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Tax Credits Up-rating Regulations 2008

My Lords, I am grateful to both noble Lords who have contributed to this short debate. I note that the noble Baroness, Lady Noakes, sought to lull me into a false sense of security by suggesting that these orders are not controversial and then she succeeded in producing quite a challenging speech. She will be relieved to know that I paid the most critical attention to everything she said. If I am not able to answer everything in quite the detail required, I shall of course write to her. I hope I am able to address the main points that she made. The noble Baroness emphasised a number of important issues. We recognise that whichever index of inflation the Government choose, there will be a challenge. Such is the variation of the impact of rising prices on different families that it is always possible to point to a significant section of the population where particular rises hit adversely and, therefore, the generalisation does not hold as well as it does for others. It has to be accepted that there is bound to be a certain arbitrariness about the index. Households spend different amounts on various goods and services and that shows different price movements, particularly when there are price movements in significant areas. It goes without saying that the increase in fuel prices is significant to many households. It will also be noted that the Government have, for a considerable time, sought to deal with the issues of fuel poverty and the winter fuel allowance provides a cushion for families who face increased prices. The impact on families depends a great deal on the nature of the winter that we undergo and the amount of fuel that is therefore consumed by families in facing the rigours of the—