Cost of Living Increases

Alex Davies-Jones Excerpts

Tuesday 25th April 2023 Commons Chamber

[Tulip Siddiq]

May I remind the hon. Gentleman that the last Labour Government introduced the first minimum wage, slashed child poverty and slashed pensioner poverty because we grew the economy—something this Government have failed to do?

[Alex Davies-Jones (Pontypridd) (Lab)]

My hon. Friend is making a powerful speech and outlining exactly what Labour did in government to make a difference for working people. In Labour-led Wales, where the hon. Member for Clwyd South (Simon Baynes) is also an MP, we have just increased the education maintenance allowance, which was scrapped in England, to give students the opportunity not to have to choose between buying books and going to school, and having to find a job to support themselves.

[Tulip Siddiq]

I hope hon. Members hear that before they start criticising any sort of Labour Government.

Things are only set to get worse. The Government’s stealth tax and freeze on income tax and national insurance contribution thresholds will, according to the Resolution Foundation, cost households £25 billion a year by 2027-28.

--- Later in debate ---

[Alex Davies-Jones (Pontypridd) (Lab)]

The central issue that we are debating is very simple; there is a very simple question to address: after 13 years of Conservative rule in Westminster, do our constituents feel better off than before? [Interruption.] Exactly. I know from talking to residents and people across my constituency of Pontypridd and Taff Ely, and from being on the doorstep across the UK in the past few weeks, that the answer is a clear and resounding no. Across the country, every single family has felt the impact of what the Trussell Trust and many others have described as a cost of living emergency. When we look across all the indicators, it is no wonder, with inflation reaching a four-year high, an average family’s weekly food shop up over £700 this year, and the essentials of housing, fuel and power up almost £1,500 on average. All the while, real wages have stagnated and Britain has slipped behind other developed nations—all of this on the Conservative Government’s watch.

The Government have completely failed to get a grip on the crisis, while the human cost continues to be utterly devastating. Nowhere is that more apparent to me than in my own patch in the south Wales valleys, where, according to data from the Office for National Statistics, residents in my local authority of Rhondda Cynon Taff report life-quality indicators lower than the UK average, including on life expectancy, happiness, the local employment rate and disposable household income. All of that is thanks to more than a decade of inaction by this incompetent Tory Government.

Let us be clear: as the cost of living crisis continues to rage, regional inequality is deepening by the day. So much for levelling up—we are not even levelling equal. Our incredible local authority, together with the Welsh Labour Government, as I have said, are moving heaven and earth to do what they can to help people in these exceptional circumstances, including with RCT’s regular food support grants to our local food banks. Those grants, together with the amazing food bank volunteers, are a lifeline to thousands of my constituents, who need support now more than ever. Sadly, the RCT area saw a 14% rise in food bank usage in the last year. Despite local efforts, the UK Tory Government continue to sit on their hands by not granting devolved nations the proper support they need and people in Wales are being let down.

I am immensely proud that our local food bank collected an incredible 16,000 kilos of food donations from generous shoppers at local supermarkets in the last year, but it is an indictment of the UK Government’s failures that my constituents have had to step in where the Government have failed. While the UK Tory Government desperately attempt to shift media coverage from the realities—they gloss over the fact that they crashed the economy last September—we all know the truth. The cost of living crisis is far from over. Later this week, I will host a dedicated cost of living event for my constituents in a local community centre in Rhydyfelin because these issues are ongoing. They are all too real and felt all too keenly. Again, it is a heavy indictment of the UK Government that my team and I have received so many messages from terrified constituents unable to feed themselves or pay their bills. That is why it is absolutely right that colleagues have focused on the impact of the cost of living crisis on individual consumers, households and families.

Another heartbreaking consequence of this crisis is that, with people spending less, inevitably businesses are suffering, too. In my constituency, we are fortunate to have some incredible independent businesses and our high street is thriving. I am shocked, however, by the responses from businesses on this issue. They cannot cope with the rising cost of energy bills or business rates. They are struggling to support themselves and, when our businesses struggle, our local economy struggles, too.

I could go on, but sadly we are limited for time. We must move beyond a sticking plaster for our economy and embrace real, ambitious change to ease the cost of living crisis and unlock economic growth. After 13 years of failed Tory rule, it is clear that only a Labour Government in Westminster are capable of that change.

High Street Bank Closures

Alex Davies-Jones Excerpts

Tuesday 28th February 2023 Commons Chamber

[Alex Davies-Jones (Pontypridd) (Lab)]

It is a privilege to secure this debate. I am pleased to see the Minister in his place. I thank him, ahead of his response, for being here to discuss this vital issue, which I know is important to Members across the House—they feel strongly about it. I must also place on record my heartfelt thanks to the charities and organisations that have provided briefing material ahead of tonight’s debate, including Which?, Link and the Social Market Foundation, among many others.

Colleagues representing rural, semi-rural and urban constituencies alike will all be familiar with the worrying trend of bank closures on the UK’s high streets. In the late 1980s, over 20,000 bank branches were open across the UK. Today, just 5,000 bank branches remain—a 75% decrease since 1980. Since 2015 alone, well over 5,000 bank branches have closed. On the eve of St David’s Day and as a proud Welsh Labour MP, I am particularly stunned by the statistic that Wales has lost an astonishing 43% of its bank branches between 2015 and 2019.

[Chris Elmore (Ogmore) (Lab)]

I thank my hon. Friend and constituency neighbour for giving way, and I congratulate her on securing the debate. She knows my constituency well and mentions the sheer number of banks that have fallen. In my entire constituency, there is now one bank left for 58,000 constituents. Does she agree that one of the pressures is the number of charities that rely on the banking sector? If there are no local branches, it makes it so much harder for charities to undertake their work and use local bank services. There is a real problem around the banking charter that the Government need to address.

[Alex Davies-Jones]

I completely agree with my hon. Friend and constituency neighbour. He will know the impact of the latest announcement of a bank closure in Talbot Green, which is used by our constituents. That is having an impact on local charities and local charity shops on our high street, because they deal in small petty cash. They do not deal in card transactions. I will come on to talk about that issue.

As I said, I secured the debate when I learnt of the latest closure in my constituency. Talbot Green, home to just under 3,000 people, will lose yet another high street bank branch, with Barclays set to close in May. Having already lost HSBC in 2021, as well as Lloyds previously, Talbot Green’s residents will be left with no dedicated high street bank whatever. Across my communities and the many communities neighbouring my constituency, the story is the same: residents are abandoned by their banks and are now forced to travel unacceptable distances to their next nearest branch. In Tonyrefail, Barclays closed in 2015 and Lloyds closed in 2016. In Church Village, Lloyds closed its doors in 2021, leaving the entire village with no dedicated bank at all. Even in Pontypridd town centre, where thankfully several high street branches remain open, the loss of the HSBC branch in 2021 is still part of a worrying trend.

