Universal Credit

Part of 3. Topical Questions – in the Senedd at 3:04 pm on 6 October 2021.

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Photo of Sioned Williams Sioned Williams Plaid Cymru 3:04, 6 October 2021

The £20 uplift in universal credit comes to an end today. This cruel decision by a heartless Westminster Tory Government will affect over 275,000 of the poorest households in Wales. That's one in five households. According to the Bevan Foundation, the impact will be worse for Welsh families, as a higher proportion of families here claim universal credit or working tax credit. And for families with children, four in 10 will be affected; that's four in 10 families with children in Wales who will  suddenly find their safety net looks a whole less safe from today onwards. Today's cut comes as living costs in Wales are rising, household energy costs are rocketing—there's a record price today for gas prices in the UK—and household debt is deepening.

The solution according to the Westminster Government: just work two more hours. Aside from the absolute callousness of this statement, it's also utterly false. Universal credit is a tapered benefit, which means for every pound you earn, your payment reduces by 63p, so for a job that pays £10 per hour, it'll take a lot more than two hours to earn £20 more. Furthermore, 38 per cent of people claiming universal credit in Wales do have a job. They rely on universal credit because their work simply does not pay enough. I was listening to a mother being interviewed on Radio Wales this morning; her and her husband work full time. They are on universal credit; they're going to be worse off. She said the cut is going to be the equivalent of four weekly shops of food.

As the duty of the Welsh Government is to the people of Wales, I'd like to know what specific new plans the Welsh Government has to mitigate the effect of this disastrous decision on our poorest families, which will of course also see £286 million taken out of our local economies. The UK Government has announced £500 million for a household support fund to help vulnerable households this winter, resulting in £25 million being made available to the Welsh Government. This money, of course, goes nowhere near to plugging the hole so cruelly torn in poorest households' income by ending the uplift, and will not meet the needs of the inevitably increasing numbers of those facing fuel poverty, which is a life-or-death issue as winter approaches. I'd therefore like to know if the Welsh Government will be using some of this money to help fuel-poor indebted energy customers in particular, many of whom will have been affected by today's decision.

And lastly, when will the Welsh Government finally back widespread calls for the devolution of welfare powers to Wales, so that we can ensure a decent life for all, rather than forever leave the most vulnerable in our society at the mercy of Westminster, which will never have the best interests of the Welsh people at heart? Westminster has never cared about the people of Wales, and it never will. Introducing this cut has been a political choice; forging a better system requires political will. When will you as a Government decide that enough is enough?