UK Economy

Patrick Grady Excerpts

Monday 19th February 2024 Commons Chamber

[Bim Afolami]

All I would say to the hon. Gentleman is that we are in a very challenging international context and we have performed better than the international forecasts. We had high inflation, which really bedevilled this economy a couple of years ago, but we have more than halved it. We have a plan to grow our way out of this, as was shown by the last fiscal event, where we unveiled, I think, 110 growth measures. That is our plan. The Labour Opposition do not have a plan. If this country sticks with our plan, we will grow our economy significantly over the coming months and years.

[Patrick Grady (Glasgow North) (SNP)]

The Minister keeps trying to hide behind the war in Ukraine and the impact of the pandemic, but the reality is that those are affecting every country in the world. Would he not admit that the exacerbating factor—the thing that has led most to economic decline, to massive labour shortages and to rampant inflation here in the UK—is Brexit?

[Bim Afolami]

No, I would not.

Finance Bill

Patrick Grady Excerpts

Committee of the whole House
Wednesday 10th January 2024 Commons Chamber

It is utterly shameful that the UK Government have failed to introduce measures in the autumn statement or the Bill that would improve the lives of millions of people who are facing poverty, and in some cases actual destitution. The fundamental problems with the autumn statement and the Bill are what was omitted from it.

[Patrick Grady (Glasgow North) (SNP)]

Is this not the problem? If we do not invest in people’s health and wellbeing, in the long term it will cost the NHS, social services and the Department for Work and Pensions even more to support people as they continue to spiral down. Does that not contrast with the preventive approach that the Scottish Government take, with such innovations as the baby box and the child payment?

[Drew Hendry]

My hon. Friend is right: the on-costs of not doing so lead to further problems, and to higher costs not only to the public purse but to the mental and physical wellbeing of those who are impacted by the cost of living crisis.

These major fiscal events serve as a tangible example of the total mismatch between the values of the UK Government and the people of Scotland. The things that the UK Government choose to spend money on and the tax measures that they have chosen to leave out of the Bill, such as abolishing non-dom status, are a clear reminder of that. It is abhorrent that at the same time as announcing cruel measures to force ill and disabled people into work, the UK Government did not include any provisions on making the tax system fairer. There are countless examples of the UK Government wasting money and then attempting to claw back the funds by targeting groups who are the least well off. The return to draconian measures forced on ill and disabled people is just the latest example. The stark difference between the Bill and the Scottish Government’s Budget, which prioritises ensuring that everyone in Scotland can have a decent standard of living, is a timely reminder of why we need independence.

The SNP believes that building a strong economy starts with giving people a decent standard of living, and our most recent Budget reflected that, as my hon. Friend the Member for Glasgow North (Patrick Grady) mentioned. The Scottish Government’s Budget reflects the people of Scotland’s shared values and speaks to the kind of Scotland that we want to be. It is important to remember that the Scottish Government have achieved that against the backdrop of their very limited ability to raise additional revenue through taxes, and having to work largely with a fixed budget. Despite those very difficult circumstances, the Scottish Government have once again shown their commitment to protecting the NHS from strikes, as well as investing in it and shielding the most vulnerable people, as far as possible, from the impact of regressive Westminster policies.

While the Tories have just delivered a 3% real-terms cut to England’s NHS in their autumn statement, the Scottish Government announced an increase to the frontline NHS budget in real terms. They also remain committed to helping those most impacted by the cost of living crisis. In their Budget last month, the Scottish Government increased the game-changing Scottish child payment in line with inflation to £26.70 a week, giving more support to the more than 323,000 under-16s who receive it. They maintained their commitment to invest £1 billion over the course of this Parliament to tackle the poverty-related attainment gap, with £200 million to be distributed in 2024-25. They are committed to funding the £12-per-hour real living wage for adult and child social care, and early learning and childcare workers in the private, voluntary and independent sectors that deliver funded provision. They have helped households through the cost of living crisis by making available an additional £144 million of funding to councils that agree to fully fund a council tax freeze in 2024-25—the funding equivalent of supporting a 5% increase. Those are just the latest measures the Scottish Government have taken to promote equality.

