Cost of Living: Fiscal Approach Debate

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Department: HM Treasury
Wednesday 25th May 2022

(1 year, 11 months ago)

Westminster Hall
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Matt Rodda Portrait Matt Rodda (Reading East) (Lab)
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It is a pleasure to serve under your chairship, Mr Twigg. I thank my hon. Friend the Member for Barnsley Central (Dan Jarvis) for his excellent work in securing the debate, and for his powerful speech.

In the time allowed, I would like to raise three key points about the cost of living crisis that is facing families and pensioners throughout the country—first, to raise some matters relating to my constituency; secondly, to point out some of the additional pressures on public service workers and key workers; and thirdly, to call for a robust response from the Government.

I will start with the points about my constituency. For Members who do not know Reading and the neighbouring town of Woodley, we are lucky to have a buoyant local economy. However, wealth is not spread evenly throughout our community, and many people live in older properties, which are very hard to heat. We have a large number of Victorian terraces, which are attractive to look at but very costly to the residents.

I want to highlight a couple of powerful cases that have come into my office. More than 60 people have contacted me and my team in the past few weeks about the cost of living crisis, which illustrates that this crisis is being felt everywhere, including in the south-east of England.

The first instance is of a woman who is a teaching assistant, who contacted my team in February in deep financial distress. Before the hike in energy bills, she was already struggling to make ends meet. Her take-home pay at that point was around £1,600 a month, but the cost of renting in our area was £1,150. She is extremely worried about the dramatic rise in her energy bills and, as a single parent, is very concerned about looking after her son.

I heard from another constituent—a young man living in a shared house—who is also single. He describes himself as working full time “on an OK wage,” meaning that he is not entitled to any kind of benefits. With rising costs, especially after the update in energy prices, his monthly bills are already above his earnings. He has spoken to his employer, who has very kindly listened and tried to respond, and he is due to get a pay rise. However, that will still not be enough to make ends meet. At the moment he is having to dip into his savings to cope, which is obviously not sustainable.

These cases show the scale of what we are facing around the country, including in areas with quite a buoyant economy. They highlight the need for urgent Government action.

My second point is about the particular pressures facing public service workers and key workers. I am sure that everyone across the House would agree on the vital role that those workers have played during the past couple of years. Whether that is our wonderful NHS, teachers, police officers or people working in supermarkets, it is absolutely incredible what they have taken us through, and I ask the Minister to consider the position they face.