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Working People’s Finances: Government Policy
21 September 2021
Lead MP
Rosie Winterton
Sheffield Central
Lab
Debate Type
General Debate
Tags
EmploymentBenefits & Welfare
Other Contributors: 78
At a Glance
Rosie Winterton raised concerns about working people’s finances: government policy 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:
Government Response
Celebrated £400 billion package to protect jobs and incomes; highlighted success of furlough and self-employment income support schemes. Emphasised positive forecasts for unemployment and growth, citing OBR and IMF. The Minister thanked all Members for their contributions, highlighted the importance of jobcentres and opportunities available through them, and emphasised the government's plan to empower people to progress in a changing economy.
Rosie Winterton
Lab
Sheffield Central
Advised Members on participation rules for the debate.
Houghton and Sunderland South
The speaker highlighted the impact of Government policies on living standards, citing statistics like a £1,040 per year reduction in universal credit for millions of families, 5% increase in private rental prices since 2008, rising energy costs contributing to higher inflation rates, and above-inflation increases in childcare costs. She criticised the public sector pay freeze, rise in National Insurance Contributions, and potential rail fare increases as unfavourable choices by the Government leading to widespread economic hardship.
Ellie Reeves
Lab
Lewisham West and East Dulwich
Reeves agreed with Phillipson's assertion that cutting universal credit and raising taxes exacerbates cost of living issues, pointing out that 37% of children in her constituency are growing up in poverty. She urged the Government to reconsider these measures.
Dromey shared a personal anecdote about a care worker facing significant financial difficulties due to recent policy changes, highlighting the human impact of these decisions on hardworking individuals who struggled during the pandemic.
Stephen Flynn
SNP
Aberdeen South
Flynn questioned whether Brexit contributed significantly to the current economic challenges and called for condemnation of the Government's decision to leave the EU mid-pandemic, linking it to ongoing issues faced by constituents.
Tulip Siddiq
Lab
Hampstead and Highgate
Siddiq referenced a report showing that nine in 10 working families believe childcare costs are impacting their living standards, as expenses have risen three times faster than wages over the past decade. She called for targeted support to mitigate these effects.
Hodge noted that no Government Member had challenged the assertions made by Phillipson and suggested this indicated a lack of response or counterarguments from the Government side regarding the impact of their policies on living standards.
Aaron Bell
Con
Wrexham
Asked Labour to explain how they would fund popular policies, including the extension of Universal Credit, tax credit uplifts and reductions in welfare caps. Emphasised the fiscal reality that the UK is in a difficult situation due to money spent on protecting jobs.
Simon Clarke
Con
Middlesbrough South and East Cleveland
Celebrated the Government's economic response, including £400 billion of support for jobs, incomes and livelihoods. Emphasised job protection schemes such as furlough and self-employment income support. Highlighted improvements in unemployment rates and growth forecasts by OBR and IMF.
Catherine West
Lab
Hornsey and Friern Barnet
Questioned the impact of national insurance increases on struggling businesses, employers and individuals.
Kim Johnson
Lab
Liverpool Riverside
Pointed out high child poverty rate in Middlesbrough South and East Cleveland compared to the national average. Criticised the Government's policies for hitting vulnerable families and disadvantaged people.
Kirsty Blackman
SNP
Aberdeen North
Concerned about the impact of not paying a living wage on workers despite job protection schemes, noting that poverty persists without adequate wages.
Noted that many constituents in work and doing multiple jobs will be pushed into poverty by the cut to Universal Credit defended by the Minister.
Miriam Cates
Con
Newcastle upon Tyne Central
Praised the furlough scheme for preventing mass unemployment, asserting that Opposition criticism of it does not hold up.
Alex Cunningham
Lab
Tees Valley
Asked the Minister about the rise in unemployment across the Tees Valley, questioning how this aligns with positive statements about employment.
Jack Dromey
Lab
Birmingham Erdington
Highlighted severe poverty issues in Birmingham, noting that 42% of children are living in poverty. Criticised the Government's cuts to universal credit and rise in national insurance taxes amidst rising costs of living.
Aaron Bell
Con
Wrexham
Supported the Minister’s focus on job creation, emphasising the importance of investing in people’s skills rather than welfare benefits.
Alan Brown
SNP
Kilmarnock and Loudoun
Questioned whether the £1.6 billion allocated for stamp duty relief would primarily benefit the richest individuals or housebuilders’ profits, rather than the poorest in society.
South Ribble
Defended retraining opportunities such as the lifetime skills guarantee and highlighted its benefits for people who want to improve their career prospects.
