7. Debate on the Economy, Trade, and Rural Affairs Committee Report — 'Cost of living pressures'

Part of the debate – in the Senedd at 4:35 pm on 16 November 2022.

Alert me about debates like this

Photo of Sarah Murphy Sarah Murphy Labour 4:35, 16 November 2022

Again, I want to start by echoing what Paul and Luke have said. Thank you to my colleagues, the Senedd team, the Chair, and everyone who engaged with our Economy, Trade and Rural Affairs Committee in putting this timely and important report together. This crisis continues to impact many in our communities. For some, it might be about being extra careful with budgets, but for others it is about whether they will be able to put food on the table for them or their children tomorrow. 

The TUC says that one in seven people are skipping meals already or going without food. Trussell Trust figures show that one in five referrals to its centres are from households where someone works. This is impacting people who should have the security of their wages, but some working people are not able to cover the basic costs of living, let alone getting to their job. Mortgage bills are at their highest since 2008 as a result of the fallout from the mini-budget, food prices have rocketed, some by over 60 per cent, and the Office for Budget Responsibility has said that 2023 will see the biggest fall in living standards in the UK since records began. 

But, there are profits being made for a small number of people in our society. UK energy producers could make excess profits of £170 billion over the next two years. BP made profits of £7 billion in the third quarter of 2022; Shell has made record global profits of nearly £26 billion for the first three quarters of 2022, but paid nothing into the UK's energy windfall tax. At the very same time, the Government in Westminster, despite our pleas for it not to, made changes to universal credit that left three quarters of households worse off than they were the year before. The Lloyds Bank Foundation report stated explicitly that these changes were pushing people into poverty and debt. 

The Welsh Government has said that it's doing everything it can to target people needing the most support, so I am pleased that the Welsh Government has accepted, or accepted in principle, all of the recommendations in our report. The Welsh Government has already acted on several of these recommendations and provided interventions through this bleak economic period. This includes the winter fuel support scheme, which has been extended to support more than 400,000 low-income homes; the one-off £150 payment for those in council tax bands A to D; and the council tax reduction scheme. Recommendation 5 of the report stresses the need to evaluate the support and learn lessons from the cost-of-living crisis. I'm pleased that this is already taking place within Welsh Government, and this process led to the extension of the winter fuel support, after it was learned from the stakeholders that some households needing that support were not originally eligible. 

Recommendation 6 also highlights the need to build on the success of the 'Claim what's yours' campaign, with the Welsh Government recognising that there are many people who are entitled to support but are not claiming it, simply because they don't know that it's even available to them. We are in a situation now where people cannot afford to go without the support that they are entitled to, so I am glad to see that the Welsh Government has agreed to continue this work.

The reality is that the consequences of economic insecurity intersect with other aspects in people's lives. We know that health disparities, such as in mental health, are being affected by the cost-of-living crisis. That is why I'm particularly pleased that we got to cover this during the investigation by the committee and that this was reflected in recommendation 17. In my own community, many support groups across Bridgend are being impacted by the influx of people needing support for their mental health as they deal with the pressures of the crisis. The Welsh Government said it's working with its social partners, including the trade unions, to ensure that workers are not disadvantaged if suffering with their mental health. I would ask that officials in Welsh Government and local authorities engage and consult with support groups on the ground in our communities to ensure that they are provided with the tools to support people during this hardship. They are a lifeline for so many people on the edge. 

Though there are many recommendations to draw upon in this debate, I do want to mention one last one, 22, on the delivery of the warm hubs, or warm banks, in our communities for people to drop in and keep warm instead of using energy in their own households, as well as going somewhere for support and camaraderie. The number of people in my community who have reached out to me for more information on this was overwhelming. It is a reminder of that community spirit we saw during the pandemic, looking out for one another in a time of need. I am pleased that the First Minister has confirmed initial funding of £1 million to support organisations and local authorities to provide the warm banks this winter, but it is important again that we think about how we reach out to people who need to access this support. 

I recently met with the broadband company Ogi, and discussed with them the practicalities of providing Wi-Fi at the warm hubs. With people having to cut down on budgets, for the most vulnerable, their broadband could be the bill that goes. They'll probably prioritise, of course, eating and keeping the heating on over that. Wi-Fi at the warm hubs could ensure that people could access their benefits online, look up local services, do their food shopping, but also attract families and parents who may not typically consider using them. So, I'd ask that the Welsh Government consider this and see how they can provide support. Again, thank you to all my colleagues on the committee. Thank you, Minister.