5. What assessment has the Minister made of the cuts that the UK Government has made to the discretionary housing payment budget? OQ56771

Thank you, Carolyn. We have written to the UK Government to express our great disappointment at the cuts made to discretionary housing payments. This, combined with the freezing of local housing allowance rates, and stopping the £20 a week universal credit top-up after September, will push more people and families into even greater hardship.

Thank you, Minister, for the answer. I agree that the cuts to the DHP budget could have not come at a worse time for tenants across Wales, who are already facing the perfect storm of potential job cuts, a cut to the universal credit boost, rent arrears and the end of the eviction ban. And this is on top of the bedroom tax, the two-child limit and accumulation of Tory UK policies increasing poverty, and on top of cuts to public service funding. I understand, through discussions with colleagues in local government, that the Welsh Labour Government has put in place a number of positive measures in the form of funding to local authorities, including a top-up of the discretionary housing payment budget, and support for people in work who have been impacted by the pandemic as well. Could the Minister provide me with an overview of the funding in place to mitigate the impact that the cuts to the DHP could have on tenants in Wales? Diolch.

Diolch, Carolyn. In the spring budget, as everyone knows, the UK Government announced it was cutting discretionary housing payment funding by 22 per cent, from £180 million to £140 million. The Government had, to be fair, boosted DHP funding from £139.5 million to £180 million in 2020-21 amid the pandemic. But I think it is worth noting that this year's funding is now lower than the discretionary housing budget was in 2017-18 or 2018-19. So, the cut has not taken us back to where we were before, it's taken us backwards several years. I do really think that it's time for the UK Government to rethink this strategy. It is clearly not the time for cuts when rent arrears and household debt continue to be a major issue, and the risk of households facing eviction and homelessness continues to be significant. There was a telling report very recently that showed that the wealthiest households had made significant gains in savings and net wealth during the pandemic, while the bottom third of households had become significantly poorer. I do think the UK Government needs to understand the divisions it's causing in society by making some of the really quite petty cuts that it's making in these areas. 

In Wales, the Welsh Government is providing an additional £4.1 million to local authorities this year to top up discretionary housing payments, to help those on benefits who have struggled to pay their rent. As you know, I recently announced the tenancy hardship grant, which is a new measure worth £10 million, to support people in the private rented sector who struggle to pay their rent, and last year, I announced £50 million of funding for urgent capital projects, to provide high-quality temporary and permanent homes to help enable move-on from temporary accommodation. And last but not least, I was very pleased to increase the housing support grant this year by £40 million—an increase of almost 32 per cent. We set a challenging new-build target as well. But I will say, Llywydd, that it's not the Welsh Government's responsibility to step in where the UK Government has failed, with hard-won money from the Welsh budget, to shore up our people when the UK Government has seriously failed them. I am appalled that they have chosen to do so.

Just continuing the theme of evictions, in Mid and West Wales, there were 77,000 social housing tenancies in arrears in March 2019, and, as we know, the pressure of lost income and loss of employment has likely pushed many more into rent arrears. You'll be aware, Minister, that the evictions ban introduced in December 2020 came to an end, although I do welcome the fact that landlords still have to give tenants six months' notice before evicting tenants. But Shelter Cymru have warned that huge numbers of people could be pushed into homelessness as a result, saying that the evictions ban has actually saved lives. Could I just ask what action the Government is taking to prevent evictions from social housing as a result of COVID-related rent arrears? Thank you. Diolch.

Thank you very much for that very important question. I'm pleased to say that when we negotiated a five-year rent agreement with social housing providers across Wales, both councils and registered social landlords, we negotiated a 'no eviction into homelessness' pledge from them, as a result of the rental increase, and that has helped. So, we will have no evictions from social housing into homelessness in Wales. That does not mean people cannot be evicted from the specific flat they're in if there are issues around domestic abuse or anti-social behaviour, but it means that the housing needs of those people need to be addressed before they are evicted and moved on to other premises. I'm really pleased that we were able to do that. I'm very happy to work with private rented sector landlords to take their housing into social rent so that we can improve both the quality of the stock and the experience of the tenants, and provide the private sector landlord with a good, reliable, stable income through the five to 10 years that we take the house over. I recommend that scheme as well to many of our really good private rented sector landlords who'd be very happy to help.