Cost of Food

I beg to move,

That this House has considered the cost of food.

It is an honour to serve under your chairship, Mr Gray. I would like to start this debate on the cost of food by speaking about the situation today in my constituency of Liverpool, West Derby. Food prices have increased by 16.4% in the year to October, and one in three people in my great city are in food poverty. One in six constituents in West Derby are missing meals or going without food, and two in three are cutting back on hot water, heating or electricity. The situation is getting worse by the hour.

I am here today to deliver a message to the Minister, the Government and this House: the rising cost of food, coupled with falling wages and a completely inadequate system of welfare support, is a catastrophe for my constituents and my community, and its long-term effects will be catastrophic for generations to come in Liverpool, West Derby.

Like many Members present, I have been contacted by constituents who have never been so scared about their future and their situation. We have workers in almost every industry taking strike action as a last resort, because work does not pay and does not meet rising costs, such as those for food. In West Derby, there are nurses, educators, firefighters, postal workers, rail staff and civil servants using food banks. What have we become?

This is one of the gravest and most frightening crises seen in our lifetimes, and my constituents tell me they feel abandoned and ignored by the Government, whose job it is to protect them—a Government who commissioned the national food strategy and ignored it when it reported back. For all the report’s shortcomings, its author, Henry Dimbleby, attempted to answer some of the failings in Government policy and proposed changes that would have immediately lifted many people out of food poverty if they had been implemented.

Food insecurity levels have doubled since the start of 2022, affecting an estimated 10 million adults and 4 million children in September alone. If the Government cannot ensure that everyone has enough to eat and cannot guarantee their right to food, they are a Government who are fundamentally broken. The 16.4% rise in the price of food in the past year is the highest since 1977, and we have seen the sharpest fall in wages since that year. These catastrophic statistics have a devastating impact on our communities, which I am sure we will all speak about today.

I congratulate the hon. Gentleman on securing this important debate. A recent survey by the trade association for school caterers found that food ingredient prices for schools have gone up by 20% in just two months. Schools are having to subsidise free school meals from their own budgets or to charge struggling families more, for those who are entitled to free school meals. Does the hon. Gentleman agree that the Government should not only extend free school meals to every child on universal credit, but fund schools properly to provide free school meals?

The hon. Lady makes an excellent point. I would go further and call for universal free school meals for every child, but I will speak about that later.

Calorie for calorie, healthier foods are now nearly three times more expensive than less healthy foods. Terrifyingly, the cost of baby formula has soared over the last year, with the cheapest brands increasing by 22%. We have seen pictures of baby milk locked away and put on the highest shelves in supermarkets—images that surely epitomise this entirely broken system.

Inflation hits the poorest hardest. The poorest fifth of the population would need to spend 43% of their disposable income on food to afford the Government’s recommended healthy diet in “The Eatwell Guide”. How is that achievable with so many pressures and so little income?

The hon. Gentleman is making a number of excellent points. Tomorrow, Good Food Scotland will open the Linthouse Larder. Does he agree that what we want to hear from the Government is how they are going to assist organisations that provide affordable food at affordable prices for so many of his constituents and my constituents, so that they can survive from week to week?

The hon. Gentleman makes an excellent point, and I fully agree with everything he said.

I want to highlight the appalling impact that the cost of food is having on children in particular. Professor Ian Sinha, a paediatrician at the fantastic Alder Hey Children’s Hospital in my constituency, told me:

“We see the almost Dickensian effects of poor nutrition in children in Liverpool and other working class cities. We see rickets, poor growth, and deficiencies in minerals and vitamins that reflect that their nutrition revolves around getting enough calories to survive...not around developing optimal health…We have seen malnutritioned children so anaemic as a result of poor nutrition, and so acutely sick, that we thought they had leukaemia. We see children sharing food portions, in schools and in houses, and so no wonder they are falling asleep and struggling to concentrate in class. Paediatrics is about ensuring children live their best life—as per the UN Convention on the rights of the child—and their lack of food is shackling them and their opportunities.”

I congratulate my hon. Friend on the outstanding work he is doing on the Right to Food campaign. Does he agree that the Welsh Government are leading the way on food, particularly for children? We have already introduced free school meals in primary schools, and hopefully that will be extended to secondary schools at some point, despite the fact that Wales does not get a fair, needs-based funding formula. Wales really does care and is compassionate about the needs of people and future generations. Does my hon. Friend agree that the UK Government need to take the lead from Wales?

I fully agree, and I commend Mark Drakeford and the Government in Wales for absolutely leading the way on this issue and showing that a different way is possible.