Too many of my constituents are now left with no high street banking presence in their communities. Consider this example: a constituent in Tonyrefail, who does not drive and who is a member of a bank whose nearest branch is now in Pontypridd town, would now be forced to travel for over an hour each way on public transport, catching four buses in total for a return trip.

[Matt Rodda (Reading East) (Lab)]

My hon. Friend is making an excellent speech that picks up on issues around the whole country. Does she agree that there is a particular problem for people who are disabled and immobile? Even when they are able to get public transport, they may find themselves in a large town centre, some distance from a bank branch and facing considerable difficulties getting to the door of that bank.

[Alex Davies-Jones]

I completely agree. For someone who is disabled, elderly, otherwise vulnerable or just does not have a car, the closure of bank branches can be truly devastating. Across the country, it is a similar picture. In some parts of the UK, customers are facing an astonishing 40-mile round trip just to access their bank. That is not good enough.

We all know that face-to-face access to high street banks is a vital service for the most vulnerable in our society. For many constituents who do not use the internet regularly or, in modern-day Britain, do not have reliable enough broadband, online banking is not an option. I fully appreciate that the way consumers spend money has changed and that digital payments now dominate transactions—in part, accelerated by the pandemic. That in itself is no bad thing. Making commerce easier and more convenient for customers and businesses alike should be good for our economy and our high streets. As Labour’s shadow Digital Minister, I have seen at first hand what a digitised economy that works everyone could look like.

[Richard Foord (Tiverton and Honiton) (LD)]

In addition to digital banking, what does the hon. Member think of community banking hubs, given that, in my part of Devon, Axminster lost its last bank in November and Honiton is set to lose its last bank, HSBC, this June?

[Alex Davies-Jones]

I agree with the hon. Gentleman. Community banking hubs are an answer to a problem, but they are not the only solution. We are seeing a real need for a presence on the high street, because banks support so many local businesses. A community banking hub can help customers, but it will not support local businesses and local charities, which my hon. Friend the Member for Ogmore (Chris Elmore) mentioned. That is why we desperately need some sort of presence on our high street.

Far from working for everyone, as I have mentioned, the seemingly never-ending stream of high street bank closures is leaving behind the 5 million adults who still rely on cash to a significant extent for most of their purchases. As the cost of living crisis continues to cause immense pressure for thousands of people across the country, there have been reports that cash usage has increased, not decreased, because it makes budgeting feel easier. That makes the decline of high street banks even more worrying, and risks inflicting yet more misery on vulnerable people who are already struggling.

[Matt Rodda]

My hon. Friend is again making an excellent point about the importance of cash purchasing. Does she agree that this is a huge issue for certain small businesses that still trade in cash? Even though, as she rightly says, the digital economy is progressing, we all know that in certain sectors of the economy cash is the only means of transaction.

[Alex Davies-Jones]

I completely agree. I come from the proud market town of Pontypridd. As I will go on to talk about, for many traders it is not profitable to operate with purely card payments. They operate in very small monetary values and cash is a main aspect of their business model, so it is absolutely vital that we have that presence on our high street.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Pontypridd (Alex Davies-Jones) for securing this debate, and I spoke to her beforehand. I represent a rural constituency where we have had 11 bank closures. It has been horrendous. The people of my constituency have always responded to the consultations, but they have meant nothing. Does she agree that it is incredibly stressful for the elderly, who are unaware that they are a target for online scams because they do not have the banks to fall back on? They cannot safeguard themselves and they need the local branches, or access to somewhere. This House must regulate a standard duty of physical care on those banks that will not regulate themselves.

[Alex Davies-Jones]

I agree. As I have said, the high street bank is not just where customers can get money or cash out. It is a place with a trusted professional they can go to for information about the services that a bank provides. There is a real person—not someone at the end of a phone in a call centre—who they can trust and seek reliable and trusted advice from. That is a valuable resource for so many in our community.

I mentioned the digitised economy, which fundamentally relies on digital infrastructure to support it. In rural and semi-rural constituencies, which many of us represent, we require decent mobile signal and broadband, but often it is very poor. Many businesses tell me that they do not feel able to make the switch to card payments or online banking because they do not have the infrastructure to support them reliably to carry out their business.

Banks are more than just a place to withdraw cash; they are the centrepiece of our high streets, providing support for the community groups, small businesses and charities that rely on their presence. A small business in my constituency that may not feel able to accept card payments and is therefore reliant on cash will no doubt depend on its local branch for business banking and cash deposits. When branches close, it is not just consumers who will suddenly have to travel significant distances to the next nearest branch. Local businesses will travel, too, taking with them much-needed local jobs. Really good jobs are going elsewhere because of bank closures on the high street.

Such a time-consuming inconvenience is a major barrier to the growth of our local economies and high streets. It threatens the livelihood of small local businesses altogether, furthering the risk of a decline of our high streets. I am very fortunate, as we all are in Pontypridd and Taff Ely, that we have an incredible range of small and independent businesses. Many of those businesses continue to rely on cash payments; countless small businesses across my constituency have told me that they cannot justify moving to card payments because they do not feel that broadband in the area is reliable enough.

In Ponty town alone, from the traders running stalls outside on Market Street to the historic units inside Ponty market, retailers need us to retain the local bank branches that underpin so many small businesses. Without the high street banking infrastructure to support them, we risk losing our incredibly important small businesses, many of which have been trading for generations and should be there for generations to come.

Since I was elected to this place, I have been a vocal champion for our high street, for footfall and for the opportunities that are needed to regenerate Pontypridd and Taff Ely. The local businesses in the communities I represent have already suffered a serious blow under the pandemic and are now being hit further by the cost of living crisis. Closure of these crucial bank branches will only decrease footfall further.

A bustling industrial economy once nestled in the valleys of Pontypridd and Taff Ely. I passionately believe that, with the right infrastructure and the right policies, we can return to our previous heights of economic success and prosperity. I pay tribute to the work of Rhondda Cynon Taf Council and our Welsh Labour Government for their fantastic growth-focused initiatives, which will benefit the local economy in my constituency and across south Wales. For example, the Metro project and the refurbishment of YMa, our arts and culture centre, will bring added footfall to our town centres.

But that is not enough. Local organisations in my constituency, such as the Pontypridd business improvement district, are doing all they can: they do incredible work to regenerate Pontypridd town centre and the wider community. Those initiatives are extremely welcome, but without action from the UK Government to tackle the epidemic of high street bank closures, our local economy will still fundamentally be held back and our high streets will suffer as a result.

