A recent report by the Bevan Foundation on household debt in Wales found that tens of thousands of people across the country were living with problem debt long before the pandemic struck, but that the economic impact of COVID-19 had deepened that crisis. Across Wales, 130,000 households—that is, one in 10 of all households in Wales—were in arrears regarding a bill between January and May 2021. Over the same period, 230,000 households—17 per cent of all households in Wales—had borrowed money. This has led to many households in Wales being pushed into poverty, having to go without the basics of daily life, and suffering from the stress and anxiety caused by poverty and debt. There is no doubt that this winter will be very difficult for so many households across Wales.

The Tory Government in Westminster has betrayed the people of Wales. The financial pressures facing families have been exacerbated in many cases by the cruel decision to cut the £20 uplift in universal credit. Appeals from several quarters, including from the Welsh Government, to overturn that catastrophic cut have fallen on deaf ears. We believe that another measure that the Welsh Government could press the UK government to implement would be an extension of the rural fuel duty relief scheme for Wales. The scheme provides a discount of 5p per litre for fuel retailers in specific rural areas, but none of these are currently in Wales. This would ensure that people in rural areas are not forced to shoulder an unfair proportion of higher fuel costs. In the long term, of course, we need to invest more in public transport, especially in rural areas.

Those most at risk of debt across Wales are all those already facing socioeconomic disadvantage, such as renters, disabled people, children, single parents, women, older people, care leavers, and households from black, Asian and minority ethnic backgrounds. We should all know, given that we marked International Day of Disabled People with a debate in this Chamber yesterday, that disabled people face extra costs in their daily lives of over £500 a month. It is no surprise, therefore, that disabled people have been twice as likely to be in arrears over the pandemic. Over 20 per cent of disabled people in Wales were in arrears in the first half of this year, and nearly a quarter of disabled people had to borrow money to make ends meet over the same period.

Barnardo's Cymru has also highlighted the financial challenges faced when care leavers transition to independent living, because setting up their own home can cause great anxiety for care leavers, with many having to take up payday loans to pay off debts, leading to a vicious cycle of financial difficulties.