These questions show the originality of thought among the Opposition parties. The United Kingdom Government recognise the challenges facing households due to elevated costs of living and so have taken action to protect struggling families with the largest support package in Europe. UK-wide, support to households to help with higher bills is worth £94 billion, or £3,300 per household on average.
Over the winter, too many have had to make the decision whether to heat or eat—in fact, too many could not afford to do either. With food inflation well in excess of 15%, and much higher on specific staple items, people simply cannot afford to eat. What advice does the Minister have for households in Scotland, and those in Sunderland who I represent, who are worried about being able to provide food for their families?
Inflation is a problem affecting many western economies, particularly those in Europe, and it is right that this Government continue to provide cost of living support while sticking to our plan to avoid adding unnecessary inflationary pressures. The average household in Scotland receives £1,850 from the UK Government, with the poorest households receiving £2,445. About £5.2 billion was spent in 2022-23, which is more than the Scottish Government’s entire annual welfare budget.
After 13 consecutive hikes in interest rates, the Institute for Fiscal Studies has warned that 1.4 million more householders could face a 20% fall in disposable income. This mortgage crisis started with a disastrous Tory mini-Budget last September and is adding to the cost of living crisis. Will the Minister please explain what the hell his party is doing to clean up the mess it created?
We do not accept that analysis. We recognise that this is a worrying time for homeowners and mortgage holders, but we cannot ignore the fact that interest rates have risen across western economies as a result of the pandemic and the impact of the war in Ukraine. The Government remain committed to responsible economic management to bring inflation back under control, which is the only way to achieve sustainably lower interest rates and mortgage rates.
It is not just homeowners who are affected by spiralling interest rates; they also contribute to an average rent increase of over 8%. The Scottish Government are doing their bit, using the limited powers they have. They have extended the rent cap and extended the evictions freeze into March, so that nobody in Scotland will be thrown out of their house because they are poor; and of course in Scotland, thanks to the Scottish National party, we are not selling off council houses but building more of them. What exactly are his Government doing to protect tenants in Scotland and to prevent an increase in homelessness?
I thank the hon. Gentleman for his question. I know he recently announced that he will be standing down at the next election, and while he and I clearly do not agree politically, his eight years of service to the people of Glenrothes is worthy of recognition.
As I said previously, tackling inflation is this Government’s priority. It is the best way to support mortgage holders and the people who rent accommodation.
Is the Minister aware of the recent YouGov survey commissioned by Feeding Britain, which shows that, in May, almost one in six adults in Scotland reported that they or someone in their household had accessed food aid in the previous three months? Does he agree that it is now time for the Government to launch a food poverty strategy? Will he support the principles outlined in my private Member’s Bill to end food bank use by 2030?
This United Kingdom Government remain absolutely committed to supporting the most vulnerable in society during these difficult times. That is evidenced by our providing support to people who need it the most: for example, over £137.5 billion to pensioners on benefits, £67.9 billion on benefits to support disabled people and people living with health conditions, and a further £114.3 billion on welfare benefits for working-age adults and children. In addition, since April, benefits and state pensions have been uprated by 10.1%. This Government are taking the action that is most required to support the people in most need, and we reject the hon. Gentleman’s analysis that we are doing nothing.
Under the last Labour Government, absolute child poverty levels in Scotland fell from 40% in 1997 to 20% in 2007, but that has been all but reversed. The SNP Government are not on track to meet their own goal of lowering child poverty to less than 10% by 2030—[Interruption.] SNP Members shout, but there is a reason why they do so. What steps are the UK Government taking to ensure that child poverty returns to the low levels last seen under the last Labour Government?
The hon. Lady is right to highlight the failures of the Scottish Government, and SNP Members’ reaction shows that they do not like being challenged. They shout, heckle and try to shut down any contrary argument.
As I said, this Government are absolutely committed to supporting the most vulnerable in society. We will continue to support all parts of our society—children, householders and anyone else who needs support during these cost of living pressures.
Last year, £4.2 billion in balancing costs was added to our energy bills. That means paying wind farm operators to turn off their turbines and at the same time paying gas operators to fire theirs up owing to grid constraints and a lack of storage. However, pumped-storage hydro schemes in Scotland could create 15,000 jobs and lower bills, so why are this Government not fighting tooth and nail to put in place contractual arrangements that would get these schemes up and running?
In relation to the cost of living—the theme of these questions—the energy price guarantee will save households £160 for the period until July, bringing the total Government support for energy bills to £1,500 for a typical household since October 2022. We are also ending the premium paid by more than 4 million UK households for prepayment meters, bringing their charges into line with those paid by comparable customers using direct debit. This Government are absolutely committed to supporting people who face cost of living pressures.