Independent Schools: VAT and Business Rates Exemptions

Rachael Maskell Excerpts

Tuesday 8th October 2024 Westminster Hall

[Bradley Thomas]

Thank you, Dame Caroline. Education is an investment in our future. It is in everyone’s best interests that children are well educated so that they can make an engaged and positive contribution to our society. We do not charge VAT on many types of private healthcare, as that is beneficial when people use their own money to pay for a service that the state would otherwise provide. We do not charge VAT on university or nursery fees, so why should schooling be any different?

There are approximately 2,500 independent schools in the UK educating more than half a million children. They are often small schools: more than 40% of independent schools have fewer than 100 pupils according to Department for Education data. The reality is that the policy will not fulfil its aims and will displace children mid-education. State education must be funded by the state, supported by taxpayers. The VAT exemption encourages greater use of independent education, reducing the number of state school pupils, meaning more money available per pupil in the state sector.

The Times recently stated that 71% of parents felt that rising school fees would influence their future decision about independent schooling. Additionally, 26% of parents said they would have to withdraw their children from independent schools if VAT is introduced.

An Adam Smith Institute report provides a detailed examination of the potential economic impacts. If 10% to 15% of students transfer, the net revenue could be negligible. Alarmingly, in a scenario where 25% of students switch from the independent sector to state schools, the tax could cost the Government £1.6 billion.

Currently, independent schools’ significant economic benefits include supporting 328,000 jobs, saving £4.4 billion from the education budget, and supporting £5.1 billion in additional tax revenue. They do this while saving the state £4.5 billion by removing the requirement to fund the education of 7% of children as the result of parents exercising this choice. Furthermore, independent and state boarding schools are a unique subset of the schools system, with the additional feature of attracting overseas students to the UK. Some 62,700 pupils are international students in independent schools, making up 11% of the population. This is a key export for the country, adding £2.1 billion to our economy annually.

[Rachael Maskell (York Central) (Lab/Co-op)]

Will the hon. Member give way?

[Bradley Thomas]

I will not give way. Independent schools should be seen as a British success story, both culturally and economically, instead of being discouraged and punished with the imposition of an education tax for socialist ideological principles. Most importantly, the human impact of the policy is stark. The failure of this education tax will not just be academic or financial; it will have a serious impact on families.

One parent wrote to me:

“As a widowed single mother who works full-time, I make enormous financial sacrifices to ensure my child can attend the same school from age 3 to 18. This stability is not only essential for my child’s development but also enables me to work and contribute to society. This proposed VAT would be devastating for families like mine.”

Another mother wrote to me and said,

“We also have a daughter who will need to start secondary school in two years. We had hoped for her to attend the same school as her brother but, with no scholarship likely and the addition of VAT, it is simply impossible. This is a painful realisation, and I worry that she will resent the opportunities that we couldn’t give her (but we could give her older sibling).”

We have yet to talk about the impact on special educational needs and disabilities education. This measure will cause particular problems for children who are in receipt of such bespoke education. Nationally, at least 130,000 pupils in independent schools receive SEND support in mainstream and specialist settings. That is 20% of the pupils in UK independent schools, which is slightly higher than the state school average. Independent schools help to provide additional value-adding capacity to SEND education.

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[Bradley Thomas]

My right hon. Friend echoes the point that I made earlier that this is about not just a service that is provided but a key segment of the UK economy that bolsters the value of UK plc and UK GDP.

[Rachael Maskell]

Will the hon. Member give way?

[Bradley Thomas]

I will not; I will make progress. Labour committed in the House of Commons in 2023 that armed forces families need not be concerned about proposals to charge VAT. With the current retention crisis in the armed forces, and the current volatile state of world affairs, the Government need to confirm what impact analysis has been carried out on the effect of taxing education on military personnel.

We then get into issues around the implementation of the policy. Implementation in January will put pressure on local authorities to find rare and academically disruptive in-year placements. Those will be difficult, as state schools will be full and many will be oversubscribed, with areas that have a high number of pupils attending independent schools having some of the busiest state schools.

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[Jerome Mayhew (Broadland and Fakenham) (Con)]

We have been told by the Government that the rationale for this policy is not class hatred or class warfare; it is a revenue-generation mechanism for state schools. It is a sort of novel, hypothecated tax: education has always been tax free in this country and, in fact, around the world. Even going back to the last flowering of Labour’s socialism in the 1970s, when there was beer and sandwiches in No. 10, there was no suggestion that we should take socialism into the classroom in the way that this Government are.

