9. Plaid Cymru debate: Universal credit

Part of the debate – in the Senedd at 5:53 pm on 6 December 2017.

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Photo of Rebecca Evans Rebecca Evans Labour 5:53, 6 December 2017

I'd like to thank Members for their contributions to the debate this afternoon. I'd like to be clear that we agree with much of the Plaid Cymru motion, differing only, as our amendment makes clear, over the practicability and the desirability of taking over the administrative responsibility for social security. As Members would expect, we reject the complacent amendment from the Conservatives, which glosses over the real suffering being caused by their party's botched and heartless efforts at welfare reform.

We've repeatedly called on the UK Government to end their flawed and unnecessary austerity policy; a policy reinforced by their autumn budget. We remain concerned about the impact of previously announced welfare cuts, especially given that we know these will hit low-income households hard, and particularly those households with children. 

Recent Institute of Fiscal Studies analysis projects that absolute child poverty in Wales will increase by nearly 7 percentage points between 2013-15 and 2019-21. This is driven by the UK Government's welfare benefit changes, including the limiting of tax credit and universal credit to two children and the freeze to most working-age benefits. The planned UK Government's tax and benefit reforms account for nearly four of those 7 percentage points in the increase in absolute child poverty over this period, and the remainder of the 7 per cent is due to projected earnings growth and other changes in the economy.