The Scottish Government have of course introduced landmark policies to ensure that everyone in Scotland has access to a decent standard of living. If Westminster was in charge, Scotland would lose things like free university tuition, free school meals, free period products, free bus travel for under-22s and free childcare for three and four-year-olds, as well as eligible two-year-olds. All that is possible because the Scottish Government take a different approach to a Budget than this place, and we need to ensure that we can do that in a much more effective way through the powers of independence.

Oral Answers to Questions

Patrick Grady Excerpts

Tuesday 19th December 2023 Commons Chamber

[Jeremy Hunt]

I am happy to write to the hon. Gentleman with the exact numbers, but for people on low incomes—people being paid the lowest legally payable wage—their post-tax real income has gone up by 30% since 2010, because the Conservative party believes in making work pay.

[Patrick Grady (Glasgow North) (SNP)]

Why is the fiscal situation strong enough to cut national insurance, but not strong enough to return the overseas aid budget to 0.7% of GNI?

[Jeremy Hunt]

Because the way we return the overseas aid budget to 0.7% is to grow the economy. By cutting national insurance, we put nearly 100,000 more people into the national workforce, filling nearly one in 10 vacancies in companies up and down the country.

Oral Answers to Questions

Patrick Grady Excerpts

Tuesday 14th November 2023 Commons Chamber

[Deidre Brock (Edinburgh North and Leith) (SNP)]

4. What recent assessment he has made of the implications for his policies of trends in the level of food inflation.

[Patrick Grady (Glasgow North) (SNP)]

20. What recent assessment he has made of the implications for his policies of trends in the level of food inflation.

[The Chancellor of the Exchequer (Jeremy Hunt)]

UK food inflation has been driven largely by global factors and has already fallen from 19.6% to 12.3%, and external forecasts expect it to continue to fall.

--- Later in debate ---

[Jeremy Hunt]

The lesson I have learned is straightforward: if we had not reduced the deficit by 80% between 2010 and the start of the pandemic, we would not have been able to help families across the United Kingdom with payments of more than £3,000, on average, including 700,000 households in Scotland and more than 1 million pensioners.

[Patrick Grady]

Even if the inflation rate is falling, food prices are still going up considerably. The Joseph Rowntree Foundation reckons that they have gone up at least twice as fast as the value of benefits since September 2021. At the very least, can the Chancellor commit to ensuring that the Department for Work and Pensions has enough resource to raise benefits at least in line with September’s inflation rate?

[Jeremy Hunt]

The Secretary of State for Work and Pensions is doing his review at the moment to decide the correct amount by which to uprate benefits. If the hon. Gentleman looks at this Government’s record, he will see that we took the decision a year ago to uprate benefits by inflation, and we committed to £94 billion of measures to help families get through the cost of living crisis.

Oral Answers to Questions

Patrick Grady Excerpts

Tuesday 20th June 2023 Commons Chamber

[Gareth Davies]

I can think of few better advocates for the oil and gas industry than my hon. Friend. I was very pleased to meet industry leaders and the chair of the oil and gas forum in Aberdeen recently. We had a very good discussion and I am grateful to the industry for its ongoing engagement with Ministers and officials. I can assure him that the Government are very committed to engaging with the oil and gas sector, as we have been doing for a long time.

[Patrick Grady (Glasgow North) (SNP)]

14. What recent assessment his Department has made of the potential impact of withdrawal from the EU on the economy.

[The Financial Secretary to the Treasury (Victoria Atkins)]

As per my previous response to the same question by the hon. Gentleman in the last Treasury oral questions, I note that the UK has grown at a similar rate to comparable European economies since 2016, and that it still remains challenging to separate out the effects of Brexit and wider global trends on the UK economy. We remain absolutely committed to seizing the opportunities we now have, free from the EU.

[Patrick Grady]

That is very convenient. Only the UK has to deal with Brexit. Everyone has had to deal with covid and everyone has had to deal with Ukraine, but only the UK has had to deal with Brexit. That is why, according to the London School of Economics, customers have collectively paid nearly £7 billion extra in their food bills as a direct result of all the checks and frustrations that have come with Brexit. Is the Minister honestly saying that it was a good idea, and that it has not hurt the UK economy?

