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I beg to move,
That this House has considered the impact of food inflation on the cost of living.
It is an honour to serve under your chairmanship, Dame Siobhain. I am grateful to the Backbench Business Committee for granting this debate, which I requested in October last year, and to those colleagues who are here today to speak in the debate and supported the application to the Committee.
We know that, whatever our political persuasion, politics at its best is about values. I came into politics to do everything I could to ensure that every single child in every single family has the best possible start in life. How do we measure that? How do we track progress on this fundamental principle, so crucial to who we are as a society? We know that the cumulative effect of inflation meant that UK food prices rose by a total of 38.6% between November 2020 and 2025. An element of that, of course, is linked to energy inputs into food processing.
I hope there is a consensus, right across the political divide, that the most basic indicator of whether every child has the best start in life is whether every single family, whatever their circumstances, can afford decent, nutritious food. Without first applying that most fundamental of benchmarks, how on earth can we even begin to think about ensuring that every young person has the chance to thrive in school, in work and in life?
Surely we can all agree, across the political spectrum, that the existence of food banks for families in 2026 is a stain on our conscience. I pay tribute to the great work of the Middle Lane food bank and all the other food banks in my constituency, with wonderful volunteers—faith groups, charities and local grassroots people, doing their best every day to ensure that every family has access to quality, nutritious food—but why are we having to do that?
I will be asking the Minister to commit to ending the need for food banks for families by the end of this Parliament, to work with colleagues on the possibility of an essentials guarantee in our social security system, to ensure that local housing allowance keeps up with the reality of rental costs and to investigate a publicly backed food hub or wholesale platform that could create more inclusive local communities.
I am so pleased that the two-child cap on universal credit has now been scrapped—a decision made since I lodged the request for this debate. From April this year, that policy change will go to the heart of what we need: a society where everyone can thrive, and the change that people voted for in July 2024.
Why do we not have an economy that works for everyone? Maybe we need to start by looking back into history. During the second world war, as all kinds of items became scarce, the rationing system tried to ensure an equitable distribution of all the essentials, but there was one exception: eating out was off the ration. So long as people could afford to go to the Ritz, the Carlton or another nice restaurant, they did not need to give a second thought to rationing. The Government then, working hard to at least give the impression of equality, decided in 1942 to cap restaurant meals at five shillings—I am told that is £21.70 in today’s money—and limit them to three courses.
Much has changed, of course; in 1945, the Labour Government rebuilt the country, introduced the national health service and built the welfare state. However, if we are to make any honest and thoughtful assessment of how far we have come since 1945, the first thing we need to look at is whether every family can afford nutritious food, without having to make the choice to go without it.
The Trussell Trust’s second “Hunger in the UK” report found that, in 2024, 14.1 million people, including 3.8 million children, lived in food-insecure households. In the borough of Haringey, of which most of my constituency forms a part, 3,938 households are likely to be facing food poverty. The report also found that the risk of hunger can be a lottery, depending where people live; households in the most deprived areas in the UK are three times as likely to be food insecure as households in the least deprived areas.
Some groups of people also face much higher risks of hunger and food bank use than others. In the Trussell community in 2024, three in four people were disabled. One in three children under the age of five are now growing up in a food-insecure household.
There has also been a growth in the number of people in working households being referred to food banks; they now represent nearly a third of referrals. More than two thirds of those working households are on incomes so low that they are also in receipt of universal credit. Most alarmingly of all, hardship is becoming normalised; the report says that 61% of people who experienced food insecurity did not consider themselves to be facing hardship, meaning that they did not really want to turn to a food bank for support. Families going without food no longer even consider themselves to be in hardship.
How did we get here? It is an income problem, a poverty problem and a structural problem, and we need to have an honest conversation about that. Over half of people receiving universal credit experienced hunger last year and 87% of people referred to food banks were in receipt of means-tested benefits. Families struggling to afford food also generally struggle to afford other essentials. For example, people referred to food banks in the Trussell community in 2024 on average had just £104 a week to live on after housing costs—just 17% of what the average household across the UK has. Ultimately, the need for food banks is about incomes, not food; it is an inability to afford food and, of course, other essentials such as rent, clothing and toiletries.
We need to recognise the issues that bring households to a point where they cannot cover the cost of both food and other essentials. Real median household incomes have fallen and wage growth has failed to keep up with the cost of living. Meanwhile, private rents have also risen at record rates, made worse by the failure of housing benefit and the failure—for quite some time now—to have sufficient housing supply to reduce the cost of rent. In 2024, half of all private renters receiving social security for housing costs experienced food insecurity and those households on the lowest incomes have suffered the most. The Food Foundation estimates that since April 2022 the price of a typical basket of food has increased by nearly a third.
We also know that the prices of cheaper food rose at a much higher rate than the prices of more expensive food.
I congratulate the hon. Lady on securing this important debate. She is right to highlight the issue of inflation, especially food inflation, but does she also recognise that although the price of food is going up, the food producers, predominantly farmers, are not seeing a similar rise in the income they get for producing that valuable food?
Indeed; if the hon. Gentleman is a listener to “Farming Today”, which I listen to in the mornings, he will know that the price of milk goes up and down, which makes it very hard for dairy farmers to survive. I agree that there is something there, and I am sure the Department for Environment, Food and Rural Affairs has been looking at it.
The hon. Lady is absolutely right in identifying the structure here. The market is one that is ripe for abuse. There are 15 behemoth retailers at the top and 210,000 primary producers at the bottom, leading to a situation where our constituents cannot afford to buy the food and the food producers cannot make a profit in producing it. Surely what we need to do is to look at that supply chain between the supermarket and the farm gate, build on the excellent work of Baroness Batters and her farming profitability review, and come forward with a revised food strategy, which we have been promised.
I know the Minister will have much to say on that issue, and I look forward to her response.
Adam Jogee (Newcastle-under-Lyme) (Lab)
I shall add a Labour voice to the case for supply and production, but first I pay tribute to the Newcastle-Staffs Foodbank in Newcastle-under-Lyme, which does wonderful work, particularly at the Newcastle Congregational Church on King Street.
The intervention by the right hon. Member for Orkney and Shetland (Mr Carmichael) about supply and production speaks to the importance of the wonderful farmers in Newcastle-under-Lyme, such as the Jones family in Audley and the Williams family in Wrinehill. We can feed ourselves, but we can only do so if we support the farmers in my constituency, and those up and down our country.
Indeed, and it is wonderful to hear hon. Members speaking up on behalf of their constituents, particularly farmers—we now have so much more information about farming now than there was before.
Coming back to the point about the prices of cheaper foods rising at a much higher rate than the prices of more expensive food, cheapflation means that low-income families lose out. We know one reason for that is that margins on cheaper food are much tighter than those on more expensive food, so suppliers cannot absorb rising costs and households who are already selecting the cheapest varieties have nowhere else to go.
We also know that food inflation in the UK is generally higher than for our neighbours in Europe. Academic studies have suggested that Brexit has added as much as eight percentage points to food inflation, amounting to an extra £6.95 billion in food costs from December 2019 to March 2023. Since Brexit, the UK has lost the complex network of agrifood supply chains that we had shared with other members of the EU.
