Food Inflation Debate
Full Debate: Read Full DebateCatherine West
Main Page: Catherine West (Labour - Hornsey and Friern Barnet)Department Debates - View all Catherine West's debates with the Department for Environment, Food and Rural Affairs
(1 day, 7 hours ago)
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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.
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.