Cost of Living 2024-05-07 (2)
2024-05-07
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Response quality
Questions & Answers
Q1
Direct Answer
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Context
The cost of living has increased significantly, causing financial strain for many households.
What fiscal steps is the government taking to support households with increases in the cost of living?
Over the last two years, cost of living support has totalled £96 billion, or an average of £3,400 per household. As a result, living standards, which were predicted to fall 2% last year, rose by nearly 1%, and we are on track to reach pre-pandemic living standards two years early.
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Assessment & feedback
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Q2
Partial Answer
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Context
The government has provided significant support during the recent energy crisis and throughout the pandemic.
With inflation falling and the economy improving, can we look forward to continued support with a range of fiscal steps, including cutting taxes?
We can absolutely do that. I thank my hon. Friend for pointing out that the biggest single thing we can do to help people with cost of living pressures is to bring down inflation.
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Assessment & feedback
cutting taxes
We Are Focused On Bringing Down Inflation
Response accuracy
Q3
Partial Answer
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Context
Despite measures like the national insurance cut, many families are still experiencing a decline in post-tax earnings.
Even with the national insurance cut, annual post-tax earnings for the average family remain on course to be £380 lower at the start of 2025 than they were in 2021—a gap not predicted to close until 2029. This means yet more years of lost wage growth, so when will the Government get serious about tackling the low-wage, insecure work that they have allowed to become the norm in this country?
Could I suggest, if the hon. Member really thinks that inflation falling from 11% to 3.2% is little comfort to her constituents, that she might want to talk to a few more of them, because actually it is the biggest single thing that we can do to deal with cost of living pressures. If she says, “What are we doing to tackle the scourge of low pay?” we have abolished it by raising the national living wage to £11.44 this year alone.
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Assessment & feedback
Talking About Inflation Reduction Instead
Response accuracy