Fuel Duty
Tim Farron Excerpts(2 days, 20 hours ago)
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Tim Farron (Westmorland and Lonsdale) (LD)
I thank the right hon. Member for Basildon and Billericay (Mr Holden) for bringing forward this debate. It is a really important one because the impact of fuel costs—both for motorists and for those having to heat their homes—is devastating.
Over the past three weeks, people’s entire ability to budget to be able to afford to live, to buy food and to pay the rent or the mortgage has changed. It has been turned on its head. In every city, town and village in our country, everybody is affected one way or another. I do not mean to diminish the impact of fuel price increases in our cities, which has been huge; nevertheless, for people living in a city, the chances are that they work in the same city, and the chances are also that they can, if need be, leave their car at home, if they have one, and take advantage of public transport. I am very supportive of a cap on bus fares—I wish we still had a £2 cap, but the £3 cap is still a lot better than what we had in the past—but they are a fat lot of good if there is no bus to get on at all.
In rural communities like mine, people on the most modest of incomes have to own a car in order to access our economy or any kind of life at all. Somone living in Kendal might work in Grange-over-Sands, or vice versa; someone living in Ambleside might work in Barrow, or vice versa; someone living in Kirkby Stephen might have to travel 60 miles every day to go and work in the hospitality and tourism industry in Windermere or Bowness. The impact of the fuel price rises over the past three weeks is utterly devastating for these people. Diesel in Cumbria is 160p a litre—up to 170p in some cases—and petrol is near to 140p a litre. Indeed, red diesel is passing the £1 mark for the first time.
Mr Andrew Snowden (Fylde) (Con)
Like the hon. Gentleman, I am a north-west MP representing a rural constituency. Even those of our constituents who work in big suburban areas like Manchester and elsewhere still need to get to a train station, so even those who spend significant time in larger urban areas still rely on their car to be able to get to what resembles public transport to commute to and from work.
Tim Farron
The hon. Gentleman makes a very good point. That will be the case across my communities, too; many people will drive to Penrith, Oxenholme, Grange-over-Sands or Windermere to park and then catch the train to their place of work or study. These are significant costs. Of course, it is worth bearing in mind that these fuel costs will also have a significant impact on public transport providers down the line, and will make it hard for them to continue their current services. The hon. Gentleman’s point was well made and well delivered.
We are talking about motor fuel costs rising, but there is also the impact, as has been mentioned already by hon. Members, on heating oil. The costs for people heating and running their homes have been immense and are causing real hardship already. In Cumbria, 46,000 homes are off-grid. About 35% of the homes in my constituency are off-grid, with people relying on heating oil; in Kirkby Stephen, Tebay and Brough, 74% of properties are off-grid, while in Hawksford, it is almost 80%.
I asked my constituents—many of them did not need asking, I have to say—to give me their impressions and experiences of the past few weeks. It is clear that heating oil has literally doubled in price overnight, although I have heard reports of it trebling, too. Many of my constituents cannot afford to get any more heating oil until or unless the prices drop.
It is important to remember that in a community like mine, 25% of our housing stock was built before the turn of the 20th century. This is true of many colleagues’ constituencies as well. Many properties are solid wall properties, which are very difficult or expensive to insulate—a problem that this and previous Governments have failed to deal with adequately. People are therefore spending a fortune heating their difficult-to-insulate homes, and are now in a situation where they are having to spend up to three times more just to keep their homes vaguely warm.
Steff Aquarone (North Norfolk) (LD)
In my constituency there is a mother whose daughter lives with a disability and is reliant on a particular type of prescription food that has to be kept at ambient temperature. If the temperature of their house drops, the food perishes, and she cannot eat. Does my hon. Friend agree that it is not just the concern facing residents now—my constituent was prepared to pay whatever it took, but she could not secure a delivery at all—but the fear of the next crisis in the spike in oil prices? That is why we need to call for a cap on heating oil for our rural constituencies.
Tim Farron
My hon. Friend makes an excellent point. That is a reminder that people’s experiences of increased prices are myriad in type. What those people have in common is a shared and sudden hardship that forces them to make incredibly difficult decisions—or, indeed, choices if they have choices to make.
