3. What recent analysis has the Welsh Government made of the impact of austerity on equality in Wales? OAQ53851

A recently published Welsh Government report refers to analysis commissioned by the Equality and Human Rights Commission. This shows there is a disproportionate negative impact of the tax and welfare reforms of the UK Government since 2010 on the incomes of several protected groups, including disabled people, certain ethnic groups, and women.

Thank you for that answer, Minister. I remain deeply shocked and saddened at the weekly visits to my constituency office from people who find that their lives are becoming harder and are facing an ever-more unequal society, largely due to the impacts of austerity. And in spite of what Theresa May has said, the Tories continue to impose austerity on our communities. Minister, do you agree that, as austerity continues to eat into the social fabric of our communities, destroying the lives of so many people, it is now time for the UK Government to stop the damage and scrap their policy of austerity?

I certainly do agree with the Member for Merthyr Tydfil and Rhymney. And today we have seen this inquiry being announced—the Institute for Fiscal Studies inquiry being announced—into inequalities in the twenty-first century. He's already said in the first publication that the UK has a higher level of inequality than many other developed countries. That's shocking for us here in the UK, in Wales, in the twenty-first century. The levels of poverty across Wales and the rest of the UK are too high. Austerity and the impact of the UK Government's tax and welfare reform policies have fallen disproportionately on our most vulnerable groups. We remain deeply concerned about the fundamental flaws of universal credit. And indeed, the Trussell Trust has just reported that, when universal credit goes live in an area, there's a demonstrable increase in demand in local Trussell Trust food banks. On average, 12 months after roll-out, food banks see a 52 per cent increase in demand, compared to 13 per cent in areas with universal credit for three months or less. So we know, and indeed we know because of the impact of the cuts on our budget, what austerity is doing, not just to our public services, but to the most vulnerable people of Wales.

Making sure that everyone has access to well-paid jobs or training opportunities is a must, and that certainly applies to people who are disabled, and I think that needs to be a priority for when we're looking for a more equal Wales. I'd be interested to know the Deputy Minister's view of the UK Government's Disability Confident campaign, which helps employers understand that they might actually be missing out on the very best people for their organisation, if all they see is the disability. And we've an excellent champion for this scheme in Swansea—I know some of your frontbench colleagues here will know about Julian John. And you will know, of course, that Swansea is a Disability Confident city. There are over 11,000 employers on the scheme at the moment, but Wales is still under-represented on that. So I'm just wondering if you could share some thoughts on how you think Welsh Government might be able to help employers understand this better, and maybe even commit to making Welsh Government a Disability Confident employer. Thank you.

Suzy Davies, that is a very important scheme. And we are working with the UK Government, and the department of employment particularly, looking at ways in which we can encourage increased awareness and take-up of that scheme by employers. It's very much a key point that I am discussing with the Minister for Economy and Transport. Because this is about employability, and particularly addressing the needs of disabled people in Wales in terms of employment opportunities. And that is something that, of course, forms part of our national strategy, 'Prosperity for All', because it is about also not just a framework for a whole-Government approach, addressing root causes of poverty, which of course includes disabled people.

I have to say, again, going back to some of the problems that disabled people face at the moment, that they are losing out as a result of UK Government welfare reforms. And we need to make sure that they can access employment, but that also we recognise that there are barriers that we have to address. And of course we are looking for ways in which we can develop a made-in-Wales solution to those problems, but certainly looking at that Disability Confident scheme.

The Institute for Fiscal Studies report on wealth inequalities in the UK has laid bare the gaping chasm between rich and poor. Among the Organisation for Economic Co-operation and Development countries, the UK is the second most unequal country, after the United States. This is a disgraceful state of affairs, and it's been now described by the report's authors as a threat to democracy. It's also a damning indictment on various Westminster Governments that have presided over growing inequality, and that is including Labour. It's worth remembering that austerity started under Labour, and the first food banks came about while there was a Labour UK Government. Here in Wales, our hands are tied in many ways, as we lack many of the economic levers that we need to bring about fundamental change. However, Labour in power have hardly set a good example by shutting down the Communities First scheme and failing to replace it. So, in the absence of a dedicated anti-poverty programme, what is your Government's strategy to reduce poverty?

Clearly, we mitigate against the impacts of poverty and the UK Government's damaging welfare reform programme. I've recently announced, and it's very relevant to the IFS inquiry, that we're going to commence Part 1 of the Equality Act 2010—the socioeconomic duty—by the end of this calendar year, and once that's implemented, this duty will mean that public bodies must consider what they can do to reduce poverty and inequality whenever they make major decisions.

But also, despite the fact that we've had 5 per cent lower budget in real terms as a result of austerity, which is a key point of this question, equivalent to £800 million less as a result of austerity from this Tory Government, we have implemented the discretionary assistance fund, supporting 214,326 awards to the most vulnerable people in Wales. The council tax reduction scheme is supported with £244 million of funding from the Welsh Government. And what's crucial about these policies that this Welsh Labour Government has taken forward is that as a result of the council tax reduction scheme, almost 300,000 vulnerable and low-income households in Wales continued to be protected from any increase in their council tax liability. We're investing £104 million in the Warm Homes programme to improve up to a further 25,000 homes for people on low incomes. Now, what's crucial is that people can see that we, as a Welsh Government here, are working and using scarce resources with those cuts from the UK Government to prioritise ways in which we can mitigate against the impact of welfare reforms and austerity.