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Living Standards
01 February 2024
Lead MP
Stewart McDonald
Glasgow South
SNP
Responding Minister
Bim Afolami
Tags
TaxationEmploymentClimateBrexitEnergyBenefits & Welfare
Word Count: 10648
Other Contributors: 5
At a Glance
Stewart McDonald raised concerns about living standards in Westminster Hall. A government minister responded.
Key Requests to Government:
The government should consider new ideas beyond tax cuts to tackle living standards issues. We need investment in modernising public services and addressing income inequality, health inequalities, and the impact of global factors such as climate change and immigration.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
I am concerned about low living standards in the UK, which are well below those of western European counterparts. Economic insecurities such as inflation and energy prices, social factors like recovery from the pandemic, and global issues including climate change and immigration contribute to this problem. Brexit has exacerbated these challenges. Additionally, there is a stark need to reimagine public services due to heightened expectations post-pandemic.
Alyn Smith
SNP
Na h-Eileanan an Iar
The speaker highlighted the cost of living crisis, noting a 900% increase in energy bill arrears and a 64% rate of people skipping meals to pay for energy costs according to a recent survey by Citizens Advice Stirling. He urged the government to take action during the upcoming UK Budget.
Michael Shanks
Lab
Rutherglen
Mr Shanks expressed concern about the cost of living crisis, noting that household income growth is down by more than 3% in this Parliament. He highlighted issues such as rising food and energy prices, with inflation on food at 26%. Over a million households are expected to face increased mortgage costs this year, leading to an average increase of £1,800 annually. Shanks also pointed out that disabled individuals experience higher living costs, with disability-related expenses representing 63% of a disabled person's income.
Dover
She briefly intervened to mention the issue of immigration. My hon. Friend highlighted the importance of the Government clearly explaining to the public what support has been given in different ways, particularly regarding utilities and various aspects across the economy.
Natalie Elphicke
Con
Dover and Deal
Ms Elphicke discussed the impact of major events such as the financial crisis, pandemic, and Russian invasion on living standards. She highlighted historical comparisons to post-war economic challenges and called for a more cohesive approach to managing household costs by centralising oversight across various departments. She also raised concerns about the affordability of private sector rents and the invisibility of government support measures. Acknowledged the Minister's response but expressed concern that timeframes for investment and spending settlements are not within Treasury control, urging him to consider the impact on households.
Patricia Gibson
SNP
North Ayrshire and Arran
Ms Gibson highlighted the severe cost of living crisis impacting constituents, citing a significant decline in living standards since records began. She criticised the UK Government for blaming external factors while downplaying the negative impact of Brexit on productivity and living standards. She reported that 2.65 million people are unable to afford healthy amounts of food, with young adults three and a half times more likely to experience financial vulnerability compared to older age groups. Additionally, she noted rising essential household expenses, particularly in mortgage rates, which have contributed to energy debt for millions and disconnected households from their utilities. Patricia Gibson questioned the hon. Member's remarks about tax, citing independent evidence from the OBR that shows a majority of people in Scotland pay less tax than they would if they lived in England.
Government Response
Bim Afolami
Government Response
It is a pleasure to serve under your chairmanship, Mr Mundell. The Government have provided one of the largest support packages in Europe over the past two years, with more than 8 million UK households on eligible means-tested benefits receiving cost of living payments this financial year alone. In April, local housing allowance rates will be raised to the 30th percentile of local market rents, benefiting 1.6 million low-income households by an average of £800 in the 2024-25 financial year. All working-age benefits will also be uprated for 2024-25 by 6.7%, helping over 5.5 million households on universal credit with an average gain of almost £500 per household. The triple lock will be maintained, ensuring the basic state pension and other benefits are increased in line with wage growth of 8.5%. This support is part of a broader strategy to improve living standards, including cutting national insurance rates for employees from 12% to 10%, providing an annual tax cut worth over £450 for the average worker on £35,400. The national living wage will also increase by almost 10% to £11.44 from April, benefiting more than 2.7 million low-paid workers annually.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.