Cost of Living 2022-02-01

2022-02-01

TAGS
Response quality

Questions & Answers

Q1 Partial Answer
Ian Lavery Lab
Blyth and Ashington
Context
The question arises from the ongoing cost of living crisis affecting many households. The government has committed to providing support but details are requested.
If he will offer further support to people struggling with the rise in the cost of living, given the current financial strain on families and individuals.
To help people with the cost of living, the Government are providing support worth around £12 billion in this financial year and next. That includes: cutting the universal credit taper rate to make sure that work pays; freezing duties to keep costs down; and providing support to households with the cost of essentials.
Assessment & feedback
Did not specify new additional measures beyond existing £12 billion plan, despite question seeking further targeted support.
Response accuracy
Q2 Partial Answer
Context
Data shows that people aged 65 or over spend twice as much on energy compared to younger groups, and Energy UK predicts soon there will be 6 million people in fuel poverty due to escalating bills.
The Chancellor will have plenty of opportunities to get the answer right this morning. Data from the Office for National Statistics show that on average people aged 65 or over spend twice as much on energy compared with those under 30, so they will be hit twice as hard by escalating bills. Meanwhile, Energy UK tells us that without Government action there will soon be 6 million people, many of them pensioners, living in fuel poverty. Will the Chancellor persuade himself to really get into this and take up our pledge to remove VAT from energy bills and extend the warm homes discount? If he will not, what will he do, particularly for our most vulnerable pensioners who are suffering from this cost of living crisis?
I am proud of this Government's track record in supporting pensioners. Thanks to the triple lock, in place since 2010, pensions are, relative to earnings, the highest they have been in more than three decades. However, I recognise the anxiety that many pensioners will feel about rising energy bills, and we are always looking at the best way to support people.
Assessment & feedback
Did not address specific proposals for removing VAT on energy or extending Warm Home Discount scheme; instead stated general support for pensioners without specifics.
Response accuracy
Q3 Partial Answer
Ian Byrne Lab
Liverpool West Derby
Context
Millions of people are struggling with food costs due to the cost of living crisis, leading to concerns about food insecurity. There's a suggestion that £4.3 billion of COVID fraud could be redirected towards solving this issue.
With the cost of living crisis upon us, millions across our country must choose between heating their home or putting a meal on the table. Hunger is a political choice made by this Government and the buck stops with the Chancellor. Last week, he wrote off £4.3 billion of covid fraud. If he has the will, he can end the crisis of food insecurity for millions across our nation. Will he use his spring statement to implement a right to food, including universal free school meals and setting social security payments and the living wage at rates calculated to take account of the rising cost of food?
On providing food for those who most need it, I am pleased that the recent spending review confirmed £200 million of extra funding for the holiday activity and food programme to provide support to families and children outside term time.
Assessment & feedback
Did not address specific ask about implementing a 'right to food' policy or setting social security rates based on food costs, instead mentioned existing funding allocation.
Response accuracy
Q4 Partial Answer
Context
A constituent in the questioner's constituency is working four days a week on minimum wage, experiencing significant increases in energy bills which take up an increasing portion of her income.
A constituent wrote to me recently; she is 57 and works four days a week on the minimum wage. Her energy bill is rising from £95 to £220 a month, eating up an extra 11% of her take-home pay. Weekend reports suggest that Treasury action on the cost of living crisis has stalled due to the paralysis engulfing No. 10. Those struggling to heat their homes should not pay the price for the Prime Minister's conduct, so will the Chancellor agree to extend eligibility for the warm homes discount further and increase it beyond the pitiful £10 that is planned?
Although I do not know the specific circumstances of the hon. Gentleman's constituent, it sounds like she will benefit from two measures that we have already announced: the significant increase in the national living wage by 6.6% in April; and the cut in the universal credit taper rate, which will mean that a single mother working full time on the national living wage will be an extra £1,200 better off.
Assessment & feedback
Did not address specific ask about extending eligibility for Warm Homes Discount scheme; instead mentioned existing measures like increases in National Living Wage and Universal Credit taper rate changes.
Response accuracy
Q5 Partial Answer
Context
Pensioners who have both state and private pensions are facing challenges due to low interest rates and rising costs, leading to worries about their ability to meet living expenses.
I have met a number of pensioners in my constituency who are on the state pension, but who also worked hard and saved for a private pension; not a huge pension, but a pension that they believed would help them meet the cost of living. Unfortunately, years of low interest rates and now the rising cost of energy, food and other things have made them begin to worry and they are very concerned about the year ahead. Can the Chancellor provide more information on how he will monitor the situation, and support the families and pensioners whom we encouraged to get private pensions but now find that they cannot meet the cost of living?
