Part of the debate – in the Senedd at 3:39 pm on 15 February 2023.
I'm speaking today in my capacity as the Chair of the Children, Young People, and Education Committee, and, as a committee, we very much welcome the motion tabled today, and the opportunity it provides for us to debate the EMA. My fellow committee members and I have had a keen interest in the EMA since we first considered it as part of our scrutiny of the Welsh Government's 2022-23 draft budget. Back then, in January 2022, the Minister for Education and Welsh Language told us that extra cost was a key barrier to increasing the £30 a week EMA rate, and, in the Minister's written response to our report, he provided further detail. The Minister wrote that, according to a 2014 Welsh Government review, 80 per cent of students
'stated that they would have enrolled on their course without EMA and that EMA is an essential source of financial support for only the minority of students.'
Of course, the 2014 review was out of date at the time of last year's scrutiny of the draft budget. A lot had changed between 2014 and 2022, as we know only too well. By the time we carried out our scrutiny of the 2023-24 draft budget last month, in the middle of a cost-of-living crisis that disproportionately affects children and young people, the 2014 review had become blind to the extent of the financial challenges faced by learners and their families.
We applaud the Welsh Government's decision to retain the EMA. However, we are concerned about the extent to which maintaining the EMA rate and threshold since 2011 has eroded the value of the EMA and cut the number of learners eligible to receive it. Consequently, we made three recommendations relating to the EMA in our 2023-24 draft budget report.
In the first, we call for the Welsh Government to commission an independent review into the EMA, to report no later than December this year. Twenty per cent of eligible students who contributed to that 2014 Welsh Government review wouldn't have enrolled on their course without the EMA. We don't know what that figure would be today. We also don't know how the EMA impacts on learners' ongoing engagement with their studies once the financial implications of engaging in further studies become clear, or whether it helps them to manage cost-of-living pressures more generally. We believe that policy decisions should be based upon up-to-date and accurate information, and an independent review into the EMA is the best way to get that crucial data.
In our second recommendation, we ask that the Welsh Government provide us with an update on the work it committed to undertake in March 2022 to understand what the allowance rate and income thresholds would look like today for the same proportion of learners when compared to 2004, and how much additional budget that would require. We welcomed the Minister's constructive response back in March last year, but unfortunately we are yet to see the outcome of that work. We look forward to reading about it in the Welsh Government's response to our budget report in a few weeks' time.
Our third recommendation urges the Welsh Government to reconsider its decision to maintain the EMA. Of course, we know full well that the EMA cannot eradicate child poverty, but, from our committee's work and from the work we undertake in our constituencies and regions, we believe that the EMA can help to insulate some young people and their families from the crushing impacts of the cost-of-living crisis. The EMA is no golden bullet, but it might just be that extra incentive that some young people need to take the next step in their education.
For the sake of those young people and their families, we urge the Welsh Government to accept our recommendations and look at this important issue once again. For this reason, I fully welcome this debate and will be supporting the motion. Diolch yn fawr.