2. Will the Minister make a statement on Welsh Government initiatives to assist households with ongoing increases in the cost of living? OQ57805

On 16 November, I announced a £51 million package of support for low-income households. Additionally, on 14 February, we announced a package of support worth more than £330 million, to fund a range of initiatives that will help Welsh households manage the cost-of-living crisis.

I'm grateful to you, Minister. I asked you about the cost of living; of course, what I should have asked you about was the Tory cost-of-living crisis. This isn't an accident, it isn't an act of God; it's the consequence of a deliberate policy to create more poverty amongst the most vulnerable in this country. We've had a decade of austerity, which failed to meet every objective set for it, and we now have a cost-of-living crisis made in Downing Street. We know that there's going to be a crisis for the most vulnerable, we know there are going to be increases, not just in the heating costs we're seeing at the moment, and the fuel costs we're seeing at the moment, but we also know there are going to be real increases in terms of food as we go through into the spring and the summer. Minister, can you continue to do the work that the Welsh Government is leading to provide support for and protection for the most vulnerable people, to continue to work to reverse the cuts in universal credit, and to ensure that family budgets and the most hard-pressed families in this country have the support that they need to get through these times?

Thank you very much, Alun Davies. And it is, indeed, as a result of a decade of austerity, made in Downing Street, that people, households are facing this cost-of-living crisis. It is a Tory cost-of-living crisis, and it's being fuelled by rising energy prices, but also, pressures on household budgets, changes to universal credit, mean that three-quarters of households on universal credit will be worse off in April than they were a year ago. People have lost more than £1,000 as a result, and, also, recipients who do not work at all will lose the entire COVID uplift, amounting to over £1,000 a year. So, it is important that we have our £330 million package of support to help households. But it isn't just in terms of tackling fuel poverty. I mentioned our winter fuel support, but we've got £1.1 million going to support and bolster food banks, community food partnerships, community hubs; £60,000 to continue to raise awareness of affordable credit, with our credit unions; £250,000 to pilot a public transport assistance scheme for asylum seekers; and £1.3 million—relevant to you, of course, Alun Davies—to make it easier for people in Valleys communities, and those without access to digital technology, to benefit from new and improved public transport. So, these are all ways in which the Welsh Government is responding to this Tory cost-of-living crisis.

The Older People's Commissioner for Wales, the chief executive of Age Cymru, the director of the Bevan Foundation, the director of Citizens Advice Cymru, the chief executive of Care and Repair Cymru, the head of National Energy Action Cymru, and the head of Oxfam Cymru have issued themselves a joint statement, highlighting that the eligibility for the winter fuel support scheme should be expanded to include older people claiming pension credit. Now, the Welsh Government's 2022-23 budget notes that the criteria will be widened to pensioners eligible for pension credit. Whilst I would be grateful if you could confirm that individuals claiming pension credit will become eligible from the start of the next financial year, Minister, would you please explain the rationale behind excluding them in this financial year and if any retrospective support can be provided to assist with their fuel poverty? It is not fair to lay this blame for the cost-of-living crisis at the door of the Conservatives in the UK Government. There are things that you can do in the Welsh Government, so why is that support not there for them for this year? Diolch.

Well, for the benefit, Janet Finch-Saunders, of those who have already benefited from our unique, bespoke winter fuel support scheme, it's really important to see the fact that that scheme has reached out, particularly reaching those households who are in receipt of working-age, means-tested benefits to help them with essential housing costs, and recognising that many of those were the ones who lost out on universal credit—that cut by your Tory Government. And it's very important to know that local authorities have recorded nearly 200,000 applications since the scheme opened at the end of December.

We will repeat this scheme. This is a Wales-only scheme. Actually, it's been recognised that we have been more generous than other parts of the UK. Clearly, nothing coming from the UK Government as far as this kind of support is concerned. So, at our cost-of-living summit, we did discuss this with partners. We did say that we would look to widen the eligibility, double the money to £200, and looking at particularly those households who have been made more vulnerable as a result of austerity, and as a result of the cut to universal credit, and the fact that, from April, not only in terms of rising fuel costs, rising inflation, but also that 3.1 per cent uplift on benefits—7 per cent in terms of inflation—. Where are those people on benefits going to turn? They'll have to turn to the Welsh Government, but they should be turning to the UK Government for a much better deal for those households. 