Professor Sinha goes on to say:

“When I tell families in my asthma clinic that nutrition is crucial, they tell me that by the time they can get to the foodbank any fresh fruit and vegetables have gone. When we explain the importance of how food is prepared, they tell us that the only mechanism of heating food is a kettle. They are limited to ultra-processed, calorie dense foods that are cheap and easy to store. When we see analyses such as those in the British Medical Journal last month, showing associations between ultra-processed food and the risk of death, we know that the children coming to our clinics are often on this path, but they can’t afford to get out of it.”

It is a disgrace that my constituents face this appalling and grave situation, and yet at the same time we read reports that global food companies have paid out £15 billion in profits to their shareholders. Supermarkets are not doing too badly either: they have also paid out vast dividends during covid and the cost of living crisis.

At a recent Environment, Food and Rural Affairs Committee session, we heard evidence from the United Nations special rapporteur on the right to food, who told us:

“Corporations have a significant amount of power in markets and there is not much being done to hold corporations accountable. Food prices are at the mercy of speculation…Governments have tools in place to stabilise prices.”

At the same time, research from the Bakers, Food and Allied Workers’ Union highlighted that the workers who produce the food and enable those profits are some of the hardest hit by the rising cost of food.

Hunger and out-of-control food inflation are not inevitable. They are a political choice made by this Government and compounded by cutting away vital protections from rising fuel costs, dismantling the social safety net, cutting universal credit, imposing benefit sanctions, eroding workers’ rights and presiding over a decade of austerity that has cut to the bone our vital services, which are needed now more than ever. The time for sticking plasters to address the rising cost of food—such as the reliance on thousands of food bank and food pantry volunteers and donors—is over. We need systemic change so that all our people have the opportunity of health, happiness and dignity.

Colleagues will recognise that we have around half an hour until the winding-up speeches at 5.23 pm. Eleven people are trying to catch my eye, and that works out at around two and a half minutes apiece. I shall not set a formal time limit, but if Members could be courteous to each other by keeping to two and a half minutes or less, that would be most appreciated.

It is an honour to speak under your chairship, Mr Gray. I thank my hon. Friend the Member for Liverpool, West Derby (Ian Byrne) for securing the debate.

One in six Jarrow constituents have gone without food in recent months, and two in five have cut back on food spending. Food prices increased by 16.4% in the 12 months to October 2022, and the cost of wholesale food is having a huge impact on charities and food banks. At my surgery last week at Hebburn Helps, it reported that wholesale food prices are severely impacting its ability to help those in need. Food insecurity rates have doubled since the start of 2022, with an estimated 10 million adults and 4 million children impacted. Reductions in food quality and quantity are having serious health consequences for children, the elderly and the vulnerable.

We are hearing reports that food prices are so high and wages so low that firefighters, nurses, teachers and many others are now reliant on food banks. Yesterday in Parliament, the National Education Union told us that support staff are using food banks set up in their schools. Teaching assistants are still trying to feed students from their own pocket, while they themselves are being forced to use food banks to put food on the table in their cold homes. One million children living in poverty do not even get a free school meal. No child should go hungry; no child should be left behind. The nationwide figure that 28% of children live in poverty is appalling. In my constituency of Jarrow, that rises to 39%. That is a horrifying statistic, but we must not forget that behind all these stats is the face of a hungry child and a family who are struggling. When we visualise an average primary school class of 36 children, we should recognise that 14 of them will be living in poverty, too hungry to concentrate at school.

Poverty is clearly a political choice—one that this Government keep on making. This Government should be ashamed that poverty pay and the cost of living crisis have led to millions living in in-work poverty. Throughout the pandemic, supermarket profits soared and they continue to do so. Tesco’s pre-tax profits jumped from £1.1 billion to £2.2 billion in the 12 months to 26 February this year, and the company recently announced a 20% increase in its interim dividend to its shareholders. There are increases in company profits and shareholder pay, yet people are being asked to pay more. We need an urgent change of direction in this country. We need a right to food. In the sixth richest country in the world, it is not too much to ask that our kids do not go hungry.

It is a pleasure to see you in the Chair, Mr Gray. I thank the hon. Member for Liverpool, West Derby (Ian Byrne) for bringing forward this debate and I pay tribute to the tremendous work he has been doing to tackle hunger. Alongside fans of his beloved Liverpool, as well as Everton fans, his Right to Food campaign has helped tackle the food insecurity faced by 11 million people across the United Kingdom.

