Economy Update

Paul Blomfield Excerpts

Thursday 26th May 2022 Commons Chamber

[Rishi Sunak]

In general, the evidence from previous iterations shows that that does not happen, mainly because those commodities are traded at international prices, so the domestic tax regime does not change the price that is being passed on, but I am happy to take my hon. Friend’s point away.

[Paul Blomfield (Sheffield Central) (Lab)]

The Chancellor talked about supporting the most vulnerable, but there appear to be questions about his targeting when we look at the detail in the announcement. Everybody accepts that the most effective way to get support to those most in need would be to restore the universal credit uplift and extend that to those on legacy benefits. Why is he ideologically opposed to the action that would have made the biggest difference to the hardest hit?

[Rishi Sunak]

Again, perhaps the hon. Gentleman did not hear what I said. We are extending the support to all those on means-tested benefits, not just those on universal credit, who account for less than half of all households on means-tested benefits. What we are doing is more comprehensive than what he is suggesting and, in fact, it is more generous, because £650 of support is more generous than uprating, which in aggregate, on average, would be worth only just over £500.