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Cost of Living Increases
25 April 2023
Lead MP
Tulip Siddiq
Debate Type
General Debate
Tags
EconomyTaxationForeign Affairs
Other Contributors: 39
At a Glance
Tulip Siddiq raised concerns about cost of living increases in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
Ms. Siddiq condemns successive Conservative Governments for their mismanagement of the UK economy over 13 years, citing that it has resulted in Britain being the only G7 economy smaller than before the pandemic with squeezed wages and higher mortgage rates increasing household costs by £500 a month. She also highlights that there have been 24 tax rises since 2019, creating the highest tax burden in 70 years while refusing to abolish the non-domicile tax loophole. She expresses concern about inflation over 10% and food prices rising at their fastest rate in 45 years.
Tulip Siddiq
Lab
Hampstead and Highgate
Ms. Siddiq further asserts that the cost of a typical food shop is up by £700 a year since 2020, clothing and footwear are up by £140, household goods and services are up by £360, transport costs have risen by £800, with essentials of housing, fuel and power rising by an alarming £1,480. She criticises the Government for failing to address these issues effectively.
Florence Eshalomi
Lab Co-op
Vauxhall and Camberwell Green
Ms. Eshalomi supports Siddiq's argument by pointing out that parents are going without meals so their children can eat, highlighting the struggle families face due to rising costs.
Layla Moran
Lib Dem
Oxford West and Abingdon
Ms. Moran emphasises the difficult choices faced by young mothers who have to decide between paying childcare debts, prescription charges, or buying food for themselves and their children due to financial constraints.
Toby Perkins
Lab
Chesterfield
Mr. Perkins supports Siddiq's argument by pointing out that the suggestion of optimism from the Chancellor is misplaced as families who have taken on mortgages are being let down by the Government’s incompetence in managing interest rates and housing costs.
Blackpool North and Cleveleys
Ms. Greenwood expresses concern that families missing out on meals, eating outdated food or unable to clean clothes frequently is having a devastating impact on young children's development and overall well-being.
Kim Leadbeater
Lab
Spen Valley
Ms. Leadbeater finds it offensive that Conservative Members are laughing at the statistics presented, indicating how out of touch they are with real-life struggles faced by many people across the country, including families where children share beds or sleep on floors due to financial constraints.
Jerome Mayhew
Con
Broadland and Fakenham
He emphasises the distinction between factual economic data that has occurred and future projections, arguing against attributing blame solely to the current Conservative Government for current economic hardships.
Christine Jardine
Lib Dem
Edinburgh West
She responds by highlighting the immediate concerns of constituents regarding price hikes and emphasises that people are more concerned about their present living conditions than past economic performance under the Labour Government.
He questions the hon. Lady's stance on fair work, pointing out the increase in unemployment during the previous Labour Government.
Pontypridd
She supports her colleague’s argument and provides an example of how the current Labour-led Welsh government has increased education maintenance allowance to help students, contrasting it with similar actions being absent in England.
Emma Hardy
Lab
Kingston upon Hull West and Haltemprice
Critiques the previous Prime Minister's actions that impacted the UK negatively, despite global challenges like Ukraine and covid. She asserts that the British taxpayer is still paying the price for those actions.
Asks the minister to explain why some opposition members seem glum since the government has avoided a recession.
Luke Evans
Con
Hinckley and Bosworth
Emphasises compassion in government by highlighting pensioner support with a 10% increase and mentioning the household support fund to aid vulnerable individuals.
References IMF figures showing that after leaving the EU, the UK was the fastest-growing economy of the G7 from 2020 to 2022, questioning opposition forecasts predicting poorer performance this year.
Highlights Labour's inconsistency regarding council tax by pointing out that a Labour-run council increased council tax despite the Conservatives proposing a freeze. He suggests that while Labour talks about freezing taxes, they tend to increase them in practice.
Stewart Hosie
SNP
Dundee East
Critiqued the government's fiscal charter and productivity forecasts, agreeing with the need to boost productivity but noting its inadequacy. Emphasised the impact of inflation on real people, citing examples such as food price increases for essential items like milk and olive oil. Highlighted the disproportionate effect of inflation on lower-income households and those with special dietary needs. Called for urgent action from the government including reducing energy caps, lowering mortgage costs, and implementing a meaningful windfall tax.