Ben Lake (Ceredigion Preseli) (PC)
The hon. Member makes an important point about the impact on rural areas. Does he also agree that we should bear in mind the consequences of this price spike on businesses? Many of the businesses in my patch are also off grid. Having gone through the winter period and perhaps hoping for some good fortune in the spring, they are now facing this big barrier. Indeed, some have already told me that they are cutting back on operations and contemplating closure because of this new pressure.
Tim Farron
Any effort that the Government make in supporting people and businesses through this process will have a medium to long-term positive impact on the Treasury: if we can keep businesses in business, making a profit and keeping people in work, those companies and employees will be paying tax and refunding much of that investment—so investment it truly is. Our amendment sets out some practical alternatives. It acknowledges the devastating impact of the Government’s decision to increase fuel duty from September, and it calls for that to be cancelled. It focuses also on the experiences of rural and other off-grid communities that have been left exposed by years of under-investment. It specifically calls on the Government to cancel the fuel duty rise, immediately to zero-rate VAT on heating oil, to develop a price cap mechanism for heating oil and other uses of energy, to expand rural fuel duty beyond the relatively small number of places in which it currently operates, and to invest in an emergency upgrade programme, so that we are not so exposed to these things in the future.
I recognise—and welcome to a degree—the Government’s announcement this week on some support for homes and businesses that are reliant on heating oil. I have done my sums and it works out at £35 per household. That is an inadequate sticking plaster. It will not have much of an impact on household finances. What we need is an energy price cap for people who live in rural communities, otherwise they will continue to believe that this Government, and perhaps others before them, do not really care very much about them. They will focus on the energy bills of other people, but not on those of people in rural communities. Therefore, this announcement does not go remotely far enough, although we are happy that the Government have at least begun to talk about the matter.
The impact of the massive price rises in energy costs—motor fuel, car fuel, heating oil and other forms of fuel—is absolutely local. It is house by house, family by family, community by community, business by business. It is bound to be observed that this has been triggered by the actions of one D. Trump in the White House. The war has entered the lives of people in Iran, and the lives of innocent people across the middle east and a range of different countries. It has also had a massive impact on the global economy. As has been said, it all comes down to who controls the strait of Hormuz, which Iran effectively does at the moment. As long as that is true, whatever the President of the United States says, Iran is effectively winning.
In the meantime, fuel prices are rocketing. Quite simply, as the International Energy Agency has noted:
“The war in the Middle East is creating the largest supply disruption in the history of the global oil market.”
That is quite something. It does not make me an enormous expert in international affairs to conclude that this was all utterly and totally predictable when Donald Trump began this war. As others have mentioned, this is about not just oil, but gas, fertilisers and petrochemicals—crucial inputs, Higher prices and increased scarcity will have a massive impact on our economy more broadly, and on the cost and availability of food production, with the result that, sadly, we can look forward to increased food prices in coming months.
My community is the most visited place—outside London—in the United Kingdom. We are home to a huge tourism economy. Some 60,000 people in Cumbria earn their living in hospitality and tourism, which is already struggling because of the Government’s national insurance rise more than a year ago. We are an economy that very much relies on small businesses. One in four people in the workforce in my constituency works for themself. Smaller businesses, which are much less likely to be able to withstand these shocks, are the backbone of our economy.
I have talked about food prices, and I am bound to mention the impact on our farmers. Let us not forget that by December this year direct payments will be over. So many people in my area, particularly those farming in the uplands of Cumbria, are on incomes that are less than the minimum wage. They seek to look after our environment, our landscape, the backdrop to our tourism economy, and, even more importantly, to feed us. The cost of their production will rise as a consequence of all these events and there will potentially be an impact on our food prices.
I mentioned the rural fuel subsidy earlier, which came about as a consequence of the Liberal Democrats’ time in government, when we were in coalition with our Conservative colleagues. Outrageously, though, it applies to only 21 places in the UK, not one of them in Wales and only one of them in Cumbria—a lovely place called Grizebeck. That means that the Government have a mechanism by which they could help rural communities, and we ask them, at the very least, to double the access and scope of the rural fuel duty subsidy right across the country—including, first and foremost, I am bound to say, in the lakes and dales of Cumbria. Everyone will be hurt by the impact on inflation—reduced demand, inequality and unfairness for those earning the least will potentially be huge.
