8. Plaid Cymru Debate: Household debt

Part of the debate – in the Senedd at 6:10 pm on 1 December 2021.

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Photo of Jane Hutt Jane Hutt Labour 6:10, 1 December 2021

And it is important to recognise that we can't address all the austerity measures that have been imposed by the UK Government. Our ambition through the winter fuel support scheme is to support those households who suffered an income shock when the UK Government ended their £20 universal credit or working tax credit uplift payment. So, we want to support households who receive one of the earnings replacement, means-tested benefits that the UK Government refused to increase. But we're under no illusion, this can't compensate the households who lost over £1,000 a year when the cut—the universal credit cut—was made unnecessarily and cruelly. But also, we have to look at the opportunities that we have in terms of the payment. It will help eligible energy customers, regardless of whether they pay for their fuel on a pre-payment or a credit meter. A rigorous take-up campaign is being promoted, which advice givers and local authorities are taking forward.

But, as part of the fuel poverty plan for 2021-35, we are working with stakeholders to prepare and publish a cold weather resilience plan. And thank you for raising the need for us to ensure that that plan is taken forward. I can tell you I'm very pleased to respond to Mark Isherwood this afternoon to say that the plan identifies key actions we can implement that have an immediate impact for those in need. It does include promoting and supplying emergency assistance payments and continuing with the installation of domestic energy efficiency measures. And we are due to publish the plan on Fuel Poverty Awareness Day, which I know you'll be aware is this week, on 3 December. So, I'm sure that you will welcome that news today. 

In addition, over the past decade, more than £394 million has been invested to improve home energy efficiency through the Warm Homes programme, benefiting more than 67,100 lower income households. And these improvements are reducing the energy bills of lower income households by an average of more than £300 annually. As well as supporting families struggling to pay their fuel bills, the household support fund will provide more than £1.1 million to support and bolster food banks, community food partnerships and community hubs. And it will help address food poverty and food insecurity and provide a wider range of services to help people and families maximise their income.

Alongside action to tackle food poverty and food insecurity, we are tackling the root causes of food poverty through our commitment to the social wage and targeted activity to maximise income and build financial resilience. We invested an extra £14.9 million into the discretionary assistance fund to support the increasing demand on the fund during 2021, providing those hardship payments to those experiencing financial crisis. The discretionary assistance fund works with Citizens Advice to refer people who have accessed the fund on to wider advice and support to address their underlying financial needs, including getting specialist debt advice. 

And it is important we help people in Wales to claim all the financial support that they are entitled to. So, our second national 'Claim what's yours' welfare benefit take-up campaign aims to raise people's awareness of their entitlement, encourage them to seek advice—and, Peredur, I do agree about pension credit; that's got to be part of the 'Claim what's yours' campaign—and help people navigate through the welfare benefits system to get their entitlements, their rights. Our long-standing commitment to supporting advice services ensures that people across Wales can access free and impartial debt and social welfare advice. And 18,000 people received debt advice and were helped to manage debts of over £8 million as a result of our single advice fund services. People who are receiving advice on their welfare benefit entitlements were supported to get an additional income of over £43 million as well. 

So, in conclusion, I have to say that we are addressing the issues that have been raised in this important debate today, including those who are struggling to pay their council tax bills. Obviously, Heledd Fychan, it's important that we are working with our colleagues in local government. Our council tax reduction scheme is crucially important, and also our income maximisation scheme for lifting children out of poverty. 

So, my final point is that I look forward to responding to the Equality and Social Justice Committee's report and their recommendations. This is a cross-Government responsibility—working with my colleagues in Welsh Government, working as a result of our co-operation agreement as we seek to work together to tackle poverty, engaging with the UK Government, making representations and working with our partners in tackling household debt in Wales. Diolch.