Andrea Leadsom
Con
South Northamptonshire
Complimented the Government's efforts since 2010, noting lower unemployment rates compared to previous Labour Governments. Acknowledged global economic challenges but highlighted UK growth figures post-Brexit. Criticised the opposition for focusing on cost of living issues without considering broader trade opportunities due to Brexit.
Yvonne Fovargue
Lab
Liverpool, West Derby
The rising cost of essentials is impacting those on the lowest incomes most severely. Debt crisis means more borrowing and unmanageable debt with many relying on high-cost credit to cover rent and other bills. There is a new phenomenon: negative budget where income does not meet essential outgoings. This requires better funding for advice agencies including provision for face-to-face advice. The Government must consider how to fund up-front application fees for debt relief orders and bankruptcy which are pricing people out of these options. A review of debt solutions is needed with a focus on enforcement, as the use of bailiffs is far too widespread.
Croydon South
The cost of living crisis has been exacerbated by international events such as the pandemic, war in Ukraine and adverse weather conditions. Despite these challenges, the Government has provided £94 billion in cost of living support, extended the energy price guarantee for three months, and made direct payments to those on means-tested benefits. The Labour party's motion is a smokescreen for its past lack of grip on the economy and present proposals of unfunded spending commitments and more borrowing would be disastrous.
Peter Dowd
Lab
Bootle
The cost of living crisis has worsened under Tory Governments who have been in office since 2010. There have been seven Chancellors since then, each breaking fiscal rules at least 11 times. The Government's actions such as cutting housing benefit, bringing in the bedroom tax, freezing child benefits and making changes to tax credit have contributed to the crisis. Debt has also increased under Tory Governments standing at £2.5 trillion currently with only 0.5% paid back.
Vicky Foxcroft
Lab
Lewisham North
The cost of living crisis has severely impacted disabled people and those with long-term health conditions. Food prices have risen at the highest rate in over 45 years, affecting those who rely on pre-prepared or convenience foods due to their disabilities. Gluten-free weekly shops are up to 20% more expensive than standard shops, making essential foods unaffordable for many. The extra cost of disability is now equivalent to 63% of household income after housing costs, a significant increase from before the pandemic and current crisis.
Families across the UK are receiving £900 in total as part of the Government's cost of living payments programme, aimed at supporting vulnerable individuals during difficult times. This includes a £150 payment for those on disability benefits and a £300 payment for pensioners at year-end. The Government has invested £94 billion in this support package, which also addresses inflation by extending the energy price guarantee until July 2023, providing savings of up to £160 per family. Other measures include increasing the state pension and benefits with inflation, freezing fuel duty for a 13th consecutive year, and raising the national living wage by 9.7%, which increases wages by an average of £1,600 for two million low-paid workers.
Ben Spencer
Con
Runnymede and Weybridge
Spencer argues that economic issues transcend national borders. Despite challenges like a pandemic and war in Europe, the Conservative Government provided substantial aid to households and businesses including direct financial support with energy bills, tax relief for the most vulnerable, increases in benefits and the state pension, minimum wage hikes, and fuel duty freezes. He claims their plan aims at halving inflation, fostering economic growth, reducing debt, promoting green energy and supporting STEM industries.
Emma Hardy
Lab
Kingston upon Hull West and Haltemprice
Hardy criticises the Government for claiming powerlessness in times of crisis. She highlights Labour's achievements such as sustained low inflation, job creation, increased public spending on healthcare, and reductions in crime rates during their tenure. The current government's policies have led to a decline in public satisfaction with services like the NHS and adult social care. She warns that if people vote for another Conservative majority, they are giving up hope of better public services.
Ian Byrne
Lab
Liverpool West Derby
Mr. Byrne highlights the severe impact of rising living standards and food poverty on Liverpool residents, attributing it to political choices such as privatising utilities, allowing profiteering in supermarkets, implementing austerity measures, and cutting public services. He calls for government intervention to curb corporate profiteering, enshrine the right to food in legislation, and provide universal free school meals.
David Johnston
Not specified
Mr. Johnston discusses the Government's efforts to reduce inflation by half and the positive economic growth since 2010, including record employment figures and an increase of £5,000 in average annual wages due to the national living wage. He also addresses Labour’s stance on council tax increases and their energy price guarantee measures that save families £1,500 on bills.