The Government’s fuel duty rise exacerbates a problem, which has, as I have said, been created in the White House. The United States needs to fix the problem that it created. It cannot be up to others to save it from its failures to think things through. Colin Powell, a person who is perhaps wiser—I think that is fair to say—than the current occupant of the White House, once said to George W Bush that,
“if you break it, you own it”.
That was said of the war in Iraq. Surely the same can be said now to the President of the United States. I gently point out that it applies also to those in the Conservative and Reform Front-Bench teams who egged the President on in the first place.
NATO allies should not be joining Donald Trump in a war that he started without ever consulting his allies or explaining his war aims. He wants us to fall in line meekly, but we must not do so. Donald Trump still cannot articulate his endgame or what victory would look like. He went to war thinking that the Iranian regime would fall quickly—of course, it has not—and that Tehran would not attack the Gulf states or close the strait of Hormuz, which of course was always likely. Why would we align not just with such a moral outrage, but with such epic stupidity? Although I am grateful to the Conservatives for submitting a timely and important motion, we must remember that they are part of the reason that we are in this mess. [Interruption.] I will wrap up, Madam Deputy Speaker.
Meanwhile, against the backdrop of that international situation of extreme danger, my constituent in Kirkby Stephen fills up with diesel that costs 25% more than it did three weeks ago. Her home is cold, because she cannot buy any more heating oil, as it has gone up threefold in the past three weeks. She travels to Windermere to earn the minimum wage, and at the end of the day it is barely worth the bother. Do not tell her that politics does not change things; it really does. Our amendment aims to change things for her for the better.
Oral Answers to Questions
Tim Farron Excerpts(1 month, 3 weeks ago)
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Pat McFadden
I thank the hon. Member for his question. I am aware of the employment and growth generated by Bicester Village as a major retail and visitor location, and I understand his representations about having a youth hub that may be associated with that. We will look at all representations, because, as I said, we want to get the help to where people are in the local community.
Tim Farron (Westmorland and Lonsdale) (LD)
May I encourage the brilliant team at Kendal jobcentre, who already do a fantastic job reaching out to young people across the Westmorland area, but also congratulate the Secretary of State on what is a very positive initiative? Will he bear in mind, however, that in communities like mine where the distances to travel are enormous, we—and he—should be looking at having youth hubs outside the main towns such Kendal and Penrith, and look at Kirkby Stephen, Appleby, Grange and Windermere, so they are closer to the people who need those services? Will he also pay attention to, and discuss with his Cabinet colleagues, the fact that awful bus services in rural areas like ours mean that young people cannot get to appointments?
Pat McFadden
All the beautiful locations the hon. Member mentioned tempt me to offer a visit. I echo his thanks to the people who work in Kendal jobcentre and the other jobcentres around the country. The issue of transport and distances is an important one, which is why the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Kingston upon Hull North and Cottingham (Dame Diana Johnson), is pioneering the roll-out of mobile jobcentres, located in vans, that can visit a small area, one or two days a week.
Oral Answers to Questions
Tim Farron Excerpts(3 months, 1 week ago)
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Sir Stephen Timms
My hon. Friend is a great campaigner for carers on this issue and others. She is absolutely right: this is a very serious problem that was ignored for 10 years, despite there being quite a lot of publicity about it. I hope, as she says, that trust will now be rebuilt as we fix these problems in the coming months.
Tim Farron (Westmorland and Lonsdale) (LD)
Cumbria has a much higher than average number of unpaid carers, largely due to the much higher than average number of people who are older, and the situation is exacerbated by rural isolation. It is a community with a significant amount of seasonal and variable work. What is the Minister doing to ensure that carers can take flexible seasonal work without fear of losing all support?
Sir Stephen Timms
The hon. Gentleman will know that the carer’s allowance has an earnings threshold, which we have increased very significantly—the biggest increase in the earnings threshold that there has ever been. We are also looking, in the longer term, at introducing a taper to carer’s allowance, instead of the cliff-edge earnings threshold that is still there at the moment. That will not be a quick fix, but once it is in place, I think it will help with the concern he raises.