I wonder whether my hon. Friend heard the testimony of Toby Ovens, the managing director of Broughton Transport Solutions, to the Business and Trade Committee the other day. He spoke about how we have lost that complex network, but gained a mountain of paperwork, which is accounting for much of the costs that are incurred for the food that is coming into our country. That includes 26 different stamps that he now has to get to import food into our country. Does she recognise that one of the ways that we can help bring food costs down is to get that sanitary and phytosanitary deal signed?
My hon. Friend is quite right, and is well versed on these issues. UK businesses face more red tape when they want to import from and export to the EU, invariably adding to costs in the sector. On 19 May last year, the UK and the EU agreed an exciting new strategic partnership, including an agreement to work towards a common sanitary and phytosanitary—SPS—area agreement to make agrifood trade easier. The Government estimate that that deal would add £9 billion to the UK economy in the long term. My right hon. Friend the Paymaster General, who is also Minister for European Union Relations, has said that it will bring down prices on supermarket shelves. I pay tribute to him and his excellent civil servants for everything they are doing to foster a good working relationship with Brussels and secure a better deal for UK food suppliers.
In my constituency, we are blessed with a huge range of small shops and market stalls selling fruit and veg of every kind, but that is not the case across every region of the UK. Fresh food deserts—areas where people rely on convenience stores—are an increasing phenomenon. As research from Which? shows, people who have to rely on smaller supermarket convenience stores are often charged more for the same products, and do not always have access to budget and own brand ranges.
In the same way that people in the 1940s could go to a nice restaurant for a ration book-free dinner, in 2026 people can gain access to cheaper fresh food and budget ranges if they have access to a car so they can go to the out-of-town supermarket. A Sainsbury’s poster from the rationing era acclaims the freshness of their produce due to high turnover of stock and guarantees that there will be no profiteering. I invite every supermarket to produce a 2026 version of that poster and to guarantee that they will not charge more for everyday food items in their small convenience stores than they do in their out-of-town supermarkets, and that their budget ranges will be available at all their convenience stores.
Ben Coleman (Chelsea and Fulham) (Lab)
I am most grateful to my hon. Friend for calling for this important debate. The Health and Social Care Committee are currently doing an inquiry into food, and supermarkets will be coming in shortly to talk to us about how they operate—we will have a lot of questions to ask. Obesity and nutrition are a particular challenge for people on low incomes. It is more than twice as expensive to buy healthy food. Does she agree that we need a cross-Government strategy to bring the price of food within a range that people on lower incomes can afford, and make sure that good, healthy food is not only affordable, but accessible everywhere in the country? We need Government, business and experts to work together on that. The time is now. The problem is real and needs to be addressed.
I look forward to reading the report that comes out of my hon. Friend’s Committee.
How do we build a future without food banks? Let us look at what has worked. As a former borough leader, I introduced free school meals for all primary school children. It was a great equaliser and social leveller. Children were more focused and made better progress; families who were just about managing saved money; there was no stigma, as everyone sat together, and the people serving the food got the London living wage. These meals provide an opportunity for children to sit down to eat a nutritionally balanced meal, have meaningful conversations with adults and learn to eat with a knife and fork. Under our mayor, free school meals for all primary school children were subsequently rolled out across London. More secondary school children will benefit under this Government’s new policies for all families receiving universal credit. I take my hat off to the Government for that change.
I am also incredibly proud of the Government’s Best Start in Life holiday activities and food clubs, something my hon. Friend the Member for Washington and Gateshead South (Mrs Hodgson) has campaigned on for years in this place, along with other Members. That £600 million investment, over three years, means nutritious meals and exciting activities for half a million children across the country every year, helping children to achieve and thrive. It means consistency for parents, who will not face a cliff edge on childcare when term time ends, and money back in the pockets of parents who would otherwise have to fork out during the holidays just so they can work to put food on the table. Children who attend the holiday activities and food clubs are more likely to take part in sport and exercise, which addresses the point made by my hon. Friend the Member for Chelsea and Fulham (Ben Coleman), and children feel more confident and social with their peers after attending a club.
Most importantly of all, as I have said, the scrapping of the two-child cap on universal credit will start making a real difference in April this year. It will be the most cost-effective way to lift half a million children out of poverty, and allow them to look forward to supporting their parents at the same time.
The essentials guarantee that I would like the Minister to consider would embed in our social security system the widely supported principle that, at a minimum, universal credit should protect households against going without the essentials. The experts—the Trussell Trust and the Joseph Rowntree Foundation—are calling for an independent process to advise the Government on benefit rates. As the Minister is from the Department for Environment, Food and Rural Affairs, she may well wish a Minister from the Department for Work and Pensions to answer this point, but it needs to be said again and again that income is one of the key drivers of food bank need. As independent process to set universal credit could advise the Government to ensure that rates are based on need and essential costs.
A protected minimum floor for universal credit would provide a safety net below which no one should fall. It would build on the introduction of the fair repayment rate by limiting all universal credit reductions, including from the benefit cap, to 15% below the standard allowance. It would also provide support to households, both in and out of work, and help over 240,000 children.
The local housing allowance has not kept up with the cost of housing. We know that the Government are straining every sinew to bring on new, genuinely affordable homes, but the local housing allowance remains frozen while we wait for that reality to unfold. If that remains the case over the course of this Parliament, renters will be about £700 worse off by 2029, and 50,000 renters will be pulled into poverty. If we do not re-establish the link between the local housing allowance and actual rents, increasing numbers of people will be forced to turn to food banks because they simply will not be able to pay the rent.
Will the Minister commit to ending the need for food banks for families by the end of this Parliament? We have made other commitments on things we are going to do by the end of the Parliament—for example, on immigration —but what is more important than ensuring that every family and child can afford nutritious food? Will the Minister work with colleagues across the ministerial teams on the possibility of an essentials guarantee in our social security system, and on ensuring that the local housing allowance keeps up with the reality of rental costs in the private sector?
On Friday, I visited the Coexist Community Kitchen in my constituency, which does amazing work to get the community in. It runs cookery classes, is accessible and has affordable and healthy food, and sometimes it is free. Quite a lot of people go there on social prescriptions. On the issue of cross-departmental working, does my hon. Friend agree that is not enough for the health service just to issue prescriptions? It needs to support community kitchens so that they can do the cookery classes and make the food available. There needs to be institutional support, as well as the prescribing end of it.
My hon. Friend, who is a former Minister, makes an excellent point. I know that the Minister present will look into our idea of a publicly backed food hub or wholesale platform. It could operate on a cost-recovery basis and work with local suppliers to help them to supply food to local schools, households and NHS facilities in their area at stable and affordable prices, thereby helping to develop thriving and inclusive local economies.
When it heard this debate was going to happen, the Bakers, Food and Allied Workers Union wrote to me to say that despite being in work, six out of 10 food workers say their wages are insufficient for them to meet their basic needs, such as food and energy, while nearly half say they are feeling food-insecure. Three out of 10 say they do not have enough food to feed themselves and their families. Let us make a difference. Let us make the change that we all voted for in July 2024.
May I say what a pleasure it is to serve not only under your chairship, Dame Siobhain, but on the Treasury Committee with you and the hon. Member for Hornsey and Friern Barnet (Catherine West)?
