Commons Sense

House of Commons · Ministers' Questions

Cost of Living

Tuesday 19 March 2024 · 3 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 1 Not answered 0

Key points

  • The rise in inflation caused by the war in Ukraine and the energy price shock has put enormous pressure on households.
  • Real wages are now starting to rise, with the Office for Budget Responsibility predicting inflation to return to target next quarter.
  • The government provided 400 billion in support during the pandemic and 100 billion to support people during the energy price shock.

Topics (select to filter)

Questions & Answers

Q1 Chris Stephens SNP
Ukraine Economy
Context

The rising inflation and energy price shock have put pressure on UK households, leading to concerns about the economic impact.

Question

What assessment has been made of the potential impact of increases in the cost of living on households in 2024?

Answer from Laura Trott

The rise in inflation caused by Putin's illegal war in Ukraine and the subsequent energy price shock has put enormous pressure on households. Thanks to work by the Bank of England and the Government, the rate of inflation is going down, with the Office for Budget Responsibility expecting it to be back to target next autumn.

Partly answered

Not addressed: Did not provide a specific assessment or timeline for 2024 impacts

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Q2 Chris Stephens SNP
Economy Benefits & Welfare
Context

Households are experiencing ongoing cost pressures, with real wages falling and food prices rising significantly. Food costs have increased by 26% over the last two years.

Question

Since the disastrous Tory mini-Budget of 2022, households are continuing to feel the squeeze at the supermarket, with food prices continuing to rise and real wages falling for the longest unbroken run since records began. Food prices have risen by 26% over the last two years. When will the Government listen to those who wish to follow the lead of Canada and France by introducing a price cap on staple food items at the supermarket?

Answer from Laura Trott

Real wages are now, happily, starting to rise and, as I have said, the OBR has said that inflation will be back to target next quarter. What would not help the cost of living is putting people's taxes up, as the Scottish Government are doing.

Not addressed: Addressed rising real wages but did not address food price caps or comparisons with Canada and France

How: Changing Subject To Rising Real Wages, Mentioning Scottish Government Tax Policies

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Q3 Tulip Siddiq Lab Hampstead and Highgate
Economy Democracy & Elections
Context

The Resolution Foundation has confirmed that this is the only Parliament on record during which living standards have fallen. Tax burden is at a record high, wages are stagnant, rents and mortgages are up by hundreds of pounds, and food prices have increased.

Question

The tax burden is at a record high, wages are stagnant, rents and mortgages are up by hundreds of pounds, and food prices have gone up by 25%. The Resolution Foundation has confirmed that this is the only Parliament on record during which living standards have fallen. Our constituents deserve better. When is the Minister going to give the British public a chance to vote for change and call for a general election?

Answer from Laura Trott

We have talked a lot today about the £400 billion of support that we put in during the pandemic and the £100 billion of support that we put in to support people during Putin's energy price shock. The Labour party did not disagree with any of those things, and I think the hon. Lady in her heart of hearts will know that we have to pay for that—at least, I hope she does. We have had to take some difficult decisions, but because of that, the economy is turning a corner. We are able to reduce working people's taxes, and I hope that she and her party will find it within themselves to support us in that endeavour.

Not addressed: Did not address calling for a general election or constituents' concerns about living standards falling

How: Discussing Previous Government Spending, Mentioning Tax Reduction

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