Part of the debate – in the Senedd at 4:05 pm on 16 November 2022.
Thank you, Dirprwy Lywydd. First of all, I'd like to thank the committee for its work on the report, which succinctly highlights those areas where we are continuing to make progress, and further progress, indeed, is required. We can all agree that digital connectivity is an essential service. I also agree that I would like it to be treated properly as a public utility, with all of the requirements that come with that, including from the service providers. It is also undeniably a reserved matter for the UK Government, but we continue to step in to support residents and businesses, to help them to get the connectivity that they need with devolved resources. That challenge will become more difficult as our financial resources are becoming more and more challenged. I do thank Members for their broadly constructive contributions, and I recognise the back and forth between Alun Davies and Janet Finch-Saunders, but it's a matter of fact, not opinion, that this is reserved not devolved; it's a matter of fact, not opinion, that we have put devolved resources into adding on to the money that has been invested in Wales to try to resolve the issue, and it's simply a matter of fact that all the resources to date have not been designed to deliver 100 per cent connectivity.
The UK Government recently embarked on a £5 billion—that was the headline at the time—Project Gigabit to ensure, and this is their words, that all premises in the UK have access to gigabit-capable broadband; I think it's gigabit capable, rather than gigadoodah. The original target was that this would be delivered by 2025, but that was then revised by the UK Government to 85 per cent of UK premises by 2025, and all UK premises by 2030. Confusingly, 'all premises' doesn't actually mean all premises, because the UK Government is also developing plans for tackling what it calls 'very hard to reach premises' across the UK. And Alun Davies is right: some of those premises will be in rural communities, and some will be in urban communities.
Now, I recognise what many Members have said, that digital connectivity is critical for people to stay connected and do more than just survive. We know that increases to the cost of living are already having a huge impact on individuals, families, communities and businesses. We're exploring the effects on delivery of the digital strategy for Wales and how our digital and data policy can help deliver for the most vulnerable in our society. Members will be familiar with our efforts to improve broadband connectivity. We've invested £56 million from devolved resources to help with the full fibre roll-out and provide broadband-capable gigabit speeds to around 39,000 homes and businesses by March next year. Our Access Broadband Cymru grant has helped thousands to improve their broadband speeds, and our local broadband fund has supported local authorities and social enterprises to improve the connectivity of whole communities.
We made it clear, in our response to the committee, that we would continue to engage with the UK Government on its plans to tackle hard-to-reach premises and to continue to make the case for UK Government investment in this reserved area to connect the very hardest to reach premises across Wales. We share the committee's concerns about the switch-off of the public service telephone network. My officials have raised those concerns with the UK Government and the industry, and, in particular, that the move to voice over IP will leave customers vulnerable in the event of power outages. I cautiously welcome the UK Government's commitment to raise the value of its gigabit vouchers. We previously provided a top-up to this UK voucher scheme to reflect the potentially higher costs of providing connections in a landscape like Wales, but, of course, we have a UK Government commitment to deliver right across the UK. We have written previously to the UK Government, suggesting that they look at the funding ceilings, and we now wait to see how effective and significant an increase will be delivered or not by the UK Government. We agree that the universal service obligation cost cap needs to be revised. We've seen costs being quoted to residents and businesses running into tens of thousands of pounds, way above the £3,400 cap. That disadvantages the very premises that the universal service obligation was meant to address.
We're developing proposals to amend building regulations, as the Chair mentioned in opening, to try to ensure consistency across all new-build housing developments, so that residents can enjoy gigabit-capable broadband. We intend to undertake a consultation on these proposals shortly. And we recognise that digital inclusion is a social justice and equalities issue. People need to be confident to use the internet and digital technology to overcome other disadvantages that they might face. We know that digital access plays a significant role in society, as a number of Members mentioned. Whether it's for people to engage with health services, to reduce feelings of loneliness and isolation by remaining in contact with friends and families or, indeed, continuing to work and access learning. However, there do remain people who choose not to participate in the new digital world, or the standard digital world we've all become used to, and those who cannot afford the costs associated with being online. That's yet another impact of the cost-of-living crisis. We cannot afford for our citizens to be at a social or financial disadvantage, based on their right to choose whether they engage with digital. Therefore, as stated in our response to the committee, we'll continue to engage with the UK Government on their work leading on social tariffs.
We'll also reach out to key stakeholders, including Ofcom, regarding social tariff sign-up—and I recognise the points that were made about the regulator's area of responsibility and the reach or otherwise of the choices it has made to date. I'm especially interested in default costs. They're often much higher than when you're tied in to contract rates. That's especially relevant now. If you think about all the things we talk about on all sides of this Chamber around the cost of living, to then ask people who are concerned about their ability to remain in work and meet their bills, and the contrast between heating and eating, to then ask them to sign up to a year, 18 months or two years of a contract, when they may not be able to afford that, is a real challenge now. And of course, that then means they are potentially paying a much higher cost month to month. And just as there has been some reform with energy utilities on what happens when you run into a default, we think this is another area where further reform is required with real urgency.
I will consider carefully the comments that Members have made in the debate. There have been a number of comments made by Members on each side, and rather than try to respond to one or two of them now, I'll try to consider those and then see how we respond. Because I do think, on some of those, we will need to give further thought, with colleagues across the Chamber and in Government, and the potential for follow-up with them. But I know that the committee will retain an interest in this area, because we're committed, as I believe the committee is, to, as Alun Davies described—. And it's dangerous to quote Alun Davies, but I agree that we need a system that works for Wales, rural and urban, and that's what I believe we and indeed the committee are committed to trying to deliver.