The Scottish Government allocated almost £3 billion this financial year to help households facing the Tory-induced cost of living crisis, including £1 billion to providing services and financial support not available anywhere else in the United Kingdom. That included increasing the Scottish child payment by 150% in fewer than eight months, to £25 per child per week for those aged between 6 and 15. However, most of the key policies and fiscal levers are held here by this UK Government, given that over 85% of welfare policy is reserved. We continue to press the UK Government, who have all the levers at their disposal, to tackle this emergency on the scale required, including enabling access to borrowing, providing an uprate in benefits and offering extra support to households.

Unlike the Tories, the Scottish Government rightly see food as a basic human right. Everyone should be able to afford the food they need to sustain a healthy life. The Tories have not only taken a wrecking ball to our economy but are decimating the chances for working people, who are often working multiple jobs, to put food on the table for themselves and their families.

The charity Action for Children has unearthed heartbreaking stories of the current cost of living crisis, including the fact that 25% of young people are donating their own pocket money to help their parents through the festive period. Other parents are having to rely on their children’s leftovers, and many families are simply going without. How shameful is that? In my own constituency, I hear personal stories of vulnerable people not leaving their beds because of the price of energy and the current Arctic snap. A constituent contacted me yesterday in a cry for help after spending the last four days in temperatures of minus 8° without any money to heat her home or heat up the homemade soup she had received from a neighbour.

It is important in these debates that we try to get to the roots of what the cause of this food crisis is. We will be told that it is largely to do with the crisis in Ukraine. I believe that it is actually to do with supermarkets profiteering and world global speculation on the food markets.

With regards to supermarkets profiteering, as my hon. Friend the Member for Jarrow (Kate Osborne) said, Tesco has doubled its profits, while those of Associated British Foods have increased by 48% and those of Lidl by 319%. Now is the time for an excess profits tax to ensure that we prevent food speculation at the national level.

In addition, there is speculation at the global level. As I have said time and again on the Floor of the House, we saw this during the banking crash, when billions were moved from the sub-prime housing market into the food commodity market, creating a famine. As a result, we introduced regulation, MiFID II, which put position limits on how much of an individual food commodity could be held by speculators. However, the Government have now introduced the Financial Services and Markets Bill, and in Edinburgh last week the Chancellor announced further deregulation of the market system, meaning that that regulation will be lifted. Instead of regulation by Government or the Financial Conduct Authority, food commodity limits will be handed over to the traders themselves—the very people who are making profits out of this speculation.

Let us put in context the argument that somehow Ukraine has caused this crisis. Ukraine produces 3% of the world’s wheat and 2.6% of the world’s corn—the basic food stuffs. This is about speculation and profiteering. It is not just me saying this about deregulation. The Governor of the Bank of England today stated his anxieties about the Government going too far on deregulation overall, and not learning the lessons of the banking crash. People will starve as a result of profiteering and speculation. That is why we need an excess profits tax and regulation of the food commodity market along with our partners globally.

It is a pleasure to serve under your chairmanship, Mr Gray. I thank my hon. Friend the Member for Liverpool, West Derby (Ian Byrne) for his fantastic contribution and his hard work on this issue. I agree with everything he said.

Earlier this year, Salford’s Labour council declared Salford a Right to Food city. When my council made that commitment, along with ramping up support through its Spirit of Salford network, we were facing acute levels of food insecurity across the city. Sadly, since then the number of people in need has risen exponentially. Indeed, tomorrow I hope to visit an event called Five Days of Christmas, where a group called For the Love of Food, led by the brilliant Councillor Sammie Bellamy, will be distributing hot meals to anyone over 65 who might need one. Sammie and her team have been helping those who are struggling to afford hot cooked meals for months now, and they are joined by a stream of other charities across the city providing urgent food support. They include the Salford Families in need Meals Project, Salford Foodbank, Swinton food bank, Mustard Tree, More4Less, Salford Community Grocery, the Food Collective, Audacious A-Teams, Family FoodFayre, Lucie’s Pantry, Salford Loaves and Fishes, Salford Food Parcels, FoodCycle, Oasis Hub and so many more. The list is becoming endless.

The work these brilliant organisations do is nothing short of heroic, but we must question why, in one of the richest economies in the world, the people of my city are having to rely on charity to feed their families. The answer is that more than a decade on from the financial crisis, UK workers are still earning on average £75 a month less in real terms than they were in 2008, and it is getting worse. Nurses’ pay, for example, has fallen by 20% in real terms, and workers in the UK are facing the worst real wage squeeze of all G7 nations. At the same time, the cost of food has soared by at least 11.6% over the last year, which is the sharpest increase on record, not to mention energy costs, which have skyrocketed.