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Cost of Living Increases
16 March 2022
Lead MP
Stephen Flynn
Debate Type
General Debate
Tags
EconomyTaxationClimateEnergyLocal Government
Other Contributors: 36
At a Glance
Stephen Flynn raised concerns about cost of living increases in the House of Commons. A government minister responded. Other MPs also contributed.
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
The cost of living crisis is causing a severe income squeeze, with households facing an £800 annual shortfall according to The Institute for Fiscal Studies. Stephen Flynn calls on the Government to scrap VAT on energy bills, implement a windfall tax on companies profiting from the pandemic or international situation, and introduce immediate emergency cash payments. He criticises the lack of meaningful support measures such as insufficient council tax rebates and buy-back loans that do not address rising costs.
Points out additional deductions by the state besides the £20 cut to universal credit, impacting hundreds of thousands of people with monthly deductions from their benefits.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Questions whether consumers should be responsible for funding regulatory failures through increased standing charges in energy bills, which are not linked to the cost of energy.
Emphasises that people living off-gas-grid areas will suffer disproportionately from price increases and argues for regulation to protect these communities before a crisis occurs.
Argues for extracting more gas and oil from the North Sea to generate tax revenue, instead of importing expensive liquefied natural gas from Qatar or Russia. He also highlights that renewables are not an immediate solution to the current gas shortage.
Contends that Scotland's potential for renewable energy has been hindered by government policies, resulting in less progress than could have been achieved if solar and onshore wind power were allowed more freely. He calls on the Government to help mitigate the cost of living crisis.
Observes that rising energy costs yield additional tax revenue for the UK Exchequer but criticises the lack of action from Conservative Back Benchers to utilise this income to reduce domestic bills.
Helen Whately
Con
Faversham and Mid Kent
The government has taken multiple steps to support households, including a £9.1 billion package for energy bills relief and freezing fuel and alcohol duties. This year's winter fuel payment provides older people with up to £300 towards their energy bills. The warm home discount is being expanded to reach 3 million households. However, the government opposes VAT cuts on domestic fuels as they believe it would disproportionately benefit wealthier individuals.
Ronnie Cowan
SNP
Ayr Carrick
Asked the Minister how she categorises the increase to national insurance contributions in light of support measures for households facing cost-of-living pressures.
Stewart Hosie
SNP
Dundee East
Pointed out that while global factors contribute to inflation, some countries are capping electricity price increases at 5%, whereas the UK is allowing for 50% plus increases. Stressed that despite all the financial support measures mentioned, people cannot afford their energy bills.
John Redwood
Con
Wokingham
Asked why the government would reverse a successful growth policy by increasing taxes and allowing massive energy price increases, which could slow down economic recovery. Raised concerns about potential revenue problems due to slowed economic growth.
Jim Shannon
DUP
Strangford
Welcomed the £400 million support for Northern Ireland under the Barnett consequentials and inquired if discussions are taking place regarding VAT suspension on fuel similar to what is happening in the Republic of Ireland.
Stephen Flynn
SNP
Aberdeen South
Noted that energy prices for households are rising 14 times faster than any pay rise, questioning how this aligns with consumer needs and well-being.
Matt Rodda
Lab
Reading Central
Asked whether now is the right time to reconsider the national insurance increase given the cost-of-living pressures on families and slowing economic growth rates.
Ian Murray
Lab
Edinburgh South
The cost of living crisis is critical, with millions facing hardship due to falling wages and rising costs. The government's response has been inadequate; a VAT exemption on energy bills could help those most affected by regressive taxation. The current policies are worsening the situation for working people.
Matt Rodda
Lab
Reading Central
The pressure on families predates the crisis in Ukraine, with an enormous need highlighted by food banks across the UK that predate the war in Ukraine.
Martin Docherty
Lab
Part of the energy cost pre-dates the conflict in Ukraine; leaving the European Union and its single energy market is detrimental to the rest of the UK.
Mike Kane
Lab
Wythenshawe and Sale East
The Labour windfall tax on energy companies is opposed by both governing parties in Scotland, highlighting a lack of support for measures that could alleviate financial pressure on families.
Council tax increases proposed by the Labour administration in Midlothian were reduced due to SNP amendments, indicating potential discrepancies between local and national policy objectives.
Neil Parish
Con
Tiverton and Honiton
Committed the Government on their efforts in green energy, offshore wind, solar farms, and nuclear power. Criticised a windfall tax proposal, urging for differential taxation to encourage investment by oil companies instead. Raised concerns about high heating oil prices and called for scrutiny of price increases by suppliers. Urged the Chancellor to look at VAT reductions for heating fuels. Discussed the impact of fuel duty on rural populations. Highlighted issues with red diesel costs and fertiliser prices, urging help in food production.
Stewart Hosie
SNP
Dundee East
Critiqued the Government's failure to address poverty adequately, highlighting that 68% of working-age adults in poverty live in households where at least one adult is employed. Discussed rising energy bills and inflation forecasts, mentioning a constituent’s struggle with unaffordable electric heating costs despite efforts to reduce reliance on fossil fuels. Called for action to control energy business profits and suggested the benefits of reducing VAT as part of Brexit advantages.