The current industry guidance from UK Finance revolves around the access to banking standard, which is designed to

“minimise the impact of bank branch closures”.

However, I strongly believe that that guidance just does not go far enough. Simply providing best practices for how a bank should go about informing customers of its intention to close a branch does little for my constituents.

Unfortunately, this hands-off approach seems consistent with the previous attitudes of this Government. In answer to written questions on the issue, they have told me:

“The decision to close a branch is a commercial issue for banks and building societies and the Government does not intervene in these decisions.”

I must say, however, that I strongly believe that the closure of a branch is not simply a commercial issue. It is, profoundly, a community issue—and it is our communities that pay the price for closures.

The Government have stated that post offices are an adequate alternative for communities whose dedicated bank branches have closed, because, under post office banking arrangements, customers’ in-person needs can be met at a post office branch. That may be true, but sadly in Pontypridd and Taff Ely we have lost multiple post office branches as well. Like high street banks, post offices are a vital piece of our community infrastructure. I have genuine concerns that, without banks and without our post offices, thousands of my constituents will suffer profoundly if we do not act.

[Jim Shannon]

One thing we have seen increasing in my constituency is credit unions. Have credit unions in the hon. Lady’s constituency had the opportunity, as those in mine have, to reach out and spread their wings to fill the gap?

[Alex Davies-Jones]

I agree that credit unions can plug some of the gap. The Welsh Government are exploring opportunities with Banc Cambria, which would be a national bank for Wales with a presence on the high street, but until it is established and until our banks have a statutory duty to provide a service to our communities, services will be sadly lacking. Businesses, communities and constituents will suffer as a result.

[Matt Rodda]

I am grateful that my hon. Friend is being so generous in giving way. Is she aware that another issue for customers of some banks or building societies is that the software does not always work with post office software? If a member of the public wants to cash a cheque or take money out, it is not always possible with every single bank or building society.

[Alex Davies-Jones]

I agree. If the infrastructure does not line up, that can cause problems. It can make simple transactions arbitrary and time-consuming, especially when people are having to deal with numerous other transactions during their day. Besides, there are functions that building societies and credit unions are unable to fulfil, such as those connected with mortgage issues or people’s concerns about fraud involving their accounts. People need that presence on the high street and in the community. They need these trusted individuals who can support vulnerable customers and, indeed, the ordinary customer who just has a query and wants a chat about their account.

The Minister will no doubt be aware that the Social Market Foundation and the Treasury Committee have expressed concern about the over-reliance on post offices as a stop-gap. As I have said, such stop-gaps are unsustainable, and put far too much pressure on already overworked postal staff who, despite the vital service they provide, are not trained banking specialists. We need that trusted expertise on our high streets. The Committee also found that post offices were not an adequate environment for many requirements of face-to-face banking, especially for more vulnerable customers, not least because a post office does not provide the privacy and dignity that many bank customers deserve and rightly expect.

While post offices must be commended for the role they play in providing basic banking services, shifting face-to-face banking in rural communities to post offices is clearly not the right answer for everyone. We need to focus on protecting dedicated high street bank branches instead, and in that connection I cautiously welcome the provision in the Financial Services and Markets Bill—now in the other place—for banks to potentially share face-to-face branch services, although the exact mechanism for that is yet to be determined. Independent organisations such as Link are already involved in creating those “shared services” in some parts of the UK, and I pay tribute to the work that they do to ensure that high streets can continue to thrive. However, the Bill represents a clear opportunity to enshrine this community-driven model in law, and an excellent opportunity for the Government to address the issues that I have raised tonight.

I urge the Minister to provide the House with any clarification he is able to offer on how these shared services might work in practice, as well as the criteria by which communities that are eligible for them are now selected. None the less, research by Which? suggests that since the Government introduced the Bill, a shocking 390 bank branches have closed in the UK. It is clear that immediate action is needed, and I therefore urge the Minister to set out a timetable for the shared services to be brought online.

High street banks are the lifeblood of local economies and, indeed, whole communities in constituencies such as mine. They must not be allowed to disappear completely, and they must play a central role in the regeneration and levelling up of former industrial communities such as mine. The unprecedented rate at which they are vanishing from the high street is not only holding local economies back, but making life challenging for the most vulnerable people in society who depend on easily accessible face-to-face banking.

I look forward to the Minister’s comments on the issues I have raised, especially the commissioning of shared banking services, as I am sure that thousands of my constituents will be very interested in what he has to say. The impact of bank closures on our high streets will be—indeed, already is—truly devastating. I sincerely hope that the Minister has listened to my concerns and will finally decide to take action.

--- Later in debate ---

[Andrew Griffith]

I thank the hon. Member, as I thank all hon. Members for their contributions to the debate. The issue we are debating is why we have urged all banks seeking to close branches to examine the Financial Conduct Authority’s guidance to ensure that, when they do make closures, they carefully consider the impact. I hope that those procedures have been followed in the case of the hon. Member for Pontypridd, and I encourage her to contact the FCA if she is concerned. Where firms fall short of expectations, the FCA can and will ask for closures to be paused.

We are taking strong steps on access to cash. We must not impede innovation. People and businesses are embracing the benefits of new services. Some small micro-services are benefiting, and some female entrepreneurs are setting up businesses without the overhead of having to have access to cash. Many people do like to tap and go, so that flexibility is important. As I mentioned earlier—the hon. Lady was also kind enough to mention it—the Financial Services and Markets Bill will protect access to cash, both withdrawals and deposits, because that gives businesses the confidence to take cash safe in the knowledge that they can deposit it, hopefully not too far away. It will be the first time since the ancient Celts first started minting coins in this realm that there will be a statutory right to access to cash.

I must not digress, but I recently visited the Royal Mint in Wales—

[Alex Davies-Jones]

It is in my constituency.

Cost of Living Crisis: Wales

Alex Davies-Jones Excerpts

Tuesday 19th July 2022 Westminster Hall

[Alex Davies-Jones (Pontypridd) (Lab)]

It is an honour to serve under your chairship, Ms Nokes. I congratulate my hon. Friend the Member for Newport West (Ruth Jones) on securing the debate, and it is an honour to follow the hon. Member for Ceredigion (Ben Lake).

It is also wonderful to see so many Welsh Labour colleagues present for this important debate. That is a testament to the proud and long history that Labour has and will continue to have in the Senedd and among the Welsh electorate more widely. I note that a considerable number of Welsh Conservatives are absent this afternoon—I cannot possibly think what is distracting them at the moment.