I first became engaged in this subject during my first Parliament, when I joined the all-party parliamentary group on hunger and food poverty with the late Frank Field. He taught me a great deal, and we worked together on a cross-party basis to produce a report on hunger and food poverty. I was drawn to this topic by the fact that the Trussell Trust was founded in Salisbury by Paddy and Carol Henderson, who were taking food into Bulgaria at the time. In 2000, the first food bank was opened in Salisbury, and we now see food banks across the country.
While I will address what the hon. Lady spoke about, it is also important that we reflect on some of the deeper challenges that exist with food inflation, which is running at a much higher rate than the prevailing level of inflation. In preparing for this debate, I examined the facts carefully and read briefings from UKHospitality, the Food and Drink Federation, the National Farmers Union and the Trussell Trust, all of which provide helpful analysis. Over the five-year period up to August 2025, food inflation was about 10% higher than the prevailing general level of inflation. As the hon. Lady set out, that has had a massive impact on the poorest in our communities, who in different ways spend a higher proportion of their income on food.
We in this Chamber can all attribute different weightings to different aspects of this issue, including international global agricultural prices and the clearly significant disruption to the supply chain after the invasion of Ukraine. The Bank of England would assert that domestic labour costs and high pay growth is a key factor, particularly in sectors such as horticulture, where there is a degree of mechanisation. However, we are never going to remove the reliance—I speak as the son of a horticulturalist—on the hard work of people being paid to do a manual job.
In a written answer published just last week, the Economic Secretary to the Treasury spoke about the Government’s intention to set out the food inflation gateway to examine all the different drivers of inflation. I acknowledge the work the Government are doing, and I am sure the Minister will follow up on that to reset somewhat the relationship with the EU. Business rates are also a factor, but if we look across milk, sugar, cheese and flour—some of the most basic staple foodstuffs—we see significant increases over the last five years, which range from 19% for flour up to 56% for sugar and 46% for milk. We have to be honest about all the different regulations and obligations that we put on those who supply our food and prepare it for us in restaurants. The input-cost pressures need to be carefully weighed against one another.
I mentioned the significant increases in labour costs, and the agricultural sector’s reliance on labour, but it is also about energy costs. Our energy costs are 45% higher at this point in time than those in France and Germany. That is a cost that many of the food processing industries just cannot avoid. The Government will assert that they are on a transformational journey, but until that we reach the destination, the costs are incredibly high and difficult to bear.
Animal welfare is an important issue for many in the Chamber and across the House. If we look at how farming works, we see that there is actually a lower density of poultry and beef, which leads to different costs for producing some of those things. We want to have it all, including the extended producer responsibility—a whole life-cycle responsibility for packaging. When we take all these things together, simultaneously, in a five-year period of global disruption, the outcome is very worrying. It would be remiss not to mention the impact of climate change on crops such as coffee, cocoa and palm oil.
The net effect is that food is too expensive for the most vulnerable and the poorest in our communities. That has really difficult consequences. It is a massive part of our economy. UKHospitality covers, I think, 123,000 venues, and 10% of all UK jobs. The sector generates £54 billion in tax receipts, so the changes that we make to its input costs will have enormous consequences. We have to be honest about which changes we are prepared to prioritise and which changes we cannot afford at this point in time, because they will have an impact.
I want to make a few observations about food poverty. Just last week I visited Maria Stevenson, who manages the Salisbury food bank, which used to be a Trussell Trust food bank and is now independent. She does an amazing job of analysing those who use the food bank—those who go occasionally or on a recurring basis—to try to give them additional support and make interventions, such as supporting them to secure the right benefits or helping them with other things in their lives. We have to grasp that.
None of us want to see food banks grow. We should have pride in what Paddy and Carol Henderson did all those years ago, but not in seeing food banks grow as they have over the last 25 years. We have to be honest about the situations people are in. Next Monday, we will have a financial wellbeing workshop in our guildhall in Salisbury, where the Money and Pensions Service is inviting people to open up and talk about cost of living pressures, so that we can find solutions.
I do not expect the Minister to be able to go through all the input costs today and give an analysis of how they are going to be reduced—although I recognise that there were some hopeful signs at the end of last year on both food inflation and general inflation, albeit from a higher base than I would have liked to have seen. We must also look into people’s wider financial wellbeing and the circumstances they find themselves in.
Inflation is insidious. It removes the buying power of our constituents. One of the wealthiest countries in the world has people who do not have enough food to eat. We must all redouble our efforts to tackle that, so that we can be proud of what we have achieved by the end of our time in Parliament. My experience is that, given their complicated circumstances, those experiencing food poverty need more than just a handout.
Brian Leishman (Alloa and Grangemouth) (Lab)
It is a pleasure to have you in the Chair today, Dame Siobhain. I thank my hon. Friend the Member for Hornsey and Friern Barnet (Catherine West) for securing this debate, and I thank the right hon. Member for Salisbury (John Glen) for his interesting, informative and considered contribution, especially in respect of food bank volunteers doing an awful lot more work than providing food.
Since 2010, we have seen an unholy trinity. First came the cruel and wicked ideology of austerity, which impoverished communities from all four nations of the United Kingdom. Political decisions were designed to create the inequality that ravaged communities up and down the country so severely, and academics at the University of Glasgow have linked that to hundreds of excess deaths. Then we had a pandemic, which increased further the wealth inequality from the years of crippling austerity, as the few got richer and accumulated more assets at the expense of the many.
We have witnessed eye-watering increases in life’s essentials—food, energy, fuel, shelter and insurance—but at the same time wages have fallen in real terms for most of us. That obscene reality has been neatly packaged and labelled as the “cost of living crisis”, and that phrase has now entered everyday language. Millions of people struggling has become an accepted, normalised part of life, but for the millions in that position, describing it as “living” is wholly inaccurate.
Having to choose between heating and eating is no life; it is a battle merely to exist. I know that, because I have been in a similar position. Years ago, I had to tell my young son that he should have his tea on his own, “Because dad’s not hungry. I’ll have something after, once you go to bed.” But the truth was that we could not afford to eat. We went without, so he could have a meal. Those are the circumstances for hundreds of thousands of Scots today, right now.
Hunger and hardship are on the rise. According to recent research by the Trussell Trust, more than 1 million Scots went hungry due to a lack of money to buy food, including more than 200,000 children. This winter, Trussell Trust food banks expect to provide an emergency food parcel every 10 seconds—a 40% increase over the winter period compared with five years ago. An increase in food bank use has been a long-term trend. More than 14 million people, including 3.8 million children, live in food-insecure households.
True to form for the country of gross inequality that we are, there is a gulf in the risk of hunger, depending on where someone lives in the UK. Households in the most deprived areas are three times more likely to be food insecure than households in the least deprived areas. Three in four people referred to food banks under the Trussell umbrella are disabled, and one in three children under five are growing up in food-insecure households.
A key reason for growing food bank reliance is a social security system that is failing to protect people. The heightened cost of living has the largest impact on those with no savings, those already in debt or arrears or those on universal credit. In fact, just over half of the people on universal credit in the UK experienced hunger last year, and 87% of people referred to food banks in 2025 were in receipt of means-tested benefits.
