Energy Advice

1. Questions to the First Minister – in the Senedd on 18 January 2022.

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Photo of Carolyn Thomas Carolyn Thomas Labour

(Translated)

6. What steps is the Welsh Government taking to provide vulnerable households with energy advice? OQ57465

Photo of Mark Drakeford Mark Drakeford Labour 2:11, 18 January 2022

Such advice is available to all households in Wales through our Warm Homes programme Nest scheme. Additional advice and support is offered to vulnerable households in areas at greatest risk of fuel poverty through our energy advice services pilot. These areas include Gwynedd and Ynys Mȏn, both within the Member’s own region. 

Photo of Carolyn Thomas Carolyn Thomas Labour 2:12, 18 January 2022

Diolch, First Minister. I've been contacted by constituents who are struggling to make ends meet due to poorly insulated housing and rocketing energy prices. In response, last week, I met with Citizens Advice Denbighshire to hear more about the important role that they play providing advice to many families who are struggling with household bills, as universal credit cuts and astronomical energy price rises set in. Our discussion highlighted how essential the Welsh Government's winter fuel support scheme is as a lifeline for so many families, and it's really, really welcome. But would it be possible for this funding scheme to be delivered alongside advice that will support households in the longer term, such as access to retrofitting schemes, energy efficiency guidance and further grant support that may be available? I know they do that, but they just wanted to ensure that other delivery bodies did the same as well, because it's just so important. Thank you.   

Photo of Mark Drakeford Mark Drakeford Labour 2:13, 18 January 2022

I thank Carolyn Thomas for that evidence from the front line of the cost-of-living crisis. Last week, I remember we talked about the Resolution Foundation report on the cost-of-living catastrophe. Since then, we've seen the Institute for Fiscal Studies report on the cost-of-living crunch, and the Joseph Rowntree Foundation's report today on the way that rising energy bills will be devastating, as the report says, for the poorest families. All the points that the Member makes are really important. My colleagues Julie James and Jane Hutt wrote jointly to the UK Government on 11 January setting out five different ways in which the UK Government could act that would make a positive difference for those families in the field of fuel poverty alone.

The good news, Llywydd, is that the £100 that the Welsh Government is making available through the winter fuel payment scheme has not just been welcomed by organisations like Citizens Advice, but it's been enormously taken up by individual households as well. As of 31 December, with returns from 20 of the 22 local authorities, more than 100,000 applications had already been received by local authorities, and it's a tribute to those local authorities that more than 33,500 of those applications have already been paid out. Now, I hope that, by today, that number will be even higher, both in terms of applications and payments. When those payments are being made, Llywydd, what I want to see is that the opportunity is taken to make sure that people know the wider set of help that is available to them, both through energy advice and through benefit advice as well. We need to take every opportunity, particularly when we are in contact with thousands and thousands of Welsh citizens, to make sure that we take that chance to make sure that there are other sources of help that we can offer them and that they get to know about it.

Photo of Jane Dodds Jane Dodds Liberal Democrat 2:15, 18 January 2022

(Translated)

Thank you to Carolyn for raising this question. I really support this proposal from Carolyn. Systems and schemes need to work as one to ensure that support in the short term, such as the winter fuel support scheme, can help individuals in the longer term with energy saving measures. Short-term measures must go hand in hand with longer term measures.

One of the short-term measures that the Conservatives in Westminster could take now would be to cut VAT on fuel, saving families up to £100 a year—a much greater saving than the few pennies claimed by Conservative Senedd Members last week. First Minister, what are your views on cutting VAT on fuel? Thank you.

Photo of Mark Drakeford Mark Drakeford Labour 2:16, 18 January 2022

(Translated)

Thank you very much to Jane Dodds, and I agree, of course. The things that we can do in the short term—and we have worked hard with local authorities in order to create the scheme that I referred to in my response to Carolyn Thomas—. It is important that that goes hand in hand with those other things that we can do in the longer term, and most of that is in the hands of the UK Government.

I said, in the letter from Julie James and Jane Hutt, that there were a number of practical steps that we suggested to the Westminster Government that they could implement, in order to help families with the problems that have arisen under their Government's stewardship. Cutting VAT on fuel is one of the recommendations contained within that letter. Some things are so long term—. In my view, it's not reasonable in the long term to increase charges in energy by raising bills that come through people's letterboxes. It's far better to pay for social and environment measures through the general taxation system. That is much fairer and much more sustainable in the longer term too.