If tax take is in fact the rationale, where is the impact assessment? How much will actually be raised by this policy, and what costs will be associated with its implementation? We have already heard that some 10,000 students have left the private sector and are going into the state sector just this September. What impact will there be on the education of those children?

On Friday I went to see a local headmaster at a private school in my constituency—the only one that I am aware of. At this stage, I should register my interest: I have one child at a fee-paying school. The headmaster said that there are primary schools locally that are totally full and there is no space for those children leaving the private sector to go into local primary education. Where is the impact assessment on SEND children? Some 34% of the intake of that private school are pupils with special educational needs. Partly because of the delay in the EHCP process, will they be penalised? What happens when they get taken out of their educational setting and put into a new school with new friends, or a lack of them? What will be the impact on their personal education? What will be the impact on SEND provision in the county of Norfolk?

[Rachael Maskell]

I am grateful to the hon. Member for giving way. I have always had great concern about segregation in our education system, but parents in York say that due to the different pedagogy environment and culture, certain independent schools provide the only way that their children with SEN, anxiety or care experience can currently access education. It is through necessity, not choice. Does he agree that the Government should publish an impact assessment not only for this, but for the Budget, so that we can assess the full analysis of this policy?

[Jerome Mayhew]

I am grateful to the hon. Lady, and I am sorry that she waited so long to intervene. I quite agree with the point that she makes. We need to have an impact assessment on another issue, which is the provision of boarding facilities for children in care, which again are provided in my constituency. The school provides full boarding for not just children in care, but the boarding pathway programme put forward by Norfolk county council for children on the edge of care. Their education is the single point of continuity in their lives, and this policy has a real risk of reducing that support and removing them from their school and their friends halfway through an educational year.

What assessment have the Government undertaken before the Budget on these policies and their costs, and what mitigation will they put in place? We have already heard about the impact on military families. Is it right to target the children of our servicemen for this hypothecated tax? Was targeting poor pensioners not enough for this Government?

Oral Answers to Questions

Rachael Maskell Excerpts

Tuesday 3rd September 2024 Commons Chamber

[Mr Speaker]

Can I remind everybody that this is topical questions? I have a big list to get through. Rachael Maskell will give us a good example.

[Rachael Maskell (York Central) (Lab/Co-op)]

T4. In York, the average rent rise of 11.9% exceeded the state pension rise by £380 this year. With the loss of the cost of living payments and winter fuel payments, and the increase in the energy price cap and cost of living, pensioners are frightened about how they are going to keep warm this winter, as am I. In changing the eligibility for the winter fuel payment, how will my right hon. Friend protect pensioners above the pension credit threshold to prevent cold, ill health or worse this winter?

[Rachel Reeves]

The basic state pension is worth £900 more than it was a year ago, and will go up again in April next year because of the triple lock, which we have committed to for the duration of this Parliament. We have already written to York council and are working with local authorities across the country to boost take-up of pension credit, because this Government, unlike the last Government, are determined to ensure that 800,000 people entitled to pension credit actually receive it.

Public Spending: Inheritance

Rachael Maskell Excerpts

Monday 29th July 2024 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

I call Rachael Maskell.

[Rachael Maskell (York Central) (Lab/Co-op)]

Thank you, Madam Deputy Speaker, and welcome to your place.

I thank my right hon. Friend for her forensic approach to the nation’s finances. As she digs deeper, she will see that York, the city I represent, is at the bottom of many of the matrices for the funding formulas. Will she look at the funding formulas before the Budget so that we can see the distribution of funding? The last Government handed out, for pet projects, much of the money that she is trying to get control of now, but will she look at how that is distributed across the country?

[Rachel Reeves]

I know, particularly around flood defences, that there are many great needs in the York constituency that my hon. Friend represents. These decisions will all be made at the time of the spending review.

Hospitality Sector: Fiscal Support

Rachael Maskell Excerpts

Wednesday 31st January 2024 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Ms Bardell. The hospitality sector is at the sharp end of all market sensitivities and feels every economic challenge acutely. Although it is used to seasonal highs and lows, when covid hit, the sector’s resilience became dependent on intervention. Whether businesses were supplying food, drink or accommodation or operating as a wider part of the tourism sector, the covid and post-covid shocks served their blows on hospitality. There are also the issues of the cost of living—whether that is seen through reduced customer disposable income or increased energy costs—and diversion of shipping in the middle east; each part has a story to tell about the sector.

