Economic Update

Baroness Lister of Burtersett Excerpts

Wednesday 19th October 2022 Lords Chamber

[Lord True (Con)]

My noble friend, with his immense experience in the energy sector, has been something of a voice crying in the wilderness on energy policy over decades under different Governments. His point about volatility is critical and is one of the reasons why we must review the nature of support going forward. Obviously, we will need to talk, and are talking, to other energy producers. We have had a very sharp increase. There have been significant fluctuations. We introduced an energy profits levy, an additional 25% tax on the profits of oil and gas companies which, listening to people on the opposite Benches, you would not know had even happened. That is going forward and is not a one-off. It will raise £7 billion this financial year and £10 billion in the next. We are looking to iron out the contracts to help renewable energy industries and there is a package that I hope will come forward before too long.

[Baroness Lister of Burtersett (Lab)]

My Lords, the noble Lord did not answer the very specific question from the most reverend Primate about benefits uprating. On Monday, the Chancellor told MPs that

“all these decisions will be taken through the prism of the impact on the most vulnerable people in society.”—[Official Report, Commons, 17/10/22; col. 429.]

Many of the most vulnerable people in society rely on social security and, as we have already heard, the inflation rate they face is actually higher than the 10% announced today. Given this, is there not a strong case for the Government to announce now that they will uprate benefits in line with inflation to reduce the anxiety being faced by people who are, as we have heard, already struggling to make ends meet?

[Lord True (Con)]

My Lords, it is absolutely true that people across the United Kingdom are worried about the cost of living. I apologise if I did not answer the question from the most reverend Primate; I will answer it now, but it might not be the full answer required. It is not always easy to remember everything that one is asked at the Dispatch Box, so I sincerely apologise to the House. The Government have announced £37,000 million of support for the cost of living this financial year. We have the energy price guarantee and the energy bill relief scheme, which will help millions of households. We are supporting millions of vulnerable households, which will receive £1,200 in one-off support, with additional support for pensioners and those claiming disability benefits, as the noble Baroness knows.

However, obviously the issue of uprating benefits and other aspects of government spending are being considered in totality. The Work and Pensions Secretary is conducting her annual review of benefits and I promise the noble Baroness that more will be said on this in the medium-term fiscal plan.