The shambolic Tory leadership might be a priority for some, but I remain focused on the issues that keep coming up when I speak to constituents across Pontypridd and Taff Ely. The single issue impacting people the most is without doubt the cost of living crisis, which is putting working families on the brink. The crisis is hitting every single corner of the UK, but it is right to have a debate about Wales specifically.

In this place, we often talk about the north-south divide in England, but the complex situation across Wales is all too often forgotten in that narrative. Recent research by the Centre for Cities think-tank shows that regions in Wales are among the hardest hit by the cost of living crisis across all the devolved nations. Research by the University of Bristol suggests that 22% of Welsh households are in severe financial difficulty, meaning that they are forced to do things like buy lower-quality food, shower less and even sell their belongings just to make ends meet.

In my constituency of Pontypridd and Taff Ely, the local Trussell Trust food bank in Treforest has had to extend its opening hours simply to deal with the swelling demand for its services. Only last week, Wales Online reported that some food banks in Wales are on the brink of running out of food. Demand is sky-rocketing, but the generous donations that food banks depend on to function are drying up, because people can no longer afford to donate and are themselves feeling the pinch. The teams running the food banks do incredible work in extremely difficult circumstances, but it does not have to be this way, and it should not be this way.

The reality is that without proper, long-term investment from Westminster, people in Wales will continue to be impacted. I know some Members will disagree with my assessment and will be keen to point out that any support failure is that of the Welsh Government, but I must be frank. I speak on behalf of residents in my area when I say that this UK Government have never taken their responsibility to Wales seriously. It is the UK Government’s failure to recognise that wage stagnation and ineffective social security have now led to poverty and destitution, and that could have been avoided.

According to the End Child Poverty coalition, in Pontypridd and Taff Ely a staggering 31.3% of children were below the poverty line in 2020-21. That is almost a third of all the children in my area. It is a sharp statistic and one that all of us in modern-day Britain should be embarrassed by. However, let us be clear: with food banks running dry and the Welsh Government doing everything they can, without immediate action by the UK Government, living standards across the country will continue to fall.

In Wales, local and regional bodies have done everything to address the crisis. The Welsh Labour Government and my Labour-led council in Rhondda Cynon Taf must be commended for their work to relieve the pressures on households. The Welsh Government have committed more than £380 million to address the immediate and severe impacts of the cost of living crisis on low-income households in Wales. From the winter fuel support scheme to income relief for those on council tax bands A to C, Welsh Labour has worked tirelessly to fill the vacuum of support caused by UK Government inaction.

[The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)]

Will the hon. Lady say where the Welsh Government got the money from for those schemes?

[Alex Davies-Jones]

It is not for Wales to come cap in hand to a Government in Westminster for what is rightly ours. We pay tax in Wales too and we are meant to be part of this United Kingdom. This is our money—we are not begging or asking for it. People in my constituency and across Wales are entitled to this money to help themselves. If the Minister will allow me, I will come on to the fact that in the recent uplift by the previous Chancellor, the right hon. Member for Richmond (Yorks) (Rishi Sunak), people in Wales got the equivalent of £9 a head, which is shocking and is nowhere near the amount of money that they need to survive the cost of living crisis.

We have done everything we can to empower local authorities such as mine to mobilise resources at a local level. The Welsh Government have held two cost of living summits attended by Welsh Government Ministers and key stakeholders from across Wales. Those events allowed grassroots organisations to directly inform the Welsh Government about the impact that the crisis is having on communities. In turn, they allowed the Welsh Government to target support at those most in need. I pay tribute to all involved in those summits for their incredible efforts to help the people of Wales.

Let us be clear that those measures pale in comparison with what the UK Tory Government have the economic firepower to achieve if only there was the political will. In Westminster, the Tories are completely asleep at the wheel. While the leadership contest continues to take centre stage, everyday working people and families will continue to struggle. Good governance starts at the top, which is why I am genuinely proud of the work that Mark Drakeford and the team in Wales are doing, despite the situation in Westminster.

Ultimately, people in Wales, including me, are tired of false promises. As we all know, the UK Government are the absolute kingmakers of gaslighting and U-turns. I cast hon. Members’ minds back to the spring statement, which I mentioned. The then Chancellor briefed the press that he was set to announce bold measures to support people through the cost of living crisis. He promised an increase in Welsh Government funding of just £27 million over the next year, which, as I stated, amounts to £9 a person in Wales.

It should shame the UK Government to treat us in Wales with such contempt. They try to palm off responsibility to the devolved Administrations, but refuse to properly fund their efforts. The Welsh Government have moved heaven and earth to mobilise their considerably limited resources, yet the Tories in Westminster refuse to act. It took relentless pressure from Labour for the UK Tory Government to eventually—reluctantly—endorse a windfall tax on North sea oil and gas, or, as the then Chancellor insisted we call it, because he cannot even admit that it was Labour’s idea, the energy profits levy. But they should have implemented it months ago and, for many, the support that the windfall tax will fund will simply be too little, too late.

The Welsh Government have announced that the Welsh fuel support scheme will return this winter to help those in need by providing a one-off £200 payment for their bills. That will bring significant relief to tens of thousands of Welsh residents, and I welcome the commitment of the Minister for Social Justice last week to support people who will struggle this winter. Without UK Government support, however, that will still not be enough.

When I wrote this speech, four candidates remained in the Tory leadership contest; now we have three. To the best of my knowledge, Wales has not been mentioned once—not by a single one of them. It is clear that whoever wins the leadership will continue to forget about Wales and that, sadly, it will be a case of business as usual.

Despite the Welsh Government’s limited resources, their actions show that Labour will always stand shoulder to shoulder with the country’s most vulnerable. The cost of living crisis is not going away in Wales or across the UK, so I implore the Government to do the right thing, to take responsibility, to see the crisis for what it is and to act today to reach solutions.

--- Later in debate ---

[David T. C. Davies]

Yes. He is one of the Pembrokeshire seats—[Laughter.]

[Alex Davies-Jones]

Carmarthen West.

[David T. C. Davies]

Yes, Carmarthen West.

As I was saying, I stood in for my right hon. Friend the Member for Carmarthen West and South Pembrokeshire (Simon Hart) many times in Cobra meetings and I know how hard he was working. Incidentally, on the matter of Cobra—I know this issue came up earlier; it may have been the hon. Member for Newport West who mentioned it—it is not normal for the Prime Minister to attend all Cobra meetings, any more than it is normal for the First Minister to attend all Cobra meetings. I attended a number of them during the covid crisis, when—quite rightly—the Welsh Government were represented by the Health Minister, or sometimes by another Minister from the Welsh Government. That is normal, because the principle of Cabinet Government is that Cabinet Ministers, whether they are in the Welsh Government or the UK Government, are there to take decisions. Therefore, quite correctly, we did not always expect to see either the First Minister or the Prime Minister at Cobra meetings. Sometimes they were there; sometimes they were able to allow other Ministers to take their place.

