debates/debates2025-12-09c conversation_1
Source: hansard.parliament.uk (2025-12-09)

UK Parliament Hansard data: debates/debates2025-12-09c conversation_1

David Williams:What assessment she has made of the potential impact of her fiscal policies on low-income households. \p Rachel Reeves: The approach in the Budget provides significant support for low-income households, taking an average of £150 off people’s energy bills from April next year, freezing rail fares and prescription fees for a year, and expanding the free childcare offer. The steps that I have taken as Chancellor, including the removal of the two-child limit and the expansion of free school meals, will also lift about 550,000 children out of poverty. \p David Williams: Child poverty rates remain far too high in my constituency of Stoke-on-Trent North and Kidsgrove. What assessment has the Chancellor made of how the fair decisions taken in the Budget will address poverty among low-income working families in my constituency and across the country? \p Rachel Reeves: My hon. Friend may know that about 4,000 children in his constituency will benefit from the removal of the two-child benefit limit. That means 4,000 more children being able to go to bed in houses that are not cold and damp and waking up in the morning and being able to have breakfast, and parents being able to afford things that they cannot currently afford. This Government are also providing funds for free school meals in England and delivering free breakfast clubs in every state-funded primary school in England, and extending the warm home discount to 3 million more children. I am proud to be the Chancellor whose actions have led to the largest expected reduction in child poverty over a Parliament since records began. \p Esther McVey: The biggest issue for those on low incomes is losing their jobs. Does the Chancellor believe that there is any link at all between her increase in employer national insurance contributions —her job tax—and employment levels slumping to a 14-year low? \p Rachel Reeves: The number of jobs has increased by 329,000 this year. That is the record of this Government in getting people back into work. The youth guarantee is dealing with the fact that when we took office last year, one in eight young people were not in education, employment or training. That is the Conservatives’ record; this Government are addressing it. \p Gareth Thomas: I commend the steps that my right hon. Friend took to support those on low incomes, both in the Budget and through the recently published financial inclusion strategy, but may I encourage her to go further on the issue of savings, given that a quarter of the people in the UK have little by way of savings and, indeed, one in seven have no savings at all? Will she encourage employers to work with local credit unions to help those who want to save automatically, and to save even a small amount from their pay packets, to do so? \p Rachel Reeves: Through the financial inclusion strategy led by the Economic Secretary to the Treasury, we are extending Help to Save within the universal credit system, and working with banks and building societies. I know that, as a Labour and Co-operative MP, my hon. Friend works closely with the co-operative movement and with building societies to ensure that more people from low-income backgrounds can save for the future. \p Sammy Wilson: Low-income families have been hit by being dragged into tax bands that they were not in before and by energy costs, and now the chief executive of Aldi has said that unless the Chancellor reviews her raid on farm inheritance tax, rising food prices will hit those families as well. If she will not listen to the farmers, will she at least show some concern for consumers, and look again at this tax? \p Rachel Reeves: Since the Budget, the Co-op has cut or frozen the prices of 2,700 essential products at a cost of £1 billion, recognising the impact that the cost of living still has on families, but also reflecting the Budget package that supports our high streets, including our supermarkets.