My hon. Friend is absolutely right to highlight pensioners and their needs. As I said, I am proud of the Government's track record in supporting them.
Assessment & feedback
Did not provide specific details on monitoring or support for those with private pensions; instead gave general statement about supportive measures.
Response accuracy
Q6 Partial Answer
Context
Energy companies are experiencing record profits, raising concerns about the fairness in how rising energy costs impact consumers versus producers.
Energy prices are rocketing but the price of producing energy has not, meaning that energy companies are experiencing record bonanza profits this year if they are producers. The Chancellor is, of course, worth more than a billion pounds. Could he tell constituents struggling to pay their energy bills what should be taking the cut? Should it be the profits of the energy companies or the lifting of the energy cap that he proposes, costing constituents £1,800 on average a year?
The energy price cap has already protected millions of people against rising energy bills. On the taxation of companies, it is probably worth bearing in mind that there is an opportunity to invest more in providing natural gas as a transition fuel.
Assessment & feedback
Did not address specific ask about company profits or lifting price caps; instead discussed investment opportunities for natural gas.
Response accuracy
Q7 Partial Answer
Context
The Trussell Trust reported that food banks delivered 2.5 million food packages last year, which is a significant increase from 2008-09. Families are facing further cuts to benefits, rising taxes, and high living costs.
While Ministers travel the globe in private jets, more and more families across the UK go hungry. The Trussell Trust delivered 2.5 million food packages last year, which is 100 times more than in 1988-09. Now families face further cuts in benefits, increasing taxes and the cost of living crisis. Does the Chancellor not think that addressing that perfect storm of poverty drivers would be a better use of his time than plotting leadership bids as he waits for the downfall of his lame duck Prime Minister?
The hon. Lady talks about poverty, but the track record of this Government and the Governments since 2010 shows very clearly that more than 8 million fewer people are living in poverty as a result of the actions of those Conservative Governments. Income inequality today is lower than it was in 2010.
Assessment & feedback
The specific ask about addressing poverty drivers was not directly addressed.
Under Review
Response accuracy
Q8 Partial Answer
Ian Lavery Lab
Blyth and Ashington
Context
Families are struggling with rising food prices, rents, national insurance contributions, and the universal credit cut.
It is not good enough to simply say that work lifts people out of poverty when we know that millions of people up and down this country with one job, two jobs or three jobs are still not even making ends meet. The universal credit cut is having a devastating impact, combined with growing food prices and the rise in rents—not to mention the huge hike in national insurance contributions. I know it is difficult, Chancellor, for someone with financial privilege to really understand what is facing people in communities like mine, but I must say that when I have got elderly people freezing in their homes and more people than ever before using food banks, we need some help from the Government. Poverty is a political choice.
Anyone who has questions about my values can just look at my track record over the last year or two. I am proud of this Government's achievements in supporting those who most needed our help at a time of anxiety for our country. I respectfully disagree wholeheartedly with the hon. Gentleman: I do believe that work is a route out of poverty. All the evidence shows that children who grow up in workless households are five times more likely to be in poverty than those who do not, which is why I am proud that there are almost a million fewer workless households today as a result of the actions of this Conservative Government.
Assessment & feedback
The specific ask about addressing current challenges was not directly addressed.
Under Review
Response accuracy
Q9 Direct Answer
Kevin Hollinrake Con
Thirsk and Malton
Context
The UK is considering sanctions on Russian banks to deter Russian aggression.
The most effective sanctions that we could impose on Russia would be to block Russian banks' access to UK and international markets. Will my right hon. Friend consider that and consider cushioning the inevitable blow to our banks, businesses and households from the financial impacts, including to the cost of living?
My hon. Friend makes an excellent point. With regard to sanctions, absolutely nothing is off the table. We are working extremely closely with our international allies to make sure that we can send a robust signal to deter Russian aggression, and we continue to explore diplomatic solutions at the same time. He should rest assured that nothing is off the table.
Assessment & feedback
Response accuracy
Q10 Direct Answer
Harriett Baldwin Con
West Worcestershire
Context
Citizens Advice Bureaux have tens of thousands of pounds in household support grants that they can distribute until the end of March.
I visited the citizens advice bureau in Malvern and people there were sharing with me the fact that they still have tens of thousands of pounds in household support grants that they can give away between now and the end of March. Will the Chancellor join me in encouraging families who are struggling with the cost of living to apply for the help available?
