Food Inflation

John Glen Excerpts

Thursday 15th January 2026 Westminster Hall

[John Glen (Salisbury) (Con)]

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.

--- Later in debate ---

[Dame Angela Eagle]

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.

[John Glen]

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.

[Dame Angela Eagle]

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.