[Victoria Atkins]

Let me again gently remind the hon. Gentleman to look at what is happening in the rest of the EU. For example, the eurozone is suffering from the effects of mild recession. All this is due to the global headwinds that we are all facing. However, I know that the hon. Gentleman will be delighted by the recent growth upgrades from the Office for Budget Responsibility, the Bank of England and the OECD. We do face challenges, and of course we have to work with our global counterparts to try to deal with those global headwinds, but we are focusing very much on the Prime Minister’s priority of halving inflation, because that is what will make a real difference to our constituents.

--- Later in debate ---

[Patrick Grady (Glasgow North) (SNP)]

The Chancellor was shaking his head during my question earlier on, so will he say whether he accepts the findings from the Centre for Economic Performance at the London School of Economics that shows that Brexit is responsible for a third of UK price inflation since 2019? Regulatory sanitary checks and other border checks added almost £7 billion to total domestic grocery bills over the period from December 2019 to March 2023. Does he accept that?

Cost of Living

Patrick Grady Excerpts

Tuesday 16th May 2023 Commons Chamber

[Patrick Grady (Glasgow North) (SNP)]

Supermarket shelves empty of food and basic goods, unaffordable energy prices and inflation and interest rates going through the roof—these were the nightmare, apocalyptic scenarios facing Scotland if it voted for independence, or so we were told in 2014. Voting to stay in the Union, on the other hand, would guarantee freedom of movement, access to the European single market and the protection and enhancement of the Scottish Parliament’s powers. And we were told there was no chance that the then Mayor of London, now the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), would ever become Prime Minister. Those arguments, promises and vows were enough to persuade a majority of people across Scotland to say no, or at least not yet, to independence.

People now go shopping every day in Glasgow North to find supermarkets short of goods. They worry about the cost of heating their home and they despair as their rent or mortgage payments climb ever upwards. Access to Europe is more difficult, Tory Lords openly call for devolution to be wound back and we are all living with the consequences of a Johnson premiership. People in Scotland did not get what they voted for nine years ago. The United Kingdom, as it was on 18 September 2014, effectively no longer exists.

Every country in the world is having to deal with the consequences of the pandemic and of Russia invading Ukraine. Only one country in the world is having to deal with the impact of Brexit. Just as people who voted to stay in the Union were promised one thing only to be delivered something completely different, people who voted for Brexit are finding the reality very different from what was promised. There is no £350 million a week for the NHS, there has been no mega trade deal with the United States and this Parliament has not taken back control. The Tory Government have simply replaced Brussels bureaucrats with Whitehall mandarins as they award themselves ever-increasing powers through their Brexit legislation.

When Scotland voted not to become independent, the SNP and the Scottish Government accepted it and wanted to find a post-referendum settlement that could work for everyone, which is why we joined the Smith Commission and why SNP MPs came down to Westminster to lead, not leave, the UK. Compare that with the Conservative response to the European referendum. They delivered the hardest possible Brexit on the narrowest of mandates, and still it is a Brexit that satisfies no one. It is not isolationist enough for the European Research Group and the Maastricht rebels who occasionally prowl the Tory Back Benches, and it is still causing economic chaos up and down the country. The Government wave around the Windsor framework as if it is some kind of triumph, and they proclaim that Northern Ireland has the best of both worlds. By their own definition, the rest of the United Kingdom must have something worse.

The motion before the House points to the Office for Budget Responsibility’s forecast of a 4% drop in the UK’s GDP entirely attributable to Brexit. Every day, the evidence of this is already visible in Glasgow North and around the country: the delays in getting essential supplies to shops and services; the staff shortages in social care, the health service, hospitality and entertainment; and the academic research and collaborations that are simply no longer happening because it is now too complex.

I have lost count of the number of small business people and entrepreneurs who have told me that they had to set up subsidiary companies or fresh outlets in European cities, at extra cost and expense, because of the hurdles that Brexit put in the way of them developing their business, and I have lost count of the number of constituents who are facing unexpected and sometimes unexplained bills, particularly from energy companies. Many of us will not have seen such cases before 2020. In fact, I think it has been a shock to many energy companies, too, because they are struggling to deal with the volume of inquiries and disputes, which is why I strongly support the campaign of my hon. Friends the Members for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) and for Glasgow North East (Anne McLaughlin) to better hold those companies to account in returning credit balances to customers and making prepayment meters much fairer. I also welcome the efforts to amend the Energy Bill to empower local communities to generate more of their own clean, green energy for use in their neighbourhoods.