Florence Eshalomi
Lab Co-op
Vauxhall and Camberwell Green
Families’ incomes are decreasing while costs continue to rise, causing a significant cost of living crisis. Food prices in Britain are increasing at a rate 50% faster than the G7 average, with basic food items such as sugar, milk, and pasta seeing significant price increases. Young people are particularly affected by insecure jobs and poverty; one in four young people now live in poverty, facing hunger and struggling to afford essentials while taking on weekend jobs to support their families.
The global situation has caused a rise in the cost of living over the past year. The Government has provided £94 billion worth of support to help households, including £900 in cost of living payments and the energy price guarantee which lowered bills for many constituents. Fuel duty has been frozen for 13 consecutive years, saving drivers some £200 annually.
The middle class is being squeezed alongside the poor due to political choices made over decades. In East Lothian, despite being an energy and food-rich area, there are significant issues with food poverty and fuel poverty, highlighted by a local food bank which reported having sent out 1500 emergency food supplies to 3647 people supporting 1210 households in East Lothian. Two thirds of those referred were people whose income was from benefits or work but who simply could not make ends meet.
Ben Bradley
Con
Mansfield
Recognised the challenging times but emphasised that throwing money at problems is not a solution. Acknowledged the Government's welfare support, including pension increases and energy bill reductions, while stressing the need for sustainable economic growth through job creation and devolution of powers to local authorities. Emphasised the importance of infrastructure development and investment in growth sectors such as clean energy and advanced manufacturing.
Yasmin Qureshi
Lab
Bolton South and Walkden
Critiqued the Government's record, highlighting issues like council tax hikes, wage stagnation, and increased costs for first-time buyers. Emphasised Labour's plan to freeze council tax, cut energy bills through windfall taxes on gas and oil giants, support small businesses with an online sales tax, and reverse pension handouts to the richest 1%.
Paul Bristow
Con
Peterborough
Moved away from partisan politics to highlight inspirational individuals in Peterborough who volunteer and contribute positively to their community. Recognised organisations like Gladca, individual volunteers, and charities such as Hope into Action, Care Zone, Food for Nought, WestRaven café, and others for their work during the pandemic and beyond.
Ian Lavery
Lab
Blyth and Ashington
The cost of living crisis is devastating communities, leading to increased poverty, theft for survival, and health issues. Government policies are pushing people into desperate conditions with food banks drying up as donors become recipients themselves.
Justin Madders
Lab
Ellesmere Port and Bromborough
Wages have not kept pace with inflation, leaving workers worse off by £233 a week. The UK's economic situation is worsening compared to other countries. Labour proposes sectoral collective bargaining to improve earnings and reduce job insecurity.
Marie Rimmer
Lab
St Helens South and Whiston
Funding cuts have impacted local councils, especially the poorest areas like St Helens and Knowsley. These cuts exacerbate hardship for vulnerable people, children, and those with disabilities.
The cost of living crisis is forcing millions into below-inflation pay awards and strikes. Public sector workers need inflation-proofed pay as a short-term measure. Food prices are increasing significantly, driving up food bank usage despite supermarkets profiting from the crisis.
Erith and Thamesmead
The UK under Conservative government for the past 13 years has seen families struggling with rising bills, falling pay packets, and a series of policy decisions that have exacerbated economic challenges. The mini-Budget crash and pension reforms exemplify the Government's failure to manage the economy effectively, leading to soaring prices, increased council tax, and higher taxes for first-time home buyers. These policies disproportionately affect working people, with disabled individuals particularly hard-hit. Local businesses are also suffering as high streets decline due to closures of pubs, shops, and bank branches. Despite these issues, the Government continues to focus on tax cuts for wealthy pension savers rather than addressing the cost of living crisis. The Labour Party advocates a change in direction, proposing policies such as freezing council taxes, cutting business rates, and fostering growth in future industries.
Andrew Griffith
Con
Arundel and South Downs
The Conservative Government supports working families by implementing measures to address the cost of living crisis. They have introduced a £2,500 energy price guarantee, one-off payments, benefit upratings, and tax cuts for drivers. The Chancellor's autumn statement 2022 provided significant financial support for low-income households, doubling tax thresholds so people can earn more without paying taxes or national insurance. Additionally, the Government has expanded free childcare to help parents return to work after breaks. While Labour criticises these measures, Conservative councils charge less than Labour ones in council tax. The Minister emphasised that Labour's previous record on unemployment and borrowing showed their inability to manage the economy effectively.
Alan Campbell
Lab
Tynemouth
Claimed to move the closure under Standing Order No. 36.
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