Speaking on ITV, the Labour Party’s chancellor of the duchy of Lancaster Pat McFadden made the ludicrous claim that the government’s putting more pounds in people’s pockets – when really people will be worse off.
Pat McFadden: what?
Richard Madeley asked him what went wrong with Kamala Harris’ campaign. He replied:
What I’d say is that this pocketbook question that President Trump posed in the campaign ‘do you feel better off than you did four years ago?’ That was a question we posed actually. And that’s why since we came into government we’ve had a close eye on these pocketbook issues.
That’s why we froze fuel duty, we raised the minimum wage, we’re letting carers earn more money… and these kind of things were at the heart of the budget last week precisely because when it comes to the relationship between a… government and the voters this issue of how you pay the bills every month and how you’re feeling about your own prosperity is really important
Labour did raise the minimum wage to £12.21, which is welcome. But it is still below the Real Living Wage that is related to the cost of living and even lower than the recommendation for London, as the Living Wage Foundation points out.
Also, even the Living Wage itself does not factor in skyrocketing inequality, where the wealth gap between the poorest 10% and top 10% has increased by a huge 50%.
Across the economy, people will be worse off
Research from the Joseph Rowntree Foundation (JRF) shows that the average family will have £770 less in real terms by October 2029.
As well as a general fall in the standard of living, students will be worse off with the government hiking tuition fees to £9,535.
Bus fares are also increasing, diminishing an incentive for more carbon efficient travel and costing working class people without cars more to get around. From 1 January 2025, the government will raise the bus fare cap for single tickets from £2 to £3.
Labour also isn’t cutting down bills through bringing essential services into public ownership. This could replace shareholder profits on utilities everyone needs to function with cheaper bills and necessary investment.
Water companies are lobbying for bills to go up by a huge 40% by 2030. Ofwat has already confirmed a rise of 21% over the five year period. Research has shown that two in five families will struggle to pay the 21% increase.
Under the Labour government, the energy regulator is also raising the price cap. This year, Labour is overseeing a rise of 14% for gas and 10% for electricity with more price hikes expected in the course of this parliament.
When it comes to welfare, Labour has kept George Osborne’s two child benefit cap. This has already plunged 10,000 children into poverty since the election.
And for pensioners, energy bills will be even higher with Labour’s cut to their winter fuel payment.
Featured image via Saul Staniforth – X