Tackling Short-term and Long-term Cost of Living Increases

Alex Davies-Jones Excerpts

Tuesday 17th May 2022 Commons Chamber

[Alex Davies-Jones (Pontypridd) (Lab)]

The cost of living crisis is impacting people across Pontypridd and Taff Ely, but it does not have to be this way. As my right hon. Friend the Member for Doncaster North (Edward Miliband) rightly and powerfully set out, there are many urgent short-term measures to help families through the cost of living crisis that the Government have simply neglected to implement.

What people across the country need are long-term solutions. That is why I am both furious and frustrated that the Government have backtracked once again on their promises to bring forward an employment Bill. Central to tackling the cost of living crisis is ensuring that workers across the board are fairly protected. An issue particularly personal for me is that we were told that the Bill would finally—finally—introduce proper neonatal leave and pay for new parents. The Minister stood at the Dispatch Box only a few months ago and told the House that the Government “remain very… committed” to introducing neonatal leave and pay via the employment Bill. However, because of the Government’s decision to abandon the Bill, thousands of new parents will have no choice but to continue to balance precarious work and family commitments. Proper neonatal leave and pay could have brought so much desperately needed relief to new families as they struggle through the cost of living crisis. They were struggling even before the cost of living crisis took hold, which is why it is even more insulting that they have been abandoned yet again by this Tory Government. In fact, the TUC has tallied it up: Ministers promised an employment Bill on nearly 20 occasions. Now that the promise has been abandoned, is it any wonder that public trust in this Government is so low?

Unsurprisingly, neonatal pay is not the only crushing disappointment of this half-hearted Gracious Speech. My constituents in Pontypridd and Taff Ely desperately needed it to engage with the cost of living crisis genuinely. We need bold proposals via an emergency Budget. We need a new windfall tax on North sea oil and gas companies. We need an urgent nationwide insulation programme to prevent energy loss and reduce families’ energy bills. What did we get instead? We got a Bill promising to further crack down on the fundamental right to protest, a vague levelling-up Bill promising to let residents decide street names, and a Bill promising to flog Channel 4 to the highest bidder.

This Government have run out of road. When Ministers try to defend their Government, all they do is insult the British public further. We have food poverty, fuel poverty and now hygiene poverty. The fact that they even exist in modern Britain should shame every single Member—there is a lack of Conservative Members on the Government Benches at the moment. It is a devastating economic truth that households having less to spend means sectors such as entertainment and hospitality losing out. Our economy shrinks and we are all poorer for it.

Madam Deputy Speaker, I could go on and on and on, but as you see I am angry and my constituents are angry. I will continue to do everything I can to get the people of Rhondda Cynon Taff the help they need, but this Queen’s Speech is an insult to the thousands of households in Wales and across the UK who need real immediate solutions to help with the cost of living crisis. I urge the Government to act and to act now.

Economic Update

Alex Davies-Jones Excerpts

Thursday 3rd February 2022 Commons Chamber

[Rishi Sunak]

My hon. Friend is very thoughtful on such matters and has, rightly, long made the point that we must also ensure that the long-term energy market is working in all our benefit. The Energy Secretary, the Prime Minister and I have been involved in such conversations for some time. The Energy Secretary is working on a set of measures that will address many of my hon. Friend’s concerns and he should expect to hear from the Government soon.

[Alex Davies-Jones (Pontypridd) (Lab)]

May I say how nice it is to finally see the Chancellor in his place? Some of us had been considering filing a missing persons report given his absence in recent weeks. Although I appreciate his update, for families across Pontypridd and Taff Ely, it is another case of too little, too late. The Welsh Labour Government have doubled the warm home discount scheme and Labour’s proposal would have taken £600 off the bills for the poorest in our country, but his plan gives them £350 off. Why does it fall so far short of what is needed and what is proposed?

[Rishi Sunak]

I am sorry that the hon. Lady did not welcome the £175 million in Barnett consequentials for the Welsh Administration. The Government are providing significant support for those on middle incomes, because they are also struggling, and we believe that is the right approach.

Downing Street Parties: Police Investigation

Alex Davies-Jones Excerpts

Tuesday 25th January 2022 Commons Chamber

[Michael Ellis]

I assure the hon. Gentleman that the findings of Sue Gray’s report will be put before this House.

[Alex Davies-Jones (Pontypridd) (Lab)]

Once again, the Paymaster General has been forced to come to the Dispatch Box to defend the indefensible, and no one is buying it. Honesty, transparency and leadership should be at the heart of this country’s Government, but they are severely lacking. Will the Prime Minister now come to this House to set the record straight and tell us exactly what gatherings and parties he attended at Downing Street? Or better yet, will he just resign?

Northern Ireland Protocol: EU Negotiations

Alex Davies-Jones Excerpts

Thursday 18th November 2021 Commons Chamber

[Michael Ellis]

I agree with my hon. Friend. We want a negotiated outcome, but we are willing to use article 16. There is no change in the position that my noble Friend Lord Frost gave to my hon. Friend’s Committee only a few days ago.

[Alex Davies-Jones (Pontypridd) (Lab)]

I am grateful to the right hon. Member for Orkney and Shetland (Mr Carmichael) for tabling the UQ. It is simply unacceptable and quite insulting to the House that Lord Frost would wait for this place to have risen to make a statement in the other place and that the Government would have to be dragged to this place to be subject to proper and timely scrutiny.

I turn to Northern Ireland, which has become a key pressure point in UK-EU relations. I sincerely hope that the change in tone from Lord Frost may be a sign that progress can be made, because these are fractious, painful times for Northern Ireland and we are at an unsettling moment. Political disfunction has left power sharing in a fragile state. Trust in the UK Government in Northern Ireland—an essential foundation of peace—has fallen away across all communities. Trust is hard won and easy to lose.

I say to the Minister, in the sincere hope that he listens, that this is not the context in which any responsible Government would force another high stakes, divisive stand-off. With a cost of living crisis and growing instability, the last thing the country needs is a damaging trade dispute with our nearest trading partners. Does he agree that jobs, stability and livelihoods in Northern Ireland depend on the EU and UK finding a deal in the days and weeks ahead that lowers the barriers that the Prime Minister created? Does he agree that the evidence increasingly shows that communities want a solution, not a stand-off?

