Cost of Living Debate

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Cost of Living

Eleanor Laing Excerpts
Tuesday 14th May 2013

(10 years, 11 months ago)

Commons Chamber
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Caroline Flint Portrait Caroline Flint
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Yes, further delays to that programme were announced last week. Whether it is smart metering, the green deal or changes to the feed-in tariffs, we have seen one mistake after another and bad handling of what should be very good policies not just for consumers, but for creating jobs and growth in this country.

Curbing the costs of energy for Britain’s households is very important, but the Government have introduced an energy market reform Bill that does nothing to reform the energy market. They have cut winter fuel payments for pensioners, despite promising not to. They have halved the fuel poverty budget while claiming it is bigger and better than ever. They have closed Warm Front, which helped well over 2 million households to insulate their homes. They stand proudly as the first Administration since the 1970s not to have a Government-funded energy efficiency scheme.

If this was our Queen’s Speech, we would be providing real help now for people and reform of the energy market for the long term. Here are three Labour policies that we would have included. [Interruption.] Well, we have been mentioning all these policies for the past year and this is another opportunity to confirm them again. First, elderly customers, who are most vulnerable to the cold weather and most at risk of fuel poverty, are among the least likely to be able to access the cheapest online deals or to switch supplier. We would put that right and put all those over 75 on the cheapest tariff for their gas and electricity. If we did that, as many as 4 million pensioners—including nearly 8,000 in the Secretary of State’s own constituency—could save as much as £200 a year off their bills. [Interruption.] The Minister of State, the right hon. Member for Bexhill and Battle (Gregory Barker), might like to listen, as I am offering him this policy to put in the Energy Bill. The energy companies know that that is our policy and they know that it can be done. The Government can have that policy for free; take it, put it in the Energy Bill and get help to those who need it most.

We also want everyone to benefit from a competitive and more responsible energy market. That means wholesale reform of the way in which energy is bought and sold. At the moment, no one really knows what the true cost of energy is. If energy companies were forced to sell the power they generate into an open and transparent pool, anyone could bid to retail energy.

But it does not stop with energy prices. Let us look at another basic need on which every household relies; water. Ofwat estimates that some 2.2 million households—one in 10—spend more than 5 per cent of their income on water and sewerage. As my hon. Friend the Member for Wakefield (Mary Creagh) has pointed out, despite Labour’s legislation, which allowed for new social tariffs to help people squeezed by rising water bills, the Government have washed their hands of any responsibility and are leaving it to water companies to decide whether to introduce social tariffs. We think that that is a responsibility that the Government should take on and deal with.

Eleanor Laing Portrait Mrs Eleanor Laing (Epping Forest) (Con)
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The right hon. Lady is coming forward with all these ideas now, but why did her Government spend 13 years neglecting the country’s energy needs? Why did they not bring those matters to the House during that time?

Caroline Flint Portrait Caroline Flint
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I refute that accusation; investment in energy was up, there were more starts in terms of renewables, some of which will be completed under this Government—that is our legacy—and by tackling fuel poverty, the insulation programme through Warm Front and the decent homes programme we helped millions of households.

To answer honestly, I have witnessed things over the past three years that have made me challenge what we need to do for the future in terms of how the energy market works. It is up to all of us to reflect on where we are today and on what has happened in the past three years and try to put it right. That is why we believe that we need to encourage new entrants, increase competition and ease the upward pressure on prices.

One of our other proposals is to deal with Ofgem. Ofgem removed price controls a decade ago, so in the belief that competition had developed sufficiently and that privatisation had delivered a functioning competitive market. I believe it is clear now that that was a mistake. We need to create a tough new regulator that people can trust and ensure that the regulator has the power it needs to protect consumers. That is why we would abolish Ofgem and create a tough new regulator with a statutory duty to monitor the relationship between the prices that energy companies pay for their energy and the bills the public pay and the power to force them to cut prices when wholesale costs fall. We believe that that is very important.

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Eleanor Laing Portrait Mrs Eleanor Laing (Epping Forest) (Con)
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It is a privilege to support the Gracious Speech. Although I appreciate that it is unfashionable to talk about conviction politics, I suggest to the House that there is nothing wrong with having principles, talking about principles and sticking to principles. The principles underlying the Queen’s Speech are those of freedom, choice and individual responsibility as well as rights. Through those principles, Conservative Governments throughout the ages have brought prosperity to Britain and improved the lives of British people.

