Part of the debate – in the Senedd at 6:40 pm on 8 January 2020.
Thank you, Deputy Presiding Officer, and I welcome the opportunity to respond to this debate today in place of the Minister for Housing and Local Government.
We know that analysis undertaken for the Equality and Human Rights Commission estimates that relative child poverty in Wales will increase substantially over the coming years, potentially pushing an extra 50,000 children into poverty by 2021-22. As we heard today, it is only right that this should concern each and every one of us regardless of party or position. One child in poverty should always be one too many.
And whilst the Welsh Conservatives don't want to hear it, as we've heard time and time again, the devastating impact of austerity and welfare reform is not fake news; it's an unfortunate and stark and horrific reality for far too many people. The catalogue of cruel welfare cuts have drastically changed what should be a safety net into a system that penalises people who need it and rely on it at their greatest time of need. And as we've heard today, during today's debate, these welfare reforms have seen the withdrawal of child support for the third child, cuts to disability benefits and the creation of a pernicious sanctions regime.
The motion put forward by Plaid Cymru calls on the Welsh Government to introduce a £35-a-week payment for every child in a low-income family in Wales. It's an interesting policy, but it's somewhat presented as a panacea that would wholly mitigate fundamental and systemic inequality. As Adam Price points out, clearly it needs to have more detail around it and there are legitimate questions to be asked around the detail.
We've heard that it's modelled on the scheme the Scottish Government is planning to implement, where £10 per week will be paid for each child in a low-income family, due to be rolled out to eligible families by the end 2022. The Scottish Government is able to implement their policy as they have the necessary legislative competence to amend benefits that are not national-insurance dependent. The Welsh Government does not have this competence, so should we do this, we would need an alternative approach.
That approach could potentially have ramifications for benefit entitlements in Wales, as it would be treated as extra income by the DWP, and we wouldn't want a situation that would actually take money away from low-income families. Of course, we could seek the competence to amend benefits, but this needs to be done with our eyes wide open to any unintended and unwanted consequences. As we've heard Members say today, if funding did not follow the responsibility, the resources would need to come from elsewhere and doing so, we would not want to place that burden on those least able to bear it the hardest.
We've heard today about the estimate of the cost of the policy. Initial estimates have been given that such a policy would reach around 240,000 to 300,000 children, looking at initial approximate calculations of £525 million—up to £25.25 million a year. That's money that would have to be found from elsewhere.
I think John Griffiths made some very important points in terms of the work that's been done by the committee and also the work that Welsh Government has done on actually how we look at the potential devolution of the administration of welfare, and also at the same time how we make the best possible use of the powers and the resources currently available to us too.
That's why our amended motion notes that this Government is investing nearly £1 billion in a wide range of measures that contribute to tackling poverty. This includes £244 million each year in the council tax reduction scheme, with one in five households benefiting from a reduction in council tax; more than £125 million in the housing support grant; and ongoing early years support for children and families through the children and communities grant, which includes funding for Families First and Flying Start. In addition, we've allocated more than £19 million in 2020-21 for a package of measures specifically targeted to help some of the most vulnerable in our communities, which includes people living in poverty. The evidence does show us that where Government has taken direct action to influence the lives of families and children throughout Wales, the policies are having a positive impact on the root causes of poverty and inequality. There are now 300,000 more people in work in Wales since 1999 and the proportion of working-age people without any qualifications has more than halved.
Since devolution, the number of workless households in Wales has fallen, as we've heard, from 223,000 to 173,000, and our economic action plan has been designed specifically to support the delivery of a strong, resilient and dynamic economy. Alongside these policies and plans, we've developed cross-Government support for individuals and families for the delivery of a more generous social wage. This is made up of a cash equivalent that results in leaving more money in the pockets of Welsh citizens; support that leaves some Welsh families more than £2,000 a year better off than would otherwise be the case.
We're also carrying out a review of all Welsh Government-funded programmes and services to ensure that they have maximum impact on the lives of children living in poverty. This will help inform how we prioritise our funding to support programmes going forward, and we will make a further announcement once the review is complete in the spring. But let's be clear, Deputy Presiding Officer, we are by no means complacent and we will continue to use all the levers and options available to enable and empower individuals, households and communities the length and breadth of the country. I urge Members to support our amended motion. Diolch yn fawr.