Matt Western
Lab
Warwick and Leamington
Asked how much additional petrol costs an average family has incurred, highlighting the impact of rising fuel prices on household finances.
Paula Barker
Lab
Liverpool Wavertree
Inquired if social care reform would necessitate local authorities to increase council tax, raising concerns about its implications for residents.
Margaret Hodge
Lab
Barking
Questioned the choice of regressive taxes like national insurance and council tax over progressive alternatives, such as reforming national insurance or considering asset-based taxation.
Tulip Siddiq
Lab
Hampstead and Highgate
Critiqued high childcare costs in the UK and questioned whether removing universal credit uplift would aid working parents. Pressed for more information on Government's stance regarding childcare issues.
Alison Thewliss
SNP
Glasgow Central
Welcomed the Minister but criticised the Government for exacerbating the cost-of-living crisis through austerity, Brexit, and economic policies. She highlighted issues such as food shortages, price rises, inflation, cuts to universal credit, and energy costs. Thewliss cited statistics from Citizens Advice Scotland and Energy Action Scotland about financial struggles, particularly affecting low-income families and those reliant on prepayment metres. She emphasised the impact of rising energy bills in winter and called for urgent action to alleviate the burden on vulnerable households.
Carolyn Harris
Lab
Neath and Swansea East
Harris criticised the impact of rising living costs on working-class families, highlighting her personal experience with food banks during school holidays. She detailed projects like summer lunch clubs and Christmas hamper campaigns to aid struggling families. Harris expressed concern over government policies, especially the reduction in universal credit uplift and increased energy prices.
Danny Kruger
Reform
East Wiltshire
The British economy is booming with fast growth in the G7 and falling unemployment, but there are concerns about inflation due to global supply chain disruptions. Housing costs have doubled over 50 years while food costs have halved, leading to environmental issues such as pollution and an obesity crisis. Food, water, and energy markets suffer from a lack of competition, with large companies distorting prices. The speaker supports the Government's demand-side reforms for a high-wage economy but urges for more local production in homes, food, and energy to empower communities and keep down costs.
Chris Evans
Lab Co-op
Caerphilly
The rise in rail fares, council tax increases, and household energy bills is concerning for families. Water prices are particularly high and causing environmental damage. Welsh Water, despite its not-for-profit status, charges some of the highest water bills in the country while delivering unreliable service to many communities. The company has been dumping raw sewage into rivers, breaching permits on multiple occasions, which poses significant health risks and threatens biodiversity. Chris Evans calls for accountability from Welsh Water to ensure affordable services and compliance with environmental regulations.
James Daly
Con
Bury North
The hon. Member for Bury North asserts that his Government has provided significant financial support to businesses and vulnerable families, citing £80 million in business support grants and £1.8 million from the hardship relief fund. He emphasises that these measures have protected jobs, maintained wages, and facilitated business growth. Daly criticises Labour's lack of a clear plan for economic recovery and highlights his Government’s focus on skills training to create high-wage, high-skills employment opportunities.
Alex Cunningham
Lab
Stockton South
Intervenes to highlight the increase in child poverty across Teesside since 2015. Challenges Bury North MP to address this issue and asks him to reconsider voting against the universal credit cut.
Gill Furniss
Lab
Sheffield Brightside and Hillsborough
The hon. Member for Sheffield Brightside and Hillsborough argues that planned cuts to universal credit will exacerbate financial hardship, especially as families face rising energy costs due to the pandemic's aftermath. She cites local data showing high dependency on universal credit and significant backlogs in household utility payments. Furniss stresses the regressive nature of government policies and calls for a reversal of decisions that could plunge more households into poverty.
Miriam Cates
Con
Penistone and Stocksbridge
Ms Cates expressed concern about inflation, rising energy prices, and shipping costs affecting her constituents. She praised the effectiveness of the furlough scheme in preventing mass unemployment, highlighted wage increases as a positive outcome of Brexit, and noted that the UK is forecasted to have the highest growth rate in the G7 this year. She also discussed housing affordability, individualistic tax systems impacting families negatively, long-term affordability issues with public spending commitments, and the need for community solutions and prevention strategies such as early years investment.
Colleen Fletcher
Lab
Coventry North East
Ms Fletcher emphasised the severe impact of the cost of living crisis on households, particularly in her constituency where child poverty is at 29%. She criticised government policies such as cuts to universal credit and increases in national insurance contributions. She also highlighted the unrealistic expectation from the Work and Pensions Secretary that individuals should work nine more hours weekly to offset a £20 cut to universal credit.
