3. Statement by the First Minister: Update on the Cost of Living

Part of the debate – in the Senedd at 2:50 pm on 20 September 2022.

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Photo of Mark Drakeford Mark Drakeford Labour 2:50, 20 September 2022

Dirprwy Lywydd, that is only a selection of the schemes that I could have identified. And now there is to be more. Earlier this month, as part of the co-operation agreement, we started the roll-out of free school meals in our primary schools. Next week, we will open applications again for our unique winter fuel support payment, extending the eligibility so that, this time, 400,000 people in Wales will be entitled to help.

Next week, our new fuel bank scheme, which offers help to people on pre-payment meters and those who buy energy off-grid, will become operational. And next month, as the education Minister will set out in a statement later this afternoon, and in discussion with our co-operation agreement partners, we will extend free school meals again during the school holidays for the rest of this financial year. All of those measures, Dirprwy Lywydd, result in money being retained in the pockets of those citizens who need that help the most.

And in a second strand, we will fund a further round of our successful Claim What's Yours campaign this autumn. We know that millions of pounds' worth of help from UK Government schemes go unclaimed here in Wales. Forty per cent of Healthy Start vouchers, available for families with children under the age of four, are not taken up. They are worth £4.25 every week. For a family with two children under four, that's £442 a year. And every extra pound we can draw down from those schemes to which people are already entitled will go directly into the budgets of the poorest Welsh families. 

As we move into what will be a very difficult winter, it is vital that every part of the public sector here in Wales plays its part to make sure that people are able to benefit from all those sources of help—whether that's governing bodies in schools making sure that every eligible child gets a free school meal, or looking at how they can reduce the costs of school uniforms, to health visitors encouraging families to claim all the help that is available there for them. We need to make sure that, in this winter, every contact really does count.

Dirprwy Lywydd, my third strand today focuses on financial exclusion. For many Welsh households, even without the current inflationary pressures, there is little or nothing left between money coming into the household and money going out. Now, we have a network of credit unions here in Wales, which can help, and we have some innovative finance organisations that provide responsible lending to Welsh residents. But there are other examples that we can draw on in other parts of the United Kingdom to help more people who face the very real prospect of falling into debt this winter. We will bring this network of organisations and individuals in Wales together. We will involve other organisations, such as the mutual sector, our own plans for a community bank, and providers of essential services, such as Dŵr Cymru, to find new targeted solutions to help those most at risk.

For this afternoon, the final area that I want to focus on is one that is already attracting widespread attention and activity: 'warm banks', as they are called, in local communities—places where people can come to stay warm this winter. Dirprwy Lywydd, it's very difficult to believe that we have reached the point where community councils, faith groups, sports clubs, community centres are having to plan to prevent people from facing extreme fuel poverty this winter. And while we applaud these efforts, of course, motivated as they are by a determination to make a difference, every organisation I have met over this summer has told me that they wish that that sort of help were not needed.

As a starting point, we will make as a Welsh Government an additional £1 million available to support those efforts, extending their reach and their remit. A modest addition of, say, £10,000 can be the difference between enabling the effort I have mentioned to succeed, and it failing to get off the ground.