National Insurance Contributions Increase — House of Commons, 2022-03-08
Topic: Macroeconomics
Kirsty Ann Blackman (Scottish National Party, Centre-left): I want to speak about quite a few matters, but first I want to focus in the plight of younger people—and by "younger people", I mean people under 40, not just people in their 20s. I am talking about everyone in that younger slice of the population We have talked about the last massive increase in inflation, which, in 1992, reached the same levels of increase that it has reached in recent times. I am 35; in 1992 I was six, and I did not know what the rate of inflation was because it did not really matter to me. For a significant period I have been living in a property that does not belong to my parents, and I have a 10-year-old and an eight-year-old. There are many, many people like me out there, people who have been living their lives and paying their bills and have never seen an inflation rate like this, have never seen the increases that are coming down the line, and have never felt the massive squeeze that we are feeling now This is a cost of living crisis, one that is unprecedented for members of my generation who are having to face these massive costs, and it is compounded by the UK Government’s terribly poor decisions. It is compounded by the fact that people in Scotland must pay massive fees for attending university in England. It is compounded by the fact that people will be paying off student loans throughout their lives; indeed, they will never be able to pay them off. It is compounded by the fact that we do not have a real living wage, and that is even worse for people who are younger than 23 or 25, because the UK Government refuse to provide a single living wage. The "national living wage" is a pretendy living wage, because people cannot actually live on it. The Government refuse to provide a single set rate, apparently believing that somehow a 20-year-old can survive on less food or less electricity than someone older It is ridiculous that the Government are doing this. People my age and younger do not have savings on which to rely. As I said in the House some years ago, the average household has less than £100 in savings—and that was pre-covid, before the period during which people’s incomes have been so massively squeezed. People my age—younger people, people under 40—cannot just dip into their savings in order to fund the massive increase in energy bills that is coming, and the massive increase that is coming as a result of the national insurance hike. This is the least sensible time to be introducing a national insurance hike. People will be paying a massive amount more purely because of the choices of this Government—purely because the Government are choosing to fund health and social care in this way We in Scotland went into the 2019 election spending more per head of population on our NHS than the UK Government was. We went into that election calling for the UK to up its spending on the NHS. In Scotland, we are making different choices. We are making better choices. We are already funding the NHS at a higher level per head of population than England is, and we are already increasing the Scottish child payment to make sure that the number of children in poverty is decreasing. The Resolution Foundation says that the UK Parliament "is on track to be the worst parliament on record for income growth" I do not want to see a world being created by this Tory Government where my children’s generation will be poorer than my generation and where my generation are poorer than my parent’s generation, but the UK Government continue to bake that in If the UK Government want to make money and reduce public sector net debt, a great way to do that is through immigration. In 2016-17, migrants reduced public sector borrowing by £4.4 billion. We would get to £450 billion pretty quickly if we added up the amount of positive benefits we can get from migration. If we made better choices—if we chose to not spend money on weapons of mass destruction, for example—we could have more money to spend on the NHS. We should be making better choices that reflect and assist the wellbeing of the population. This is a political choice. The Government have been asking people at the bottom of the pile for more than a decade to just pay a little bit more and cope a little bit more with austerity for a little bit longer, and now they are in the midst of a cost of living crisis where families’ energy bills are going to be shooting through the roof next month, with a £639 increase a year for every household In that time, the UK Government are ploughing ahead with this increase on national insurance. This is going to compound the increases that are being put in place. The increase will be nowhere near covered by the Government’s increase to the national living wage or by the universal credit taper rate. None of that will cover the cost that my constituents are being asked to pay to fund something that could be funded from somewhere else. The UK Government are choosing to balance the books on the backs of the poorest constituents that we have, and they need to change track now.