Labour has called all year for solutions that would lower the barriers down the Irish sea that the Prime Minister personally negotiated. That is precisely why we need a deal. Communities know that invoking article 16 would not solve the problems. It would not end the dispute; it would simply prolong it. Therefore, to find that agreement, the people of Northern Ireland must be brought in. Does the Minister agree that it is simply unsustainable for a Government whom few trust to be making huge decisions about the future while Northern Ireland is excluded entirely from the talks? Will he confirm today that the UK and the EU will bring Northern Ireland leaders and communities into the process to speak for themselves? That is the path to a sustainable solution.

The Minister should remember what is at stake in the days ahead, and remember that those who have the most to lose from another poisonous stand-off are the people and businesses of Northern Ireland. It is in those interests and the national interest that the Government should get a deal.

[Michael Ellis]

We did not wait. This House was in recess and a written ministerial statement was tabled yesterday.

On the hon. Lady’s substantive points, of course people are concerned about the cost of living, but the Northern Ireland protocol has real-life consequences for the cost of living. Businesses know that using article 16, should we have to do so, would alleviate pressure on the movement of goods. It is a safeguard mechanism to improve an unsatisfactory situation; it is there not to cause disruption but to do the exact opposite. It is a mechanism agreed to by both parties to the withdrawal agreement, and it is an active part of an agreement with multiple articles—it is one article among multiple others. Article 16 is perfectly valid and available to use. However, we want a negotiated outcome. Our policy remains the same: acting within the law at all times, we are willing to use article 16 should we need to do so.

My noble Friend Lord Frost was in Northern Ireland on Tuesday and Wednesday of this week, and he met all sides. I am advised that he met representatives of the Social Democratic and Labour party, the Alliance party, the Democratic Unionist party, the Ulster Unionist party and Sinn Féin. He is, of course, keeping everyone fully informed, and he travels regularly to do so. The basis of our negotiations is contained in the July Command Paper, which this House has seen.

Access to Cash

Alex Davies-Jones Excerpts

Wednesday 20th October 2021 Westminster Hall

[Mrs Maria Miller (in the Chair)]

I encourage Members to wear masks when they are not speaking, and to give each other space when moving around, or entering or leaving the room.

[Alex Davies-Jones (Pontypridd) (Lab)]

I beg to move,

That this House has considered access to cash.

It is a pleasure to serve under your chairship, Mrs Miller. Given recent events, I feel it is important to take a moment to pay tribute to our wonderful colleague, Sir David Amess, who was a regular contributor to Westminster Hall debates. His presence here will forever be missed.

I am pleased to have secured this debate, particularly as our ability to physically access cash has been restricted as we continue to tackle coronavirus, and given the recent increase to the contactless card spending limit from £45 to £100.

I come to this debate with a specific constituency interest in mind. One of the jewels in the Pontypridd crown is the Royal Mint, based in Llantrisant. It is a major local employer, and I must give its tourist attraction, the Royal Mint Experience, a quick plug. The Royal Mint is the manufacturer of UK coins, and is not directly involved in policy on the use of cash, but it is a key contributor to ensuring that certain skills, and the capability to circulate coins, still exist in this country. I was joined there by the Under-Secretary of State for Wales, the hon. Member for Monmouth (David T. C. Davies), only a few months ago; we struck coins, and met young people on the kickstart scheme. I will, however, try to refrain from reminding the Minister that despite all the country’s coins being made in my constituency, we sadly see precious little money in return from the Government. Perhaps that is a matter to be discussed another time.

Instead, I will focus on the sad, widespread repercussions of reduced cash flow, which is having a major impact on high streets up and down the country. Many have been hit by multiple bank closures, including in my constituency of Pontypridd and across Caerphilly. Banks not only provide vital services for a huge range of community groups, but are often the epicentre of our high streets, and are vital in encouraging local trade and footfall for surrounding businesses.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

In West Dunbartonshire, we have seen a huge decrease in the number of banks, and I congratulate the hon. Member on making that point. Do they agree that if we are moving to a cashless society, that cannot happen in a vacuum, and that the Government must step up to ensure that people have access to cash in local communities?

[Alex Davies-Jones]

I completely agree. It is vital that the Government step up to ensure that this transition to a cashless society—if that is where we are heading, which seems to be the case—is made quickly. I will return to this point later, but I must begin by placing on the record my gratitude to all the organisations that have supported me and my team in preparing for this debate, notably the team at the LINK group, who have assisted with many of the stats I will refer to; I am particularly grateful to them for their expertise. In addition, Cardtronics found time to advise us on the potential repercussions of losing more and more free-to-use ATMs, for which I am thankful.

Put simply, when it comes to how we access and spend cash, it is clear that our habits as a nation are changing. In my household, physical cash is essentially non-existent, and I often actively avoid carrying cash. In a world where tools such as Apple Pay mean that I can pay with my phone, my watch, or even just my face, carrying a large amount of cash seems to add an element of risk, and it ultimately feels largely unnecessary.

This stands in stark contrast to my attitude towards cash when I was growing up. I still remember the genuine thrill I felt as a youngster when I received what I suppose would be considered a wage for completing my household chores. That £3 per week felt like my ticket to freedom, and I loved to collect my pounds and pennies in my piggy bank, all to be spent, no doubt, in one go on something like Bliss magazine, the latest Tamagotchi or Steps’ latest single. This fondness and nostalgia for the Great British pound is widespread. According to the access to cash review interim report, “Is Britain ready to go cashless?”, despite the increasing use of cards and electronic payments, approximately 8 million people, which is 17% of the country, said that cash feels like an economic necessity.

For me, years down the line, I have changed not only my spending habits, but my attitude to cash. What was once seen as an exciting physical representation of my earnings is now something I tend to actively avoid. However, I recognise that plenty of people feel completely differently, with many preferring to use cash for security or cash management reasons. It is important to acknowledge that when we talk about access to cash, acceptance of cash is part of that debate as well. That is where the marked difference between the needs of those living in my semi-rural constituency of Pontypridd and those in inner-city dwellings becomes even more obvious.

In London, it is not uncommon for businesses to be entirely cashless. That is in stark contrast with the many small businesses in my community that rely on cash payments, due to the cost or impracticalities of accepting card transactions. I am pleased that there appears to be widespread support for the preservation of free-to-use ATMs, which are vital for protecting access to cash.

[Sir Greg Knight (East Yorkshire) (Con)]

I congratulate the hon. Lady on securing this debate. Does she agree that people should only need to travel short distances to pay in or take out cash, and that cashback should be readily available without purchase?

