2. What discussions has the Minister had with local government partners on how they can support residents during the cost-of-living crisis? OQ58962

I hold regular meetings with local authority leaders and discuss the impacts of the cost-of-living crisis, including in regard to the funding the Welsh Government is providing to enable authorities to continue their crucial support for residents.

Can I thank the Minister for her answer? She will be aware that, over the last two months, I've been raising the issue of the installation of prepayment meters and calling for an immediate ban on their installation. These meters mean the poorest residents in our society pay more for their energy, and, Llywydd, I have spoken to a number of charities who've given me evidence that court orders are being passed hundreds at a time. Now, this means that due diligence isn't being shown, so that the installation of prepayment meters is the suitable option for customers. This isn't happening. What is happening is extremely vulnerable residents in our society are being inappropriately switched. I was pleased, Minister, to see that Ed Miliband this week joined my calls for a ban on the installation of prepayment meters, but the crux of the point is we shouldn't be switching people in the middle of winter and during a cost-of-living crisis. Can I thank you for the support that you're offering to our local government partners, but can I ask you what more the Welsh Government can do to support local government partners when they're advising residents who have already been switched to prepayment meters?

I'm very grateful to Jack Sargeant for raising this this afternoon, and I do want to recognise the incredible work that Jack Sargeant is doing in terms of leading the campaign in respect of prepayment meters. Colleagues within Welsh Government are absolutely taking up that campaign on your behalf. So, the Minister for Social Justice is having a further meeting with energy suppliers on 23 January, and, again, she will be raising these concerns over reports of people, including vulnerable customers, being moved onto prepayment meters. And I know that she's made those same points in previous meetings that she's had with energy suppliers. The Minister also wrote to Grant Shapps on 23 December, outlining our concerns around prepayment meters, and we are taking opportunities, when we have them, with the UK Government again to make those cases. And officials are continuing to liaise with Ofgem to understand if customers who are moved onto prepayment meters are able to appeal the decision, because, as yet, we don't have clarity on that.

As Jack Sargeant says, this is an issue that particularly affects the most vulnerable households. It's a real concern that almost half of social housing tenants are on prepayment meters at the moment, and, obviously, that means that many of those will be paying above what other customers will be paying for their energy. So, it is quite right for us to focus our efforts in this particular space. And, obviously, I'll take opportunities in my regular discussions with local government to ensure that they're also making the right moves in this space. 

Minister, surely the best way for local government to support their residents is for them to avoid hikes in council taxes. Rising energy costs due to Putin's illegal war and rising food costs as a result of the pandemic and climate change are impacting households hard. The last thing they need are excessive tax hikes. Minister, will you urge restrain among your local authority colleagues, and will you be prepared to cap council tax in the coming financial year?

Well, I'd begin by saying that we absolutely don't underestimate the challenge that our colleagues in local government are facing from the inflationary pressures that they're experiencing at the moment. Because, of course, just as the Welsh Government's budget has been eroded in value, so too has local government's budget been eroded in value. But, nonetheless, we've really focused our efforts within our budget for the next financial year on public services, which is why, next year, we'll be providing unhypothecated revenue funding of over £5.5 billion, and over £1 billion of specific grants to support local authorities in their statutory and non-statutory services. That means that core funding for local government for 2023-24 has increased by 7.9 per cent, or £403 million, on a like-for-like basis compared to this financial year. So, we're doing absolutely everything that we can to put local authorities in the best possible position, but, of course, we know that the additional funding that we're able to provide doesn't meet that gap caused largely by inflation, and, as a result, local authorities will be needing to make some difficult decisions.

Now, it is the case, of course, that local authorities set their own council tax levels. I know that many are consulting at the moment. The Welsh Government, as you say, does have the power to cap those, but I don't think that we're at the point yet at which we could make a decision on that, and it's certainly something that we wouldn't do lightly; it's something that we would do only in cases where those rises were palpably excessive. So, just to set out, we really do think it's for local authorities to be setting their council tax levels; it's an important part of local democracy.  

We know the economic issues we're facing were made in Downing Street—[Interruption.]—and the incompetence of economic management in London, together with Brexit, has led to one of the biggest cost-of-living crises that many of us have ever seen. Now, this makes the Conservative Party laugh, of course, because when people are hungry, when people are cold, they really don't give a damn what's happening to those people, but, on this side of the Chamber, of course, we do. And what I would like you to do, Minister, is to use your power as a catalyst to bring people together. The two crises facing people in Wales of hunger and of heating are crises, as I said, that are not being resolved by the United Kingdom Government, and what we need to do is to step into this vacuum to bring people together, so that we can share best practice and share resources to address the real crisis facing some of the most vulnerable people in Blaenau Gwent, in Gower and across the whole country. 

I would absolutely agree that one of the most important things the Welsh Government can do is to bring together parties with responsibilities for serving our citizens to ensure that our efforts are combined and that we're all focused on those things that matter most to people, and that's one of the reasons why, over the course of the autumn, we did have fortnightly meetings with our colleagues in local government. One of the standing items on those fortnightly meetings was the cost-of-living crisis, alongside another standing item, which was Ukraine. We've moved those meetings now to monthly, because the situation, at the start, did require us to come up with some new interventions, but those new interventions are now in place. But, of course, it's also a standing item now on the partnership council for Wales, which will be next meeting on 2 March, and, of course, that's a much wider public services forum, to ensure that all public and voluntary sector bodies are working in the same direction, all putting their shoulders to the wheel to support our citizens through the cost-of-living crisis. And, then, I'd also mention the cost-of-living Cabinet sub-committee that the First Minister has set up. Now, to every other meeting of that committee we invite partners from outside of the Cabinet. So, we've had the Federation of Small Businesses, for example, and the Confederation of Business Industry joining us, and we've had representatives from the voluntary sector, to ensure that all of our efforts are there together in terms of supporting our residents through the cost-of-living crisis.