9. Plaid Cymru Debate: Winter fuel support scheme

Part of the debate – in the Senedd at 5:18 pm on 6 July 2022.

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Photo of Jane Hutt Jane Hutt Labour 5:18, 6 July 2022

Thank you very much for that question. We weren't sure how many would be eligible—we're very much dependent on DWP data and information about that. As you recall, we actually created this to very much follow the cut to the £20 of universal credit, so we were looking, very initially, at working families, and that's why we now need to widen it beyond that. But the take-up was reaching the 200,000 mark. I'll certainly give more indication of that, a clear indication of that, when we get the final response from our local authorities, who actually did deliver this scheme for us. I met with the partnership council, with the Minister for Finance and Local Government this morning, not only to thank them for the delivery of the winter fuel support scheme, but to forewarn them that we would now expect them to deliver this. And of course the take-up of it, the publicity, the awareness of it, is crucially important, as has been said. 

Now, we've been through the context—since Ofgem increased the energy price cap by 54 per cent in April, our analysis has shown that the number of households living in fuel poverty in Wales rose from 12 per cent in 2018 to an estimated 45 per cent. And the planned increase in energy prices in October, of course, will further exacerbate the financial problems that households are experiencing. We held a cost-of-living summit in February, and I'm holding a follow-up event on Monday, but also meeting the disability equality forum, Wales race forum, as well as the cross-party group, of course, chaired by Mark Isherwood, just to understand the impact of the crisis on the ground and develop informed solutions to guide us, because this is about building the resilience of vulnerable households at this time. 

So, the feedback has helped to inform the development of this further fuel support scheme for Wales, how it can reach more households so that more people can receive the £200, which offers such crucial support, but widening its eligibility. But I will say that the fuel support scheme is just one suite of initiatives to support people who are struggling to meet the increased cost of their energy bills. And I'm very glad that reference has been made to the announcement I made of our partnership now with the Fuel Bank Foundation—nearly £4 million of funding, on 10 June we announced that, for the national fuel voucher and heat fund scheme in Wales. So, that's also going to provide direct financial support to eligible households that prepay for their fuel—those with pre-payment meters, those not connected to the mains gas network who are struggling to prepay for their fuel.

I will follow up those points and questions that have been raised today about the eligibility and the impacts in terms of landlords and the standing charges, which actually have risen highest in north Wales. And I did announce this at Wrexham foodbank, because I know how this was hitting households in rural areas and in north Wales in particular in terms of those standing charges. But also, that money is going to fund the expansion of the partner network to support wraparound energy and savings advice. This is, again, and we've discussed this in response to questions in my oral questions earlier on, actually about enabling the message to get out, the support to be given, every contact that's made, but also the additional funding to ensure our discretionary assistance fund can provide that support throughout the summer and the winter. We've agreed that to the end of March next year for people who are unable to afford, for example, their next delivery of oil or liquid petroleum gas due to extreme financial hardship. So, these initiatives are delivering alongside our £150 cost-of-living payment, our £25 million discretionary fund for local authorities, our Warm Homes programme and 'Claim what's yours'.

Now, just finally, Llywydd, my reason for amending the motion was to ensure that this debate recognises that the main levers for addressing this fuel crisis do sit with the UK Government, and I do thank Sioned Williams for acknowledging this as well. It was the UK Government's reluctance to act early on this that compounded the impact of fuel price rises. Even now, despite the evidence of the impact it's having, there remain gaps in the support that they've offered. So, I've already responded, earlier on today, to say that we call for the removal of all social environmental policy costs from household energy bills, for those costs to be met from general taxation and to introduce a lower price cap for lower income households to ensure that they can also meet their energy bills. But we also need to increase local housing allowance rates, to increase funding for discretionary housing payments to prevent a significant number more people becoming homeless as a result of rent arrears. So, I hope Members will consider supporting this amendment—not only the Welsh Government's commitment to address the cost-of-living crisis, but also it's the duty of the UK Government to do so much more with their powers and responsibilities, which they're failing to do. But our scheme will be announced and it's responded to so many of the issues that have been raised today. Diolch yn fawr.