Oral Answers to Questions
Tim Farron Excerpts(4 months, 3 weeks ago)
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Pat McFadden
Not for the first time, we have to point out that the Scottish Government have benefited from the biggest financial settlement since the introduction of devolution. It should not be too much to expect that at least a proportion of that should be spent on expanding opportunity for young people in my hon. Friend’s constituency and throughout Scotland. Scotland has given so much to the world in creativity and innovation, and it is absolutely critical that the next generation of young Scots get the chance to do the same.
Tim Farron (Westmorland and Lonsdale) (LD)
Skills bootcamps in Cumbria have provided a great opportunity: 60 hours of training for young people in disciplines as varied as coding, scaffolding and project management. The cost to deliver those bootcamps across the whole of Cumbria is £2.7 million—chicken feed compared with the benefit that those young people and their future employers get out of them. What conversations has the Secretary of State had with his friends in the Treasury to ensure that that scheme is maintained and continued?
Pat McFadden
I am always having conversations with my friends in the Treasury. I agree with the hon. Member that flexibility and some short courses in the skills and training system are very important. Not everything has to be done according to the exact same formula and recipe, and shorter training courses have a big part to play.
Oral Answers to Questions
Tim Farron Excerpts(6 months, 2 weeks ago)
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The Minister for Employment (Alison McGovern)
As my hon. Friend knows well, improved employment is at the heart of our approach to child poverty, and that is why reductions in economic inactivity and improvements in employment will be part of our child poverty strategy that is to be published very soon.
Tim Farron (Westmorland and Lonsdale) (LD)
Does the Minister accept that the Government’s increase in national insurance contributions has had a negative impact on employment in communities such as ours? Cumbria Tourism assesses that 37% of its businesses have cut staff as a consequence and 33% are freezing recruitment. Is it possible that the Government will get less from this tax rise than they expect, and that in doing this they are doing grave harm to the Cumbrian tourism economy and many other parts of our economy?
Alison McGovern
I speak to many businesses, and since coming into office, the Secretary of State and I have totally changed our approach with employers. That new approach includes a partnership with UK Hospitality, providing specific employment support to get into hospitality, and a hospitality passport so that people can evidence their qualifications, which we and UK Hospitality believe can help those people who really need a chance in life to get a good start in the hospitality sector.
Welfare Reform
Tim Farron Excerpts(8 months, 2 weeks ago)
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Liz Kendall
Yes; as I set out my statement, we intend to co-produce the Timms review with disabled people, the organisations that represent them, other experts and MPs, so my hon. Friend’s constituents will absolutely be able to feed their views into the review. We want to strike the right balance here, because co-production takes time. We want to do it as quickly as possible, but it has to be done as effectively as possible. I look forward to working with my hon. Friend and involving her constituents’ views.
Tim Farron (Westmorland and Lonsdale) (LD)
I spoke to a resident—a friend—in my constituency over the weekend. She is a wheelchair user since a failed back operation some years ago. She currently gets PIP. She gets three points for dressing and undressing and two points for washing and bathing. She needs help with both, yet she fears, as do I, that anybody with her exact needs applying after next November will be left without help. We are right, are we not, to be concerned and to fear that? That is unjust and uncaring, isn’t it?
Liz Kendall
I repeat to the hon. Gentleman that it is common through the benefit system to protect existing claimants from new rules and rates. I also say to him that we are putting billions of pounds extra into the NHS so people can get the health and social care support they need. We are putting in place the biggest-ever employment support investment for sick and disabled people because we know disabled people who are out of work are twice as likely to be in poverty. That is the investment we are making. His constituents will be protected and will not be put into poverty as a result of the changes in this Bill.
Oral Answers to Questions
Tim Farron Excerpts(8 months, 3 weeks ago)
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Liz Kendall
As the former chair of Feeding Leicester, I know that many of our food banks offer a range of support, helping to signpost people to mental health treatment, debt advice and other measures to improve their wellbeing. They certainly do not need any advice from Conservative Members. Under their watch, we saw 900,000 more children and 200,000 more pensioners in poverty. It is time they took a lesson from this side of the House to get this issue right.
