Inflation and Older People

1. Questions to the Minister for Social Justice – in the Senedd on 8 June 2022.

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Photo of Mike Hedges Mike Hedges Labour

(Translated)

4. What assessment has the Minister made of the effect of the current rate of inflation on older people in Wales? OQ58138

Photo of Jane Hutt Jane Hutt Labour 2:01, 8 June 2022

Age Cymru reports the cost-of-living crisis will increase the percentage of net income that pensioners spend on essential goods and services from 58 per cent in 2021-22 to 73 per cent this financial year. Older people are a priority group for single advice fund services, making up 33 per cent of those accessing advice.

Photo of Mike Hedges Mike Hedges Labour

Can I thank you, Minister? Most older people are on fixed incomes from the state pension, private pensions and the supplementary pension. As inflation is rising, especially energy and food are items that disproportionately affect people who are older, does the Minister agree with me that there is a need for additional support and a supplementary pension increase, and will the Minister press the Westminster Government to make such a payment? Also, is there further support that the Welsh Government can give? We have a problem in that pensioners and other older people are less likely to use food banks than younger people, and that means that many of them will go hungry.

Photo of Jane Hutt Jane Hutt Labour 2:02, 8 June 2022

Well, Mike Hedges, you make crucial points and provide evidence of why we do need that increase, from the UK Government, in terms of state pensions. That needs to be not just supplemented but uprated. I mean, we have the situation in terms of all benefits where it was uprated by 3.1 per cent in April, and yet, here we are with inflation rates of 10 per cent and rising. So, there's going to be a huge shortfall and impact in terms of fuel and food poverty, and you make a crucial point in terms of ways in which older people might then go through the heating-or-eating scenarios that we know from evidence is such a reality—a terrible reality for people's lives. So, I am very keen that all Members across the Chamber support our national benefit take-up campaign. We've got a working group specifically looking at promoting pension credit, and, actually, that does include Department for Work and Pensions officials and stakeholders, the Older People's Commissioner for Wales and Age Concern, so it's going to be a call to action for pensioners. But, clearly, this is something where we—. In terms of addressing these issues—and meeting with your cross-party group yesterday was very helpful to see—cost of living is now key on their agenda in terms of supporting older people.

Photo of Altaf Hussain Altaf Hussain Conservative 2:04, 8 June 2022

Minister, the Chancellor's recent announcement of an additional £25 million to Wales for the household fund is further evidence of a commitment to supporting older people through some difficult times ahead, alongside the additional winter fuel payment and further financial support to meet the cost of energy. Can the Minister outline how older people will benefit from the household fund in Wales, and what further steps will you take to help reduce bills for older people? Thank you.

Photo of Jane Hutt Jane Hutt Labour

Thank you, Altaf Hussain. I've just mentioned ways in which we are specifically focusing on the needs of older people, particularly with the national benefit take-up campaign, but also by ensuring, as I meet with the older people's commissioner, Age Cymru and cross-party groups, that we take into account the lived experience of older people and share that particularly, not just with the third sector, but with those organisations who have got responsibility in terms of giving advice, support and accessing our funds.