Those are the kinds of solutions that groups such as Parents for Future and the Warm this Winter campaign, which I recently met in the Hillhead library, want to see. They want to see a fair, just and sustainable transition away from fossil fuels across all sectors, which could be at the heart of tackling the cost of living crisis. Localising our food systems, investing in public transport and active travel, and reducing, reusing, recycling and repurposing our consumer goods could help to create more jobs and make everyday life more affordable at the same time.

Those are the prizes available if we live up to the commitments that we all made, including this Conservative Government, to achieve the sustainable development goals and the targets set at COP26 in Glasgow and at other climate conferences, but all that seems to have been forgotten in the rush for the hardest possible Brexit and the Tory concept of a global Britain that is all about the imagined glories of the past.

The reality is that a Labour Government, by their own admission, would not change any of those fundamentals. A Labour Government would be pro-Brexit, anti-immigration and terrified of any meaningful constitutional reform.

[Pete Wishart (Perth and North Perthshire) (SNP)]

My hon. Friend is making an exemplary speech, as always. We have seen how the Labour party has aligned itself with the Tories on Brexit, on immigration and on protest legislation. For how long will Labour be in step with the Tory attacks on our democracy, our devolution and our Parliament?

[Patrick Grady]

My hon. Friend is right to raise those concerns. We hear the drumbeat against the hard-won powers of devolution, which used to enjoy consensus, and we see the centralising tendency of all Westminster Governments. Whatever their shape, they want to centralise power here in the House of Commons. Labour has been promising reform of the House of Lords for more than 100 years, and it has been in power once or twice in that time without making a vastly noticeable difference. I disagree with the expectation that anything will change significantly. There will be an interruption, a brief interlude, as there always is, before the UK reverts to a Tory Government for whom Scotland has not voted.

[Dr Whitford]

Through the United Kingdom Internal Market Act 2020, this Government basically drove a coach and horses through devolution, and the Labour Benches were notably empty during that Act’s passage.

[Patrick Grady]

They are notably empty this afternoon, too. My hon. Friend is correct. That will continue to be the case as far as Scotland is concerned, because I have every confidence in the SNP continuing to return a majority of seats in Scotland for as long as we are in Westminster. That future will be short-lived because, as the 78% of voters in Glasgow North who voted to remain in the European Union and the 50%-plus who voted for independence in 2014 already know, it is now up to Scotland to choose a different path.

Scotland will have, and has always had, the right to choose to become, once again, a member of the community of nations in its own right. The reality is that when the majority of people in Scotland are prepared to vote for independence, Scotland will become an independent country. No Supreme Court, no Westminster Parliament and no constitutional convention made up by the Better Together campaign will be able to stop that.

With the full powers of independence, we will not need to spend resources mitigating the impact of failed UK Government policies of whatever colour. We will be able to support and empower everyone who calls Scotland home, and we will be able to work with like-minded nations to build a fairer and more peaceful planet for everyone: the early days of a better nation in the early days of a better world.

--- Later in debate ---

[David Linden]

I was in the Chamber—I may have lapsed into a coma. The hon. Lady talks an awful lot about Brexit and the damage of Brexit. The reality is that the Liberal Democrats were advocating a people’s vote knowing that Brexit was a disaster. I ask her to reflect on her party’s hypocrisy on the idea that, when the facts change, people should have the opportunity to change their minds. What is sauce for the goose is sauce for the gander.

[Patrick Grady]

I think that I am right in saying that the Liberal Democrats proposed not only a people’s vote but said that, if they formed the Government of the United Kingdom after the last general election, they would reverse Brexit immediately. So they say that we can have a de facto referendum in the shape of a general election, because their policy was to undo Brexit if they had won the UK general election. Now, of course, they are happy to continue with Brexit.

[David Linden]

I would caution my hon. Friend not to take absolutely seriously any commitments made by the Liberal Democrats in the run-up to a general election. The Labour party has been taking a leaf out of Nick Clegg’s book when it comes to tuition fees in the run-up to a general election. Perhaps the hon. Member for Edinburgh West will have that on her next leaflet.

My hon. Friend the Member for Arfon (Hywel Williams) spoke about energy, and my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands) spoke passionately about businesses in his constituency and the impact that Brexit is having on them.

