Cost of Living Increases — House of Commons, 2022-01-24
Topic: Labor
Jerome Patrick Burke Mayhew (Conservative, Centre-right): I am grateful to the SNP for calling this debate. As parliamentarians, it is absolutely right that we should debate in this Chamber the issues that are of most importance to our constituents when those issues are high on the political agenda, so I am grateful for the opportunity to talk about the cost of living and what we can do about it In the opening remarks of the Chief Secretary to the Treasury, we heard the long list of targeted assistance that the Government are providing. I will come back later in my speech to dwell on some of those. Overwhelmingly, however, the best solution for cost of living squeezes is high levels of employment and increased levels of pay when in employment. It is because of the Government intervention in response to the covid pandemic that we have an employment field that is so strong at the moment The Government intervened right at the start of the pandemic to save jobs through the furlough scheme, which supported more than 1 million jobs in Scotland alone, and other schemes, from the self-employment income support scheme—I refer to my entry in the Register of Members’ Financial Interests—to the business bounce back loan scheme to CBILS, the coronavirus business interruption loan scheme. Those saved thousands of jobs, including in the business of which I formerly had the honour to be managing director. Without a CBIL, that company—which employs more than 1,000 people, including several hundred in Scotland—would likely have gone to the wall. It has not and is now growing again—probably because I am no longer directly involved in it—and it is creating many hundreds more jobs, here and in America. The impact of all that is that we did not suffer from 12% unemployment, which was the estimate of economists at the time. Now, as we leave this dreadful pandemic behind us—I hope—we have 4.2% unemployment throughout the country. In my constituency, it is at about 3.2%. Instead of having a jobs crisis in which people need jobs, the crisis in Broadland is the lack of people to fill the jobs available as our businesses grow It is always better to have good jobs with rising wages —which I will come on to—than to rely on a statist solution of increased benefits under universal credit, with the exception of the taper rate. The reduction of the taper rate from 63% to 55% should make good tabloid headlines. All those involved in that part of the economy know the importance of that injection of about £2 billion into the pockets of those who are least well off, as they move from benefits into employment. That is incredibly important, and I am grateful to the Government for focusing their firepower on the taper rate, rather than on the attention-grabbing £20-a-week part of universal credit, because that is where it can do most good There is now more employment in this country than in pre-pandemic times—over 400,000 more jobs—and we should celebrate that, but employment is only the first issue. The second is the amount people are paid when they are employed. I have already referred to the universal credit taper rate, and we should not underestimate how hugely important it is, but the other factor is the hourly rate people receive for their work.