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

Part of the debate – in the Senedd at 4:07 pm on 8 February 2022.

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Photo of Julie James Julie James Labour 4:07, 8 February 2022

Diolch, Vikki. So, a couple of things there, then. The differentiated cap, we were discussing with Ofgem how that might work. We've called on the UK Government to look at putting a differentiated price cap in place. Somewhat counterintuitively as well, and they've announced it now, we also asked them to look at reviewing the price more frequently, because one of the big issues for anyone who's struggling to make ends meet is predictability. So, the idea that you wait every six months and then there's a massive hike, you can't possibly predict that, you can't budget for it, you can't put money aside. And somewhat counterintuitively, I guess, if you have smaller rises along the way, it's much more manageable. So, that was announced by Ofgem as an ask as well. But we're basically saying, 'Why can't you have a cap that differentiates for means?' So, if you're on welfare benefits, then the cap is lower, if you're on a prepayment meter, then the cap is lower, and so on. I can think off the top of my head of a number of ways that we could do that that would make that work, and it spreads the load differentially away from those most hardest hit, on whose shoulders we always seem to heap the biggest burden, across to those of us, as Jane Dodds said, who may be able to afford, or at least more easily afford, the price growth. So, that was the point there.

In terms of the winter fuel support scheme, one of the reasons we're having the 17 February round-table is to figure out, along with all of the advice agencies that will be taking part, how we can get that advice out more effectively. We're working with council colleagues as well to make sure that people who are eligible for other benefits are signposted to these benefits. I've actually had a couple of meetings with a diverse range of other stakeholders—banks and so on—saying that they can get it out through there, because they have alert mechanisms for customers who are experiencing debt difficulties, that they can start to signpost them to advice services that would assist them to get grant assistance from us and so on. So, we're very keen to make sure that people do have that take-up where the money is available, and that's why I was keen to say that people on off-grid oil are also eligible. I think it's often a myth that people think they aren't. 

And then, just in terms of the mental health issue, again, in the signposting for debt advice, we are signposting mental health services at the same time. We have funded the advice agencies in order to give a holistic package of support to families coming forward, and we are in discussion with a number of other areas, team around the family and so on, in family support services to make sure that named workers are able to assist with signposting as well. Families who are in difficulty often have a real problem with admitting it, and I really do fear that, in this particular wave—. I mean, this is an awful thing, an indictment of our society, if I might say so. We have some families who are used to having to ask for help and have kind of grown a thicker skin around it—what a terrible thing to say in a rich society. We have another wave of people who will not have grown that thicker skin and who will feel shame and embarrassment. I'm here to say that they should not, that it's not anything that they have done wrong themselves, that they should come forward and get the help that they richly deserve, and that people should not feel that it is their fault for not being able to manage.