My little heart was cheered when the hon. Member for Leicester East (Claudia Webbe) got to her feet to take part in the debate. It was only about five minutes into her speech that I realised that she is not a member of the Labour party any more, so we could not tick off her speech as a Labour contribution. The debate was finished off by my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), who spoke about a number of issues including fuel poverty in the highlands, which has been a massive issue.

Oral Answers to Questions

Patrick Grady Excerpts

Tuesday 9th May 2023 Commons Chamber

[Kirsten Oswald (East Renfrewshire) (SNP)]

12. What recent assessment his Department has made of the potential impact of the UK’s withdrawal from the EU on the economy.

[Patrick Grady (Glasgow North) (SNP)]

17. What recent assessment his Department has made of the potential impact of the UK’s withdrawal from the EU on the economy.

[The Financial Secretary to the Treasury (Victoria Atkins)]

The UK has grown faster than France and at a similar rate to Germany since leaving the single market. It remains challenging to separate the effects of Brexit and wider global trends on the UK economy, such as the invasion of Ukraine by Russia, adding pressures to trade, prices and the wider economy. We continue to support businesses trading with the EU and help them to seize new opportunities with fast-growing economies around the world, including through our free trade agreement negotiations.

[Victoria Atkins]

Crikey, I am going to leave it to the Leader of the Opposition to flip-flop his way through that particular policy. What I can tell the hon. Lady is that we are the best place in Europe to invest in tech. We are only the third economy in the world with a $1 trillion tech sector; we are ranked as the world’s fourth most innovative economy; and we have created more unicorns than France and Germany combined.

[Patrick Grady]

Unicorns and fantasies are largely what we hear from Members on the Government Benches these days. The reality is that the Music Venue Trust reckons that grassroots venues are closing at a rate of one per week, bands from Europe find it increasingly difficult to travel here, and our hospitality sector more generally is experiencing catastrophic staff shortages. Is Lord Heseltine not right when he says that Brexit has been

“a classic mistake, a terrible”

horrible miscalculation, and the

“elephant in the room of our present economic difficulties”?

[Victoria Atkins]

I am interested that the hon. Gentleman dismisses these incredibly successful unicorn start-ups in the UK economy. I hope that he will not dismiss their continuing success as we continue to support them through the various tax reliefs we are offering them and investment, including our most recent research and development tax reliefs. I would also point out to him that of course Scotland will benefit from some 73 trade deals secured with non-EU countries—benefits that include control of our fishing waters, something that I know is a matter of great concern to Scottish residents.

Energy Suppliers: Customer Credit

Patrick Grady Excerpts

Wednesday 22nd February 2023 Westminster Hall

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I beg to move,

That this House has considered regulation of customer credit retained by energy suppliers.

It is a pleasure to serve under your chairmanship, Mr Betts. In this debate, I am not going to focus on what I have focused on many times in the Chamber, which is the myriad failures of the UK Government in dealing with the energy cost crisis for people in their homes and the cost of living crisis. That is well documented, and it was underlined by a poll yesterday showing that nearly 70% of people across the nations of the UK feel that the Government are failing on this. That is not what this debate is about. The issue that I want to highlight is something that affects many people in their homes and is manifestly unjust.

I want to start by saying that I am grateful to the Minister for graciously taking the time to discuss this with me before the debate; it says a lot that she was willing to be informed about the perspective that I want to bring to this. I am hopeful that she will work with us to try to sort this and that we will be able to work together to aid people.

I have been asked to feel sorry for energy suppliers. I have been asked by energy suppliers to think of them and their financial position, as they are keeping customers’ money in their bank accounts that they are not due through bills because it aids their business. I do not feel sorry for energy companies. I cannot imagine any other industry where companies are allowed to keep customers’ money without any accountability and think that that is okay or, indeed, that we should feel for them. I understand their wish to protect themselves. For example, Octopus told me that it holds £660 million of customers’ money in credit, but because of the outstanding balances, only £150 million of that is a cushion for them. I am sorry, but that does not cut it—it is not the company’s money to do that with.

I am more concerned about people facing the fear of the cost of living crisis. I am more concerned about people’s frustration over their household incomes and the hardship that they are expected to face in these times. People are turning off appliances and heating when it is cold to save money, because that is what they have been told they have to do, when all the time, energy companies are keeping vast amounts of their money in their bank accounts while people struggle.