Scott Benton
Con
Blackpool North and Cleveleys
The Member discusses the cost of living crisis in Blackpool, highlighting high levels of poverty, unemployment, and benefit receipt. He criticises opposition framing of the issue as a 'Tory cost of living crisis', arguing that inflation is caused by global factors such as post-pandemic economies and Russia's invasion of Ukraine. Benton acknowledges the Government’s £20 billion package to support families and points out that Blackpool benefits from universal credit changes, national living wage increases, and household energy bill relief measures worth over £9 billion. He suggests potential Budget solutions like reducing fuel duty or reconsidering the national insurance increase. The Member also calls for more investment in nuclear power and North Sea oil and gas to ensure long-term security of supply and reduce dependency on foreign powers. Finally, he stresses that work pays and highlights the importance of incentivising people into employment.
Martin Docherty
SNP
West Dunbartonshire
Critiques the Government's handling of rising energy prices, citing statistics and local impacts. He emphasises the need for immediate emergency cash payments to alleviate hardship caused by increased costs. Discusses the inadequacy of universal credit cuts and statutory sick pay. Highlights actions taken by the Scottish Government in comparison to the UK Government.
Suzanne Webb
Con
Stourbridge
Acknowledges global factors contributing to cost-of-living pressures, including the pandemic and geopolitical tensions. Emphasises the importance of employment support measures such as job coach programmes and skills training initiatives. Highlights Government interventions like energy rebates and council tax relief, and discusses the transition towards renewable energy sources while supporting domestic fossil fuel industries.
Anum Qaisar
SNP
Airdrie and Shotts
My constituents are feeling the cost of living crisis acutely, with 24.8% of children in North Lanarkshire living in poverty compared to the national average of 23%. Twenty-one percent of children live in households that experience both a low income and material deprivation. Families are using short-term, high-cost credit annually, leading to an increase in illegal money lending as people struggle with rising energy costs, food prices, and cuts to universal credit. The SNP is calling for the UK Government to introduce an emergency financial package including a £200 buy now, pay later loan turned into a grant, scrapping regressive national insurance tax hikes, reversing cuts to universal credit, matching child payments across the UK, and increasing wages to ensure a real living wage.
Chris Stephens
SNP
Glasgow South West
In-work poverty is at its highest ever level, disproportionately affecting lone parents, disabled people, carers, and those in low-paid jobs with unpredictable hours. I raised concerns about misleading adverts from debt companies on social media platforms like Facebook, which can worsen the financial situation of struggling families. The DWP website advertises jobs offering less than the national minimum wage, such as Burger King at £6 an hour, PizzaExpress at £6.56 an hour, and Farmfoods at £6.66 an hour. This is a scandal that needs to be addressed urgently. I also highlighted deductions from universal credit which should stop as they lead to debt spirals. An employment Bill ending insecure work practices such as zero-hours contracts is needed.
Deidre Brock
SNP
Edinburgh North and Leith
The Scottish constituency is facing a perfect storm with rising costs for fertiliser, fuel, energy, and feed. There's also concern over the shortage of workers due to Brexit. The Government’s own analysis shows that only about 60% of food consumed domestically in the UK is produced there, leading to vulnerability when global issues arise.
Owen Thompson
SNP
Midlothian
The constituency of Midlothian, a former coalmining community, needs support from the Government rather than hindrance. The crisis will have fatal consequences for some families, with more people forced to skip meals and face ill health due to poverty exacerbated by austerity measures and Brexit's impact. Public services are underfunded, there are drastic cuts in benefits, workers' pay is not protected, pensioners are betrayed, and the transition out of EU presents challenges without resilience built up over years.
Ben Lake
PC
Ceredigion Preseli
The hon. Member for Ceredigion Preseli raised concerns about the cost of heating homes and fuel, especially in rural areas where many rely on private car use due to a lack of public transport infrastructure. He cited examples from constituents whose heating costs had trebled since September last year and highlighted the RAC's calculation that the Treasury will take an additional £2.9 billion from fuel prices through current rates. The Member called for two measures: reforming rural fuel duty relief to extend it to more areas in Wales, and supporting the Road Haulage Association’s call for an essential user category to reduce petrol prices for key services such as logistics and carers. He also supported the proposal to increase the employment allowance from £4,000 to £5,000 a year to make widespread pay rises more financially sustainable for businesses.
Kirsten Oswald
SNP
West Tyrone
The cost of living crisis is compounded by Conservative policy failures, including Brexit and the withdrawal of pandemic support. Universal credit cuts and national insurance increases are pushing many families into destitution and debt. The Chancellor must urgently address this crisis with swift and decisive action.
Neil Parish
Con
Tiverton and Honiton
Called for more nuclear power, against Russian hydrocarbon imports, raised concerns about heating oil prices.
Stewart Hosie
SNP
Dundee East
Discussed impacts of bills and other changes but also acknowledged 12-year freeze in retail fuel prices and increase in national living wage.
Scott Benton
Con
Blackpool South
Noted the high number of universal credit recipients in his constituency, supported increases in the national living wage, and praised nuclear power.
Suzanne Webb
Con
Stourbridge
Praised the £9.1 billion package to help with increased energy bills, emphasised reducing dependence on imported fuels, and highlighted the increase in renewables since 2010.
Chris Stephens
SNP
Glasgow South West
Raised concerns about in-work poverty but also mentioned the decrease in unemployment figures.
Deidre Brock
SNP
Edinburgh North and Leith
Condemned Russian invasion of Ukraine, discussed food security issues.
Owen Thompson
SNP
Midlothian
Called for a package of measures to tackle the crisis but criticised his own party's motion which suggested scrapping energy bill rebate schemes.
Government Response
Responded to points raised in the debate, emphasised Government’s plan for energy security and transition. Criticised SNP for their stance on North Sea oil and gas sector and windfall tax.
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Assessment & feedback
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