My hon. Friend, as always, makes an excellent point. I join her in encouraging all those local authorities and others to get those funds out to people who need them as quickly as possible. That is why we have created the household support fund: half a billion pounds to provide £100 or £150 to millions of our most vulnerable families. It is there to help, and I hope we can get the rest of the money out as quickly as possible.
Assessment & feedback
Response accuracy
Q11 Partial Answer
Context
Families are facing significant increases in energy costs.
The Chancellor of the Exchequer is exactly right in all the measures that he describes the Government taking to protect families' incomes. He has always shown a powerful instinct for protecting those on the very lowest incomes, but may I say respectfully to him that we must do something about energy costs? On Friday, I met a couple in my constituency who showed me their fixed tariff agreement with their energy company, which is coming to an end, and the new one coming on stream, which is more than double. They will really struggle to pay their energy costs this year, so may I ask the Chancellor of the Exchequer to look at the issue? The warm home discount scheme is not perfect, but it is a useful vehicle for doing something to help those on the lowest incomes.
My right hon. Friend speaks with compassion and authority on these topics, and I join him in making sure that we are aware of the issue. I am, of course, aware of people's anxiety about what is coming; he can rest assured that we continue to look at all the policies we have in place to make sure that we are supporting people in the best way possible through the months ahead.
Assessment & feedback
The specific ask for direct action was not addressed.
Under Review
Response accuracy
Q12 Direct Answer
Context
There is a risk of inflation becoming entrenched, requiring careful fiscal policy to avoid increasing inflation.
With the risk of inflation becoming entrenched, we need fiscal discipline while the Bank of England undertakes the tricky task of monetary tightening. What does the Chancellor think of proposals that would break down that fiscal discipline and therefore risk increasing inflation and being completely counterproductive?
My right hon. Friend is absolutely right; given his career before he was in this place, he, too, speaks with authority on these matters. He is right to highlight that many of the proposals that people suggest would involve a significant fiscal loosening, which would be inflationary and counterproductive at this time. It is right that fiscal policy is supportive of people, but also mindful of the risks of rising inflation, not least because of the risks for the costs of servicing our debt.
Assessment & feedback
Response accuracy
Q13 Partial Answer
Pat McFadden Lab
Wolverhampton South East
Context
The questioner highlights the triple whammy effect on voters due to soaring energy bills, tax rises, and falling real wages. The upcoming £600 rise in energy price cap is cited as a pressing issue.
Voters are being hit by rising energy bills, tax rises, and falling real wages. With the energy price cap set to increase by up to £600 next week, Labour has proposed a windfall levy on oil and gas companies. Where is the Government's plan for these costs? What distractions have prevented them from producing one?
The right hon. Gentleman has talked about funding the NHS, but I would disagree with his idea that Labour's plans are fully costed. The Government is committed to tackling backlogs and reforming social care sustainably and responsibly.
Assessment & feedback
Specific plan for energy costs was not addressed
Discussed Nhs Funding Instead
Response accuracy
Q14 Partial Answer
Pat McFadden Lab
Wolverhampton South East
Context
The Chancellor's commitment to the national insurance rise has been questioned as being driven by political strategy rather than addressing the cost of living crisis.
The Prime Minister and Chancellor have committed to implementing the national insurance rise despite its negative impact on families. The real reason behind this decision is believed to be the planning for tax cuts before the next election, rather than addressing the cost of living crisis. Why should the cost of living worsen just to fit with the Tory party's electoral plans?
The Government has put measures in place, including the increase in the national living wage by £1,000 a year, the cut to the universal credit taper rate, and the freezing of fuel duty. The NHS funding is sustained sustainably and responsibly without shirking from difficult decisions.
Assessment & feedback
Specific plan for national insurance rise was not addressed
Discussed Other Measures
Response accuracy
Q15 Partial Answer
Context
Inflation is at its highest level since nearly 30 years, leading to increased bills and business layoffs. The upcoming national insurance hike is seen as a tax on jobs.
With inflation running at 5.4%, the highest level in almost 30 years, businesses are laying off staff due to rising costs. Despite these challenges, the Chancellor has not provided a plan since December and seems distracted by political matters rather than addressing the crisis. What additional practical financial support can people expect?
The Government has already set out a plan, which includes falling unemployment and record numbers in work. These measures aim to tackle the cost of living by ensuring people are employed with well-paid jobs.
Assessment & feedback
Specific practical financial support was not provided
Discussed Employment Figures
Response accuracy