Commons Sense

House of Commons · Westminster Hall

Cost of Living

25 January 2022 · 9 other contributors · 13,607 words

Opened by Patricia Gibson SNP North Ayrshire and Arran

Responding minister: David Rutley

EconomyEnergyBenefits & Welfare

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

Read the full transcript on Parliament.uk

At a glance

Patricia Gibson raised concerns about cost of living in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about rising costs of energy, food, fuel, and clothes, pushing 6 million households into fuel poverty.
  • Alison McGovern criticises the cut to universal credit, describing it as the biggest overnight cut to welfare in 70 years.
  • McGovern asks the Government to introduce an emergency financial package and rule out a rise in the energy price cap.

Key requests to Government

The Government must introduce an emergency financial package to support vulnerable families, rule out a rise in the energy price cap, and reintroduce the £20 per week uplift in universal credit. The Chancellor could also cut VAT on energy bills, provide emergency loans to struggling energy companies, increase statutory sick pay, and replicate Scotland's child payment across the UK. McGovern asks what the Minister has done to improve reporting by the Office for National Statistics (ONS) regarding inflation faced by those with the least. She also questions why a £9 billion job retention grant was cancelled and expresses disappointment in the failure of the kickstart programme to provide jobs for young people.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Patricia Gibson SNP North Ayrshire and Arran

I am concerned about the rising cost of energy, food, fuel, clothes, and consumer borrowing. The energy price cap is predicted to reach £2,000 a year or £165 a month in April, representing a 45% increase, which will push 6 million households into fuel poverty. Wages are not keeping pace with the cost of living, leading to regressive tax hikes and inflation, pushing more people into poverty. The cut to universal credit is imposing the biggest overnight cut to welfare in 70 years, taking £460 million out of Scotland's economy. Alison McGovern is concerned about the ongoing cost of living crisis that has been exacerbated by a decade of slow economic growth and rising prices. She highlights the issue of food banks, with 2.5 million citizens, including half a million children, relying on them due to financial struggles. The MP criticises the lack of progress in tackling poverty and the repeal of the Child Poverty Act 2010 by the Conservative Government.

Other contributors (9)
  • Deidre Brock SNP Edinburgh North and Leith

    The cost of living crisis is exacerbated by UK Government failures, affecting low-income households disproportionately. Energy bills will consume a significant portion of household income, rising to 54% for single adult households on low incomes. The Scottish Government has taken measures like spending £1 billion to tackle fuel poverty and creating a £10 million fund to help those struggling with energy costs. Deidre Brock highlighted the story of her constituent Imogen, whose family faces an increase from £3,000 to £4,500 annually due to the energy price cap rise.

  • Derek Thomas Con St Ives

    Mr. Thomas discussed the impact of rising living costs on low and fixed-income families in Cornwall, highlighting issues such as pensioners struggling to meet basic living costs despite having planned for retirement. He also mentioned rocketing rent costs affecting nurses, teachers, and police officers trying to live or work in the area. Mr. Thomas suggested protecting new buildings for permanent residents only to address housing supply pressures and called for measures to reform the energy market, including tracking feed-in tariffs with energy costs.

  • Gregory Campbell DUP East Londonderry

    Calls for urgent solutions amid escalating house prices, high inflation rates, and rising energy costs. Urges immediate action rather than waiting six months or two years as the crisis hits families and working people.

  • Jim Shannon DUP Strangford

    Mr Shannon expressed concerns about the rising cost of living, citing high house prices and increased fuel costs. He highlighted that national insurance contributions may increase in April, potentially exacerbating financial strain on constituents. Mr Shannon also mentioned the impact on pensioners, noting a 25p rise was insufficient to cover basic necessities. Food price inflation reached 4.2%, contributing to an increase in food bank usage. He noted an increase in middle-class people using food banks due to rising prices, highlighting the severity of the cost-of-living crisis. Members have asked for confirmation regarding the national insurance contributions planned for April, requesting that they be deferred, adjusted or removed to help those under financial pressure.