[Patrick Grady (Glasgow North) (SNP)]

I congratulate my hon. Friend on securing the debate. Does this not speak to a need for wholesale reform of how people are charged for and pay for their electricity? He is right that customers who pay by direct debit build up significant credit balances, and the energy companies can earn interest on that, but customers who pay by prepayment meters are paying up front for energy that they have not used, and they often pay a higher premium and higher standing charges. The people who can least afford it, which is often customers on prepayment meters, are paying the most. This is another injustice that has to be resolved.

[Drew Hendry]

My hon. Friend is exactly right. It speaks to the way the cards are stacked against consumers and users in favour of the energy companies. The position that people find themselves in does not seem to be met with any sympathy across the industry—it is just a fact of life; they are collateral in the game of business. That is not the way we should look at people. As I said, people are turning appliances off even when they are in credit with the energy companies.

[Drew Hendry]

The hon. Lady is absolutely right. I will spend a bit of time later talking about Ofgem and powers that the Government might take forward in relation to working with Ofgem.

As I said, people are turning things off even when they are in credit. I believe every Member of this House should be more concerned that the property of customers of energy companies is being held hostage, without the explicit permission of those customers; the money does not belong to the energy companies. Things should and must change.

I started this campaign in January. By coincidence, Alex Lawson, a Guardian journalist, did some research into the subject and uncovered the fact that

“suppliers had hoarded an estimated £9 billion of customer cash by November last year”.

In his investigation, he pointed out that Centrica had £400 million of customer deposits; Octopus Energy had £660 million; and E.ON, OVO Energy, EDF and ScottishPower refused to say how much money they had from customers whose accounts were in credit. It is not the energy companies’ money.

I contacted the suppliers in preparation for the debate. The response I received from Utilita about high credit balances defended its customer service and the way it looks after its customers, but I was struck by a paragraph in which it said:

“Other companies such as Ovo, Octopus and Bulb have significant customer credit balances in their accounts. Indeed Octopus recently published its accounts for the year ending March 2022 in which it shows £221 million—strange to have such high credit balances at the end of winter! Perhaps their ‘innovative practices’ are not working as intended. The article by George Nixon that appeared in the Times on Saturday 28th January 2023, ‘How to get your money back from your energy supplier’ mentioned virtually all the larger suppliers (all of which had either minor or no weaknesses in their direct debit processes according to Ofgem).”

I am not giving Utilita a free pass, but it is telling that it is willing to make that comment.

In the highlands and islands, a great number of people subscribe to what used to be called the hydro board. When Scottish and Southern Electricity Networks took that over, many accounts simply transferred, and OVO Energy recently took over all those accounts. Because of that, I may receive a particularly high number of complaints about practices at OVO, so I state that at the outset. At the start of the pandemic, OVO received an £8.9 million fine for communication and billing issues. As mentioned, OVO has declined to give an average customer credit balance. Again I state: that is not its money and it is refusing to tell us how much it has.

My inbox shows that constituents’ problems with OVO are manifest regarding billing and metering. I have picked a sample of messages from people who have come to me, one of whom has allowed me to use their name and details, for which I am grateful. To get through to OVO, many of my constituents have had to spend up to

“4.5 hours on hold on the telephone.”

This is a company that says there are simple things people can do to sort their accounts.

OVO will not send some customers monthly bills, insisting that “Total Heating with Total Control” bills are provided quarterly. One constituent received three bills in one month: one showed that they owed £680, which they paid; one showed £300 in credit; and another in the same month said that they owed £1,000. I will return to this issue, because it is an important factor in the way these companies work with people’s money. They have consistently failed to fix faulty meters, with 18 months of changed dates and timeframes in one case.

The constituent I mentioned, to whom I am very grateful, is Mrs Frances Raw, who is a widow on a state pension. The Minister will be aware that the state pension is £611.64 per month. She has been asked to pay more than £236 a month, and the company wants to raise her direct debit. It thinks that she is going to use more energy, which is the justification for putting up her direct debit, but Mrs Raw is sitting on a credit balance of £1,796.36.

By any measure, it is a disgrace to put somebody under that kind of pressure. It is a failure in a duty to care, and a failure to do good business; and it is a failure that it is not being properly regulated, as we need to prevent that happening to people such as Mrs Raw. She has been brave enough to allow me to use her name, and I thank her one more time. I know how difficult it is for constituents to come forward and say they have an issue, and that it is okay to talk about it. It is very rare for people to do that, and I am extremely grateful to her.