People on low wages are also impacted. I am 43 years old and when I was at school, if one of my peers was living in poverty, it was probably because their parents were unemployed. But nowadays, 30% of people referred to the Trussell Trust are working. Under a right-wing Government, the 2010s were a decade of wage suppression and wage stagnation. With austerity, wealth accumulation and cost of living pressures, working people have been plunged into deprivation, and politicians have allowed that to happen.
Relentless campaigning by civil society outside this place, and inside this place by me and other Labour MPs, influenced the Government to abolish the biggest driver of hunger and hardship: the two-child cap. By removing that wicked policy, Labour has lifted just under half a million kids out of poverty and hardship. Actions like that are why I joined the Labour party and why I remain in it today, but they must only be the start. Food bank use is rising, and my party needs to be far bolder and more ambitious now that we are in power. Make no mistake: the country needs us to be.
One measurement of what kind of country we live in is how our social security system functions, and whether it properly looks after the disadvantaged and the most vulnerable in our society. In government, we need to work with charities and with third sector and community organisations, which are heroically supporting people across the country who are struggling to eat and make ends meet. We must introduce a new programme like the essentials guarantee, which would embed in our social security system the fundamental principle that universal credit should protect people from going without the essentials of food, heating and toiletries.
Giving people a right to food should be part of that. We must ensure that people can eat and that their children are not going hungry. That is why I am fully behind the campaign by my hon. Friend the Member for Liverpool West Derby (Ian Byrne) to introduce a “right to food” law, and why I will be helping to support his Right to Food Commission when it comes to Scotland to take evidence in May.
Of course, we should have a policy with a minimum floor in universal credit—a safety net that no one among us should ever fall through. We live in the sixth largest economy on planet Earth and poverty is a political choice. Because it is a political choice, it can be eradicated. We just need the politicians and the Government that are willing to do that.
We have to build a future in which people no longer rely on donations, charity and food banks, just to exist. We should start by implementing an essentials guarantee so that the basic rate of UC actually covers life’s essentials —that could be a Britain that we are all proud of.
In order to get everybody in, I ask Members to adhere to a discretionary five-minute limit on speeches. I call Katie Lam.
Katie Lam (Weald of Kent) (Con)
As ever, it is a pleasure to serve with you in the Chair, Dame Siobhain. I thank the hon. Member for Hornsey and Friern Barnet (Catherine West) for securing the debate.
For many people across the country, rising food prices are one of the most concrete ways in which the cost of living crisis impacts their lives. Thanks to rising costs, many families simply do not have enough money left at the end of the month to save for a home, plan a holiday or even send their children on a school trip.
In general, prices rise because of three things. First, they can rise because too many people want too few goods. If the demand for something grows faster than the supply, the price will of course rise. We saw that in the immediate aftermath of Russia’s invasion of Ukraine. The supply of Ukrainian wheat fell, demand stayed the same and global food prices rose.
Secondly, prices can rise because it becomes more expensive to produce goods in the first place. To keep earning enough to survive, the people who produce those goods will need to increase their prices to cover their growing costs. As my right hon. Friend the Member for Salisbury (John Glen) mentioned, we see that today, as this Government’s energy policies create the highest industrial energy prices in the developed world. Higher energy prices for businesses mean higher production costs, causing prices to rise. The same is true of higher taxes or greater regulatory costs, both of which this Government have imposed on businesses of all kinds.
Thirdly, prices can rise because of external factors, which can also be in response to Government policy. If the Government increase the supply of money, say, or keep interest rates too low, people will be more likely to spend, reducing the relative value of the pound in their pocket and, again, causing prices to rise.
If we talk to anybody involved in producing food in this country, we will hear a lot about the second cause. Costs are rising and prices are rising with them. As I mentioned, that is due partly to energy costs, but also partly to the vast sums food producers must spend to comply with the regulations they need to navigate if they ever want to sell their products.
Let us take dairy farms as just one example. What hurdles must a dairy farmer in Kent, in my constituency, clear if they want to sell milk, cheese or butter? To even begin the process, all dairy farmers must register with the Food Standards Agency as a dairy producer. If they want to turn some of their milk into cheese or butter, they must also get a separate approval as a food business establishment.
Cows must be kept according to regulations set out under the Animal Welfare Act 2006 and the Welfare of Farmed Animals (England) Regulations 2007, which include rules on space, housing and veterinary care. The herd must be regularly tested by the Animal and Plant Health Agency for tuberculosis and brucellosis. They must be specifically protected to minimise contact with badgers, with the construction of specific fences and feeding facilities. Farmers must also create and implement a hazard analysis and critical contact point plan identifying all potential contamination hazards and setting out plans to minimise them. They must test for certain bacteria and must be prepared for unannounced inspections by the Food Standards Agency.
If farmers want to sell milk, they must comply with the Drinking Milk (England) Regulations 2008, which define the appropriate fat content for different sorts of milk and sets out specific rules on pasteurisation. If they want to turn the milk into cheese, they must comply with certain compositional standards, including rules on protected designations for specific regional varieties. If they want to turn the milk into butter, they must comply with the Spreadable Fats (Marketing Standards) and the Milk Products (Protection of Designations) (England) Regulations 2008, including rules on additives and fat percentage.
Then there are rules on labelling and marketing, on mandatory written contracts on milk sales to regulate pricing, and on manure spreading and waste management. If farmers want to adapt their buildings or extend them, they need to navigate the labyrinth of our planning system. Then and only then are they allowed to sell their milk, butter or cheese, and the price in the shops will need to reflect all the costs I have just mentioned if they want to keep the farm running.
It is always easy to criticise regulation, but we often find that regulations are introduced for very real reasons, whether that is protecting public health, animal welfare and so on. Will the hon. Member tell us which of the regulations and requirements she has listed ought to be dropped?
Katie Lam
What is important here, and what I am trying to set out, is how many costs farmers have to meet even just to get their produce out of the door. When we talk about food prices, it is inevitable that we will talk about why those prices rise, what the costs are and how they might be going up. Many of my farmers work incredibly hard to put food on people’s tables, and my aim is to talk through the costs they face even just to be able legally to sell their produce. It is important for constituents who are listening to this debate to understand what goes into the pint of milk that they buy.
Dairy farmers live an extremely difficult lifestyle. They work long hours and can never afford to take a day off—the cows will, after all, always need milking. Thanks to farmers’ hard work, we are able to enjoy some of the finest dairy products anywhere in the world. Given the difficulties they face, we should not be making their lives harder by forcing them to navigate mountains of paperwork and endless regulatory compliance. It is bad for them and bad for those who want to buy their products at an affordable price.
Katie Lam
I am so sorry; I am running out of time.
The same is true across every other type of farming or food production, from vegetables to vineyards. For the sake of those who put food on our plates and of families working hard to make ends meet, will the Minister—who I notice is wearing our favourite suit jacket again today, as am I—please explain what steps the Government are taking to reduce costs for food producers and, in turn, for producers across this country?
Finally, those Government hurdles are due not just to legislation. Peter Hall at Little Mill Farm in Marden in my constituency does incredible work with the Felix Project. He gives away thousands of apples and pears from his orchards to be eaten by children who would otherwise not be able to eat them. He would happily sell them to local schools at cost price or lower, but the tangled bureaucracy of procurement makes that impossible. Addressing that issue would be a win for everyone. It would mean healthier food being provided cheaply for local children, supporting our farmers, tackling food waste, and preventing orchards from having to be grubbed up, which releases a lot of carbon into the atmosphere. Will the Minister please set out any plans she might have to make it easier for local farmers to sell their produce to state institutions nearby?
