Commons Sense

House of Commons · Ministers' Questions

Inflation: Living Standards

Tuesday 7 December 2021 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Ministerial interventions include the warm home discount and a household support fund worth 500 million for local authorities.
  • The Government aims to help manage cost of living pressures through changes in taper rates and an increase in the national living wage.
  • Tulip Siddiq proposed cutting VAT on energy bills to zero for six months to help struggling households.

Topics (select to filter)

Questions & Answers

Q1 Helen Hayes Lab Dulwich and West Norwood
Economy Taxation Energy
Context

The question arises from rising inflation which has led to a significant increase in the cost of living, particularly affecting food and energy bills.

Question

I am concerned about the effect of rising inflation on living standards. Food and energy bills are skyrocketing this winter, causing many constituents to face tough choices between heating their homes or buying food. Will the Minister confirm how much more my constituents earning average wages will be paying in income tax and national insurance from next April due to the Government's decision to freeze the personal allowance and increase NI contributions?

Answer from John Glen

We are working with international partners to tackle global supply chain disruption. The Government has introduced interventions such as the warm home discount, household support fund with £500 million to local authorities for distribution, changes in taper rates and an increase in the national living wage.

Partly answered

Not addressed: The additional cost of income tax and NI contributions was not addressed specifically.

How: Tackling Global Supply Chain Disruption, Range Of Interventions

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Q2 Helen Hayes Lab Dulwich and West Norwood
Economy Taxation Energy
Context

There is a rising cost of living crisis, with food and energy bills increasing. Many households struggle to meet basic needs.

Question

My constituents face the choice between heating homes or buying food due to high costs. How much more will my constituents earning average wages pay in income tax and national insurance from next April as a result of government decisions?

Answer from John Glen

We recognise the challenges people face with interventions like the warm home discount, household support fund worth £500 million to local authorities, changes in taper rates and an increase in the national living wage. These measures aim to help constituents manage cost of living pressures.

Partly answered

Not addressed: The additional costs due to tax decisions were not detailed.

How: Recognising Challenges, Interventions

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Q3 Steven Baker Con
Economy
Context

There is a debate on the causes of inflation, particularly regarding monetary policy.

Question

The seeds sown by years of ultra-cheap credit and quantitative easing are now bearing fruit through high inflation. Is this not an ultimate stealth tax?

Answer from John Glen

I disagree with the characterisation presented by my hon. Friend, acknowledging that the Bank of England oversees monetary policy.

Not addressed: The causal relationship between past policies and current inflation was not directly addressed.

How: Disagreement, Bank Of England Responsibility

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Q4 Tulip Siddiq Lab Hampstead and Highgate
Economy Taxation Energy
Context

There is a cost of living crisis, with rising household energy bills.

Question

Temperatures are falling, and Ministers ignore average households struggling with high energy bills. Since last winter, household energy bills have increased by over £230. Will the Minister support Labour's policy to use this money to cut VAT on people's energy bills to zero for six months?

Answer from John Glen

I welcome the hon. Lady to the Front Bench and highlight interventions including warm home discount and local authority support. Households in the lowest income decile receive over £4 in public spending per pound of tax paid.

Not addressed: Support for Labour's VAT reduction policy was not given.

How: Interventions, Public Spending

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