4. Statement by the Minister for Climate Change: Energy Price Cap

Part of the debate – in the Senedd at 3:49 pm on 8 February 2022.

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Photo of Delyth Jewell Delyth Jewell Plaid Cymru 3:49, 8 February 2022

Diolch, Dirprwy Lywydd. Minister, as we've just been hearing, millions of people across the UK are going to be put in a situation of incredible stress because of the price cap on bills going up by 54 per cent. Parts of Wales are set to be hardest hit in all of the UK. Local authority areas, including Ceredigion, will be looking at £972, Gwynedd £904, Carmarthenshire £853, Powys £848. Those are Office for National Statistics figures. Fourteen of the 22 local authorities in Wales will be affected worse than the average price rise of £693. Some of those areas are already areas that have some of the lowest wages in the UK as well and, obviously, as we often discuss, behind all of those figures are going to be truly terrifying situations for individuals and for families.

This comes at a time, of course, when millions are already struggling to make ends meet, to put food on the table, to pay phone bills, broadband bills, transport cost, housing costs, education-related costs—the list just goes on and on and on, doesn't it? One step the Welsh Government, I think, really needs to take is to reduce the overall costs of living in order to counteract some of the steeper price rises. I know that you've been alluding to this a little already. I'm very glad to hear that the summit will be going ahead on 17 February. Of course, that comes as a result of the Senedd voting in favour of Plaid Cymru's recent motion calling for an emergency plan. I really welcome this. Could I ask you what sorts of measures will be on the table for discussion at this summit? You said that it will include meetings with front-line services and key groups, and I do really welcome that, but could you offer us, please, some assurance that this summit will include voices of people who are going to be directly impacted by this cost-of-living crisis, and how their voices might be heard as part of that?

Fuel poverty, of course, is not a new problem. People are already struggling to stay warm and well, and the price-cap increase is going to push them deeper into trouble. As Care & Repair Cymru have expressed, people are changing their behaviours, and this is going to impact on their health. They're going to be cutting back on heating and using less electricity out of a fear of going into energy debt. The cold is responsible for many health conditions. It causes hospital admissions and more deaths. Could I ask you, Minister, what targeted measures the Welsh Government is going to be employing in order to ensure support reaches the people who are most vulnerable and who are going to be most vulnerable to these rises? I'd be particularly interested to hear what the Welsh Government will be doing in terms of preventing and responding to debt when it comes to energy bills, in addition to what you've already laid out, of course. I'm really keen, and I know that I've talked about this before, to hear more about how people on pre-payment meters are going to be supported, because they could face having their energy turned off if they run out of money. So, are there specific measure that you're exploring that could help people in that really dire situation, please?

And finally, this is an area that's already come up in your exchange with Janet, of course, to turn to housing. As we've been hearing, we have the oldest housing stock in the UK and some of the least energy-efficient homes as well. The latest estimate for homes in fuel poverty in Wales is already 12 per cent, which is one in every 10 homes or something, and I think that that estimate is from 2019, so that could well underestimate the problem. A colleague of mine in Westminster has been talking about how there are 275,000 homes in Wales—nearly a fifth of all households—that aren't connected to the gas grid. That figure is, I think, from 2020. And in rural areas, like Ceredigion, that figure goes up to as much as 80 per cent. In Wales we seem to have a series of unique challenges that are going to make this crisis, or these coalescing crises, even more acute, in terms of housing, in terms of heating, and we do really need to get to grips with that now more than ever.

I recognise the questions have already been answered in this session already, but in your statement you did make reference to this situation. Could you please provide an update on progress to improve the energy efficiency of homes during the Senedd term and inform the Senedd of any future plans to make the Wales housing stock more energy efficient, particularly, perhaps, when we're talking about off-grid homes? Thank you very much.