Universal Credit

1. Questions to the Minister for Social Justice – in the Senedd on 20 October 2021.

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Photo of Ken Skates Ken Skates Labour

(Translated)

1. What assessment has the Minister made of the impact that the £20-a-week cut to universal credit will have on Welsh communities? OQ57034

Photo of Jane Hutt Jane Hutt Labour 1:30, 20 October 2021

Analysis by the Joseph Rowntree Foundation shows that the brutal cut to universal credit is impacting on all communities in Wales. In every Welsh constituency, over a quarter of families with children have seen their income fall. To be taking money from our poorest families when bills are rising is shameful.

Photo of Ken Skates Ken Skates Labour 1:31, 20 October 2021

Well, thank you, Minister, and I agree. Clearly, irrespective of the arguments for and against making the cut, making the cut will clearly have a very, very significant impact on many people in Wales. And, Minister, as you are aware, my north Wales colleague Jack Sargeant has spoken publicly and regularly in support of a trial to explore the feasibility of a universal basic income here in Wales. Are you able to provide an update on what progress the Welsh Government has made with regard to the launching of a trial and what consideration has been given to trialling UBI here in north Wales?

Photo of Jane Hutt Jane Hutt Labour

Well, can I thank Ken Skates for his questions? You will all have heard yesterday that the First Minister provided an update on the basic income pilot in response to his First Minister’s questions. He said, and I will repeat again to clarify,

'Subject to the resolution of remaining practical matters, including the interface of our basic income payments with the benefits system, we plan to introduce the pilot in the financial year...1 April 2022.'

And I will be issuing a ministerial update soon to provide more detail. But in response to your first question, of course, this is about alleviating poverty—basic income is about alleviating poverty. But it’s also about giving people more control over their lives, having a positive effect on mental health and well-being.

Photo of Rhys ab Owen Rhys ab Owen Plaid Cymru 1:32, 20 October 2021

Diolch, Weinidog. I'm sure everyone here has been contacted by somebody who has been impacted by the cuts in universal credit. I wanted to give one example: a Mrs D who contacted me recently. She said this, 'Last March, I was diagnosed with a rare type of blood cancer. Overnight, I went from an independent, self-sufficient woman, counting the years to retirement, to a house-bound unemployable sixty-something reliant on benefits and the generosity of others. Universal credit was my safety net and I’m grateful that it was there when I needed it. However, this month, it feels like Boris Johnson has slashed a gaping hole in the bottom of it and I’m struggling to hold on.'

I appreciate that the Welsh Government has stepped up on many occasions to fill in the gaping hole left by the Tories' swingeing cuts, and the First Minister in particular received great credit and much praise throughout the pandemic for taking a different stance to the Westminster Government. This needs to happen again, Minister. Will the Welsh Government consider extending the discretionary assistance fund, which closed on 30 September, to help people like Mrs D and individuals who have been devastated by this cut. Diolch yn fawr.

Photo of Jane Hutt Jane Hutt Labour 1:33, 20 October 2021

Diolch yn fawr, Rhys ab Owen, and you gave a very clear example—a human example—of great concern of the adverse impact already experienced by your constituent in terms of that cut of the £20 universal credit. And it is quite clear that we have to play our part to ensure that we can support those families. The UK Government may have abandoned these families, but the Welsh Government will not. So, it is the support that we give through our discretionary assistance fund, which is one route to helping these families that will face, as we know—and as we discussed in the Equality and Social Justice Committee this morning—a harsh winter to get the financial help they need to heat their homes and feed their children. And so, it is important that I am able to, as I have announced and as we discussed this morning, extend the flexibilities and extend the discretionary assistance fund through until March and then consider—as we move through this, and indeed the pandemic, as well as the cuts from UK Government—what impact that has in terms of taking the discretionary assistance fund forward.