Much of the causes of the current rise in the cost of living are a result of the war in Ukraine and the impact of the pandemic. However, it is right that we support those households most vulnerable to the sharp rise in prices as we see inflation come down and prices stabilise.
As we head into October as a country we are in a different
place to where we were last year. Inflation is down, hopefully interest rates
have peaked, and the prices of energy are falling. Last week we also saw the
Office of National Statistics revise it growth figures for the economy for
earlier in the year. It is now clear that the UK economy performed
significantly better than first reported. Our economy is now bigger than it was
before the COVID pandemic and is among the strongest in Europe.
With this in mind, it is right that the Government continues
to do all it can to ensure the economy continues to recover from the issues
that have caused problems previously, and remains buoyant going forward.
The long-term decisions we have taken means we are now
growing the economy and are on track to halve inflation this year – allowing
the Government to deliver on our manifesto commitment to end low pay by raising
the National Living Wage to two thirds of median income.
I was pleased then to see on Monday that the Chancellor
Jeremy Hunt, announced that the National Living Wage will increase to at least
£11 an hour, boosting the incomes of the lowest-paid by more than £1,000 a
year.
That means the annual earnings of a full-time worker on the
National Living Wage will be over £20,000 – and meaning that those workers are over
£9,000 a year better off than in 2010.
To ensure work always pays the Chancellor also confirmed we
will work with the Department for Work and Pensions to look again at the
benefit sanctions regime to make it harder for people to claim benefits while
refusing to take active steps to move into work.
As well as making sure that you will always be better off in
work, it is also crucial that we continue to support those who need it most.
Last week it was good to see confirmation that the next cost of living payment,
worth £300 for 13,500 vulnerable and low-income households in St Austell and
Newquay will be made between 31 October and 19 November 2023.
This is the second of three payments totalling up to £900
for those eligible and on means-tested benefits, such as Universal Credit,
Pension Credit, or tax credits, in 2023-24, and will help families affected by
global inflation caused by Putin’s illegal war in Ukraine and the aftermath of
the Covid-19 pandemic.
Details about the third cost of living payment will be
announced in due course.
These payments build on the Cost of Living Payments made
last year worth up to £1,200, and form part of the Government’s record
financial support for the most vulnerable, worth an average of £3,300 per
household.
The £300 Cost of Living Payment will be sent out
automatically and directly to eligible households, so there is no need to
apply. Eligible pensioner households will also receive a further £300 payment
later this year as an addition to the Winter Fuel Payment.
I will continue to do all I can to work with the Government
to ensure people are always better off in work, as well as making sure those
who need additional support get it.
If you require my assistance on any matter, please get in
touch with my office by calling 01726 829379 or email
office@stevedouble.org.uk