Alex Cunningham
Lab
Stockton North
Mr Cunningham intervened, agreeing with Ms Fletcher on the need for government intervention in employment and supply issues affecting supermarkets. He noted shortages of products due to food scarcity and argued that more drivers are needed to alleviate these problems.
Aaron Bell
Con
Newcastle-under-Lyme
The hon. Member Aaron Bell praised the maiden speech of his colleague from Hartlepool and highlighted the Government's efforts in supporting towns through funding such as the £23.6 million Newcastle-under-Lyme towns deal. He emphasised the effectiveness of government policies during the pandemic, including the furlough scheme which saved more than 10,000 jobs in Newcastle-under-Lyme, and the business grants that helped tens of thousands of businesses recover. The hon. Member also discussed the Government's measures to control energy prices this winter and noted the current low unemployment rate compared to initial fears during the pandemic. He further highlighted initiatives such as kickstart and restart, as well as doubling the number of work coaches to help people find better jobs with higher salaries. Additionally, he mentioned the college’s apprenticeship scheme and its impact on job prospects for young people in north Staffordshire and Newcastle-under-Lyme.
Kirsty Blackman
SNP
Aberdeen North
The speaker discusses the impact of reducing universal credit, using her great-great-grandmother's story to illustrate how difficult life was for single mothers without government support. She emphasises that people on UC may not afford essential services and utilities due to cuts in benefits. The speaker cites statistics showing that 72% of families needing food bank assistance have at least one parent working and notes the significant impact of unemployment, housing issues, and insecure work on her constituents. She highlights cases where individuals are forced into destitution with no support from the government, leading to severe consequences such as lack of food and shelter.
Liz Twist
Lab
Blaydon and Consett
Ms Twist criticised the Government's plan to end the universal credit uplift, citing that it will disproportionately affect regions like the north-east where child poverty was already high. She highlighted specific issues such as increased arrears for tenants, the five-week wait period leading to debt accumulation, and the impact of rising energy prices on poorly insulated homes. Additionally, she stressed the need for better quality jobs with adequate pay and conditions.
Jim Shannon
DUP
Strangford
Mr Shannon questioned whether it is time to address the issue of child benefit being reduced when people ask for wage increases due to inflation, suggesting that this has remained unchanged since 2013 despite rising costs.
Jessica Morden
Lab
Newport East
Ms Morden agreed with Ms Twist's point about the impact of the cut on those in work, noting that one in 14 British workers might be affected by this change.
Matt Rodda
Lab
Reading Central
Mr Rodda commended Ms Twist for her comprehensive speech and agreed with her emphasis on the need for more council houses to address housing issues faced by tenants.
Mr Cunningham suggested that some Conservatives should experience living on universal credit income supplemented by a £10,000 debt for a month to better understand the challenges faced by those relying on this benefit.
Jessica Morden
Lab
Newport East
Supports Labour's motion; highlights rising costs and cuts to Government support affecting working people in Newport East; raises concerns about supply chain issues, food price inflation, and housing insecurity; discusses the impact of cutting universal credit uplift on families.
Alex Sobel
Lab Co-op
Leeds Central
Intervenes to highlight the issue of payday lenders charging exorbitant interest and the lack of support for low-cost lenders like credit unions during the pandemic.
Liz Twist
Lab
Blaydon
Intervenes to acknowledge the role of community groups, churches, and other organisations in supporting people during difficult times; questions if more people would have been in real difficulties without this help.
Matt Rodda
Lab
Reading Central
Supports the argument about the impact of supply chain issues, price rises, and government ineptitude on ordinary families; agrees that these factors are contributing to a perfect storm for many residents.
Raises concerns about single parents, particularly mothers, being overlooked and stigmatised; highlights the additional worries of increased energy and food costs on single-parent families and the importance of the £20 universal credit uplift as a lifeline.
Wendy Chamberlain
Lib Dem
North East Fife
Research by the Disability Benefits Consortium has found that at some point during the pandemic two thirds of disabled claimants had to go without food, heating or medication and almost half reported being unable to meet financial commitments. The Government’s failure to extend the universal credit uplift to legacy benefits is a direct impact on disabled people who were disproportionately impacted by lockdown. There is a disability pay gap of 20% with disabled workers earning £2.10 less per hour. The Access to Work programme does not work for small employers and keeps hundreds of thousands out of the jobs market. Nearly half of all people in poverty are either disabled or live with someone who is disabled, disproportionately impacted by rising energy prices, cuts, and tax rises.