The Labour party does not work on principle. It works—[Interruption.] Labour Members are shouting; if they have a principle to tell me about, let them get up and tell me the principle on which they oppose the Queen’s Speech. They work not on principle, but on short-term party political popularity.

Eleanor Laing Portrait Mrs Laing
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Yes; let the hon. Lady have a go.

Debbie Abrahams Portrait Debbie Abrahams
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On principle, could the hon. Lady say how the Government’s statement on and commitment to fairness in the Queen’s Speech relates to child poverty, which my hon. Friend the Member for Feltham and Heston (Seema Malhotra) has just been talking about?

Eleanor Laing Portrait Mrs Laing
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The hon. Lady makes my point for me. The Queen’s Speech is all about fairness, to which I am coming in a moment. Child poverty has arisen not because of the content of the Queen’s Speech but because of 13 years of economic mismanagement by the last Labour Government.

Mary Macleod Portrait Mary Macleod (Brentford and Isleworth) (Con)
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Does my hon. Friend agree that the Queen’s Speech is fair to women, through its raising of the personal tax allowance and doing so much for child care?

Eleanor Laing Portrait Mrs Laing
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Indeed it is. I thank my hon. Friend for that point. It is important that we treat women fairly, and much in the Queen’s Speech will make it easier for women to go to work and look after their families and do the two important jobs of being a mother and being active in the economy and the workplace. It is through measures such as reforming how we organise child care that that will be done. That is fairness and how we eradicate child poverty and improve the position of all families throughout the country.

Andrew Selous Portrait Andrew Selous
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On child poverty, did my hon. Friend note, as I did yesterday, that the Institute for Public Policy Research, a left-wing think-tank, has now disowned Labour’s approach to priority and is backing ours in dealing with the causes of child poverty? That is good news, as I am sure my hon. Friend will agree.

Eleanor Laing Portrait Mrs Laing
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I did indeed, and my hon. Friend makes the point extremely well.

There is something that has not surprised me, but let me draw it to the House’s attention. The hon. Member for Feltham and Heston (Seema Malhotra) and many of her colleagues get excited about food banks because they believe that it is in the power of the state to do everything to help people. We believe, as a matter of principle, that power is with the people and it is up to individuals to help each other, voluntarily, if they so wish, in times of need. Food banks are not about entitlement. Entitlement and benefits are one issue, but food banks are about relieving short-term need. It is important that we should be able to do that voluntarily.

It is not nasty to make difficult economic decisions, but necessary. It is not nasty to tell the truth about having to cut public spending, but necessary. It is not nasty to reduce the nation’s debt to secure the future for our children, but necessary. It is right to construct a taxation and public spending regime that makes work pay. That is what fairness is all about—taking people on lower incomes out of taxation and not requiring them to pay benefits for those who can work but find that there is no point because they are better off not working. That is what Labour brought about, and it was wrong.

By reforming benefits and immigration laws, we are putting Labour’s mistakes right. It is wrong that people who have worked and saved all their lives have to sell their homes to pay for care in later life, and we are putting that right. It is wrong that enterprising people should be held back by the dead hand of an overbearing state. That is what Labour believes it in and it is one of the reasons made such a mess for 13 years. It was wrong and, again, we are putting it right.

Something else is wrong. Most of us appreciate the benefits of the European single market. However, it is wrong that unnecessary rules and regulations from expensive institutions are hindering our businesses and restricting our freedom. We must, as a nation, renegotiate the terms of our membership of the European Union. I am not going to mention any hypothetical amendments, Mr Deputy Speaker.

Eleanor Laing Portrait Mrs Laing
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Indeed. We are today debating the cost of living, an issue fundamental to the lives of everyone in Britain today. On these Benches, we care about the prosperity of our country and the well-being of our people, so we want the freedom to run our economy and the institutions of our country in a way that benefits the people of Britain.

I hope that the Queen’s Speech will be augmented by a Bill that might come through the private Member’s Bill route and that such a Bill will pave the way for a referendum on our relationship with the European Union. I fully understand, although some appear not to, why such a Bill cannot be a Government Bill. We have to appreciate that we are in the most unfortunate situation of being in a coalition, and one part of that coalition does not want a referendum on or a renegotiation of the terms of our membership. However, many of us do want those things. We need a renegotiation and then a referendum for the simple reason that there is a silent majority of people out there who get on with their everyday lives, work hard, look after their families, contribute to their communities and look to this Parliament to hear their voice and give them the freedom to do the best for their country.

