Inflation Households and Businesses 2022-02-09
2022-02-09
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
The question was prompted by the need to address the impact of inflation on households and businesses in Wales, a critical economic issue affecting many constituents.
What recent steps has the Government taken to tackle the impact of inflation on households and businesses in Wales? I am concerned about the cost-of-living crisis that is putting pressure on families and businesses in my constituency. In particular, energy bills are rising significantly, impacting all sectors of society. The Chancellor's recent announcements are crucial for alleviating this burden.
The Chancellor announced a £9.1 billion energy bills rebate last week, including a £200 energy bill discount for households across the UK, including Wales, as well as an additional £175 million to the Welsh Government.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
This question stems from the recent decision to cut social security benefits and pensions by approximately 4%, which has significant economic implications for Wales, especially given the existing financial hardships.
On Monday, this Conservative Government imposed a real-terms cut to social security benefits and pensions of approximately 4%. This is on top of the hike in national insurance contributions, the rise in the energy price cap and cuts to universal credit and working tax credit. The Bevan Foundation in Wales has estimated that these measures will take approximately £286 million out of the Welsh economy. People are genuinely fearful about their living standards being further eroded. How can you justify voting for such measures?
The hon. Lady has constituents concerned about the cost of living challenges, but I hope to reassure her with measures such as substantial additional money via the Barnett formula for Wales, the universal credit taper worth £1,000 per household, an increase in the living wage by £1,000 a year for those receiving it and warm home discounts.
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Assessment & feedback
the justification of voting for measures leading to economic hardships
Reassurance
Mentioning Positive Initiatives
Response accuracy
Q3
Partial Answer
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Context
Tesco's boss predicted a 5% increase in food prices, which is expected to severely impact families already struggling with high living costs.
Families across Wales will struggle to cope as Tesco's boss predicts that food inflation will hit 5%. How does the Secretary of State plan to assist people in food poverty?
We are putting in place everything we can, such as the universal credit taper, the increase in the living wage, an increase in the tax threshold and a jobs-led recovery. The economic prospects for the UK, including Wales, are growing at a reasonable pace.
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Assessment & feedback
specific measures to help those struggling with food poverty
Reassurance
Mentioning Positive Initiatives
Response accuracy
Q4
Partial Answer
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Context
The question was prompted by concerns over the misuse of taxpayer money in various forms, such as fraud in covid support schemes and overpayment for PPE contracts.
Welsh businesses and workers face inflation, but the UK Government is imposing a national insurance rise while writing off billions. What talks has the Secretary of State had with Cabinet colleagues about recovering £5 billion from criminals who took fraudulent money during the pandemic?
The Treasury is a world leader in tracking down, eliminating and reducing the risk of fraud. I can give it credit for the work done in that respect.
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Assessment & feedback
details about talks on recovering fraudulent money or corporate social responsibility
Praise For Treasury'S Efforts
Response accuracy
Q5
Partial Answer
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Context
An elderly constituent is concerned about the significant rise in energy bills, which threatens to severely impact their living situation.
An 80-year-old constituent has contacted me saying that his £68 monthly bill will go up to nearly £3,000 for the year. BP announced record profits recently. The Government's answer is loans but Labour plans to make energy companies pay. What does he expect me to say to my worried and angry constituent?
The idea of taxing energy companies is not the right answer, as it would have a knock-on cost for constituents. Our attempts are focused on making sure families in difficult positions are looked after to the best of our ability.
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Assessment & feedback
practical steps or reassurance beyond vague statements
Rejection Of Taxation Approach
Response accuracy
Q6
Partial Answer
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Context
The Chancellor has announced a £150 council tax rebate for English households, with Wales receiving an additional £175 million under the Barnett formula. There is concern that this money may not be distributed to Welsh councils.
As my right hon. Friend mentioned, the Chancellor announced that 80% of English households will receive a £150 council tax rebate from April. The Welsh Government received an additional £175 million under the Barnett formula. Is it regrettable that this money has not been passed on to Welsh councils?
My right hon. Friend makes an important point. The Treasury was explicit in what the Barnett consequentials were for the Welsh Government, and I agree with him that families and businesses in Wales should be clear about how this money will be used.
