24, households on eligible means-tested benefits will get up to £900 in cost of living payments, which will be split in three payments of about £300 across the 2023-24 financial year. A separate £300 payment will be made to pensioner households on top of their winter fuel payment, and individuals in receipt of eligible disability benefit will receive a £150 payment.

In order to better understand who is currently experiencing food poverty, we introduced a set of questions into the family resources survey to measure and track food bank use from April 2021. The first results of those questions are due to be published very soon, subject to the usual quality assurances.

The Government spend around £1 billion annually on free school meals, and protections are in place to ensure that eligible pupils keep their free school meal entitlement even if their household circumstances change. The end date for that has now been extended to March 2025. The latest figures from the Department for Education show that around 1.9 million pupils are claiming free schools meals, which equates to 22.5% of all pupils, up from 20.8% in 2021.

[Daniel Zeichner]

Will the Minister address the pressures on school meal providers, which have faced hugely increased costs and have had little extra help to provide nutritious food?

[Mark Spencer]

Of course, we recognise that there are cost pressures throughout the whole food supply chain. That is why the Government are offering huge amounts of support to households to try to cope with that. However, we acknowledge that there are challenges—not just in schools but in the Prison Service, the NHS and many Government Departments. That is why we need to address inflation, which is one of the Government’s highest priorities.

We continue to work with food retailers and producers to explore a range of measures that they can take to ensure the availability and affordability of food. It would be remiss of me not to mention the recent issues that we have experienced with the supply of certain fruit and vegetables to supermarkets in the UK. We are continuing to engage with industry throughout this period, and I hosted a roundtable with retailers this week to explore with them their contractual models, plans to return to normal supplies and contingencies for dealing with supply-chain challenges. I have also asked them to look again at how they work with our farmers and how they buy fruit and vegetables so that they can further prepare for these unexpected incidents. In the meantime, I reassure hon. Members that the UK has a highly resilient food supply chain, which was demonstrated during the covid-19 response. It is well equipped to deal with situations with a potential to cause disruption.

I want to address the comments made by the hon. Member for Westmorland and Lonsdale (Tim Farron). He tried to divide the House this evening on the statutory instrument that provides funding for ELMS. That is a real disappointment and a misunderstanding of the challenges that we face. In effect, he tried to keep English farmers tied to the EU’s bureaucratic and tiresome common agricultural policy by trying to shout down that legislation.

[Tim Farron]

Will the Minister give way?

[Mark Spencer]

I will give way in a moment. The hon. Gentleman made a point about wealthy people. Under the CAP, 50% of the budget went to 10% of landowners, and it did little to support food production or environmental improvements. With the new schemes, we are trying to ensure that nature works hand in hand with those who produce food.

[Tim Farron]

I am grateful to the Minister for giving way. He will know that all parties here are united in our support for the principles of ELMS, and we think that moving to public money for public goods is the right thing. I said on the record just a few moments ago that the CAP was one of the worst aspects of the European Union, and it is one of the few reasons to celebrate not being in it. The key thing is that the Minister’s party and the Government supported, proposed and promised £2.4 billion of ringfenced farm support. I am sure that he will confirm that that money is not being spent at the moment, because the basic payment scheme has been withdrawn and the new schemes are being taken up by a fraction of those to whom they should be available. That means he has broken that promise to farmers.

[Mark Spencer]

No, I absolutely stand by that commitment.  We will spend £2.4 billion of taxpayers’ money every year in this Parliament. If we fall short and spend only £2.3 billion this year, we will roll that forward and spend £2.5 billion next year. In rolling out those schemes, farmers clearly needed time to adjust, have a look at those new schemes and ensure that they could bid and understand the process that is taking place. It has taken a while to get those schemes right, but we worked with farmers to ensure that they were right. We have now rolled them out, and there are huge numbers of farmers bidding for capital grants on slurry and equipment, to enter into sustainable farming incentive agreements and get involved with countryside stewardship. That is the right thing to do and the right way to go forward.

I am conscious of time, Mr Dowd, because I want to give my hon. Friend the Member for Ashfield time to respond. I thank him for introducing this debate. The Government have a shared ambition to ensure that our food system delivers healthy and affordable food for everyone. I thank him and other colleagues for engaging in this debate.