Mr Luke Charters (York Outer) (Lab)
It is a pleasure to serve under your chairship, Dame Siobhain. I thank my hon. Friend the Member for Hornsey and Friern Barnet (Catherine West) for securing today’s debate. I know that you have both been consistent voices on food insecurity.
I start by giving a shout out to a local legend. Adam Raffell of the York Trussell Trust has done amazing work for families in York, for which I thank him today. I also thank the Prime Minister for his relentless focus on the cost of living, on which we have to bear down.
The Food and Drink Federation has shown that, since January 2020, food inflation has consistently outstripped non-food inflation. What was the cause? It was when the damaging and disastrous botched Brexit deal came into effect. Over the channel, our European neighbours, to be fair, have also faced rising food costs, but nowhere near as sharply. UK food inflation peaked at nearly 20%, year on year, in 2023 under the Conservative party’s watch, while countries such as Germany and France peaked lower and returned to normal much faster. The UK is worse off, which tells us that we have to work more closely with our European friends.
The Prime Minister recently said:
“if it’s in our national interest to have…closer alignment with the single market…we should consider that”,
and when it comes to food price inflation, I think the answer is a resounding yes. Although Reform and the Tories want to shout at Brussels, that will not pay for people’s weekly food shop. An SPS agreement and closer alignment would strip out so much red tape, checks and delays. Fewer inspections and mutually recognised standards would mean less time stuck at the border, lower costs for hauliers and fewer spoiled loads. All those savings could be passed on to the hard-working families of this country.
Like any toddler, my son Robin’s favourite food item is, of course, the Freddo frog. The famous Freddo index shows that since I was born—in 1995, believe it or not —there has been a 260% increase in the cost of the treasured Freddo. However, we also know of the phenomenon called shrinkflation. A few weeks ago, many of us gathered around the Christmas tree with our families, enjoying a tub of choccies. This year’s tubs of Roses were more than 100 grams lighter than they were in 2018, but the cost has increased by 20%. If shrinkflation is so significant, does the Minister agree with the idea that it perhaps needs to be reflected on food packaging?
Another iconic British institution is the meal deal. We were all devastated when its price tipped from £3 to £3.50 or more—it was £3 in Tesco for over a decade. Can I make a confession to the House? As a tight Yorkshireman, I am always grabbing the three most expensive products—crisps, drink and sarnie—even if I do not really like them, just to get the biggest discount. I have written to some retailers, saying, “Shouldn’t we have a bit of an arms race? Who can be the first supermarket to get the meal deal back down to £3.50?” What a wonderful cost of living measure that would be for the grafters of Britain.
As a northerner, can I turn to another place to get a hearty snack? The Greggs sausage roll is well up there and, yes, I would pick Greggs over Gail’s any day of the week. However, the price of a simple sausage roll has shot up by more than 50% in less than a decade. Something is not quite right there. It has gone up by 53% since 2016—I wonder what happened in that year. If anyone from Greggs is watching, can we have a serious deal on sausage rolls? Perhaps we could have a cost of living week when sausage rolls are just a quid?
What can we do? We need supermarkets and big food brands to play their part. They are making record profits, which should come with responsibility. Initiatives such as a cost of living week could be a start. Discounts on essentials, loyalty schemes that really make a difference and fair pricing on some staples should be the norm. We need more transparency, and labels should provide that.
Adam Jogee
I am grateful to my hon. Friend for giving way. It is not for me to touch on stereotypes, but being his mate and, at Christmas, his secret Santa recipient, I can confirm that he is very generous indeed. We are all enjoying his speech immensely, but I wonder whether he agrees that no farm in this United Kingdom is better than a Staffordshire farm—with Ulster farms running close, of course, as the hon. Member for Strangford (Jim Shannon) knows. With that in mind, we should all have a “Buy British” approach. That is good for my people in Newcastle-under-Lyme and for producers, and it will be good for our economy, too.
Mr Charters
My hon. Friend is spot on. If I can give a shout out to one of my constituents, I love buying from Grey Leys farm. It produces the most beautiful Jersey milk. Would it not be brilliant if schools and hospitals in the York area bought local dairy products? Speaking of milk, we should have an awareness of food inflation’s impact on gluten-free and similar products for allergy sufferers and those with intolerances.
Tory Britain was defined by misery. Prices were up, wages squeezed and families left to struggle. Today, we are cutting prescription charges, tackling rail fares and easing the pressure where we can, but we must go further on food inflation to support the hard-working families of Britain.
Several hon. Members rose—
I am very sorry to say this, but it would be great if the two final Back Benchers could stick to about four minutes.
It is a pleasure to serve under your chairship, Dame Siobhain. I say a big thank you to the hon. Member for Hornsey and Friern Barnet (Catherine West) for setting the scene, and to the right hon. Member for Salisbury (John Glen).
This is a very important debate, because so many families out there are struggling. I very much welcome the Government’s commitment to ending the two-child benefit cap. It will definitely make changes, but we cannot see those changes just yet. In Northern Ireland, annual food price inflation is 5.1%, and grocery spending has reached £4.4 billion.
The first Trussell Trust food bank in Northern Ireland was in Newtownards in my constituency, and food bank use last year was up 35%. We now see middle-class families, who have a wage but are unable to cope, using food banks. Overall consumer inflation in Northern Ireland has stayed around similar levels to that of the UK, which is about 4% to 5%. Recent research from Safefood indicates that food costs vary for many families. In some cases, it can be 50% of take-home pay for those with children.
I will give three examples in the short time I have. I know a family of two—a mother and daughter—who spend about £450 a month on groceries, including staple top-ups such as bread and milk. They made me aware that their rent is £600, so households are spending almost as much as their rent on groceries to eat well.
The second example is a family of five: two adults who work full time and three children aged from two to nine—wee tots, I would call them. They told me that they spend about £180 to £200 a week on groceries. Many may think that seems so much to be spending, but we often do not think of the breakfast before school, the break-time snack, lunch, dinner and endless litres of milk for children. Many working families are not eligible for free school meals, and parents want to ensure that their children have healthy, hearty meals. They have to get it right for their children from the very beginning. I would encourage children to drink their milk.
I want to briefly touch on the cost of baby formula, which has been increasing for numerous years. Certain formulas can range from £8 to £16 per standard tin, and that is not to mention the recent recall of SMA milk due to the potential presence of cereulide. Many families bulk-buy milk, and they will have to source it elsewhere in the meantime, before they can be compensated. They cannot do without milk for their children, so we have to address that increase in price. Almost £16 per standard tin is just too much.
The reality is that the announcements in the Chancellor’s Budget of benefit uplifts and the freezing of tax thresholds do not go far enough to support a huge proportion of the population. Rising grocery prices create challenges for everyone. I am increasingly seeing working families struggle from month to month while trying to do their best and hold down their full-time jobs. In all my time as an elected representative, I have never seen such pressure on working families across this United Kingdom. The pressure is huge. In this economy, most people are feeling the impact. It is a month-to-month struggle, and they are not able to save. The cost of living means those families are not able to get back on their feet.
