Part of 4. Topical Questions – in the Senedd at 3:25 pm on 22 September 2021.
Diolch, Delyth. Well, absolutely. We've done a number of things since the crisis has hit. I completely agree with your analysis as to the impact on lower income families and, indeed, a number of our businesses, and agricultural businesses in particular.
I met the chief executive at Ofgem just yesterday to discuss the impacts on Welsh consumers and Welsh businesses of the global wholesale gas price rise and the side effect of the carbon dioxide production—extraordinary that it is a side effect, but that's where we are. We know that some energy companies will try and push the prices right up to the cap, and others will unfortunately go out of business, so we were very concerned to understand whether any of those were Welsh-based businesses and whether there was anything we could do specifically to help them. We were also very concerned to understand, just for continuity of supply, never mind price, whether we had sufficient numbers of larger companies able to take across Welsh consumers who are currently receiving supply off companies likely to go out of business in the very short term. So, we're working on assurances to that and to make sure that we have that information from Ofgem so that we can help make that transition happen.
This is leaving aside the issue of whether people can pay for it. This is actually just making sure the gas stays on so they can cook and, indeed, heat their homes. I've written to Ofgem subsequent to the meeting, seeking their assurance in writing of the continuity of supply for Welsh consumers and that consumer rights will be protected. I've also written to the UK Secretary of State on the need for urgent action by the UK Government to manage market stability and consumer costs. I met with the Secretary of State last night—no, the night before last, sorry. It's all been so fast moving I can barely remember. It's Wednesday. Monday night, I met with the Secretary of State, just to have a sort of emergency meeting about what could be done, and then our officials have been in touch all day yesterday and today, and no doubt there will be another ministerial meeting at some point this week, which either myself or Lesley Griffiths will be attending. I made the point forcibly in that meeting that this wasn't just about supply, that this was about affordability, and that we had a perfect storm of Conservative policies all hitting at once.
We've got the removal of the £20 universal credit, which, extraordinarily, Thérèse Coffey seemed to feel people could just work two hours to make up, which just shows how out of touch they are. No doubt there are one or two people in the country for whom that is the case, but most people are already using all of their allowances well up past the cap for the taper to kick in. So, it just shows a complete inability to understand the situation, to my way of thinking. The Minister for Economy, myself, and the Minister for finance are also all writing to the UK Government to highlight our concerns about rising prices, the effect on budgets and so on. Delyth, you highlighted quite rightly the potential effect on a number of businesses—agricultural businesses, farmers and so on. There's also an impact on public services, of course, because not only will they have the national insurance rises, but now they also have increased gas prices to run hospital heating systems, school heating systems and so on. So, this is a whammy right across the entire economy, really.
You're quite right in saying what the modelling is for the impact on families of the rising gas and electricity costs—around £3 a week, and living costs up by about £8 a week on top of the £20-a-week universal credit cut, so around £130 worse off from October. Without intervention from us, that is a really big hit on people's incomes. So, we are very seriously using our levers as fast as we can in Wales. We've got our Warm Homes programme supporting lower income families; just under 62,000 households benefit from a saving of around £280 on their annual bills through that programme. We also continue to provide all the flexibilities that we have added to the discretionary assistance fund this winter, including the reintroduction of fuel support for off-grid clients—so, the people on oil as well, because that's also rising in price.
We've also invested an additional £25.4 million in the discretionary assistance fund to allow people who are suffering extreme financial hardship to have crisis payments. They're not intended to meet ongoing expenses, but major crisis expenses, but if there's no other way of them meeting the immediate costs of living then we will look to flex those issues as well. We also have a number of other things that I could detail, which you'll be familiar with, such as discretionary housing payments, which we're still topping up for local authorities and so on. So, I assure you we are very alert to the issues you raise. We're completely on the same page as you in terms of the impact, and we're looking to use all the levers we have to make sure that people have as least impact as possible from this really quite appalling convergence of very cruel Tory policies.