According to the Institute for Government, the cost of living crisis refers to the fall in real disposable incomes due to rising inflation and taxes. It goes on to say that the UK has been in crisis since late 2021, although it seems to many people that we have lurched from one crisis to another for a lot longer than that and that they have been under severe financial pressure since well before late 2021.
Despite those facts, the inaction of the uncaring and out-of-touch Tory Government has been, even by the Tories’ miserable standards, truly woeful. It is difficult to understand what reality they inhabit when, only the other day, after the International Monetary Fund reiterated its forecast that the UK economy will shrink this year, which will cause further hardship for hundreds of thousands of already hard-pressed families and businesses, that was welcomed by the Chancellor of the Exchequer as evidence that things are working. They clearly are not, and the UK Government has nothing to offer us. It has no ideas and no plans—nothing.
In contrast, the UK Government is happy to continue to provide tax breaks to the top 1 per cent while raising taxes for the poorest in our society. Let us be clear: the UK Government is not the solution to the cost of living crisis; it caused it. It failed to grow the economy while in power, added 10 years of austerity and got us trapped in a cycle of low wages coupled with higher taxes to pay for overstretched public services that have been weakened by a decade of cuts, which has left us all worse off. Many people are struggling from one day to the next, and more and more families, including children, are being pushed into poverty. It truly is scandalous.
Barnardo’s recent report, “At what cost?”, highlights the fact that
“Children in the most vulnerable and precarious circumstances will be among those most exposed to the cost-of-living crisis”.
The report states:
“Families with nothing left to cut back on are no longer having to choose between heating or eating—instead they’re unable to afford either.”
It also found that more than half of parents have been forced to cut back on food spending for their family over the past 12 months. One in five parents said that they struggled to provide sufficient food due to the current cost of living crisis, and more than a quarter of parents said that their child’s mental health had worsened due to the situation. Parents admitted to resorting to desperate measures, with a quarter having sold possessions and one in five having taken on new credit cards, extra debt or a payday loan. It is estimated that, throughout the UK, more than one in four children now live in poverty, and the situation is getting worse by the day.
I will respond to Claire Baker’s points. Child poverty levels in Scotland might well be stuck at 24 per cent for the time being, but the levels are worse everywhere else. They have got worse during the period in which our mitigations have helped to at least keep the levels steady. That is nowhere near good enough—not at all—but at least we have not allowed the situation to get worse with the minimal powers that we have.
Rather than defending the UK Government’s abysmal record, Opposition parties should acknowledge some fundamental truths. The Scottish Parliament does not have many of the powers that are pivotal to tackling low wages, low growth, high inflation and high overall taxation. Those powers are controlled and closely guarded by the UK Government, but we need them. We could use those powers to build on the measures that the Scottish Government has taken to tackle the crisis with the limited powers at our disposal.
Perhaps someone should explain to Paul O’Kane the difference between the powers that Labour had in 1997 and the situation that I have just described. Despite his view, that shows the benefit of being an independent nation.
Our latest programme for government, which was brought in under our previous First Minister and will be carried forward by our existing First Minister, sets out a number of measures. Those include the Scottish child payment, the new winter heating payment, the doubling of the fuel insecurity fund and the widening of eligibility for the tenant grant fund—there are lots of measures there.
If people do not believe that the Scottish Government is truly making a difference, they should listen to Paul Lewis from the BBC’s “Money Box” programme, when he says that things are better in Scotland due to Holyrood’s use of devolved powers over tax and benefits. In a column for the Radio Times, he said:
“I once coined the acronym Tabis—Things Are Better in Scotland—as a shorthand for the forward-looking social policies of that country. And it gets truer all the time. Over the past 25 years devolution has given Scotland limited but growing independence over its social security and tax policies. And they are better.”
He once coined the term TABIS—things are better in Scotland. Wow! Of course, people would never believe that when they read our newspapers or listen to opponents telling us day after day how things are better anywhere else and everywhere but Scotland. Who to believe?
Given the UK Government’s inaction and the predictions that the crisis is set to continue, if not get worse, there is a real need for us all to do more. That is why I welcome the initiative that is set out in today’s motion, and particularly the plans to hold an anti-poverty summit to guide future action on tackling poverty. I would welcome it if the cabinet secretary, in responding to the debate, took the opportunity to provide us with more details of the proposed summit, including the timescale for delivery and whether local organisations will be able to participate in person or in writing. No one knows better the issues affecting a local community than those who belong to and work in it.
It is clear that there is still so much more for us all to do. Far too many people, particularly children, still live in poverty. I have lived through the stress, the anger, the heartbreak and the break-ups that poverty brings to families, particularly those with young children. Nothing is more debilitating to people’s self-esteem than the struggle to find the money to buy uniforms or new shoes or, as previously stated, having to decide whether to eat or heat. I therefore urge my colleagues from across the chamber to pledge to support any move to gain the full levels of power that are required to tackle all the areas that impact on child poverty. Only then can we truly say that we have done all that we can for those who need us the most.
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