So what do we do? We look to the Minister. She will have to forgive me for saying that she will have to dig deep into her pockets. Our constituents need more help. The cost of living is stretching household budgets to breaking point. I believe that this is the Government’s responsibility. To be fair to them, they are doing what they can to ensure that no household is left struggling to put food on the table. We should look forward to having a society in which everyone can meet their basic needs without worry. If we cannot do it today, we need to do it as soon as possible.
John Milne (Horsham) (LD)
It is a pleasure to serve under your chairmanship, Dame Siobhain. I thank the hon. Member for Hornsey and Friern Barnet (Catherine West) for securing this debate.
I am a member of the Work and Pensions Committee, and we have been looking at the impact of the cost of living crisis on a range of vulnerable groups. The effects are everywhere: not just in the most deprived areas of the country, but even among wealthier communities, including my constituency. In the interest of time, I will concentrate on Horsham.
Local demand has surged. Horsham food bank tells me that its monthly distribution of food parcels has risen dramatically year on year. There has been a sharp rise in children requiring support, which mirrors the regional data that shows a 56% rise in food bank use across the south-east.
My constituent Rachel is a mother and a disabled woman whose partner works full time. She told me that there is often nothing left after she has paid the energy bill and fed her family. She lives on biscuits, because half the time she cannot afford to cook. She said that she feels exhausted and out of options, and she is unsurprisingly affected by depression. That has come about for her not because of poor choices but because incomes have simply not kept pace with the essentials.
I pay tribute to the fantastic work being done by organisations such as Horsham District food bank and FareShare Sussex & Surrey. I was interested in what the right hon. Member for Salisbury (John Glen) said about his local food bank, and there are lots of parallels with the work happening in Horsham.
FareShare has said that it prepared millions of meals last year to support local families who face rising cost pressures. It describes the combination of high food and energy costs as making the past year “the toughest yet” for its operations. It is moving beyond simply handing out food, and it also offers advice and helps people to put themselves in stronger positions. The food bank is in a unique position to build trust with people who might otherwise slip through the cracks because they are perhaps afraid or too shy to explain their circumstances. Timely advice on finances, nutrition and cooking can help people to get themselves off the dependency culture altogether.
So many people are living with no margin for error—if the washing machine goes wrong or the boiler breaks down, it is an instant crisis—so what more can we do? First, we need to ensure that universal credit and other benefits are set at a level that genuinely protects people from going without essentials. Joseph Rowntree Foundation research shows that current benefits still fall short of the real cost of living by £28, with shortfalls pushing families into hardship.
As previous speakers have mentioned, an essentials guarantee in our social security system would mean that no one should fall below the floor of being unable to afford food and heat. To make this lasting and fair, we need an independent process to set benefit levels that draws on evidence, including lived experience, rather than leaving them to annual discretionary decisions. Many experts and organisations are now calling for such an essentials guarantee as a sensible way to depoliticise rates and anchor them to actual costs.
Secondly, we can cut the cost of food without spending even a penny. Research from the London School of Economics shows that Brexit added billions to household bills—costing individual households over £200 a year on average—and saw price hikes on basic essentials such as meat, cheese and many others that Members have mentioned. The Liberal Democrats have long argued that maintaining a customs arrangement with our closest trading partners could help to reduce unnecessary costs on imported foods that end up in people’s shopping baskets, while still protecting good British farming.
Finally, local action matters, too. Devolution and targeted investment in local food infrastructure can link farms with food charities and community kitchens, create jobs and build resilience without making charity a default safety net. Food banks like those run by Horsham Matters are working towards the best result possible: making themselves unnecessary. Let us give them a helping hand.
Dr Danny Chambers (Winchester) (LD)
I commend the hon. Member for Hornsey and Friern Barnet (Catherine West) on securing this hugely important debate. The cost of living, particularly the cost of food, is one of issues I get contacted about the most by my constituents. The high cost of living is being driven by rising food prices. I was astounded just last week, when someone emailed me a photo of an £8 tube of toothpaste from the supermarket in Badger Farm in Winchester. It was not a special new one that claims to whiten teeth and cure all oral ailments; it was just bog-standard toothpaste. I think we are all finding that we leave the supermarket baffled. Often, I just pop in for some essentials and I leave with a bag of shopping that has come to £50 or £60. It is affecting absolutely everyone. We are finding that people are struggling just to meet the absolute basics—not just food, but other life essentials.
Several Members have spoken about farming and food producers. As a vet who grew up on a farm and so has worked in farming in many capacities, I think that that is one of the most underestimated ways of helping to address the cost of living crisis.
As my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael) mentioned, farm-gate prices are so low that many farmers are earning significantly less than the living wage, yet supermarket prices are so high that many people cannot afford to buy basic, decent quality food. That shows the necessity of the revised food strategy, which has to be an imperative for this Government.
I know what it is like to have to get up at 5.30 in the morning to milk cows, to calve cows in the middle of the night and to work all night lambing. Farmers work all hours in all weathers, but their income at the end of the year is often not related to the amount of work they put in, because it can be affected by factors completely out of their control, such as a disease outbreak, a trade deal or a weather event. The frustration of not getting rewarded for the amount of effort, time and energy they put in is making many see long-term futures in farming as unsustainable. They need a huge amount of support.
Food security is part of our national security, but 45% of our food is imported. Given the volatile geopolitical situation, food is more than ever a key component of our national resilience. While we are desperate to have food that is more affordable, we must be mindful that signing trade deals with the USA that would undercut our farmers on welfare, environmental and basic public health standards would be hugely detrimental. We do not want chicken that has been washed in chlorine, we do not want hormone-treated beef and we do not want eggs that have been produced by battery hens. That would be bad for British farming, for animal welfare and, given the antibiotic use, for public health. I urge the Government to ensure that it is enshrined in any trade deals that those standards would be protected.
I want to pay tribute to the food banks in Winchester, which I have visited on more than one occasion. We have the Winchester Basics Bank and the food pantry in Unit12. I thank the huge team of more than 80 staff and volunteers for all their work; they are extremely busy at the moment. I also thank the community, faith groups and churches that support them.
Taking a step back, despite all our economic troubles, we are one of the wealthiest nations on the planet. We can be a nation where an honest day’s work pays a living wage, where no one with a full-time job has to go to food banks to feed their children, and where no child ever goes to school hungry. We have to make these choices urgently; we must address them as soon as we can.
It is a pleasure to serve under your chairmanship, Dame Siobhain. I thank the hon. Member for Hornsey and Friern Barnet (Catherine West) for securing this important debate, throughout which we have heard valuable contributions from Members rightly raising concerns on behalf of their constituents. We all know that food inflation significantly impacts the cost of living by eroding household purchasing power, and that it disproportionately affects those in low-income households, leading to food insecurity. Just last November, 61% of adults in Great Britain reported an increased cost of living compared to the previous month. Much of the reason for that was linked to the inflation of food prices.
I join Members across the House in thanking those who are going out of their way to support those who need it in their own constituencies, not only with advice but through operating food banks and providing comfort and support. Imogen and her team in the Salvation Army in Keighley, who I have met many a time, do fantastic work to help families not only in Keighley but across the wider Worth valley area in my constituency. I pay particular tribute to her and her team.
