PARLIAMENTARY DEBATE
Cost of Living - 17 January 2024 (Commons/Commons Chamber)

The Government have taken decisive action to help tackle increases in the cost of living, including support for the most vulnerable households in Northern Ireland. We are targeting support this winter through a range of measures, including cost of living payments of £900. It remains vital that there is a functioning Executive in place that can deliver for the people of Northern Ireland, who deserve that stable Government taking the relevant decisions.

I want to return to the subject of public sector pay. Public sector workers in Northern Ireland have seen their real pay fall by more than 7% over the past year. Does that not demonstrate that the UK Government’s response to the cost of living crisis is leaving Northern Ireland behind? I encourage the Minister to join the cross-party calls to ensure that public sector workers in Northern Ireland are fairly paid for their important work.

I am grateful that the hon. Gentleman raises this matter again. He will have heard what my right hon. Friend the Secretary of State said. I wish to emphasise that the money that has been made available in what is a large package for stabilisation and transformation in Northern Ireland includes a sum of money to enable public sector pay to be settled, but that is a matter to be decided in Northern Ireland. That is why we continue to press the DUP and other parties with as much force as we can muster to restore the Assembly and the Executive to deal with that.

Given that the UK is experiencing the biggest drop in living standards on record, with households bearing the brunt of higher energy costs and temperatures dropping dramatically this week across Northern Ireland and, indeed, Scotland, why have the UK Government left households out in the cold this winter?

I do not accept that we have left households in the cold. Further cost of living support through the winter period for Northern Ireland households was announced in the autumn statement in 2022, with additional payments to households across the UK. Those on means-tested benefits are getting £900, those on disability benefits £150 and pensioner households £300. We are resolved to promote prosperity in Northern Ireland and we are seized of the reality that disposable incomes in Northern Ireland are particularly squeezed. That is why we have put in a range of measures to promote prosperity, which I hope to return to in later answers.

We have just heard the Minister say that incomes in Northern Ireland are particularly squeezed. In November, the typical monthly pay in Northern Ireland saw a month-on-month fall of 1.8%. By contrast, typical wages in the UK showed a 1.2% month-on-month increase. That means that earnings in Northern Ireland sat 11% below UK earnings—the biggest difference on record. What steps are being taken now, in the absence of a functioning Stormont, to offer some kind of sustainable pay deal in Northern Ireland for public sector workers?

Mr Speaker, I could give a lengthy answer to the hon. Lady’s question, which would try your patience, so I will just return to her final question on what is being done for public sector workers. We are absolutely seized, as we have said previously, of the need to ensure that public sector workers have a pay rise. That is why a very substantial sum is in the package on the table for the parties. None the less, we are absolutely clear that, on this issue, as across a wide field of others about which I am sure we will hear in the course of these questions, Northern Ireland needs devolved Government to take the relevant decisions in Northern Ireland, and on that there is consensus across the House.

The Government’s package to support people with the cost of living amounts to about £94 billion over two years. It is one of the most comprehensive in Europe. Can my right hon. Friend assure the House that people in Northern Ireland, as an integral part of our United Kingdom, have had full access to those cost of living support measures?

My right hon. Friend is absolutely right. The extent of Government support for Northern Ireland households was unprecedented. It included the energy price guarantee on electricity and gas bills; £600 in payments comprising £400 for energy bill support scheme payments, plus £200 to recognise the widespread use of home heating oil; and targeted support for the most vulnerable households, some of which I have already touched on. She is right that we are determined to ensure that Northern Ireland feels the benefits of being in the Union of this United Kingdom.

I call the shadow Minister.

I recently met the Melted Parents campaign group in Belfast. It speaks for so many parents across Northern Ireland, where the cost of living crisis is far harder for families because there is no funding for a free childcare scheme, or the 15 or 30 hours of pre-school, just eye-watering and unaffordable Bills. But there is a cross-party childcare strategy proposal. Will the Minister say for all the employers and parents watching, if there is a new temporary Budget for Northern Ireland, whether it will include childcare funding provision?

I am grateful to the hon. Lady for raising this issue. It is of the highest importance in Northern Ireland, and it is impressed upon me frequently. The Budget will be debated in this House, of course, and I am confident that we will return to it. As we have said before, this is one of those issues that underscores the importance of the Executive returning, and I am grateful that we agree on that point. She is absolutely right to raise the issue.

I call Martin Docherty-Hughes. [Interruption.]