Indeed, Brexit produced serious challenges in labour supply, and the new visa rules are also creating pressure. Last year, 8,500 visas were provided for the sector, and that is not to mention the dependants who come with health workers and so on, and the students; that also takes its toll. I ask the Government to think again. Although I welcome higher income and a rise in the minimum wage to address the wage disparity in this sector, we must recognise that it needs cushioning and that the sector needs support.

In York, we face the additional challenge of flooding. The floods have an impact. There is usually poor reporting describing York as being like Venice, but I can assure everyone that York is open and functioning. Today, because of the resilience measures that have been put in place, only a small cluster of hospitality outlets are impacted by flooding. However, they have received no business rate suspension—they must receive that, and I ask the Minister to look at that issue—and the Bellwin scheme cannot be triggered for a small area. Those businesses have costs associated with flooding, so that needs to be addressed.

Turning to other fiscal challenges and solutions, we would welcome a reform of business rates. I have long debated in this place how disadvantage and disincentives impact on the sector. Frankly, the Government have demonstrated a sticking-plaster approach during my time here. I am glad that Labour is listening and that it will bring in reform of business rates, but I plead that it puts those reforms in its manifesto so that everyone can be clear about that.

The hospitality sector and other businesses in York have talked about a profit-related tax to make it a fairer system in the long term; I urge the Minister to look at that.

The sector’s turnover in York is worth £1.16 billion annually and is ranked 16th highest in the country. For a relatively small, concentrated area it employs 16,500 people across 1,283 venues to date. However, there is a 5.4% vacancy rate—484 jobs—so we need to consider the impact that is having on the sector’s ability to stay open full time and welcome people into their establishments. I recognise how York has weathered this stormy time and I recognise its resilience. People enjoy coming to the incredible city of York and taking advantage of the offer that we have, but that should not be taken for granted. Ensuring that resilience measures and fiscal reforms are put in place is important for the long term for the hospitality sector in York.

I note that the overseas sponsorship programme has offset some of the vacancy issues, not least for chefs, and we need to ensure that the labour shortages are tackled. I ask the Government to look again at the impact that withdrawing from such schemes will have.

A focus of my work looks at how we can increase the family offer in York. We really need to broaden the base of people wanting to come and use our city for a broader interest. I certainly welcome those interested in talking about the family coming to York because that will also build greater resilience for the longer term.

I know that the Minister understands the sector well, given his previous roles. Indeed, he could come on a whistlestop tour round the city with me. I urge him, as we come up to the next fiscal event, to allow an extension, a quick win, on the covid loans. Businesses could make further investment to grow their businesses if they could pay their loans back over a longer period. That would be a quick and easy win for the Government.

On VAT, I concur with the remarks made earlier. Hospitality Association York has also made the case to me that a drop in VAT would very much assist the sector and provide an economic stimulus. We all want to see that benefit passed on to consumers and customers who use the sector. I want the work that Hospitality Association York is doing in growing the skills and talents in the sector and building for the long term to be recognised and supported.

Finally, as York becomes a world heritage site and York Central is developed for the future, we have great opportunities for investment beyond the walls as well. Up in Acomb we see many independent businesses now providing great opportunities. Right now we are in the heart of the most challenging season for our sector. Despite the ice trail coming up this weekend, the Viking festival over the half-term period and the residents’ festival that we have just had, we need action from the Treasury to ensure that the hospitality sector is sustainable now and in future.

[Hannah Bardell (in the Chair)]

Before I call the next speaker, I ask Members to stick to five-minute speeches because I want to try to call everybody and give equality to all.

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[Nigel Huddleston]

All I can say to the hon. Gentleman is that we are listening. Some measures are being put in place that local authorities will have powers to implement, but I understand that a lot of people are not happy with the situation. I completely understand the challenges at a local level, particularly when it comes to employment and the unaffordable cost of housing in many parts of the country, as many Members have mentioned.

[Rachael Maskell]

In my speech I mentioned the extension of covid loans for businesses that have those loans. What is the Treasury’s view on extending them so that investment can be made in those businesses elsewhere?