During this debate, much discussion has been about food banks. It is important that we also recognise food larders—I have a number in my constituency —where large shops and supermarkets donate their food at the end of the day or before the sell-by date. They minimise food waste and enable people to access low-cost or free food that they would otherwise have to pay for.
My hon. Friend makes an excellent point, and he must have known what I was coming on to in my speech. There are many other organisations and companies that are producing excess amounts of food. We need to reduce food waste, which is ridiculously high in this country, and utilise and redistribute high-quality food through a localised logistics system or a national strategic approach. Those at both grassroots and national level need to be thanked, but much more work is needed to focus on reducing food waste to help those on lower incomes.
Lower-income families spend a large proportion of their budget on food—about 14% in the UK compared to 9% for higher-income households—making those who are more vulnerable much more exposed to price spikes. We have already heard that the price of flour has increased by 19% and milk by about 46% in a relatively short period of time. As well as the vulnerability sitting with those low-income households in terms of their purchasing power, it also sits with the primary producer: the farmers and growers who are exposed to those spikes. They are not only exposed to their own vulnerability; they also lack resilience because they are entered into contracts with unfair terms and unfair adjustment mechanisms linked to supply and demand, and they have to compete against commodities and food that can be produced at much cheaper prices in places with different standards.
While the end price for some food products fluctuates for the primary producer—we have seen that with lamb, beef and milk prices this year—for others they do not. For example, in the arable sector, cereal prices are linked to global commodity prices and some of those feed wheat prices have not really changed in the last 20 years. Exposing those primary producers to fluctuating prices depending on what they are producing, but not mitigating the increase in associated input costs for producing that food, directly hits food inflation prices.
My hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) mentioned the vulnerability associated with farm-gate prices. Return rates for our farmers sit at about 1%, if not at all, and therefore many of our primary producers are not even breaking even. That is why the Baroness Batters farming profitability review was welcomed, although it was frustrating that the Government held that report back. They did not give the opportunity for it to be debated on the Floor of the House through an oral statement; they just relied on a written statement. I encourage the Minister to allow time for us to get to grips with debating such a significant and valuable report so that all Members can contribute towards it. A key recommendation in that report was around the supply chain, which, as I think has been acknowledged, is not fit for purpose and disadvantages primary producers. That is why we want more funding and power going to the Grocery Code Adjudicator.
My right hon. Friend the Member for Salisbury (John Glen) and my hon. Friend the Member for Weald of Kent (Katie Lam) highlighted the challenges around input costs increasing for our food producers and farmers. That has not been helped by policy choices and tax choices brought forward by the Labour Government in the last 18 months. Let us look at the rise in labour costs: the Bank of England says that the increasing costs associated with labour through the rise in employer national insurance, coupled with the rise in the national minimum wage from £11.44 to £12.21 an hour—a rise of about 6.7%—has dramatically impacted not only the horticultural sector, but many of those food-producing businesses and large employers.
In April, employer national insurance rose from 13.8% to 15%, while the threshold has significantly reduced, falling from £9,100 to £5,000 per employee annually. That disproportionately affects companies who employ lower-paid, younger and part-time workers, many of whom are employed in the horticultural industry and the food-producing sector. That is, of course, combined with uncertainty around levels of investment. We have seen the changes to inheritance tax come through, and that is holding back a level of investment: many of those involved in the food supply chain want to invest, but are holding back due to uncertainty about being able to mitigate the inheritance tax changes coming down the line.
As my hon. Friend the Member for Weald of Kent picked up on, we have also seen new regulation, particularly for the dairy industry, and the hurdles that those sectors need to jump through simply to get their food product on the table. New regulation is having inflationary challenges: the un-Employment Rights Bill worked its way through the House and led to stagnation in business decisions, with investment held back from moving into automation. I am being contacted, as I am sure other Members are, by many employers who are not willing to risk employing people because of the challenges associated with the Employment Rights Act. I dare say many of those are young people and those with special educational needs or learning challenges, who want to get their first step on the employment ladder, but many of those businesses are holding back, which is leading to inflationary challenges.
There is also the extended producer responsibility tax, which has been recognised by not only the British Retail Consortium but the Food and Drink Federation as creating an inflationary challenge for our food sector, estimated to be about £1.4 billion, which will be passed on to consumers by those supermarkets. The British Retail Consortium believes that 80% of those EPR costs will be passed on to consumers, which will lead to higher food prices. Then there are the increasing energy prices; the funding being taken away from our primary producers—our farmers—such as delinked payments dramatically reducing in a short period of time to £600 as an annual payment, where just two years ago they would have been receiving much more; and challenges with the fertiliser tax and sustainable farming incentive.
That just adds to the inflationary challenges associate with food prices, which are predominantly hitting those on the lowest incomes. I ask the Minister not only what the Department for Environment, Food and Rural Affairs will be doing, but what conversations they will be having with the wider Government Departments. It is fine to have a food security strategy, but if that does not sit at the heart of Government, it is for the birds. The reality is that, if it sits under a Secretary of State who has responsibility for food but is not bought into by the likes of the Chancellor and those who are making fiscal adjustments, it will not have the positive impact that it needs to; we have seen that from the last two Budgets that have come out of this Labour Government.
I also want to understand from the Minister what recommendations she and her Department will be taking forward at speed—not only the few announced by Baroness Batters’ profitability review, but that specifically address food inflation challenges, give fairer reassurance to our farmers that farm-gate prices will increase and they will get what they deserve for the primary product they are producing and, ultimately, help those on the lowest incomes across all our constituencies with the cost of living.
It is a pleasure to serve under your excellent chairmanship, Dame Siobhain. I too enjoyed being a member of the Treasury Committee—as the right hon. Member for Salisbury (John Glen) still does—to which you always make a trenchant and relevant contribution. I congratulate my hon. Friend the Member for Hornsey and Friern Barnet (Catherine West) on successfully securing this debate—I think she is on the Treasury Committee as well. There seems to be a preponderance of current or ex-Treasury Committee members in this debate, which perhaps suggests that the issue before us, food inflation, is, as anyone who has listened with an open mind to all the excellent contributions will realise, quite a complex issue.
There is no single cause for the fact that, in the UK, food inflation for the last period has been running about 1% above CPI inflation rates. Many Members, from all parts of the House, have talked about the effect that that has had on their constituents. This debate reflects real concerns about food inflation and cost of living pressures that are affecting millions of households across our country. Those pressures have been building for years, and too many families were left to face them alone under the previous Government. Tackling the cost of living remains at the heart of what this Labour Government hope to achieve in our time in office.
Food poverty is not an abstract issue, as many of us who visit food banks in our constituencies know; nor is food insecurity, which now touches more than 14 million people in our country—not a small number, and a very sobering one when we think about it. In my constituency, I see parents skipping meals so that their children can eat. I see many others relying on food banks to get by. When I was first elected, we did not have any food banks in Wallasey; we now have too many. All are doing a fantastic job; I pay tribute to the work that Wirral food bank does, and to the many volunteers who run social supermarkets and food clubs in the constituency, which have grown up to meet need as it has arisen.
