Cost of Living Increases

Baroness Winterton of Doncaster Excerpts

Tuesday 25th April 2023 Commons Chamber

[Simon Baynes (Clwyd South) (Con)]

I take this issue very seriously. Clearly, families across the country are feeling the pinch at the moment. We in this House are all keen to address the issue in a constructive and sympathetic manner.

I am delighted that 9,100 families in Clwyd South will receive £301 from the Government as the latest cost of living payments begin to be sent out today. That cost of living payment is being made to more than 8 million families on means-tested benefits across the UK. It is the first of three cost of living payments that will, together, total £900. Some families will receive £1,350 of support. Those payments will be accompanied by a £150 payment for people on disability benefits, and a £300 payment for pensioners at the end of 2023, on top of winter fuel payments.

That is part of a much larger programme by the Government to support vulnerable people in these difficult times. Indeed, the cost of living package to help the most vulnerable has been worth £94 billion. A key part of this is addressing inflation. As the Chief Secretary to the Treasury said, we expect inflation to halve by the end of this year, so the issues that we have at the moment and to which the hon. Member for Hampstead and Kilburn (Tulip Siddiq) referred will mitigate themselves, and we will see inflation come down later in the year.

I am proud to represent a Government who, in these difficult times, have gone out of their way to support people, as my hon. Friend the Member for Poole (Sir Robert Syms) said in his excellent speech. I will not go back over the pandemic and the invasion of Ukraine, but as he said, those issues put exceptional pressure on the UK economy, and Labour Members need to take that on board and at least acknowledge it in their remarks, which, so far, they seem not to have done.

We have to be realistic about what we can do to help people in a time of crisis. I am pleased that we are extending the energy price guarantee, at £2,500, for three months from April to July, which will help families to save an average of £160 on their energy bills. The extension means that, thanks to Government support, families will have saved £1,500 on their energy bills since October 2022. I strongly support a number of other measures: the uprating of benefits and the state pension in line with inflation protects the most vulnerable households; freezing fuel duty for a 13th consecutive year saves the average driver about £200; extending our household support fund to more than £2 billion ensures that local authorities can support the most vulnerable in their communities; raising the national living wage by 9.7% increases wages by an average of £1,600 for 2 million low-paid workers. Those measures will support the most vulnerable in our society.

I intervened earlier on the Labour Government’s record on unemployment between 1997 and 2010. During that period, the number of unemployed people increased from 2.1 million to 2.5 million, and there was a 45% increase in youth unemployment. As we have seen in a number of comments—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I call Alex Davies-Jones.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I want to get everybody in, which means that after the next speaker I will reduce the time limit to three minutes.

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[Ms Marie Rimmer (St Helens South and Whiston) (Lab)]

Families, businesses and the country are struggling. For too long, Government support has been too little and too late. During the pandemic, we would have fared much better if the health service had not had its money cut every year since the Conservatives came into Government. The energy crisis has also had a huge impact on our economy. Britain is the only major G7 economy that is still smaller than it was before the pandemic. The country is going backwards under this Government. Many families are having to fork out an extra £500 in mortgage payments following the disastrous Conservative Budget last year that crashed the country’s economy. This is real money; it is the real lives of our constituents, and people are facing real hardship. This is not an abstract statistic, yet instead of doing something to help families, the Government are cutting funding to councils. Even last year, they introduced stricter eligibility for free school meals.

I have the honour of representing a constituency that spans two councils: St Helens and Knowsley. They are wonderful places with a strong sense of community spirit, but there is no denying that the Conservative Government’s decisions have taken their toll over the past 13 years and caused real hardship. As they are the second and 22nd least well-off council areas in the country, the offer of support that is too little, too late is being felt by my constituents, particularly the vulnerable people, children and people with disabilities.

In 2010, central Government funding to St Helens was £127 million. This year, it is £11 million. In Knowsley, the second poorest council area in the country, the council’s funding has been cut by £485 per person since 2010, despite the average across the country being £188. It is the second poorest area in the country. These cuts have consequences. Local authorities have duties that they have a legal requirement to fulfil, but even with a council tax rise, services have had to be rationed in many areas. We are raising council taxes during the biggest cost of living crisis in a generation, and working people already face the highest tax burden in 70 years.

The Government should have learned their lesson by now after acting too little and too late over the pandemic and the energy crisis. Families and businesses could be crushed if the Government do not get there quickly enough with the support that is needed, but I doubt they will do it. This is real money that could be in the pockets of our constituents while the cost of the average weekly shop is skyrocketing. The Government need to cut business rates to help revitalise businesses. There is no denying that short-term support is required, but there is also a need for long-term council funding. The fair funding review has been delayed for too long. Who is benefiting? The better-off areas are benefiting at the expense of my constituents—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. We need to bring in the last Back-Bench speaker.