Social Security (Additional Payments) Bill — House of Commons, 2022-06-22
Topic: Macroeconomics
Jonathan Michael Graham Ashworth (Labour, Centre-left): Let me begin by being clear with the Secretary of State: we do not intend to divide the House. We understand that the Government need to put in place the architecture to make these arrangements swiftly. None the less, we want to put on the record a number of points, on which I hope Ministers will provide some clarity in their response to Second Reading and throughout proceedings today Like many Members, the message that I am hearing up and down the country could not be clearer: for many of our constituents, these are the toughest times that anyone can remember. More than a decade of underwhelming economic growth has meant that today the cost of living is skyrocketing and pay packets are failing to keep pace with inflation. By next April, wages will be worth £2,000 less in real terms than in 2020, with real pay in the UK falling at the fastest rate for 20 years, leaving household finances stretched to breaking point. Prices are up in the shops and the cost of petrol is through the roof. Energy bills are sky-high, and the lifting of the price cap later this year means that they will increase further. Families everywhere are saying, "Enough is enough!" It should be no surprise that today’s statistics show a 12% increase in those with council tax arrears The Secretary of State took great care to explain why she is taking action to help those in need now, and the measures are welcome as far as they go, but the House has to understand that the future is bleak: energy market expert Cornwall Insight is warning that the energy cap could rise by a further £1,000 in October; inflation is at 9.1% today, with worse on the way; the cost of living will rapidly rise further; pensioners will see the value of their pensions and savings attacked by inflation; and working families will be left desperate to protect the value of their wages from the ravages of inflation—and the edict of Ministers tells them to take a pay cut Ministers hope that interest rates and tax increases will dampen demand in the economy, and thereby slow economic output. Pain today and pain tomorrow is their policy to get inflation under control, even though the Office for Budget Responsibility warned, following the spring statement, that we are heading for the biggest fall in living standards since the 1950s, with more children set to be pushed into absolute poverty. Labour was clear that taking no action following the spring statement would have amounted to the wilful impoverishment of many of our constituents—a price that we never believe is worth paying. We therefore proposed a windfall tax on North sea gas and oil producers to help families and pensioners, and we are pleased that after some months the Government finally listened to our representations We recognise the extra support that the Government are allocating today, but in reality this legislation—important though it is—is a short-term sticking plaster because of a series of long-term policy failures to grow our economy sufficiently, and to address the longer-term problems and hardship that have been growing over the last 10 years due to attacks on social security and unfair pay settlements.