Mrs Raw’s problems do not stop there. OVO keeps delaying changing her Total Heating with Total Control meter as well. This is destined to continue. I met Mrs Raw and she asked me if it would be possible to get some of her money back. I said, “No, Mrs Raw, you are entitled to all of your money back.” That is what everybody should get in these circumstances. It should not be a matter of someone begging to get their money back; it should happen automatically.

[Patrick Grady]

I thank my hon. Friend for giving way. The £,1000 or more credit balance on his constituent’s account is not just sitting there doing nothing. It is sitting in a company’s bank account earning interest, and contributing to the profits of that company. I wonder how the companies would feel if they were required to apply interest to customers’ credit accounts. Perhaps they would suddenly be incentivised to support the customers.

[Drew Hendry]

My hon. Friend makes a terrific point, which has been running through my mind. When these companies hold customers’ money, they are using it for whatever purpose they might have, rather than the customers being able to earn interest or pay their bills. These companies may well be using it for gaining their own interest. Some people might consider that theft. Some people might consider that using other people’s money to benefit themselves, without the permission of the people who own the money. That is not good enough. It is not their money; it is the customers’ money and it belongs with them.

--- Later in debate ---

[Patrick Grady (Glasgow North) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Betts. I am grateful to be called at relatively short notice. I echo a lot of what my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) has said and I congratulate him on securing the debate.

Many people nowadays are used to paying subscription models for services or products, for mobile phones or the use of the gym, or for online streaming services, but, by and large, what you pay for is what you get. The energy model is slightly more uncommon.

Of course it is very helpful for customers’ budgeting and planning to know that if they are on a direct debit and paying into that model, a regular amount will come out of their bank account over the course of the year. Yes, perhaps there will be a small credit balance, because generally energy usage during the summer will be slightly less than during the winter, but over the course of the year we would expect that to balance out. But what my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey has demonstrated—and what many of our own inboxes will demonstrate as customers start to pay close attention to their bills because of the high cost of energy and the other increasing costs of living—is that people are starting to discover a very significant failure in that model. Perhaps, as the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) has suggested, they are even discovering failures more widely in the energy market and system as a whole.

What is particularly disappointing is the number of issues that people seem to be having with their smart meters. By the sound of things, several of us here have personal experience of these matters, let alone the cases that come to our surgeries and our inboxes. Smart meters were supposed to make all these issues a thing of the past; people would know exactly what their usage was and would pay exactly for what they had used, and as a result would be incentivised to be more efficient with their energy use, which is better for their own personal finances—and, of course, much better for the environment, if we can reduce energy consumption and emissions.

Instead, people are getting readings that make no sense—that do not appear to match with their own perceived usage, at least—and the energy companies, for whatever reason, are using the opportunity to adjust direct debits, sometimes without any say-so; people sign up in advance for an adjustment of a direct debit and suddenly find that it has gone up, or maybe gone down. That negates the whole point of smart meters enabling them to budget. Smart meters were supposed to avoid such problems entirely, but in fact those problems seem to be increasing.

I heard from a gas engineer that some models of smart meter were designed to operate in climates that are very different from ours, so if they have been installed outside that can be a reason why readings do not make an awful lot of sense or do not appear to match up.

As I said in an intervention on my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey, although we are largely talking about people who pay by direct debit or in arrears, this situation is also affecting customers who pay by prepayment meters. The issue of prepayment meters has been discussed at great length, so I know the Government are aware of it and are trying to take action, but we have all argued repeatedly that there is more that they can do, which comes back to my hon. Friend’s recommendations.

For people who use prepayment meters in the way that they are designed to be used, the companies are getting that money up front—when the energy has not even been used. That is one of the key questions that the energy companies ought to answer and perhaps ought to be required to answer, either by the Government or Ofgem, or by any other mechanism by which they can be held to account. What are they doing with that money? I ask that question because, as I said in my intervention on my hon. Friend, it is not a balance just sitting there on an account; it is clearly not there for a customer to draw down as they see fit. It is clearly being used for other purposes: either to prop up the company elsewhere in its operations, or to earn very tidy interest because of course interest rates are going up. It is either contributing to the vast profits of the company or it is being used to shore up other parts of the company that may be having difficulties.

