3. 2. Questions to the Cabinet Secretary for Communities and Children – in the Senedd on 24 May 2017.
2. Will the Cabinet Secretary make a statement on plans to mitigate the negative impact of current and future reform of social security? OAQ(5)0146(CC)
Thank you. Welsh Government is already taking action to help people to manage the effects of the UK Government’s welfare benefit changes. We have programmes to help people access sustainable work and affordable housing, we fund advice services and continue to maintain full entitlements for the council tax reduction scheme.
I thank the Cabinet Secretary for his answer. He’ll be aware of recent developments undermining benefit reforms at a UK level, such as the National Audit Office report in England demonstrating that benefit sanctions actually cost more than they save—another example of the ideologically driven and cruel cuts that have been meted out on people in this country. In other devolved administrations, such as in Northern Ireland, when they refused to implement welfare reform, they managed to secure £2 billion of additional spending from Westminster, and they’ve had concessions on future reforms. The Scottish Government has devolution of some social security powers and are changing things like the frequency of universal credit payments. The Cabinet Secretary knows my view: that we need a social safety net in this country too, like the other administrations. Could he, perhaps, consider launching a consultation sometime in the very near future on how we can use the limited powers we have already in this country to help people on social security, and perhaps to consult on what future powers we might like to draw down? Because I fear that we are going to be penalised even further in Wales, whilst other devolved administrations are taking proactive steps to protect those people that are under attack.
Well, I’m sympathetic to the Member’s approach on this. I say that with a word of caution, though, because I do understand that, while Scotland have taken a stance on this, there are significant issues around funding this long term. I think that is a matter for the relationship between the UK Government and Scotland, and I would like to learn from that whole proposal. Of course, I work with many of the third sector organisations and Government bodies and agencies that operate in Wales about how we can mitigate some of the effects of welfare reform. It is something that is on my agenda. I will give further updates to the Chamber in the near future.
In 2010-11, UK Government spent £177.3 billion on social security, including pensions. In 2016-17, that was £212.6 billion. What would the Welsh Government like to see spent?
We would not like to see any money spent. We want to see people back in work and supported in the appropriate areas. What the Member failed to mention with the statistics that he’s shared with me today is the fact that 1,000 young people will be displaced and possibly homeless in Wales because of the welfare benefit reforms that are happening in the UK Government under his new party.
I’ve referred, on a number of occasions, to the likely impact that you just alluded to now, Cabinet Secretary, of the Government’s cuts to local housing allowances for the under-35s, and the benefit cuts for those under 22 years old, which will have, obviously, exacerbating homelessness effects amongst young people. Merthyr Valleys Homes, Cabinet Secretary, are trying out an innovative approach to tackling homelessness at the moment by purchasing a couple of shipping containers for conversion to low-cost temporary accommodation for the homeless. Now, that isn’t about creating ghettos or these kinds of parks of people that are homeless and unemployed, but it is about providing accommodation that people can call their own while longer-term solutions are found, and I think that that would be better than the alternative, which is hostels and bed and breakfast. So, I’m just wondering, Cabinet Secretary, whether the Welsh Government would consider assisting more local authorities and housing associations in delivering similar initiatives across Wales.
Indeed, and I congratulate Merthyr Valleys Homes on their innovative solutions to this. I hear Members talking about the use of shipping containers. Actually, most of us live in a box of some form—some built by steel, some built by bricks and mortar, and some by sticks. It’s a little bit like the three pigs, I think, in terms of the construction. But what we do know is that having a roof over somebody’s head is absolutely important, and the affordability of that is critical too. That’s why we launched the £20 million innovation fund, and there are modular unit projects coming through. But I’m encouraged by Merthyr Valleys Homes already taking that initiative under their belt and helping young people in your constituency.