I would like to endorse the comments made by Alun Davies and the Minister. Certainly, this is a political choice, and we can't avoid that fact, and you have to take responsibility if you make political decisions that do have an impact on the cost-of-living crisis. 

Last month, I organised a cost-of-living summit in Treforest for my region, bringing third sector organisations and voluntary organisations together to discuss the challenges that we are seeing in our communities, and discuss how we can ensure that the support is available for those affected by the cost-of-living crisis. Whilst I'm grateful for the hard work of everyone who attended, in supporting individuals and families, they were all concerned that they, too, were under pressure in terms of meeting the demand. It is disgraceful that we are seeing more demand for food banks and that they are now seen as the norm within society rather than coming together to actually make them unnecessary. So, what support is being provided not only directly to homes, but also to the third sector and the voluntary sector in order to ensure that we can co-ordinate the support available, and to ensure that everyone who needs support receives the support that is available?

Diolch yn fawr, Heledd Fychan. And it is really welcome that you also held that local summit in terms of looking at the cost-of-living crisis. We had over 140 partners at the all-Wales summit, including the Welsh Local Government Association, who are critical at local authority level for co-ordinating, as well as the voluntary sector in terms of meeting that demand. I think we just have to say again that this is a cost-of-living crisis that has been created as a result of the policies of the UK Government, and we are offering that £200 household support. But, also, we are funding our third sector, and particularly important to your question is the support we're giving to the single advice fund, Citizens Advice, working alongside the Trussell Trust, the food banks, all of the compassionate, caring community groups in our areas who are working to address this crisis. 

But I would say just one more thing. I'm sure that you would join us in saying that the Chancellor has got to do something in the spring statement to bring forward a budget that will actually show that the UK Government takes some responsibility for this cost-of-living crisis, in terms of tax and welfare. It's their responsibility, and we back those calls for a windfall tax on North sea oil and gas producers. That is a way that they could get the funding and to bring that funding to support those vulnerable households. 

I do associate myself with the comments of Alun Davies and Heledd Fychan as well. And I'll keep saying, until the Welsh Conservatives might take the message back to their colleagues in Parliament, that they should reinstate the £20 universal credit cut. It is shameful—it is absolutely shameful that they are not doing that, and I really hope that they'll just pause and consider—[Interruption.]

I would like to hear the question from the Member, so please give her a chance to speak. 

—pause and consider the effect that you're having on very poor families. 

I'd like to raise the issue of those families that are affected by fuel increases, particularly those in rural regions, like myself, and I know my colleague Joyce Watson has raised this as well. Those that are off grid, reliant on solid fuel, oil and electric, face significant rises in their fuel and energy costs. In Mid and West Wales, 27 per cent of properties are actually off grid, with Powys and Ceredigion being amongst the highest. May I ask, Minister, what steps you might consider to support people in this situation and perhaps consider a one-off payment to those households affected? Diolch yn fawr iawn. 

Diolch yn fawr iawn, Jane Dodds. Of course, the cost-of-living crisis will see many more households struggling financially in Wales, including those in rural areas. We have focused our support, with the finance Minister, on those households that are most vulnerable and we've actually published analysis showing the distribution and effects of our immediate response, which I'm sure you will welcome, to see where we're targeting this effectively.

As well as the £150 cost-of-living payment for all households in properties in council tax bands A to D, and also the £200 payment, I will just say on the rural areas that, for off-grid homes, funding for the discretionary assistance fund is crucial. It was increased. We forwarded it to support the introduction of winter support for off-grid fuel clients. And, of course, we know in rural areas, in your areas, as you said, one in three households receive some or all of their energy supply from off-grid sources. So, reintroducing that, the final budget went through, further funding available to make sure that we reach this. And it is true that we need to reach those. And, just to give you some examples, we helped 494 applicants in Carmarthenshire, Ceredigion, Pembrokeshire and Powys as a result of that bespoke discretionary assistance fund. So, it's the whole of Wales. The rural areas have particular issues in terms of off-grid fuel and energy sources, but we're responding to it through our discretionary assistance fund, which we've kept going and we've kept the flexibilities that were called for in the Equality and Social Justice Committee report, and that is going to make a difference.