5. What assessment has the Minister made of the impact of the rising cost of living on local government services? OQ58786

Inflation of over 10 per cent has eroded the value of local government budgets to a worrying degree. In addition to the impact of rising costs for energy, pay, transport and food, councils are also working hard to address the impacts on their communities.

Can I thank the Minister for that answer? And as you've stated, it's clear that finances are under real pressure. Services will be stretched in every direction possible, but the need to react to growing levels of poverty will be extremely tough. Who would have thought it, just even a year ago—one year ago—that we would be talking about warm banks being delivered by local councils across Wales, in every single one of our communities across Wales and the United Kingdom? Minister, amongst other things, the very existence of pre-pay meters will drive the demand for these warm banks. People are being switched to pre-pay meters and driven further into poverty. Perversely, they ensure that those least able to pay pay more for their energy, and they are only in the interests of the energy company profits and debt collection. Minister, this really is life and death in a cold winter. Do you agree with me that there should be an immediate moratorium on their installation, and that the UK Government should send a strong message to these energy suppliers about the very dangers of people being de facto disconnected every time they run out of credit?

Yes, I absolutely agree: the UK Government does need to be using all of its influence on the energy companies to reduce the impact of the cost-of-living crisis on the most vulnerable people. And just to reassure the Member—and I could hear a lot of support for what he was saying from others in the Chamber—that the Minister for Social Justice has met with energy suppliers earlier this month, and she did press them on this particular issue. And she has also previously sought and been given assurances by energy companies that arrangements were in place to reach out to households that were struggling with energy bills. And they did recognise the need to build in appropriate mechanisms of support, based on people's ability to pay, such as writing off short-term energy debt, agreeing affordable repayment plans, based on the ability to pay, and, where appropriate, referring households to schemes to improve their energy efficiency and reduce bills. So, I think now we need to be pressing energy companies to demonstrate what they've done in response to those discussions.

Could I join Jack Sargeant in recognising some of the really important services that our local authorities provide day in and day out, especially at times of difficulty that many are experiencing at the moment? And as has all ready been highlighted by a number of Members around the Chamber, those local authorities are again experiencing some challenges in terms of their financial situation. One of the key concerns that has been raised with me is the fact that some councils in Wales have indicated to their schools that they should be preparing to reduce their budgets by around 10 per cent in the next financial year. I would have thought that schools and education are probably one of the core services that local authorities provide. So, my question, Minister, is whether you'll be giving instruction or guidance to local authorities, when determining their budgets in the next financial year, and would part of that instruction or guidance be in relation to those vital core services, such as funding for our schools?

Well, I don't want to pre-empt the outcome of the ongoing budget discussions that are taking place across the board at the moment, but I will say the pressures on education, which the Member has described, have been brought home very strongly to Welsh Government by colleagues in local government, and my colleague the Minister for Education and Welsh Language always makes a very robust case for schools and education as well. So, I don't really want to go much further than that at this point. But, when we do come to publishing the budget, obviously I'll try and present colleagues with as much information as I can, and I know local authorities will want to set out their spending plans to colleagues as well.

Could I associate myself with the comments of Jack Sargeant around pre-payment meters? They're wrong, they're immoral, and action needs to be taken on them as soon as possible. But I would be interested to know what conversations have also happened with energy companies around introducing a potential social tariff, similar to what we have with the water companies and broadband providers. I think this will also go a long way in providing energy to people who are struggling to pay.

Absolutely, and that's something that we were pressing the UK Government for ahead of the autumn statement and ahead of the budget before that, in fact. But, in terms of discussions with energy companies, those tend to take place between both the Minister for Social Justice and the Minister for Climate Change; they will be the people who have the direct discussions with those energy companies. I'll perhaps ask those Ministers to provide Members with an update.