1. Questions to the Minister for Social Justice – in the Senedd on 12 January 2022.
3. What assessment has the Minister made of the social justice impacts of the Welsh Government winter fuel support scheme? OQ57406
Households are experiencing a cost-of-living crisis due to spiralling energy prices and cuts to welfare support. Councils are supporting take-up of the Welsh Government's winter fuel support scheme amongst eligible households to help them keep warm this winter, and will continue to promote the scheme over the coming weeks.
Minister, as you say, many of our constituents throughout the whole of Wales are now really experiencing a day-to-day cost-of-living crisis. They're making choices—genuinely—between heating and eating, either feeding themselves or feeding the prepayment meters. We've had COVID-19 and post-Brexit impacts on supply chains; we've had shipping delays; factories in lockdown or slowdown globally; staff absences affecting things particularly like raw materials; food prices have risen due to those supply chain disruptions and we've had increased HGV driver wages after thousands left the UK for their home countries in the EU. And all of this, Minister, is before the soaring energy prices and the national insurance hike that comes into force in April. The energy bills are expected to soar as the Government's price cap is revised in February and implemented in April, and that's not to even mention the cruel universal credit cut. Yet, for some reason, the Prime Minister and UK Chancellor seem impotent or unaware, their attentions seemingly distracted by other more pressing matters such as clinging on to the keys of No. 10 at all costs. So, this fuel poverty intervention by Welsh Government is really welcome, particularly given that real, immediate cost-of-living crisis. How can we ensure, Minister, that as many eligible people as possible are able to access this fund and get hold of this welcome help?
Thank you very much, Huw Irranca-Davies, and as you say, spiralling energy prices are leading this cost-of-living crisis. If you look back to what the Resolution Foundation said in response to the UK Government's autumn budget, they noted at that point, even if we also take into account the impact of the faster than average earnings increase to national living wage, the poorest fifth of households will still be an average of £280 a year worse off overall, and we know that those figures now have increased in terms of the adverse impact.
I think it's important just in terms of all of what's coming together, this Senedd and the questions this afternoon and yesterday are focusing on this cost-of-living crisis. We are calling on the UK Government—I've mentioned the joint letter with the Minister for Climate Change, Julie James—to take action now alongside us and the action we're taking to support low-income households to secure affordable energy. So, we are pressing all the buttons in terms of promoting our winter support scheme. It is available to all of those lower income households who are on benefits for working-age households.
I've already mentioned in response to Sioned Williams that we've got a promising 100,000 applications already. We estimate that 350,000 households will be available. The Welsh Local Government Association have shown very strong support in terms of take-up, but also we have our income maximisation campaign; digital marketing of our winter fuel support scheme; and also a really useful toolkit of resources issued to all our partners, including the anti-poverty coalition, National Energy Action and, of course, Citizens Advice as well.
And if I could just say finally in response, we're under no illusion that the £100 will go far enough in compensating households who lost out so much last year because of the harsh decisions when the £20 per week universal credit and working tax credit uplift payment—. If we can get that £100 out, and every Member of the Senedd can help us with that in terms of promoting this Welsh Government scheme.
Minister, many of our most hard-pressed families will face major financial challenges over the next few years, and not just in the cost of fuel. As your Government continues to press ahead with its carbon-neutral target, it is those least able to afford a change in their heating system and other areas of their lifestyles that will bear the brunt of meeting these climate targets. What assessment have you made of the impact on inequalities that such a policy will surely drive? Thank you.
This is an area where, of course, the UK Government has to also take responsibility. Thank you for the question; it is important. We are in a situation where people are having to choose between heating and eating, and that's coming through from so much powerful evidence. But it is also, and my colleagues, I'm sure, will want to share this with you—. I will share the letter that we have written to the Minister in the UK Government to address all of these issues, because they are exacerbating the situation in relation to energy costs. For example, one of the points that is crucial, and it relates to your point, is that we have deep concern about the increase in domestic energy prices, but also we have felt for a long time as a Welsh Government—we’ve had a long-held view—that environmental and social policy costs—and this is what you're referring to—imposed on household energy bills should be met by general taxation, and I hope you will join us in calling for that.
But can I just also refer to our wider household support fund? I announced an over £50 million household support fund before Christmas that covers other areas, including tackling food poverty as well as fuel poverty, and I hope that you will also welcome the initiatives that we, as a Welsh Government, have been taking.