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Assessment & feedback
confirmation or clarification of distribution plans
Reaffirmation
Response accuracy
Q7
Partial Answer
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Context
People in rural areas face particular hardship due to their reliance on oil and not being connected to the gas grid, which is not covered by the energy price cap.
People in rural areas will be at a disadvantage during the upcoming energy price crisis. About two thirds of my constituents are not connected to the gas grid and are therefore not covered by the protection of the energy price cap. Does my right hon. Friend agree that the Welsh Government have a responsibility to act fast with the £175 million they received?
Absolutely. That is critical, because we probably have a higher proportion of people in Wales in that position than almost anywhere else in the UK. I urge Labour Members to put as much pressure as they can on their colleagues in Cardiff to make it happen.
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Assessment & feedback
confirmation or support for swift action from Welsh Government
Reaffirmation
Response accuracy
Q8
Direct Answer
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Context
Welcoming an increase and extension of the Warm Home Discount scheme aimed at protecting vulnerable households from inflation.
Will my right hon. Friend join me in welcoming the increase in and extension of the warm home discount, which will shield the most vulnerable across the UK from the impact of inflation?
I certainly will. There is a contrast worth highlighting, as the Government's solutions to these problems are to provide direct and positive interventions for families across Wales rather than defaulting to the lazy position of finding an energy producer and taxing it, as if that would resolve the problem.
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Assessment & feedback
Response accuracy
Q9
Partial Answer
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Context
Discussing the impact of increasing rents and inflation on Welsh households, highlighting criticism over limited Government measures such as the BBC licence fee reduction.
It is not just record inflation that is hitting Welsh households hard. Rents in Wales have increased by nearly 10% in the last year, the third highest rate in the United Kingdom outside London and Northern Ireland. When it comes to paying bills, the Digital, Culture, Media and Sport Secretary thinks that a monthly saving on the BBC licence fee of 87p over two years is 'one of the few direct levers we have in our control as a Government.' Is that really the extent of the Government's ambition to help people in Wales cope with a Conservative cost of living crisis?
I am grateful—I think—for the hon. Lady's question, but she seems to overlook the numerous examples that I have already given, and I have an even longer list of ways in which the UK Government have stepped in, during covid in particular. We have helped protect 470,000 jobs and 60,000 Welsh businesses, dished out £2.4 billion in business loans, increased the living wage and adapted the universal credit taper—I could go on, if only you would allow me, Mr Speaker.
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Assessment & feedback
The extent of the government's ambition to help people cope with cost of living issues was not directly addressed.
Overlook
Response accuracy
Q10
Partial Answer
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Context
Critiquing the Secretary of State's oversight during a period of high inflation, national insurance hikes, energy bill increases, and rental price rises in Wales.
Well, people across Wales are facing the biggest drop in living standards in 30 years under the Secretary of State's watch. Inflation is at a 10-year high and rising, national insurance levels are increasing by more than 10%—another Tory broken manifesto promise—energy bills are up 54% and rents in Wales are up 10%. Wales is bearing the brunt of the incompetence and chaos not just at No. 10 but at No. 11, while the Secretary of State sits at the Cabinet table and lets it all happen, does he not?
No. The hon. Lady seems to have forgotten that there has been something called a pandemic in the last two years, and that has had a significant effect on the global economy. She also seems to have forgotten that her party is responsible for a number of the standard of living issues in Wales, yet we never hear so much as a squeak of criticism about Welsh Labour's performance in Cardiff.
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Assessment & feedback
Forgot
Response accuracy
Q11
Partial Answer
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Context
Confirming the benefits of increasing the national living wage to protect low-income earners from inflation.
Can my right hon. Friend confirm that the lowest paid in Wales will benefit from our increase in the national living wage, protecting them from the impact of rising inflation?
I certainly can. In answering that question, it is also worth reflecting on the fact that the Labour solution around VAT—an interesting recognition of a Brexit dividend—would not have that effect. The Treasury analysis is that Labour's proposal would unduly hit the families our proposals are designed to help.
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Assessment & feedback
The specific benefit of national living wage increase on low-income earners was partially addressed, but the comparison to Labour's VAT solution diverted attention from the original question.
Worth Reflecting
Response accuracy