3. Statement by the Minister for Social Justice: Cost-of-living Update

Part of the debate – in the Senedd at 3:13 pm on 14 June 2022.

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Photo of Sioned Williams Sioned Williams Plaid Cymru 3:13, 14 June 2022

Diolch, Dirprwy Lywydd, and thank you for your statement, Minister. The scale of the crisis facing too many households in Wales is truly horrifying. Inflation, as we've heard, is at a 40-year high, and energy prices are going up 23 times faster than wages. Given this emergency facing households, Plaid Cymru agrees that the UK Government should reinstate the £20 uplift to universal credit from July in order to protect vulnerable households from the cost-of-living crisis, and we believe that that uplift should also be extended to those in receipt of legacy benefits, and that all benefits should be uprated in line with inflation and automatic deductions stopped.

The Child Poverty Action Group have estimated that in Wales approximately 92,000 households claiming universal credit are receiving an average of £60 less each month than they're entitled to because of automatic deductions from their universal credit payment. These deductions affect an estimated 106,000 children in Wales. Wales has the highest poverty rate among the four UK nations, with almost one in four people living in poverty, and thus, if Westminster is unwilling to show the most basic level of human decency and adequately address the scale of this crisis, do you agree, Minister, there can be no argument against demanding powers over welfare so we can better support and protect the people of Wales, those people who need the most help, help that can be best targeted through the benefits system?

We know, as you've said, that the picture will get even worse and the number of those living in fuel poverty or at risk of fuel poverty will rise yet again in the autumn. Can the Minister provide clarity on when the next winter fuel support scheme payment will be made? Will it be made, as she has indicated previously, before October?

The measure announced last week, that of a fuel voucher scheme to help households with prepayment meters that have to pay in advance for their energy, and often, as you said, the poorest of households, is most welcome. I would like to ask—. The First Minister talked about it earlier. He drew attention to the fact, and you have also, that requirements that standing charges and debts are paid off before supply starts up—could this impact the effectiveness of this measure? This would mean that adding a £30-worth fuel voucher to a prepayment account would in some cases not be enough to enable the customer to switch those lights back on, to use the fridge and the cooker, to heat the home. So, how will this new scheme ensure that people will receive enough credit to avoid this situation? And also how do we know if we are helping those who need help? We know that uptake of other measures to tackle fuel poverty has not always been optimal, and so is referral to this scheme the most effective method of distribution? What happens to those who are not in contact with organisations or aware of the scheme?

As costs rise, one of the biggest expenses for families on low incomes is furniture and appliances. The cost of furniture is continuing to rise and, over the past 10 years, the cost of furniture has risen by 32 per cent, while household appliances have risen 17 per cent. Brexit and inflation are now driving these prices even higher. At least 10,000 children in the UK don't have their own bed to sleep on, and 4.8 million are living without at least one essential household appliance, like a cooker or fridge, and these are pre-pandemic figures, which we know will have most likely risen much higher by now.

Only 2 per cent of social housing properties in the UK are let as furnished or partly furnished, compared to 29 per cent in the private rental sector, and some of the research I've done in Wales shows this is the case with many housing associations here too. Furnished tenancies have huge benefit for tenants and landlords, and can ease pressure on crisis support funds like the DAF. Living without essential furniture can have a huge impact on people's mental and physical well-being and create extra cost. For example, up to 15 per cent of heat in your home is lost without flooring, and it is also extremely hard to obtain when you are on a low income. There are charities that provide funding pots for items like this, but not much provision is made for items like flooring, and many social landlords remove flooring, and in some cases there have been cases where tenants have been charged to lift up flooring at the end of their tenancy. So, I wonder, Minister, could you consider working alongside social housing providers to encourage engagement with tenants regarding the retention of former flooring and furniture when applicable. Could this be added to the supplementary terms of the next Renting Homes (Wales) Act contracts? And can the Welsh Government review the terms of the DAF and other crisis funds to include the provision of appropriate flooring? Diolch.