Part of 4. Topical Questions – in the Senedd at 3:22 pm on 22 September 2021.
Thank you, Minister, and diolch, Llywydd, for accepting this topical question. This crisis is global, of course, in nature, but the UK is in a particularly perilous situation due to unusually low gas storage, the loss of the IFA interconnecter, hampering our ability to import electricity from Europe, and lower-than-usual wind energy production. We're seeing a crisis that sits within many interlinked crises and, Minister, as I'm sure you'll agree, we shouldn't underestimate the scale of the crisis. The head of Ofgem said today to MPs that the price increase was unprecedented, and that gas prices are already six times higher than last year, having increased 70 per cent in August alone. He also contradicted the Prime Minister's assurance by saying the problem is unlikely to be temporary. However global or complicated the causes of the crisis are, the impact will be very simple and it could be devastating for low-income households.
As you've set out, Minister, this won't be visited on them alone. Thousands of families will see their universal credit cut, they'll face increased living costs, and now bigger energy bills. Minister, the Joseph Rowntree Foundation says that a couple with two children on universal credit will be £130 a month worse off by October, and the budget gap will increase to £1,750 by the end of the next financial year. These are people that cannot afford to take this kind of hit. Could the Minister tell us please what the Welsh Government can do to support people who face this imminent financial hardship? I'm especially concerned about people using prepayment meters who could have their supply cut off if they can't afford to top up. And will she also press UK Ministers about the need to take immediate financial action to support these families, like Spain, France and Italy have already announced?
Further, could the Minister also tell us whether she's held discussions with Welsh steel makers and other heavy industries that face cost increases, and whether she's relayed their concerns to the UK Government? I'd also be grateful, Minister, to hear about any action being taken to protect the agricultural sector in the face of the carbon dioxide shortage. The UK Government deal announced last night to resume production is only for a fortnight, and I know that the National Farmers Union has called for immediate assurance.
Finally, Minister, the crisis is bringing home to us just how urgent it is, of course, for us to switch to more renewable energy, but I know that the questions that will be at the forefront of people's minds will be about how we'll keep the lights on, and how people will be fed and kept warm. I'm sure many will listen to the Minister's answers with keen interest.