Household Energy Bills: VAT

Ruth Jones Excerpts

Tuesday 11th January 2022 Commons Chamber

[Ruth Jones (Newport West) (Lab)]

In rising for the first time since Friday, I want to place on the record my sadness at the untimely passing of the Member for Birmingham, Erdington. Jack Dromey was a lovely man and a staunch trade unionist, and he always stood up for working people. If he were with us today, I am sure he would be speaking in this debate, because it is about fairness, decency and supporting those who are most in need.

I know from speaking to residents of Newport West how worried they are about the rising cost of living. They are paying more for their food, more for heating, more for gas and more in tax. In short, the people of Newport West and this country are worse off under the Tories, and they need a break. Today, the Opposition are forcing a binding vote on a VAT cut on home energy bills because the Conservative party refuses to back a windfall tax that would support families. Simply put, it is not interested in giving working people the support that they need and deserve.

Incomes are still falling relatively, but for those with the least, living costs are still rising. More than half of Welsh households have seen their food costs increase, while more than 60% have seen their utility bills increase. The impact on children is worsening: more than one in five families with children has had to cut back on items for them, including books, toys, nappies and clothing, while one in 10 families with two children has had to cut back on food for them.

My pledge to the people of Newport West is this: I support removing VAT from domestic energy bills for a year from April 2020; I support expanding and increasing the warm home discount; I support smoothing the cost of supplier failure; and I welcome the establishment of a contingency fund that would be directed at supporting energy-intensive businesses. Those are real and tangible actions that would make my constituents’ lives better. I cannot understand why the Conservatives will not support us.

I say to the Minister that someone in Newport West on the energy price cap with typical usage is currently paying £1,277 a year for their dual fuel bill. That is expected to rise to £1,865 a year from April according to the latest estimate, which is a £588 increase. We need less time to be spent on agreeing excuses for lockdown parties and more time to be spent on standing up for those most in need. We need less time to be spent pretending that energy costs are not rising and more time to be spent cutting the cost of gas and electricity.

Simply put, we need more action for those most in need and less dither, delay and letting people down. Dither and delay are exactly what Tory Ministers will do if they vote against this important motion. The Opposition’s motion will make life that bit easier for those most in need, so what are we waiting for?