4. What discussions has the Minister had with HM Treasury to ensure that the Welsh Government has the finance it needs to support the people of Islwyn through the cost-of-living crisis? OQ57922

I have raised the cost-of-living crisis with the Chief Secretary to the Treasury several times, however, the UK Government support still does not go far enough. We will continue to assist those most vulnerable through this crisis and push the UK Government to recognise the impacts facing Wales.

Thank you, Minister. People in my constituency of Islwyn and across Wales are facing a truly unprecedented cost-of-living crisis. The Office for Budget Responsibility has said that in 2022-23 we will see the biggest fall in living standards since records began. We know that the poorest in society will be impacted the most, particularly those on benefits in constituencies like mine. Minister, I welcome what the Welsh Government has done so far, in partnership with local authorities, to try and address the challenges individuals and their families face, including the £150 payment for all households in tax bands A to D, an extension of the winter fuel support scheme worth £200 for eligible households, and the £25 million for local authorities to provide discretionary support. But we know that the problem is deeper than this. We know that the UK Government have the levers to provide that vital support, but as their inaction at the recent spring statement showed, the Tories simply do not care about the financial challenges that the most vulnerable face. Minister, as individuals and families face this unprecedented squeeze on their household finances, what can be done to get the UK Government to act responsibly and support the most vulnerable in our communities?

Rhianon Passmore is absolutely right that the recent spring statement was an absolute scandal in terms of not being able to address the cost-of-living crisis that is now facing individuals and families right across Wales. It's only now that families will start seeing their fuel bills go up. We know that energy company chief executive officers predict that, without UK Government intervention, up to 40 per cent of households will go into fuel poverty in this year, and, of course, on top of all that, we are seeing the largest tax rises in 30 years from the UK Government, and those will start to be biting this month as well. So, I think that things are going to get more difficult.

We will do everything that we can within our powers and resources to support the most vulnerable through this period, but it does need serious action from the UK Government. We've come up with some practical steps that the UK Government could take, for example, we've repeatedly urged them to increase the generosity of the Warm Homes discount. They could fund that through an increase in general taxation rather than the levy on other household energy users, because we know that that social levy actually hits hardest those families that can't afford it. We also would like to see a social tariff introduced, so that the people who are on those very low incomes are able to access energy at a reduced cost. And, of course, the UK Government could also introduce a windfall levy on the excess profits that have been made by energy companies and use that revenue then to support the poorest households. So, there's plenty yet that the UK Government can do to support families in Wales and across the rest of the UK.

Minister, I'm sure that you'll recognise, and from the answers that you've given so far, you definitely do recognise the importance of keeping people in employment to support them through the cost-of-living crisis. So, just to clarify, in addition to the UK Government's £9 billion package to help families in the UK with their fuel bills, including a £150 council tax rebate for households in property bands A to D, they—as in the UK Government—have also protected 25,900 jobs in Caerphilly through the furlough scheme and provided support for 5,700 self-employed individuals worth £51.6 million. Caerphilly will also benefit from over £1.3 million in UK Government community renewal fund investment. So, Minister, do you agree with me that the hardship currently being faced by families in Islwyn would be far greater without the huge sums of money being provided by the UK Conservative Government? Thank you.

Our package of support that we're able to offer people living in Wales is almost double that which we've received in consequentials from the UK Government. So, you will get the £150 payment in households in bands A to D in Wales, but you'll also get it in all of the other remaining bands if you are somebody who is in receipt of the council tax reduction scheme, recognising that there will be people beyond those bands A to D who are struggling and will be needing some extra assistance with their bills. We've also, earlier on this year, provided a £200 payment to those households on the lowest incomes. We did that without any extra support from the UK Government and it's not something that was available to people across the border in England, and we've committed to providing that additional £200 again later on this year, but we're looking to expand the number of households that will benefit from that. And just to be clear, this is not money that will have to be paid back to the Welsh Government. Unlike the UK Government's lending scheme, we will actually be providing that as a grant to households and we look forward to doing so later on this year because we recognise that the cost-of-living crisis will be with us for some time—it's not just a one-off event.