Food Inflation

Kerry McCarthy Excerpts

Thursday 15th January 2026 Westminster Hall

[Catherine West]

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?

[Kerry McCarthy (Bristol East) (Lab)]

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.

[Catherine West]

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.

--- Later in debate ---

[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.

[Kerry McCarthy]

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.

--- Later in debate ---

[The Minister for Food Security and Rural Affairs (Dame Angela Eagle)]

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.

[Kerry McCarthy]

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.

[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.