  • Margaret Ferrier SNP Rhineland

    The current rate of inflation is at 5.4%, the highest in three decades, with expectations to peak around 6% by April. In-work poverty has increased despite government incentives for work. Benefits are being cut by about 3% when adjusted for September's inflation rate. The £20 universal credit uplift was removed in October, exacerbating financial strain. Rent prices have risen significantly, making social housing unaffordable and pushing people into private rentals with high deposits or increasing mortgage interest rates. Car insurance costs are at a 12-month high, essential for many due to poor transport links or caring responsibilities. Statutory sick pay is insufficient compared to the national living wage, leaving those unable to work in financial hardship.

  • Marion Fellows SNP Motherwell and Wishaw

    Critiqued the government's failure to address rising energy bills, inflation affecting poorest families, and inadequate support for disabled people. Emphasised that 49% of those living in poverty are either disabled or live with a disabled person. Cited statistics showing energy bills will rise by 45%, 6 million households will face fuel poverty by April (a 50% increase from the previous year), and families of disabled children face extra costs of £581 per month on average, with 24% facing over £1,000 monthly. Highlighted carers' financial struggles, including spending an estimated £1,370 a year on services or equipment for care recipients. She advocated for Scottish independence as a means to control economic levers and address commitments effectively through self-governance.

  • Martin Docherty SNP West Dunbartonshire

    The hon. Member expressed concern over the UK Government's reduction of investment in onshore wind farms and removal of subsidies for offshore wind specifically in Scotland, which undermines renewable energy production and higher energy costs for constituents. Does the hon. Gentleman agree that energy market reform also requires a reform of transmission charges? While most parts of England receive subsidies for providing energy, north of London people have to charge to produce and transmit energy.

  • Mick Whitley Lab Wirral West

    Mr Whitley highlighted the struggles of elderly constituents, particularly those with modest pensions, facing soaring energy bills and food prices. He criticised the Government for dismissing concerns about rising costs and called out ministers for prioritising internal affairs over addressing the cost-of-living crisis. Mr Whitley proposed removing VAT from domestic energy bills, implementing a windfall tax on North Sea gas and oil, and nationalising the energy sector to lower consumer bills. The MP asked the Minister to explain why 27 energy firms have gone bankrupt, suggesting there is a significant issue that needs addressing.

  • Mike Amesbury Lab Warrington South

    Jack Monroe, known on Twitter as BootstrapCook, highlighted that a 500-gram bag of pasta has increased from 29p to 70p. This represents a 141% price increase and disproportionately affects the poorest in communities. The speaker also mentioned the £1,000 annual cut to universal credit recipients. Would not part of the solution be to build homes for social rent, allocated to local residents? Fewer than 6,000 such homes were built last year.

Government Response

David Rutley

The Government are taking the present challenges of those on low incomes seriously and have spent more than £400 billion protecting jobs, livelihoods, businesses, and public services during the pandemic. Universal credit has supported 6 million people with a vital safety net. The successful vaccine programme is providing protection against the virus in all its forms. The Government will invest over £250 billion through welfare this year, including £110 billion on working-age individuals. There are currently 1.25 million job vacancies across the UK, and the number of online job adverts has risen by 13.3% since the start of the pandemic in Scotland alone. The Government have opened 150 temporary job centres and recruited 13,500 work coaches to help people find employment. The kickstart scheme has provided life-changing placements for young people, with 112,000 starts across the UK, including 10,000 in Scotland. To address workforce gaps in hospitality, health and social care, and technology, sector-based work academies provide new skills and guaranteed job interviews. Specific funding is available to support older workers through tailored Jobcentre Plus support, and Restart scheme provides intensive help for those out of work for over 12 months. Universal credit taper rates have been cut from 63% to 55%, and universal credit work allowances increased by £500 a year. The national living wage will be boosted by 6.6% to £9.50, providing an extra £1,000 each year for workers on the lowest pay. Energy price caps will remain in place until at least the end of 2022, protecting millions of customers from rising costs. Winter fuel payments are being made to over 11 million pensioners this winter, with households receiving £200 or £300 depending on age. Cold weather payments and warm home discount scheme provide additional support for vulnerable people. The Government recognise the pressures caused by rising prices globally and understand the worries of those seeing increased costs for food, energy, and other essentials.

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