8. Debate on the Equality, Local Government and Communities Committee Report: 'Benefits in Wales: options for better delivery'

Part of the debate – in the Senedd at 4:25 pm on 16 September 2020.

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Photo of John Griffiths John Griffiths Labour 4:25, 16 September 2020

Having waited so long for a substantive response to the recommendations, it was therefore disappointing that the Welsh Government did not provide the detailed response we expected. They stated that, against the background of COVID and the uncertainty around the emergency changes to the benefits system, now is not the time to consider long-term changes to social security. Yet, the pandemic has laid bare the precarious nature of too many people's finances—a precariousness that is not through any fault of their own but because they simply do not earn enough money to cover basic outgoings. The traditional route out of poverty—work—has stalled. Before the pandemic, over half the people living in poverty were in households where at least one person was in work. So, I ask the Welsh Government: if not today, when will they take a comprehensive look and consider seeking the necessary powers so that Wales has control over those benefits that are best delivered and set here?

We can already learn much from the Scottish experience. Clearly, it would not be easy and would come with risks, but as some of the stakeholders told us, sticking with the current status quo is also a considerable risk. We believe that the advantages of devolving some benefits are potentially so significant and could do so much to help support people in Wales out of poverty that it is worth being bold and seeking the relevant powers. It is also worth highlighting that devolution will take time and we should avoid any further delays in starting this journey.

Moving on to the impact of the pandemic, there has been a significant increase in the numbers of people claiming benefits in Wales since the start of the lockdown. Between March and July, there was a 71 per cent increase in people in Wales receiving universal credit, and the Welsh Government's discretionary assistance fund has paid out over 52,000 coronavirus emergency payments since March. I am pleased that the Welsh Government has taken a more flexible approach to DAF applications, which have enabled more people to access those emergency funds.

During our work looking at the impact of the pandemic, we've heard about the need for further changes that better support the most affected people in Wales. The recommendations we made in this report nearly a year ago have become even more important now. Our recommendations looked at both those changes that could be made within the current settlement as well as where further devolution may be required. As I have mentioned, it is disappointing that the Welsh Government has never really fully engaged with those later recommendations in our report.

But I will now move on to changes that could be made within the current settlement. In relation to recommendations 1 through to 9, there has been more positive progress. However, there are some areas that I would like to seek further clarity on, and I will focus on those areas now. In recommendation 1, we call for the establishment of a coherent and integrated Welsh benefits system that encompasses all the means-tested benefits the Welsh Government is responsible for. I am pleased this recommendation was accepted. In their response, the Welsh Government highlighted their cross-Government review of programmes and services for children, young people and families living in poverty. In the Government's latest response, they state the review is nearly complete. Can the Deputy Minister outline when she expects this review to be published, and can she also give us a flavour of how this will help improve the coherence and integration of Welsh Government benefits?

Recommendation 3—call for the discretionary assistance fund to be available during the five-week wait for a universal credit payment and call for the criteria and application process to make this explicit. I am pleased that this recommendation has been implemented, but, as we noted in our report on COVID and equalities, published over the summer, we remain concerned that not everybody who may be eligible for that is aware they can apply. Concerns about awareness have been raised since 2015. In our COVID report, we recommended a rebranding of the discretionary assistance fund, and I look forward to the Government's response to that report in the coming week.

In the Government's response to this report, the Deputy Minister highlights that, along with the First Minister, she has written to the UK Government about the universal credit five-week wait, calling for advances that are currently available as repayable loans to be made into non-repayable grants. Can the Deputy Minister update us on whether there has been any response from the UK Government on what further actions may be taken?

One of the key themes we heard, both in this work and our subsequent work on COVID-19, was that there are too many people who are not claiming support they are eligible for. We therefore recommended action to improve take-up of all benefits, both devolved and non-devolved. We call for, at the very least, a wide-ranging and extensive public awareness campaign.

The Welsh Government has emphasised the importance of the single advice fund in providing benefits advice and increasing take-up. They also highlight the work they've been doing with the Department for Work and Pensions on the underclaiming of benefits for older people. We welcome this, but we still believe that more action is essential. The need for such a campaign has actually increased since we first reported. We repeated this recommendation in our COVID report. The Bevan Foundation also called for such a campaign in their recent report on COVID and poverty. Does the Deputy Minister now accept these calls and will she commit to such an awareness-raising campaign?

Before I close, I would also ask for an update from the Deputy Minister on the discussions with the UK Government to strengthen the Welsh voice in decisions on non-devolved benefits. Dirprwy Lywydd, I now look forward to hearing contributions from across the Senedd and the Deputy Minister's response. Diolch yn fawr.