Commons Sense

House of Commons · Ministers' Questions

Cost of Living

Wednesday 10 May 2023 · 7 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 2 Not answered 0

Key points

  • UK Government committed to supporting Northern Ireland through cost of living increases.
  • Government aims to ensure funds are well spent through public sector reform in health and education.
  • Minister suggests continuing discussions with the EU on trade matters to eliminate costs for businesses.

Topics (select to filter)

Questions & Answers

Q1 Navendu Mishra Lab Stockport
Economy Northern Ireland Benefits & Welfare
Context

The question follows a period where the cost of living has risen sharply, impacting individuals and businesses across Northern Ireland.

Question

What steps his Department is taking to help support people in Northern Ireland with rises in the cost of living?

Answer from Steven Baker

The UK Government are committed to supporting Northern Ireland through the recent increase in the cost of living. That is why we are taking steps such as lowering the cost of energy; targeting support at the most vulnerable through a £900 cost of living payment in 2023-24 for households on means-tested benefits; delivering £600 energy payments to businesses and households; the £300 cost of living payment for pensioners; and an additional £150 disability cost of living payment for individuals entitled to disability benefits.

Answered
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Q2 Alex Davies-Jones Lab Pontypridd
Economy Housing Northern Ireland
Context

The permanent secretary to the Department of Finance in Northern Ireland has highlighted that the Barnett formula is not keeping up with the rising costs.

Question

Last week, the permanent secretary to the Department of Finance in Northern Ireland told the Northern Ireland Affairs Committee: “We are rapidly if not already at the point at which the funding per head is not at the level of measured need.” The truth is that the Barnett consequential funding model has not kept up with the cost of living crisis. What exactly does the Minister have to say to the people who have to make their money stretch further and further while their bills continue to skyrocket?

Answer from Steven Baker

This Government, my right hon. Friend the Secretary of State, Lord Caine and I are all absolutely seized of the imperative to put the finances on a sustainable basis and to have public sector reform to ensure that the money is well spent. There are a number of opportunities in health and education that have been not only articulated today but identified in public in the past. We do need to consider revenue raising, and I hope that the hon. Lady will return to that when we get on to the Northern Ireland (Interim Arrangements) Bill later today.

Partly answered

Not addressed: The specific inadequacies of the Barnett formula were not directly addressed; instead, vague references to public sector reform and revenue raising were made.

How: Vague References

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Q3 Alex Cunningham Lab
Northern Ireland Brexit Business & Trade
Context

New labelling requirements have been introduced after the Windsor framework, impacting businesses and creating additional costs.

Question

This Government are creating more red tape for businesses, with new labelling requirements for food products across the UK after the Windsor framework. Will the Government look again at having a veterinary agreement with the EU, which would eliminate those costs?

Answer from Steven Baker

Forgive me, Mr Speaker, but I only partially heard the hon. Gentleman's question. We will, of course, continue to talk to the European Union about these matters. We want the smoothest flow of trade not only with the European Union but with all our international trading partners. Certainly, we will consider things, but we are determined that, as we have left the European Union, we will not follow its rules as handed down.

Partly answered

Not addressed: The specifics of having a veterinary agreement were avoided; instead, general statements about trade and EU rule adherence were made.

How: Vague References

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Q4 Navendu Mishra Lab Stockport
Economy Taxation Northern Ireland
Context

The current windfall tax has been criticized as inadequate, with businesses like oil and gas companies profiting significantly.

Question

The Chancellor has failed to bring in a proper windfall tax, while oil and gas giants are raking in record profits. Does the Minister agree that there are still huge holes in the Government's levy, meaning that households in Northern Ireland will lose out on billions of pounds that could be used to address the cost of living burden?

Answer from Steven Baker

I note that the hon. Gentleman said “a proper windfall tax”, which indicates, of course, that what a windfall tax should be is a contested matter. Really, if I may say so, his question is rather out of scope for the Northern Ireland Office. Many of those matters are devolved; others are reserved to the Treasury.

Not addressed: The specific gaps in the windfall tax were not addressed; instead, the matter was deflected as being outside the remit of the Northern Ireland Office.

How: Out-Of-Scope

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Q5 Simon Hoare Con North Dorset
Northern Ireland
Context

Organizations in Northern Ireland face challenges that may not be fully addressed by the shared prosperity fund.

Question

My hon. Friend will know that many groups in Northern Ireland provide advice to people to help with the cost of living and other challenges. Many of those organisations receive funding from the shared prosperity fund. That notwithstanding, may I urge the Minister to talk to Ministers in the relevant Department to ensure that there is a bespoke definition and that the unique circumstances of Northern Ireland are taken into account when making funding determinations under the shared prosperity fund?

Answer from Steven Baker

My hon. Friend makes a good point. May I encourage him to meet me to discuss exactly what should be in that definition? I would be grateful if he did.

Not addressed: The specifics of funding definitions were not addressed; instead, the Minister suggested a meeting for further discussion.

How: Suggestion For Future Discussion

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Q6 Aaron Bell
Northern Ireland Energy
Context

Some energy support schemes may have been implemented more efficiently had there been a functioning Executive in Northern Ireland.

Question

Just as in Newcastle-under-Lyme, I welcome the Government's support for households and businesses in Northern Ireland with energy costs. However, is it not the case that some of those schemes could have been delivered more efficiently had there been a functioning Executive in Northern Ireland?

Answer from Steven Baker

One hundred per cent—that is absolutely right. I experienced for myself, as did the Secretary of State, the difficulties that followed. I am very grateful to the Ministers and officials of the Department for Business, Energy and Industrial Strategy for making the delivery of those schemes possible, but my hon. Friend is 100% correct.

Answered
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Q7 Robin Millar
Northern Ireland Energy
Context

The previous government demonstrated quick action during the pandemic and recent energy crises.

Question

The Government have demonstrated a swiftness of foot in responding through the pandemic and the energy crisis to support businesses and residents. The previous question notwithstanding, can my hon. Friend reassure the House that residents and businesses in Northern Ireland will continue to receive Government support with energy bills over the coming months?

Answer from Steven Baker

We will, of course, continue to be seized of the situation in Northern Ireland. I can tell my hon. Friend that we will keep the situation under review.

Not addressed: No concrete assurance or timeline was given; only general reassurance provided.

How: Vague Assurances

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