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Mary Macleod Portrait Mary Macleod
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If the hon. Gentleman bears with me, I will come shortly to what the Government are doing to help hard-working families.

The consumer prices index is steady at 2.8%, which is less than half its peak rate of 5.8% in September 2008. However, it is true that, in recent years, consumers are paying a higher percentage of their household income for essentials such as energy, fuel, child care and housing.

The right hon. Member for Don Valley (Caroline Flint) could not answer the question about borrowing, and nor did she apologise for leaving the country in the state she left it when the current Government took over in 2010. What are this Government doing? First, they are dealing with the budget deficit to ensure low interest rates and stability. Interest rates are at an historic low, benefiting all those who pay a mortgage. Mortgage rates are about 3.5%; in 2000, I was paying 7%.

Secondly, the Government are putting money back into people’s pockets by lowering tax. As I have said, they are raising the personal allowance to £10,000 in April 2014, and taking 2 million people out of tax altogether. That will mean that 4,900 Brentford and Isleworth residents in west London have been lifted out of tax by the Conservative-led Government since 2010, and that 49,000 people in my constituency will be more than £700 better off each year.

Eleanor Laing Portrait Mrs Laing
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Does my hon. Friend agree that the provisions she has outlined will particularly help women, and therefore families and small children?

Mary Macleod Portrait Mary Macleod
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I completely agree with my hon. Friend. In addition, more women are in work than ever before.

Thirdly, the Government are taking action on the things that impact most on the cost of living. On energy bills, they are ensuring that providers let consumers know the best tariff by simplifying bills to make them easier for people to understand. The Government have cut fuel duty. Fuel is 13p cheaper than it would have been under the Opposition. It will cost the average family in my constituency £159 less to fill up the car.

I mentioned child care, which has been one of the main barriers to women in the workplace and in creating new businesses. The changes will make an impact on helping women to set up new businesses and to create growth and jobs in the years ahead. The Government are extending free child care to women who work fewer than 16 hours a week, and increasing entitlement to free education and care for three and four-year-olds to 15 hours a week. We have also increased the free entitlement to early education to two-year-olds from lower-income households, which is helping the poorest in society. From 2015, the Government will meet 20% of the first £6,000 in child care costs per child for working families with children under 12.

On housing, I welcome the Help to Buy package—a £5.4 billion package to tackle long-term housing market problems. I also welcome the mortgage guarantee scheme to help first-time buyers and the funding for lending scheme. Genworth Financial in my constituency proposes private sector involvement in the scheme. I look forward to working with it and the Treasury to see whether we can make the scheme a success.

Fourthly and importantly, the Government are boosting business and encouraging aspiration. Ultimately, building growth in the economy by encouraging aspiration and supporting business to grow is how to address the cost of living. What have we done? We have lowered corporation tax so that it is the lowest in the G20. We have national insurance breaks for businesses. We have deregulation of businesses and less red tape. We have scrapped the beer duty escalator. Fuller, Smith and Turner, which is based in my constituency in Chiswick, says that scrapping the escalator is excellent for British brewing, British farming, British pubs and British jobs.

Nearly 600 new businesses were founded in Brentford and Isleworth in 2012, putting us in the top 10 of the entire country. We have worked with women in my constituency to help and encourage them to set up their own businesses. The hon. Member for Feltham and Heston (Seema Malhotra) gave unemployment statistics from her constituency. I am not sure which statistics she was looking at. Her constituency is next door to mine and has the same London borough of Hounslow. Jobseeker’s allowance claimants fell by 4.4% and youth claimants fell by 10% in the past year. Youth unemployment in my constituency is down by nearly 15% since last year and unemployment by 5.5%. We have done more to help by having events such as the west London jobs and apprenticeships fair, which I led in my constituency.

West London is a hub for great business, and I am glad that my right hon. Friend the Secretary of State for Communities and Local Government is in his place, because I want to appeal to him on permitted development rights and change of use from offices to homes. We really wanted the Great West road in west London, which is right next to Heathrow, to be exempt and protected, because we want to build businesses there. I invite him to come to the Brentford golden mile and see what we can do for businesses and job creation for the future.

Britain is a great country for so many reasons. We have won 76 Nobel prizes for science and technology. We are the No. 1 location for European headquarters. We have the largest creative sector per head in the world. We are home to four of the world’s top 10 universities and the world leader in offshore wind energy production and research. The Government are standing up for business, for people who want to own their own homes and for people who work hard and aspire to get on in this great country. The Government are standing up for Great Britain, and the Gracious Speech will help us to deliver in that task.