I also pay tribute to Feeding Britain, which was started by Frank Field, who was my constituency neighbour. He perceived this issue and how much it was growing, and in his usual way he decided that he was going to do something practical and see what he could do to help. He did, and Feeding Britain now makes an important and interesting contribution to the work we are all doing to bring about this Labour Government’s manifesto commitment to ending the mass use of emergency food parcels by the end of this Parliament.
I echo what the Minister said about Frank Field. Quite a long time ago now, he approached me about setting up Feeding Bristol as an offshoot of Feeding Britain. Feeding Bristol has gone from strength to strength, particularly with its holiday hunger programme, which provided tens of thousands of meals for children who would otherwise have gone hungry during the school holidays. We all owe Frank a debt of gratitude for that.
I was thinking, when I attended his funeral a few years ago, what an effect he had at a grassroots level with his vision for getting stuff done. There are many hundreds of thousands of people up and down the country who, even though they might not know it, owe him a debt of gratitude.
The actions we have taken start with easing cost of living pressures and raising living standards. It is obvious, as many colleagues on the Government side of this Chamber have said, that one of the basic causes of food insecurity is the price of food, but it is also people’s inability to have enough income to do one of the most basic things in life: putting food on their family’s plates—or their own. Analysis demonstrates that that difficulty particularly affects those with children and those who have disabilities or other issues around being able to earn a reasonable amount of money if they are in work, so that they can cover basic costs. The Trussell Trust demonstrated, as my hon. Friend the Member for Alloa and Grangemouth (Brian Leishman) said, that a third of those who attend food banks for emergency food parcels are in work.
I found it interesting to hear Opposition Members say that increases in the national minimum wage or in the money that people earn for working were actually part of the problem. Those who do low-wage work also have to eat. Although the increases add a cost, we have to appreciate that maintaining a very low-pay society will not help us get out of this problem.
I hear what the Minister says, but does she not recognise that if the prevailing increase in the national living wage is 6.7% and inflation is about half that, and given the other costs mentioned by my hon. Friend the Member for Keighley and Ilkley (Robbie Moore), many employers will not be able to take on any casual extra staff? They may even need to release some members of staff, which surely does not help anyone.
The right hon. Gentleman is correct at the margins, but I am also correct that having a very low-wage economy and not increasing the national living wage does not have a positive effect. As with all economic analysis, some of this is about the balance and which effect comes out top. We have tried many years with chronic low pay and very few rights at work, so we are now going to try something different. On the Government Benches, we think that people deserve a living wage for doing a full-time job. That is how we will get out of this situation.
The Government are taking a strategic, joined-up approach to tackling the cost of food to build a more resilient and fairer food system for the long term. I hope to reassure the hon. Member for Keighley and Ilkley (Robbie Moore) that we are joining up across Government and it is not just DEFRA talking about this. Just this morning, I joined my hon. Friend the Member for Kingston upon Hull West and Haltemprice (Emma Hardy) at a food poverty conference hosted by the Department for Work and Pensions, which brought together representatives from local authorities, the third sector and civil society. That is where we can forge local, practical solutions to some of the problems that we have all perceived in our constituencies. The Government’s job in that circumstance is to try to facilitate and empower those things to happen, rather than have a top-down approach that mandates what to do. There are certain things that we can have an effect on, and there are others that we need to use empowerment to bring about.
We are working together across Government to tackle this issue head on. That includes the child poverty strategy to boost family incomes and cut essential costs. It also includes the 10-year plan from the Department of Health and Social Care to tackle the link between poverty and obesity, which is an extremely important aspect of these debates; and the expansion and improvement of free school meals by the Department for Education. I personally believe that we must break the link between poverty and obesity, and get good nutritional food to everybody in the country. It is often cheaper to eat good nutritional food, but many people live in constituencies where there are food deserts or where, as my hon. Friend the Member for Hornsey and Friern Barnet said, there is a poverty premium on getting to good nutritious food, and we have to work with the industry to try to deal with that.
We are co-ordinating across Government to deliver real change and to break the cycle of sticking-plaster politics that preceded us. From April, the value of Healthy Start will increase by 10%. The weekly value will increase from £4.25 to £4.65 for pregnant women and children aged one to four, and from £8.50 to £9.30 for children under one. We will continue to work with retailers to expand access to healthy, affordable food, which we at DEFRA are particularly interested in bringing about. The expansion of free school meals will benefit about half a million more pupils, save families up to £495 per child per year and lift about 100,000 children out of relative poverty by the end of this Parliament.
We are extending the holiday activities and food programme, with £600 million to support children during school holidays. That was particularly welcomed by the local activists at the food poverty conference that I attended this morning. Our free breakfast clubs will be rolled out nationally, starting with 750 schools, ensuring that no child starts the day hungry for food. I have visited some of those breakfast clubs in my constituency; seeing children eating, playing naturally and being ready to learn as school starts is a real boost.
At DEFRA, we are introducing the food inflation gateway to ensure the impact of regulation. Opposition Members have been through some of the issues that they worry about with respect to that—none at greater length than the hon. Member for Weald of Kent (Katie Lam). The food inflation gateway is there to ensure that the impact of regulation on food prices is properly assessed before implementation and is looked at cumulatively. Together, those actions are preventing the chaotic and unsequenced policymaking that characterised a lot of the chaos of our predecessor Governments.
We know that food price inflation is just part of a wider challenge on the cost of living, and our approach goes beyond tackling the cost of food alone—from energy bills to childcare. That is why this Government are taking action on all fronts: raising the minimum wage—I recognise that we and the Opposition have a bit of a political disagreement about the effect of that—extending the £3 bus fare cap to keep transport affordable, ensuring that Best Start in Life family hubs can be present in every local authority, backed by £500 million of funding, and removing the cruel and ideological two-child limit on universal credit to ensure that families receive support for all children, thereby helping to lift an estimated 450,000 children out of poverty. That is a serious and ambitious series of actions to tackle the pressures that families face.
I am also acutely aware of the pressures that farmers face, which is why we are looking to see what we can do—as the Batters report suggested—to strengthen the fair dealing regulations for farmers to ensure that they get a fair price for the food they produce. Building on the Food Strategy Advisory Board established by my predecessor, we are collaborating across the entire food chain to deliver a system that works for everyone. We have a great deal of work to do. It is not simple, but we are determined to get on with it.
We have had an excellent debate and a lot of hope from the Minister in her remarks today. We have seen GDP figures up, the costs of borrowing falling, train fares frozen and cheaper fuel bills announced in the Budget, a pick-up in the housing market and the lifting of the two-child cap in April. There is a lot that we can be hopeful about. There is also the increase in the minimum wage, which has consistently been voted against by the Opposition.
This is not a new debate, but we must all redouble our efforts to reduce the use of food banks, particularly by families. We must also look at an essentials guarantee in social security systems, the cost of housing and how that contributes to poverty and food inflation. The SPS agreement with Europe is a very exciting development. We want supermarkets to pledge to stock budget ranges in their convenience stores. We would also like DEFRA to continue to back the food hub and wholesale platform publicly to develop thriving local inclusive economies.
We have so much to do. We are getting there, and with the excellent work of Ministers, together with thoughtful contributions from Back Bench Members, I am sure that we will arrive by the end of the Parliament.
Question put and agreed to.
Resolved,
That this House has considered the impact of food inflation on the cost of living.