[Nigel Huddleston]

I cannot comment on any further changes, but there has been some flexibility with covid loans, as we have announced. This is important. Of course, we want those covid loans to be paid back, but that needs to be done over a period of time that is sustainable for businesses. This is in the context of the overall support, including the comments that I made about business rates relief and other things for the retail, hospitality and leisure sector. We are aware that the sector was hit so hard by the pandemic and is still in the process of recovering—it is recovering remarkably strongly, but it is not out of the danger zone yet.

Oral Answers to Questions

Rachael Maskell Excerpts

Tuesday 19th December 2023 Commons Chamber

[Jeremy Hunt]

As I go to carol services over the festive period, I will make sure that I am suitably inspired by what the three wise men brought to the crib. I can tell my hon. Friend that I am actually visiting our gold reserves this week, so I will see at first hand just how important they are.

[Rachael Maskell (York Central) (Lab/Co-op)]

Right now, council leaders up and down the country are having to make very difficult decisions on cutting vital services—not because of profligacy, but because of Government cuts to their funding. What steps is the Chancellor taking to ensure that local authorities—such as that in York, which is the lowest-funded area—are adequately funded?

[Laura Trott]

The hon. Lady will have heard my answer to a previous question where I stated that we have put billions of pounds of extra money into local government this year to cover pressures. We recognise that those pressures are real, which is why the provisional settlement proposes an above-inflation rise for next year.

Autumn Statement Resolutions

Rachael Maskell Excerpts

Wednesday 22nd November 2023 Commons Chamber

[Rachael Maskell (York Central) (Lab/Co-op)]

I concur with the commitment of the hon. Member for Erewash (Maggie Throup) to public health measures in today’s statement. It is fascinating, however, that when given a rare chance to make life better for millions of people—people just about managing, or people not managing but really struggling—the Conservatives turn on them, as we heard today, making their lives even harder.

The economic success we heard about is glossy, but we are coming down from last year’s disastrous Budget. Inflation has halved this year because it went so high last year, causing our constituents to have exceptionally high mortgage rates, which they are paying for day by day. Borrowing is at an all-time high, just shy of 100% of GDP, and the economy will be £40 billion smaller in 2027 than was predicted in March this year. That shows that the economy is still fragile and volatile, and even after 13 and a half years of this Tory Government all we have seen today is money being moved from welfare to the wealthy. Do we wonder why people are worse off when we see such decisions being made?

I believe economic policy—how we tax and spend—must focus on creating a fairer society, alleviating poverty, tackling injustice and inequality and helping people to be independent yet collectively contribute to the vital services we depend on across our society. Public sector services hardly got a mention today, yet they are on their knees. Council, health and public service leaders across the country will therefore be baffled by the decisions the Chancellor made.

We have seen 13 and a half years squandered, with poor economic productivity, poor investment in our people and planet, and increasingly poor social outcomes. We have more people sick—7.8 million on waiting lists—more needing a home and more in need, and we have 14.5 million people on the edge, in poverty, in debt, struggling with heating, rent and food. And of course there was no promise of additional help today. We must remember that 4.3 million children in York and across the country now live in poverty; 18% of pensioners are counting the pennies to get by and we have a harsh winter ahead of us, with the energy price cap due to go up tomorrow and a tough year beyond that. Food prices are up about 25% on April 2022 figures, while gas prices are 60% and electricity prices 40% higher, yet wages have not matched that growth. In York, residents face the fourth-highest rents in the country.

While the fall in inflation is an important factor, because it will have an impact in the long term, none of us will ever forget how we got to where we are today. The economy needed the Chancellor to do more than just talk about cutting the revenue into the Treasury; the autumn statement should have been more about redistribution and, sadly, it was lacking in that—not least when the national insurance measures that he introduced will bring the greatest benefit to the richest people, who pay more national insurance, meaning that working people continue to pay more.

Turning to those working people, we know that working hard really matters, and I want everyone to have the opportunity to use their skills and talents to the full and contribute to society, and in return receive just reward for their labours. However, our public services are on their knees. York Council has seen £11 million in cuts this year and £40 million in the last four years. York’s schools are underfunded—the 17th worst in the country—and vital services are absolutely desperate.

