Household Energy Bills: VAT Debate

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Department: HM Treasury

Household Energy Bills: VAT

Rosena Allin-Khan Excerpts
Tuesday 11th January 2022

(2 years, 10 months ago)

Commons Chamber
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Rosena Allin-Khan Portrait Dr Rosena Allin-Khan (Tooting) (Lab)
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Far too many people of my age lived through the harsh cold winters of the Thatcher Government. That was to be expected in the Tory Britain of the ’80s and ’90s, but several decades later it is no better: children are having to grow up facing exactly the same hardship. How did we get here? The Office for National Statistics reports that two thirds of people say that their cost of living has increased in recent weeks. Come and ask people in Tooting market or on Balham High Road: they will say that the choice is between heating and eating—between freezing and going into debt.

A single mother got in touch recently. She is a housing association tenant, but because of the increase in gas prices, her property’s managing agent is demanding more than £1,300 up front for the year; otherwise she will be disconnected in February. She has had to tell the managing agent that she can afford only £40 a month. This is my question to the Minister: what should I tell that single mum? How will her children sleep at night?

I know what it is to be cold in my own home. My brother, my mum and I gathered around the only heater we had for moments of relief from that gnawing, biting cold that saps energy and robs concentration. I know how hard it is on children to do homework when they are freezing, or to hear their mum awake at night worrying about how to keep them safe and warm. With the perpetual fear of debt and disconnection in the background, every moment of every day is consumed by uncertainty. A home should be a place of warmth and security; the Conservative cost-of-living crisis has filled millions of people’s homes with anxiety and cold.As an NHS doctor in A&E, I and my colleagues see older people and young children coming into hospital with burns on their skin caused by electric heaters and painful scalds from burst old hot water bottles. As people cannot afford to heat their homes properly, they turn on electric heaters for a little warmth—just as I did when I was growing up—and more of them are getting injured and ending up in A&E. What a terrible indictment of this Government’s failed energy policy.

What should the Government be doing? Well, Labour has a plan: removing VAT on domestic energy bills, expanding the warm homes discount for all working people on universal credit, and reducing the level of the price cap by £94 for a typical customer. [Interruption.] It is interesting hearing the opposition chuntering from a sedentary position.

None Portrait Hon. Members
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You are the Opposition!

Rosena Allin-Khan Portrait Dr Allin-Khan
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No, you are my opposition.

Regardless, my opposition are chuntering from a sedentary position, proving once again how absolutely out of touch they are with ordinary working people, who are feeling the cold, and who are going to A&E with their toddlers with third degree burns.

The Government have an opportunity today to do something about this. Why do they not act? They should stop playing games and vote with us. Why do they not do something to help the families huddled around heaters, the pensioners shivering under blankets and the children growing up in the cold, and why do they not care?