If the energy companies were required, as we suggested, to consider what benefit they gain from maintaining that money in their accounts, and had to recognise that in the form of discounts or an interest payment back to the customer, perhaps they would suddenly start moving a lot faster.

I agree with all the recommendations that my hon. Friend has made about how bills should be published and presented to consumers, so that they know exactly what their balance is and have the opportunity to draw that money down as quickly and on demand as they want. The company should have an obligation to do that. If they do not have such an obligation, we should look at how they can be incentivised to do so, or penalised if they are not going to respect their consumers. We want an energy market that functions effectively and well. We want to encourage people to reduce their demand on the system, which helps the environment, the ageing infrastructure, and the bank balances of our constituents—the consumers. The energy companies have to realise that they have got away with a lot of these things for too long, and the wider market now needs to be scrutinised in serious detail.

I end by quoting my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey, who said several times during the debate: this is not the energy companies’ money; this is money that our constituents—their consumers—have earned and have paid, expecting a service in return. It is not for companies to keep and profiteer from that money. If it is not being spent and does not reflect the consumer’s energy usage, it should be returned to the consumer so that they can use it to meet the increasing cost of living and other personal expenditure.

[Mr Clive Betts (in the Chair)]

We move on to the Front-Bench spokespeople. They have about 20 minutes each if they really want to take it, but that is entirely up to them.

IMF Economic Outlook

Patrick Grady Excerpts

Tuesday 31st January 2023 Commons Chamber

[James Cartlidge]

Of course, the hon. Lady knows about the work that is happening across Government in respect of the protocol. She talks about our “economic decline”, but let me be absolutely clear: since 2010, the UK has grown faster than France, Japan and Italy. She knows that, as I said earlier, 14 EU countries have higher inflation than we face at the moment. These are global challenges that we face, but we have the strengths to get through them. One example, as the Chancellor pointed out on Friday, is that there are only three economies in the world with a £1 trillion tech sector. Tech is a huge part of our future economic growth. One of those countries is China, one is the United States, and the other, I am pleased to say, is the United Kingdom.

[Patrick Grady (Glasgow North) (SNP)]

There is a popular café not far from here on Regency Street. This morning, a sign in the window said: “Breakfast only today. Sorry, we are badly understaffed”. That seems to chime with the findings of UK in a Changing Europe that there is a shortfall of 300,000 workers as a result of Brexit and the end of freedom of movement. It seems that Brexit really does mean breakfast. Will the Government admit that their Brexit has taken the UK economy out of the frying pan and into the fire?

[James Cartlidge]

I do not know the specific circumstances of why the café the hon. Gentleman refers to is struggling to recruit; I have no specific knowledge of it. I am sure it offers a wonderful breakfast when it is able to do so. What I can say is, talking in aggregate, and as is our slogan, we are proud to have almost the lowest unemployment for the best part of 50 years. It does present challenges when we have a tight labour market. That is why we think the best way forward is to ensure that we have the apprenticeships, skills and training to deliver the workforce to meet our growth ambitions.

Autumn Statement

Patrick Grady Excerpts

Thursday 17th November 2022 Commons Chamber

[Jeremy Hunt]

We are reducing the bank surcharge because we are increasing corporation tax from 19% to 25%, so banks are contributing to our having more money for the NHS and schools in the hon. Lady’s constituency.

[Patrick Grady (Glasgow North) (Ind)]

Where in the Chancellor’s statement is support for low-paid freelance and self-employed people, particularly those in the arts and creative sectors? Do not difficult times call for innovative solutions, such as the basic income guarantee for artists that is currently being piloted by the Republic of Ireland—which, incidentally, is a small independent member of the European Union?

[Jeremy Hunt]

We have announced a lot of measures to help people on low incomes. Anyone in receipt of means- tested benefits will receive £900 to help them with the cost of living, along with the inflation-linked uplift in universal credit, which is about £600, and about £500 to help them with their heating costs next year, at today’s prices. So there is a lot of help. However, if the hon. Gentleman is saying we should do more to support the creative industries which are so important to this country, I absolutely agree. I used to be the Culture Secretary, and I will do everything I can as Chancellor.