We must understand the consequences of the cuts that the Chancellor talks about, not least those to national insurance. We are working hard in York to create opportunities, with exceptional schools, colleges and universities, a Labour council, businesses, charities and public services. Despite our calling out for two and a half years for funding for BioYorkshire, which will create 4,000 good-quality green-collar jobs, the Government have not brought forward the investment long promised, alongside UK Research and Innovation. Likewise, the creative sector, particularly the visual effects sector, has a real impact on my constituency, and I welcome a deeper dive into that area, but why have we not seen that money bought forward until now?

All we see are services cut back, underfunded, understaffed and just not working. People are paralysed by the pressures of life, suffering with mental, economic and physical stress. They are simply not coping. Rents are too high and wages too low; there are bills to pay, but no money left and no hope.

I want to make three points. First, we have no spare social housing, as I said to the Chancellor. York is one of the worst places in the country to access housing, with rents in the private rented sector the fourth highest in the country. The broad market area is too broad. As a result, people in my constituency, even after receiving £650 a month in local housing allowance, still have to pay an additional £983 on private rent. They cannot afford to live in my city but, if they move away, it will skew the economy even more. We need the broad rental market area to be reviewed. I urge the Minister to take that away and ensure that it happens, because it really matters for my constituents.

Secondly, I am sickened by paragraph 3.25 of the autumn statement. People at their most vulnerable do not engage with the DWP because they cannot, because life is too hard for them. To introduce such punitive measures as those we have heard about from the Chancellor is a complete disgrace. It is ill-conceived, immoral and economically illiterate, because those people will end up elsewhere in our public services, creating even greater demand. They will end up in our NHS in desperate need, not least if the Government take away their prescriptions. What an utter disgrace to do that to people who are already sick and struggling. I will fight the Government every step of the way on that measure, and I trust that my party will, too. That is not how we should treat human beings who are struggling and suffering. The Government should be ashamed of themselves, not least because the Chancellor then tried to pitch those individuals against other people who are struggling—people who come to our country for sanctuary. I could not believe that I was hearing that in this House—shame. We have to change that. I trust that the Labour party will be at the forefront of that charge.

On the DWP, the bedroom tax is still hurting people, sanctions are still hurting people, and the two-child limit is still hurting families in my constituency, as is the benefit cap. If we reversed those measures, we would see a big number of people move from poverty into being able to have dignity in their lives. Surely, this place is meant to achieve that.

Thirdly, the Joseph Rowntree Foundation’s work on the basket of essentials guarantee—providing every person enough money to survive on, with £120 a week for a single person and £200 for a couple—would really make a difference for people who are dependent on social security. I often hear Members on the Treasury Bench ask, “How would you afford it?” Well, according to the University of Greenwich, a wealth tax on people with an accumulated wealth of over £3.4 billion, for example, would bring in £70 billion. We must remember that the 50 richest families in our country own 50% of the wealth.

Change is so achievable. We must think about priorities. Politics is about morals, justice and fairness, but we have not seen that today. I know that it will not be long until we have a Labour Government, who will be here to serve, give hope, and do everything humanly and economically possible to turn things around. We believe in fairness, honesty, justice and equality, and we will deliver them.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I am afraid that I will have to take the limit down to nine minutes.

Autumn Statement

Rachael Maskell Excerpts

Wednesday 22nd November 2023 Commons Chamber

[Jeremy Hunt]

The shadow Chancellor cannot hear these things too many times. She loves copying and pasting our policies, and there is another that she could merrily get copying and pasting. Here is the reason why my hon. Friend is absolutely right—[Interruption.] Let me tell the shadow Chancellor the reason—it is very straightforward. We had an economic crisis thanks to the energy shock and the pandemic; Labour had an economic crisis because of what happened in the financial markets. The difference is that we took tough decisions to bring back fiscal responsibility and they ducked every single one.

[Rachael Maskell (York Central) (Lab/Co-op)]

The biggest disparity in local housing allowance comes from the geography of broad rental market areas. In York, given the way these things are calculated, LHA is £650 but there is a £983 cost on top of that for a property. It is not working, so will the Chancellor review the BRMA?

[Jeremy Hunt]

I am happy to discuss that matter with the Secretary of State for Work and Pensions. I recognise that the hon. Lady has campaigned on the issue sincerely for some time. I will say, though, that the decision to increase local housing allowance to the 30th percentile will help 1.6 million families with an extra £800. I hope she recognises that that will make a difference.