Paula Barker
Lab
Liverpool Wavertree
The cost of living crisis confirms that the Government lack ambition when it comes to affording our people a life of dignity. The system is not on the side of working-class people who fear they will not be able to afford retirement. If the Government were serious about supporting ordinary working people, their priorities would be different: no hike in national insurance, proper funding for local government, and recognition of trade unions' role in reducing inequalities. 32% of the UK population may be living below a socially acceptable living standard by the end of the year due to inadequate government policy.
Stephen Kinnock
Lab
Aberavon Maesteg
The hon. Member for Aberavon expressed deep concern over the impact of Universal Credit cuts and the rising cost of living on UK families, particularly those in his constituency. He cited research showing that one in three Welsh households lacks sufficient funds beyond basic necessities, with more than a fifth experiencing income drops since January 2022. In Aberavon alone, 7,000 households rely on Universal Credit, and the removal of the £20-a-week uplift is seen as a significant cut affecting families who have lost income during the pandemic. He emphasised that this cut will deepen inequalities and push many into poverty and destitution. Kinnock highlighted the role of shopworkers and carers who kept essential services running throughout the pandemic but are now facing cuts to their benefits, which he described as deeply hypocritical. The hon. Member also discussed Labour's plan for a living wage of at least £10 an hour and called on the Government to cancel the Universal Credit cut while addressing structural economic weaknesses that have led to declining manufacturing, over-reliance on financial services, and loss of resilience due to botched Brexit policies.
Afzal Khan
Lab
Manchester Rusholme
Hard-working people are facing a triple whammy this winter: rising fuel bills, a national insurance rise, and a £1,000 cut to universal credit. Even before the pandemic, my constituency of Manchester, Gorton had some of the highest rates of fuel poverty in the country, with almost a quarter of families classed as fuel-poor. Across the UK, 3 million households struggle to pay their energy bills, and it is predicted that as many as half a million families could slip into fuel poverty as the temperature drops and bills skyrocket this winter.
The Government’s policies are combining to inflict poverty, hardship and misery on working people. The cut to universal credit will affect more than 12,500 working-age families in Birkenhead, including over 6,000 with children. One constituent, Gary, lost his job due to contracting covid-19 and now rents from a private landlord. After rent and the £20 uplift, he had £46 per week but will only have £26 after October’s cut, leaving him unable to meet expenses that are rising.
Tan Dhesi
Lab
Slough
Highlights the impact of recent policy changes on Slough constituents. Criticises the Government's handling of the post-pandemic recovery and expresses concern about cuts to universal credit, noting that £17 million will be cut from his constituency alone. Discusses issues such as housing affordability, lack of social and affordable housing, and the impact of cladding crisis on home ownership. Emphasises the need for support and tools to help businesses and families rebuild post-pandemic.
Mark Tami
Lab
Alyn and Deeside
Agrees with Tan Dhesi that the aviation sector will require long-term support, not just months of assistance.
Kirsty Blackman
SNP
Aberdeen North
Considers it disrespectful for the Secretary of State to suggest that people can simply work extra hours when mothers are already struggling with part-time hours due to childcare responsibilities.
Points out that the issues raised will lead to more debt, citing statistics showing household debt at 123% of income and individual insolvencies in the second quarter of the year.
Matt Western
Lab
Warwick and Leamington
The hon. Member criticises the Government for being out of touch with the economic realities faced by working-class people, highlighting issues such as inflation, high energy prices, food price increases, and the impact on public services like health care and social housing. He mentions that in Warwick and Leamington, many families are affected by the universal credit cut and faces rising living costs including energy bills, rail fares, and rents. The MP emphasises the need for more investment in renewable energy sources to reduce reliance on foreign gas and support manufacturing sectors.
Karin Smyth
Lab
Bristol South
The hon. Member notes that a younger generation may not fully understand the implications of inflation on daily living costs, suggesting this lack of education might exacerbate the upcoming crisis.
Kirsty Blackman
SNP
Aberdeen North
The hon. Member observes that many people with mortgages have never experienced interest rate hikes and warns about the potential shock to those who have not faced such economic conditions before.
The hon. Member recalls past experiences of high inflation under the Thatcher government, emphasising the importance of savings for low-income households compared to high-income individuals during tough economic times and advocating for better insulation of homes by energy companies.
Mark Tami
Lab
Alyn and Deeside
The hon. Member points out that the failure to support projects like the Wylfa nuclear power station in north Wales is a missed opportunity for high-tech jobs and reduced reliance on foreign energy sources.
