Commons Sense

House of Commons · Westminster Hall

Living Standards

01 February 2024 · 5 other contributors · 10,648 words

Opened by Stewart McDonald SNP Glasgow South

Responding minister: Bim Afolami

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

At a glance

Stewart McDonald raised concerns about living standards in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about low living standards in the UK, citing factors like inflation, energy prices, and the impact of Brexit.
  • Government urged to consider innovative approaches beyond tax cuts to address living standards, including investment in public services and tackling income and health inequalities.
  • Minister highlighted government support measures, including cost of living payments to over 8 million UK households and planned increases in local housing allowance rates.

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.

Opened the debate

Stewart McDonald SNP Glasgow South

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.

Other contributors (5)
  • 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.

  • Caroline Elphicke Con 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

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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