[Alex Davies-Jones]

I completely agree, but “a short distance” in my constituency of Pontypridd would be vastly different from “a short distance” in other constituencies.

[Chris Elmore (Ogmore) (Lab)]

I congratulate my hon. Friend, neighbour and fellow Taff-Ely MP on securing this debate. She will know that I have spent many years working on this issue.

Our constituencies are similar in geography. The UK Government’s response is to say that people will have a cashpoint within a kilometre. I know my hon. Friend’s constituency well, and she knows mine well. Mine has ranges of mountains and hills, and there is often only one road coming into and out of a valley. The reality is that although “a kilometre” is a measure of distance, it can feel vastly different to constituents depending on how they travel, and whether they are relying on bus or train services to access cash. The Government need to understand that this is not just an issue in cities, where transport is free-flowing and connectivity is often very good. In seats like ours, there can be huge differences in how people can access cash.

[Alex Davies-Jones]

I completely agree. My hon. Friend is absolutely right to make that point. In constituencies such as ours, we are not exactly talking about a kilometre as the crow flies. People would need to travel on several buses or walk a much greater distance to reach a free-to-use ATM.

Many Members before me, including the hon. Member for North Ayrshire and Arran (Patricia Gibson) and the hon. Member for Blackpool North and Cleveleys (Paul Maynard) to name but two, have been particularly vocal in their support for free-to-use ATMs. Thanks to LINK and UK Finance, we know that ATMs remain the most popular way of withdrawing cash—about 93% of cash withdrawals take place at a cash machine. There are 53,500 ATMs in the UK, 12,500 of which are pay-to-use. Only 41,000 are free to use. Some 94% of cash withdrawals are free of charge, but it will come as no surprise that cash withdrawals have dropped significantly. Coronavirus has undoubtedly expedited the move towards a cashless society.

As of August 2021, ATM usage is down a whopping 45% on pre-pandemic levels. This worrying trend impacts us all, but we can all agree that it is the elderly and the most vulnerable who are likely to be most impacted. Some groups of people may be nervous about using technology and may fear the potential cyber-security repercussions of using contactless payment systems. Others may struggle to remember their personal identification number, or may simply not have the form of identification available to set up a complex banking service.

I was also shocked to learn from the Treasury Committee report on increasing financial inclusion that there are still around 1 million people in the UK without a bank account. Some older, lower-income households rely on cash to budget because of a lack of access to online banking. In the conversations about the importance of cash and access to cash, we must acknowledge the clear regional divides that still persist. For example, here in London, 75% of card usage is now contactless, yet parts of my constituency simply do not have the broadband infrastructure to support contactless payments. The lack of investment in basic infrastructure means that many businesses in my area, through no fault of their own, are restricted in their ability to expand or develop. Our country is likely to follow the path taken by our friends in the European Union, notably Sweden, and become increasingly cashless to keep up with modernising in a global economy, but that modernisation cannot come at the expense of some of our most vulnerable groups, with communities and regions being left behind once more.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

Perhaps I can encourage my hon. Friend to pay tribute to the community credit unions that have branches, and that actively encourage people to bring cash in and that help them to take cash out. Does she agree that community credit unions need more support from the Government to expand their networks and offer more services, so that they are even more attractive?

[Alex Davies-Jones]

I completely agree. In my constituency we have Dragonsavers, a vital service for local community groups, and the Welsh Labour Government are looking to set up Banc Cambria, so that we have banks on our high streets. They are looking at where it would be feasible to open branches.

While it is rare for me to have reason to doubly praise the Government, I am pleased to see that the plans outlined by the Treasury earlier this year suggest that people should not have to travel beyond a reasonable distance of around 1 km to withdraw or deposit cash. Such commitments are vital to the survival of cash circulation in this country, but as has been mentioned, only if the local geography of our towns and cities across the UK are taken into account when considering that 1 km radius.

For hon. Members not familiar with the south Wales valleys, my hon. Friend the Member for Ogmore (Chris Elmore) and I can assure them that our hills and beautiful valleys are not for the faint-hearted. These geographical barriers cannot be ignored when factoring in access to cash for community members, both now and in future. I therefore hope to hear from the Minister exactly how the Treasury plans to safeguard those vital services, particularly for those living in rural and semi-rural constituencies such as mine.

There is some hope, though. As hon. Members will be aware, LINK is a not-for-profit with a strong public interest remit that runs the UK’s largest free-to-use cash machine network. Instead of owning and operating those machines, LINK’s job is to ensure that every community has free access to cash by paying commercial incentives to ATM operators to put free machines where they are needed.

Indeed, after representations from a number of residents, I was thrilled to see LINK secure a new ATM at the village store in Efail Isaf in my constituency. The ATM is now secured for a minimum of five years, and it will go a long way to helping those in our area. For two years, LINK has invited communities to request free-to-use ATMs such as this one, and in that time it has installed more than 70 of them in response to local demand, alongside a year-long trial that saw LINK working with partners to develop a new way of accessing cash, by allowing consumers to withdraw cash over the counter from participating retailers.

I am pleased to see innovative steps being taken to secure access to cash for all those who need it. What will be essential, however, is maintaining those fantastic services. I truly believe the Government must act on the recommendations recently produced by Cardtronics and the Federation of Small Businesses, which ask Her Majesty’s Treasury to mandate bank membership of LINK in order to protect its fantastic withdrawing and free-to-use ATM delivery schemes.

In addition to my very real concerns about the impact of a potentially cashless society on certain populations, this conversation must also address the many logistical challenges and concerns around the largely inevitable shift to a cashless world. We need a long-term solution, whereas I fear the Treasury is currently in denial about the fact that we seem to be heading at a record pace for an almost wholly cashless society.

[Sara Britcliffe (Hyndburn) (Con)]

Speaking of the work of Cardtronics, one of the recommendations to the Government on protecting cash is that we should protect cash acceptance in our businesses. Does the hon. Lady agree that that is something the Government needs to consider?

[Alex Davies-Jones]

I completely agree. For many businesses in my seat in Pontypridd—in the market, for example, we have some brilliant stores—it is not feasible to take cards. We are talking about an average transaction of £1 for Welsh cakes from our great Welsh cake shops, for example; it just is not feasible for a business to take card payments when they are charged for those. It would massively reduce their profits and make their business completely unviable.

Steps can now be put in place to ease the shift to a cashless society. We have seen neighbouring countries switch their entire currency; while I am very reluctant to turn this into a debate on the euro, in fear of somehow reigniting the Brexit debate, if other nations have managed such a transition, we should be able to follow suit. With that in mind, I hope the Government’s promised access to cash Bill will include some form of commitment to setting up a regulatory body to ensure a smooth transition. That regulator could work with different interest groups, infrastructure providers and charities such as Age UK to support those most impacted through this transition period.