Tim Farron (Westmorland and Lonsdale) (LD)
Probably the largest single driver of child poverty in my communities is the enormous cost of housing. The average house price in my community is up to 13 times average household incomes. That drives grinding poverty, particularly among children. Will the Secretary of State have a word with her right hon. and hon. Friends in the Ministry of Housing, Communities and Local Government to ensure that a disproportionate amount of housing grant goes to rural communities such as mine, in particular with the Windermere Gateway scheme?
Liz Kendall
Reducing housing costs is one of the key things we are looking at in the child poverty taskforce in advance of our strategy, which we will publish in the autumn. We are investing an additional £39 billion in building more social, affordable and other homes, but I will, of course, always raise all issues relating to housing, because kids deserve to live in good homes that are affordable. That is what this Government intend to achieve.
Oral Answers to Questions
Tim Farron Excerpts(1 year ago)
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Liz Kendall
Yes, we are not only working together closely to expand the number of apprenticeships for young people, but looking at changing the rules so that they do not always have to have the basic GCSE maths and English to get a new foundation apprenticeships. I think we need to go further by working closely with schools. On Friday, in my own constituency, I visited a school that is looking closely at the risk factors for becoming NEET—not in education, employment or training—which is where we really need to take action.
Tim Farron (Westmorland and Lonsdale) (LD)
Liz Kendall
Absolutely. The child poverty strategy is looking widely at how we can: increase people’s incomes, including through work; reduce costs; ensure families are more financially resilient, looking at issues like debt and savings; and give all children the best start in life, no matter their background or where they live.
Oral Answers to Questions
Tim Farron Excerpts(1 year, 1 month ago)
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Andrew Western
I thank my hon. Friend for his question. The assessment I have made is of a trend that is up, up, up after 14 years of the Conservative party failing to act. We lost £9.7 billion in fraud and error in the Department for Work and Pensions last year, and we have lost £35 billion since the pandemic. That is too much, which is why I hope colleagues will support the Public Authorities (Fraud, Error and Recovery) Bill on Second Reading later.
Tim Farron (Westmorland and Lonsdale) (LD)
Hundreds of farmers and other small business owners in Westmorland who earn less than the minimum wage are not eligible for universal credit because of the failure of that system to take account of variability of income. Will the Minister look to put that right so that we can support the people who support us?
Sir Stephen Timms
We are committed in our manifesto to a review of universal credit and I expect to set out shortly the details of how that review will go forward. I will be very happy to look at the particular case the hon. Gentleman raises in the course of the review.
Oral Answers to Questions
Tim Farron Excerpts(1 year, 3 months ago)
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Emma Reynolds
I thank the hon. Member for that question. A number of ideas have been put forward by think-tanks and research institutes. One such idea is a sidecar savings account, which could be used for a pension, but could also have some money set aside for a rainy day should somebody fall into debt. We are considering that. He raises a very important question, because some of those on low incomes sometimes cannot afford to put in those contributions, but there may be a way between opting out and remaining in the scheme, and we are looking at that.
Tim Farron (Westmorland and Lonsdale) (LD)
The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)
Once people are granted refugee status, they have immediate access to DWP employment support and services. Work coaches work with refugee customers to understand their individual employment needs and provide tailored support, as appropriate, including with CV writing, interview preparedness and help securing work experience. Those who require more intensive support can be referred to DWP employment programmes or other contracted provision.
Tim Farron
The Government are seeking to clear the very unacceptable backlog—the huge backlog—of asylum applications they inherited from the previous Government. As a result, we are already beginning to see an increase in the number of newly recognised refugees, who rightly now have the right to work and to contribute here. Can the Minister say a bit more about the strategic planning and cross-departmental work that is happening on providing tailored support—he talked about tailored support, but the existing scheme of course comes to an end in June—so that refugees who have every right to be here have the ability to take a job, pay taxes and contribute here?
Andrew Western
The hon. Member is entirely correct to recognise the important role of refugees in contributing to our economy. There is a range of tailored support available with things such as language support and, as I mentioned earlier, with CV writing and interview preparedness, but there is also support with ensuring that their qualifications earned elsewhere are transferable to this country. I would of course be very happy to meet him to discuss further the support that could be put in place as we look, as he says, to clear the asylum backlogs. We are in constant communication with the Home Office and other Departments to ensure that there is a holistic approach in doing so.