Cost of Living Increases — House of Commons, 2022-03-16
Topic: Macroeconomics
Suzanne Webb (Conservative, Centre-right): As my hon. Friend the Member for Blackpool South (Scott Benton) said, these are unprecedented times and families are facing unprecedented cost of living pressures, but it is important that we set the scene. The covid-19 pandemic has created an immeasurable strain on global supply chains, leading to increasing inflation and rising prices of food and everyday household items. We have seen wholesale fuel and energy prices rise due to increased global demand for gas as economies around the world recover from the pandemic, and that has been compounded by Russia’s invasion of Ukraine, which has pushed oil and gas prices up even further. We may only import 4% of our gas from Russia but, as the world’s largest exporter of natural gas, Russia’s actions have driven wholesale gas prices up worldwide. So a global pandemic on a scale not seen since the Spanish flu and an act of naked Russian aggression that is reminiscent of a bygone age equal unprecedented factors that have come together to create a perfect storm of pressure on families and households who are struggling with the cost of living We must be honest: the Government cannot control these global factors that have caused a strain on families and households, but they can shield people from the impact of some of these pressures, and they have done Getting more people into work is the single most important way the Government can support people with the rising cost of living. I recently hosted a business breakfast club in Stourbridge and was encouraged by how many firms are hiring and expanding, including by way of apprenticeships. However, filling these job vacancies and addressing skills shortages were raised as two major challenges for local businesses. That is why I am pleased that the Government’s plan for jobs is geared to tackle those problems The £2.9 billion restart scheme and a new £200 million scheme to improve job search advice are helping unemployed people find work. There is also £2.3 billion in funding to double the number of work coaches to provide bespoke support for jobseekers. From speaking to work coaches at Stourbridge jobcentre in my constituency I know of the positive impact they can have, and in Stourbridge it is showing results, with a fall of nearly 30% in unemployment since this time last year, equating to nearly 50% for young people. That is a significant drop The lifetime skills guarantee is another important Government programme that will equip people with the skills they need to fill the record number of job vacancies. I know that this programme will be appreciated by local business leaders in Stourbridge. Ensuring that work pays and making sure that people earn decent wages are vital in supporting families and households with the rising cost of living, and we should not forget that the historic vaccine programme and the plan for jobs have together helped deliver the fastest economic growth in the G7 That is, however, not the only avenue of support this Government are providing. They are implementing a wide-ranging package of targeted and immediate support for households facing rising energy bills and fuel costs, from a £200 rebate on energy bills for all households to a £150 council tax rebate for over 86% of homes in the west midlands and a fuel duty freeze for the twelfth year in a row. The Government are stepping up to support working people That Government support will help to alleviate the shock of energy prices in the short term, but it is important that we ensure an affordable and secure energy supply for families and households in the long term. On the continent we see only too well the problems that dependence on fossil fuels and Russian oil and gas are causing for our European neighbours. It is imperative that we reduce our reliance on fossil fuels and transition to renewable energy sources. The Government have already made significant progress over the past decade and have increased the UK’s renewable energy capacity by 500% since 2010. However, we must do more, which is why I am pleased that the Government have announced a plan to phase out British imports of Russian gas by the end of this year, along with £380 million to support the UK’s world-leading offshore wind sector To transition away from fossil fuels and towards renewable energy is the goal that we are and should be aiming for. Again, we should be honest: gas will remain a critical part of the UK’s energy supply for the years to come. The transition away from fossil fuels and towards renewable energy will not happen overnight. That is why it is important that we continue to support the North sea oil and gas industry and import from reliable countries such as Norway, to boost the supply of domestic gas and lower energy bills for hard-working families To conclude, I know that people face rising living costs—they face them in Stourbridge—but I also know that the Government are doing and will continue to do all they can to help alleviate the pressures for working families and households in my constituency.