What recent assessment he has made of the impact of increases in (a) inflation and (b) the cost of living on Scotland.

What recent assessment he has made of the impact of increases in (a) inflation and (b) the cost of living on Scotland.

Like many countries around the world, the UK faces the dual challenge of a recession and high inflation. That is why the Prime Minister has made tackling inflation a key priority. As outlined in the Chancellor’s autumn statement, this Government are committed to supporting the most vulnerable households across the United Kingdom with £12 billion of direct support in 2023-24. Alongside this, the energy price guarantee is saving a typical household in Scotland £900 this winter.

I thank the Minister for his response. He will know that, in contrast to the UK energy resources that were privatised under previous Conservative Administrations, France’s publicly owned company can cap energy prices at 4% and Germany has cut VAT on energy to 7%. May I ask him what representations he has made to Government colleagues about following European examples and preventing costs going up at source, saving money for people, businesses and taxpayers?

This Government are committed to supporting the most vulnerable in Scotland through this inflationary crisis with the extra support that is going to the Scottish Government—the record-breaking block grant, together with £1.5 billion of additional funding through the Barnett consequentials. That is on top of the energy support packages that have been put in place by this Government. This compassionate Conservative Government will continue to work to support the most vulnerable in Scotland and across the United Kingdom.

Data from the UK Government shows that standing charges for Scottish households are above the UK average, yet Scotland is an energy-rich country in her own right, producing over 60% of the UK’s gas and a third of its green electricity. This broken Westminster system results in people in my Constituency of Airdrie and Shotts and those across Scotland struggling with the cost of living, so can the Department explain why people in energy-rich Scotland are paying more, despite being energy producers?

As the hon. Lady will know, Ofgem is currently reviewing the charging structure, and the UK Government continue to engage with Ofgem as part of that process. Ofgem is independent of the UK Government, and we look forward to the recommendations it brings forward.

I call the Shadow Secretary of State.

Last week, analysis of average wages in Scotland showed that they are almost £800 lower in real terms than when this Government came to power 13 years ago. In my Constituency, they are £6,000 lower. That is the result of 13 years of Tory and SNP incompetence and not growing the economy. Does the Minister agree that after 13 miserable years of Tory wage stagnation, and with inflation now soaring into double digits, the cost of living crisis for families in Scotland is made in Downing Street?

No, I do not agree with the hon. Gentleman. The Government are committed to ensuring that wages go further, and that people keep more of what they earn. From April 2023 we are increasing the national living wage by 9.7%—the biggest ever cash rise—meaning an extra £1,600 a year for a full-time worker over the age of 23. Since 2010 this Government have also increased tax-free allowances for income tax and national insurance by more than inflation, roughly doubling them in cash terms and taking millions more people out of paying tax altogether.

I am sure when workers in Scotland cannot afford to pay their Bills this winter they will be delighted to hear that! Workers in Scotland see their wages lower today in real terms than they were in 2010. It is no wonder that in Scotland teachers are on strike, and that nurses from the Royal College of Nursing and ambulance workers in the GMB have rejected the Scottish Government’s pay offers. It is the same across the UK, yet we now learn that instead of negotiating in good faith, the UK Government want to strip those workers of their rights. Does the Minister think it is right to clap nurses, teachers and many more public sector workers one year, only to propose sacking them the next for asking for a fair pay rise?

As the hon. Gentleman well knows, public sector workers are striking in Scotland because of the incompetency of the SNP Government in Edinburgh. This Government are taking action to ensure that public services are protected through anti-strike legislation, which is ensuring that people who use the NHS and other essential services are protected from those types of strike action.