Lilian Greenwood
Lab
Nottingham South
The hon. Member stresses the societal impact of rising costs, including homelessness, mental health issues, and strain on public services, arguing against the universal credit cut as it will lead to higher long-term costs for the Government.
Patricia Gibson
SNP
North Ayrshire and Arran
The cost of living crisis is worsening due to cuts in universal credit affecting 10,406 constituents, national insurance hikes impacting low-income earners, soaring energy prices expected to increase by £139 per household, continued furlough support for a portion of those previously furloughed, and significant falls in exports. Additionally, the ending of free movement post-Brexit has led to labour shortages, affecting food processing plants and supermarkets. The Government's claim that Brexit is not causing these issues is dismissed as nonsense.
Kim Johnson
Lab
Liverpool Riverside
Eleven years of austerity have severely impacted Liverpool, with a £450 million cut to the city’s budget and child poverty rates at 29.3% in my constituency compared to the national average of 19.1%. Government policies such as cuts to universal credit, ending furlough support, increases in national insurance, and rising energy prices are pushing people into deeper poverty. This is particularly troubling given the already high unemployment rate and the reliance on welfare payments.
Richard Thomson
SNP
Gordon
Richard Thomson highlighted the challenges faced by his constituency in Scotland, noting that despite its economic statistics being high on paper, there are significant issues of rural deprivation and intersecting factors contributing to poverty. He discussed issues such as childcare costs, heating expenses, transport costs, and austerity measures affecting people's financial stability. He cited examples from local citizens advice bureaus and food banks, emphasising the need for dignity and full participation in society without shame. He criticised recent policy choices that make it harder for families to provide dignity.
Geraint Davies
Lab
Swansea West
Geraint Davies intervened to support Thomson's argument about austerity measures, stating that those who voted for Brexit in good faith are now facing rising food prices and national insurance increases while seeing a reduction in universal credit. He suggested that the poorest should receive an injection of money to compensate for these negative effects.
Kirsty Blackman
SNP
Aberdeen North
Kirsty Blackman intervened, agreeing with Thomson's assessment and emphasising that after a decade of austerity, Brexit impacts, and the covid pandemic, this is the worst possible time to take money away from people.
Douglas Ross intervened, arguing against Thomson’s criticism of recent policy choices by questioning whether allowing the Greens into a coalition government in Scotland was the best decision during an energy crisis and how it might affect both their constituencies if the oil industry transitions or shuts down.
Catherine West
Lab
Hornsey and Friern Barnet
The debate highlights the stark contrast between past efforts to improve communities and current struggles, with an emphasis on rising food prices, impending universal credit cuts, increased national insurance contributions, rent hikes, higher rail fares, and reduced pupil premiums. She also underscores the financial strain on families due to these economic measures and calls for a reconsideration of government policies that exacerbate household difficulties during a challenging winter.
Steve Reed
Lab Co-op
Streatham and Croydon North
The speaker highlights how tax rises affect working families, noting moving stories from colleagues about difficult conditions in their constituencies. He criticises the government for breaking election promises regarding taxes and social care policies, arguing that these decisions are unfair to those who have been hardest hit by economic challenges.
Jill Mortimer
Con
Hartlepool
Made her maiden speech highlighting her determination to be a strong voice for her constituency.
Carolyn Harris
Lab
Swansea East
Discussed the high cost of food and praised communities working together during the pandemic.
Danny Kruger
Con
Devizes
Addressed investment in young people, support for restart programmes, and challenges posed by the global economy.
Chris Evans
Lab
Islwyn
Raised concerns about water prices and loss of water services, which was acknowledged as an issue locally.
James Daly
Con
Bury North
Discussed business support in his area, the protection of jobs, and hardship help with council tax bills. He emphasised the importance of T-levels for skill development.
Gill Furniss
Lab
Sheffield, Brightside and Hillsborough
Highlighted the mental health impacts of poverty through the story of Shaun, emphasising the need for in-work progression support.
Colleen Fletcher
Lab
Coventry North East
Shared her shopping habits and expressed appreciation for the Department for Work and Pensions' support to her community.
Miriam Cates
Con
Penistone and Stocksbridge
Spoke about hiring opportunities, rising wages, and challenges of raising a family. Encouraged exploring the disability Green Paper and auto-enrolment strategy.
North East Fife
Discussed the importance of the disability Green Paper and auto-enrolment for addressing challenges faced by families raising children.
Stephen Kinnock
Lab
Aberavon
Emphasised the value of Universal Credit in supporting many people and questioned the government's plan regarding welfare measures.
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