Cost of Living

Part of 1. Questions to the First Minister – in the Senedd at 2:16 pm on 24 May 2022.

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Photo of Mark Drakeford Mark Drakeford Labour 2:16, 24 May 2022

The Chancellor of the Exchequer told us that it would be 'silly' of him—that's the word he used—it would be 'silly' of him to offer further help to people facing the cost-of-living crisis. As Carolyn Thomas said, you sometimes think—well, you don't think, you know—that these people do not live in the same world as the people who face those dreadful choices between whether they can afford to eat or whether they can meet other basic necessities. Carolyn Thomas said, Llywydd, that inflation had risen to 9.1 per cent. For the bottom 10 per cent of the population, the Institute for Fiscal Studies estimates that inflation is already 10.9 per cent, because they have to spend 11 per cent of their total budget on gas and electricity. That's the reality of life for far too many households in Wales, and it deserves the sort of response that only the UK Government, with its responsibilities, with its fiscal firepower, is able to mount.

Here in Wales, we go on adding to the repertoire of things that we can mobilise from our own resources. It's sometimes forgotten, Llywydd, that COVID has not gone away and that that has had a disproportionate impact on people from low-income households as well. Just in the last week, we have made 4,073 payments under our self-isolation scheme—a scheme abandoned in England, by the way—putting £2.5 million into the pockets of people who, by definition, are those who need it the most. In that same week, we've made 3,653 COVID payments—COVID payments alone—from our discretionary assistance fund, which, again, is a fund not available across the border in the United Kingdom, with another £260,000 finding its way into the budgets of households who need it the most. If we can mobilise across the range of things we have available to us, there is no excuse at all for the UK Government failing to deliver a windfall tax, failing to deliver a social tariff, failing to find ways in which general taxation rather than fuel bills pick up those social and environmental costs, failing to do so many of those things that energy companies and others are themselves urging the UK Government to do.