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

Part of the debate – in the Senedd at 3:10 pm on 20 September 2022.

Alert me about debates like this

Photo of Adam Price Adam Price Plaid Cymru 3:10, 20 September 2022

The Scottish Government has recently announced a set of proposals as part of its response to the cost-of-living crisis, and I was wondering if I could ask you, Prif Weinidog, if you also have plans to introduce measures that they have announced in relation to housing, particularly a moratorium on evictions similar to the one that was introduced in the pandemic and an associated rent freeze across all sectors—public, private and social. We’re seeing huge inflation, aren’t we, in rent costs in Wales? Indeed, the Centre for Cities recently pointed out that, actually, Wales was one of the worst areas in terms of inflationary costs in the UK. In fact, it’s Wales and the north of England that are actually seeing the highest rises in costs for families. So, the proposal that the Scottish Government has introduced is, I think, absolutely imperative here in Wales.

In relation to energy, of course, investing in insulation, important for environmental, long-term reasons, is now even more important as a result of this immediate crisis. So, we seem to be in a little bit of an interregnum between the old programmes that are coming to an end and the very extensive, ambitious plans that the Welsh Government has to meet its targets for decarbonisation and energy insulation by the end of this decade. Can we pump prime now? Can we bring forward those capital investment plans, so that we can provide as much immediate help to families as we can, again using that dual purpose of addressing the cost-of-living crisis while doing something that we need to do for more longer term reasons?

Bringing you back, of course, to transport, which we discussed earlier. And, by the way, the Scottish Labour Party is criticising the fare freeze in Scotland, saying that it’s not going far enough; it’s calling for the halving of rail fares in Scotland. But could the First Minister say when we can expect an announcement at least on rail fares in Wales for next year?

You mentioned the educational maintenance allowance. Of course, I think it was created about 20 years ago; it hasn’t kept up with inflation. So, could we not see that increase to £45, which is where it would be if it had kept up with inflation? Now, surely, is the time to do that, when so many young people are suffering the worst effects of this cost-of-living crisis.

You refer to the ‘Claim what’s yours’ campaign. I absolutely support making sure that people claim what they’re entitled to. Are we doing the same for Welsh Government funds, so that we make sure that there isn’t underclaiming there as well? Perhaps if you could say what plans you have on that.

And, in relation to the Scottish Government as well, one thing that they have been able to do in the areas where there is devolution of welfare payments—so, about 15 per cent, there or there about, of welfare payments are devolved—they’ve uprated those using the power that they have. Surely, this is the strongest argument in favour of the devolution of welfare payments. That 15 per cent of welfare payments is not devolved to Wales, therefore we are entirely dependent on the decisions of the Conservative Government in Westminster, which is not as progressive. So, surely now is the time as well to make sure that we are making the strongest case possible for the devolution of those powers.

You said you were focusing here on the domestic aspect of the crisis, but can I just ask, obviously, the effect on businesses is going to have a domestic consequence, isn’t it, if people lose their jobs? So, is the Welsh Government going to propose increasing the level of funding for businesses that are also facing extreme economic pressure, which in many, many cases will drive those businesses into bankruptcy and lead to unemployment? Welsh Government urgent support for the business sector is critically important at this time as well.