Part of the debate – in the Senedd at 4:21 pm on 7 February 2023.
In introducing the draft budget to the Senedd, the Minister mentioned that this was one of the most difficult budgets since devolution. This is because it is a time of austerity, a time of poverty, and a time of crisis, the likes of which we haven’t seen for decades.
In the Wales of the twenty-first century, nurses and teachers are amongst the thousands who are having to turn to foodbanks. More and more people are falling into debt, critical levels of debt. Citizens Advice Cymru say that they have never seen such a high proportion of people in deficit in terms of their household budgets—almost half of those who come to them for support.
The number of those who are homeless or at risk of being homeless is another sign of a state of economic crisis. Citizens Advice helped more people with homelessness this year than in the past five years. Women, children, disabled people, people with health conditions, single parents, carers, people from black, Asian and minority ethnic communities suffer disproportionate levels of economic inequality.
Yes, it is difficult to ensure that the support is there for those who need it most, that the services providing this support have the resources that they need to achieve that, that the huge gaps that exist in the safety net, which has been torn to shreds by the merciless and unprincipled Conservatives in Westminster, are filled. Yes, it is difficult. But, taking the difficult decisions is the function of government, and the Welsh Government’s function is to serve the people of Wales, to consider their needs, to safeguard their health and dignity, and to ensure that they have equal access to every opportunity and service, including healthcare and social care.
It is through this lens that we will have to scrutinise the draft budget before us. That’s why our amendment calls for us to be given the resource to do more of what needs to be done. Those who are most dependent on the support that our health and care services provide and additional financial support are those in the greatest need, those who have no options, who have no reserves, who don’t have a second home, who don't have the means to keep their heads above the water that is so incredibly deep.
The Government has stated that this budget is one that prioritises those in greatest need. The way that every penny is spent is, therefore, of the utmost importance because people’s lives are now in danger. That's the conclusion of a Which? report on the impact of the cost-of-living crisis in Wales, published yesterday and discussed by the cross-party group on consumer rights, which I chair. Seventy eight per cent of people in Wales are cutting back on heating, and 18 per cent are eating fewer hot meals.
During the same discussion, concerns were expressed that the increase in the level of the discretionary assistance fund, although welcome, is funding to help people in crisis, and that priority should also be given to preventative spending, for schemes such as the Wales fuel support scheme, which has been cut in its entirety. It was warned that although the scheme will come to an end, the need won’t come to an end, and the need indeed will be even greater next winter, according to Citizens Advice forecasts. The implications of this level of need, this depth of need, and the impacts on people’s health and well-being will be with us for generations. This budget does not contain a plan to prevent these impacts.
It's also disappointing to see the lack of investment in our most disadvantaged young people who wish to continue with their education. Our amendment would ensure that the education maintenance allowance, for example, could provide an appropriate level of support. And although the maintenance grant has seen an increase, students cannot access many of the other cost-of-living payments that are available. Talking about buses, if you're a student over the age of 21, you'll get no discount whatsoever on your bus ticket, and student rents, of course, continue to increase, leading to a cost-of-education crisis.
Our calls to expand and increase the EMA have been echoed by the scrutiny report published by the Children, Young People, and Education Committee, and speaking of the gap that exists in spending on cost-of-living support this year, namely £116 million, the Equality and Social Justice Committee's scrutiny report notes that there is
'a clear need to look at longer-term, sustainable solutions to the cost of living crisis', as Jenny Rathbone mentioned, our Chair.
I've argued and, indeed, I've received this Senedd's support for the call for a co-ordinated Welsh benefits system. Now is the time to accelerate the work to ensure that every penny of support reaches the pockets of those who need it, without fail and without fuss.
In concluding, I would like to draw attention to the most damning and serious conclusions of the two committees of which I am a member, namely this one by the Children, Young People, and Education Committee, that there is a lack of clarity as to whether the budget supports children and young people who are particularly likely to be impacted by the cost-of-living crisis. And this in the nation where the levels of child poverty are the highest in the United Kingdom.
With Westminster denying Wales—