All of us in the Siambr read numerous reports and briefing documents about the problems that we need to tackle, but I'd like to note, as a new Member of the Senedd, that this was my first committee inquiry, that into the pandemic and debt, and that the direct evidence that we heard about how we need to do more to support families in keeping their head above water had deeply affected me. Because, even though the report mentions the pandemic impact on debt levels, it was clear from the evidence that these debts had been exacerbated, rather than caused, by the pandemic. 

The report has found that 18 per cent of adults in Wales—a higher proportion than England and Scotland—have faced financial hardship as a result of the pandemic. The indicators that led the committee to hold an inquiry into this issue in the first instance have turned into a clear and frightening depiction of a crisis, the like of which hasn't been seen since the financial crisis over a decade ago. And there is worse to come.

The words used were striking and should give us all pause. I have quoted from the report in previous debates in this place, but they are worth repeating.

'What really worries me', said one witness, 

'is a potential 30% increase in gas and electricity prices in 2022. That is going to push people into Victorian poverty.'

Well, 2022 is here. The warnings were accurate, if not slightly conservative, bearing in mind the Centrica boss's warning today regarding gas prices, and the older people's commissioner's concerns today about the ensuing impact on pensioners.

The pertinent question in the report is why so many families are in such a vulnerable position in the first place. What can be done about this, and what else could be done to protect people in any future crises?

Those who are most at risk of suffering problem debt are those households that already face socioeconomic disadvantage in our society, people such as renters, those on low incomes or in insecure employment, disabled people, children, single parents, older people, care leavers, and people from ethnic minorities. The report contains numerous examples of the way that problem debt disproportionately impacts some groups in society and increases socioeconomic inequality in Wales. For example, disabled people have been twice as likely of being in arrears during the pandemic, and the Bevan Foundation reported that its research had demonstrated that people living in social housing were more likely to be in arrears for all bills than any other group. We heard that 43 per cent of survivors of domestic abuse had been pushed into debt.

We have to take major steps as a matter of urgency to tackle this problem of debt affecting children's welfare—they are our nation's future. The revelation that one in five families has had to cut back on items for children, and one in 10 families with two children has had to cut back on food, is difficult to comprehend in the Wales of the twenty-first century—a Wales that is part of a state that is one of the richest in the world. It is disgraceful. It is unforgivable. And it's a problem not just for today or tomorrow, but one that will be with us for decades to come if we don't take urgent action. Living in a household with debt problems, facing financial strain, is an adverse childhood experience, and can have a lifelong negative impact on a young person's health and opportunities.

The Government must seek solutions of all kinds, with regard to housing, taxation, public transport, and support payments such as the EMA. In accordance with the calls made in the committee report, Plaid Cymru wants to see a new focus from Government on accelerating work to ensure that all social housing is A-rated for energy efficiency, and to ensure the better promotion and support of debt advice services and sources of affordable credit amongst those at greater risk of debt, and making the temporary flexibility in the discretionary assistance fund permanent. It is concerning to see that the funding allocated to the fund in 2022-23 is lower than it was in the previous two financial years.

I am pleased that the co-operation agreement with Plaid Cymru contains vital measures to tackle poverty and its impact on families, such as free school meals for all primary pupils, expanding free childcare provision to include two-year-olds, reforming council tax, and ensuring measures to tackle the housing crisis. We support the recommendations in the report calling on the Government to take specific steps as a matter of urgency, and, as I have previously said, Plaid Cymru believes that there are other steps that the Government could take that could light a candle in the dark. The co-operation agreement also includes a commitment to devolve the administration of welfare.