Oral Answers to Questions

Rachael Maskell Excerpts

Tuesday 14th November 2023 Commons Chamber

[Gareth Davies]

We have ambitious plans for energy generation and our energy security. We want to bring communities with us, and we look at all options as we do so.

[Rachael Maskell (York Central) (Lab/Co-op)]

6. What recent assessment he has made of the potential merits of introducing a wealth tax.

[The Financial Secretary to the Treasury (Nigel Huddleston)]

Of course, the UK does not have a single wealth tax, but it does have several taxes on wealth and assets, and those generate substantial revenues. The Government are committed to keeping taxes low so that working people keep more of what they earn. The Government’s approach to delivering fiscal sustainability is underpinned by fairness, with those on the highest incomes paying a larger share.

[Rachael Maskell]

But the burden of tax is increasingly falling on working people’s incomes, while the richest 50 families in the UK have alone accumulated a combined wealth equivalent to that of half the population. Research from the University of Greenwich shows that a wealth tax could generate £70 billion for much-needed public services, so will the Government at least put forward a commission to investigate the matter and introduce a fair taxation policy?

[Nigel Huddleston]

I am not sure whether the hon. Lady is lobbying me or Opposition Front Benchers with her comments, but she will be well aware that we do have a progressive tax system in the UK. It is important to remember that the top 5% of taxpayers are projected to pay nearly half of all income tax in 2023-24; and the top 1% as much as 28%. Compared with what we inherited from Labour in 2010, when the top 1% of income tax payers paid 25% and the top 5% paid 43%, the tax system is fairer and more progressive under the Conservatives.

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[Jeremy Hunt]

I thank my hon. Friend for drawing attention to the apprenticeship levy, which has been a tremendous success in bringing a rigour to technical qualifications that was not there before. We are very open to reforms to the apprenticeship levy, providing they stick to the fundamental principle that any investment is not in in-house training that would otherwise have happened, but in transferrable, passport-able training that someone can take with them if they move to another business.

[Rachael Maskell (York Central) (Lab/Co-op)]

T10. The NHS dental plan has been stuck in the Treasury for months, while my constituents are waiting years to see an NHS dentist. When the Chancellor makes his autumn statement, will he also release the dental plan with the funding that is required so that we can get dental treatment back on track for our constituents?

[Jeremy Hunt]

I will not pre-empt what I am going to say next week, but I will say to the hon. Lady that, as a former Health Secretary, I am well aware of the pressures on NHS dentistry and its importance to all our constituents.

Mortgage Charter

Rachael Maskell Excerpts

Monday 26th June 2023 Commons Chamber

[Jeremy Hunt]

The hon. Lady raises a very fair point. I will write to her with some details of what we are thinking in that area.

[Rachael Maskell (York Central) (Lab/Co-op)]

Private rents go up when mortgages go up, yet local housing allowance disparity is growing faster in places like York than anywhere else in the country. What process has the Chancellor set in train to review local housing allowance and the broader rental market, which is out of kilter in places like York compared with surrounding areas?

[Jeremy Hunt]

The hon. Lady is absolutely right to talk about the impact on renters because of the high prevalence of buy-to-let landlords and the pass-through effect. That is an area we are looking at in great detail, and I will write to her with some of the things we are looking at and planning to do.

Mortgage Market

Rachael Maskell Excerpts

Tuesday 13th June 2023 Commons Chamber

[Andrew Griffith]

My Treasury colleagues and I liaise closely with the Bank of England and the Prudential Regulation Authority, whose job it is to assure us of the soundness and resilience of banks. The Governor has talked about how the UK financial system is safe, secure and soundly capitalised, and that remains my belief.

[Rachael Maskell (York Central) (Lab/Co-op)]

York is a low-wage economy, yet we have extortionate house prices. Last year, housing costs went up by 23.1% in York—the highest rise in the country. My constituents are already mortgaged to the hilt and cannot afford more. What protections will the Minister put in place if mortgage rates rise further, as they are predicted to do? My constituents simply cannot afford their mortgages and they cannot afford this Government.

[Andrew Griffith]

If York is a low-wage economy, the hon. Lady’s constituents will be benefiting enormously from the unprecedented 9.7% increase in the national living wage. The measures we are putting—[Interruption.] Perhaps she does not like the 9.7% increase in the national living wage that this Government came forward with. We are putting measures in place with lenders, including forbearance, and working with the Department for Work and Pensions on mortgage interest support and to ensure that families have access to the support they need.