Of course, this recommendation has been well researched, notably by Natalie Ceeney, who chaired the initial access to cash review. I hope to hear more from the Minister on the issue, along with a timeline on when we can expect the legislation to come forward to the House.

My final point concerns the worrying trend of bank closures that we are seeing up and down the country. While I fully recognise that the Treasury is unable to interfere in decisions made by private corporations to remove their presence from the high street, we must acknowledge the devastating impact that those closures have on the availability of, and people’s access to, cash.

In preparation for this debate, I spoke to a number of people living in my area who have sadly been impacted by decisions made by both Lloyds TSB and HSBC to withdraw three branches from my constituency. While not all banking services relate to the process of depositing or withdrawing cash, it is undeniably those basic services that are the most missed when a bank chooses to leave the high street. With the role of the post office ever changing, it has been quite a confusing time for many residents in my area, who have felt forced to shift their ordinary banking practices as a consequence of these closures. With this in mind, I am particularly interested to know what plans the Government have to improve the availability of deposit-taking facilities across the county; I hope the Minister will refer to this in his remarks.

Ultimately, we need to see this promised access to cash Bill sooner rather than later; the big changes are happening in our communities right now. People across the country are already being negatively impacted, and I fear many more will be excluded unless action is rapidly taken. The Government have made a start, and I commend them on their commitment to preserving access to cash, but they need to follow through with specific action to protect those constituents of ours who fall into potentially vulnerable categories. I look forward to hearing from the Minster, and hearing what hon. Members have to say on this important issue. Diolch.

[Several hon. Members rose—]

--- Later in debate ---

[Alex Davies-Jones]

It has been a complete pleasure to take part in today’s debate. We have had a broad range of speakers from across the House, all showing a consensual approach to the importance of preserving access to cash. As the Minister alluded to, it is indeed a rarity for debates held in this place to be so consensual, and this is not a party political issue. I hope that we can continue to capitalise on that consensus going forward.

I said at the beginning of the debate that I recognise the impact that coronavirus has had on people’s desire to carry, accept and access cash, and I really believe that we are living in changing times, where modernisation is key. Many of my comments focused on the impact of reduced cash circulation in the context of the individual, but a number of Members have rightly raised issues around the difficulties of businesses that carry cash. With bank closures on the rise, as mentioned by my hon. Friend the Member for Erith and Thamesmead (Abena Oppong-Asare), cashing up at the end of the day may no longer be the simple task it once was for a small business. Small, independent businesses have been hit the hardest throughout the pandemic, and we must now ensure that we prioritise them going forward.

With that in mind, I very much welcome the comments from the Minister on the urgency to resolve the problems that we have raised today. I also welcome his commitment that no one will be left behind in the digital connectivity roll-out—a promise on which I will ensure he is held to account. I hope he recognises that although good progress has been made on the access to cash Bill, it needs to be accompanied by a real-life approach to supporting people through what is inevitably a transition to a cashless society. That will need very close attention if we are to support our must vulnerable populations.

The Minister’s comments will help us to move in the right direction, and I am grateful for that. I look forward to seeing his promises enacted in future legislation put forward by the Government.

Question put and agreed to.

Resolved,

That this House has considered access to cash.

Oral Answers to Questions

Alex Davies-Jones Excerpts

Tuesday 7th September 2021 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

18. What discussions he plans to have with the Secretary of State for Work and Pensions on the impact on the Exchequer of ending the £20 uplift to universal credit.

[Alex Davies-Jones (Pontypridd) (Lab)]

21. What recent discussions he has had with the Secretary of State for Work and Pensions on the impact on the Exchequer of ending the £20 uplift to universal credit.

[The Chancellor of the Exchequer (Rishi Sunak)]

The Government have always been clear that the £20 increase to universal credit was a temporary measure, much like furlough and our other interventions to support this country through the acute phases of this crisis, but we are not done supporting those who need our help. This Government will always be on their side, and that is why we have created our plan for jobs. On the Government side of the House, we know that the best way to help people is to give them the skills and the opportunities they need to find high-quality work, and that is what the plan for jobs is delivering.

--- Later in debate ---

[Rishi Sunak]

Of course there are people already in work who are on universal credit, but our plan for jobs helps them too. We increased the national living wage this year by an inflation-busting amount—£350 a year to help those families. We talked earlier about the lifetime skills guarantee, about apprenticeships, about skills boot camps. Those are all ways the Government are supporting people; each one of those initiatives, by the way, is worth thousands of pounds of support. Those people will benefit from those increased skills and benefit from guaranteed new job interviews or higher wages at the end of it. That is the right strategy to help those people in work.

[Alex Davies-Jones]

This week, the charity Action for Children highlighted that a street cleaner with two children in private rented accommodation is already on average £729 worse off as a result of Conservative cuts since 2010, but that will soar to over £1,700 as a result of the Chancellor’s planned cut to universal credit. So I ask the Chancellor: how exactly are families meant to manage?

[Rishi Sunak]

Again, what we know is that children growing up in workless households are five times more likely to be in poverty than those whose parents work. That is why we are supporting their parents to get into work and why almost 800,000 fewer children are living in workless households than when this Government first came into office. That is the right way to support those families. Of course, there are other bits of our welfare system that we have maintained the generosity of, but when it comes to universal credit or employment, we on this side of the House we will support their parents into work and, crucially, with their childcare costs. Mr Speaker, we forget that 85% of childcare costs for people on universal credit are covered to support parents into work, which we know will make a difference to those children.

--- Later in debate ---

[Steve Barclay]

My hon. Friend is absolutely right to highlight not only the importance of restart to the long-term unemployed, but how it sits alongside the kickstart scheme, the tripling of traineeships and the boot camps for skills. That is part of a plan for jobs that is working.

[Alex Davies-Jones (Pontypridd) (Lab)]

T9. Will the Chancellor clarify which Department is paying the £200 million for the Prime Minister’s vanity yacht? What does it say about this Conservative Government’s warped priorities when the Chancellor approves that while planning to cut universal credit for those who need it the most?

[Rishi Sunak]

This Government are proud of the record investment that we have made in our armed forces—a record settlement for the next few years to support our forces and the work that they do around the world to ensure that we can play our responsible role.

We will end on this note, I think. We have had a good debate today, but one thing is clear: the difference between us and the Labour party. We believe in supporting people into work, we believe in supporting their skills, and, crucially, we believe in our plan for jobs, because it is working.

Rural Banking Services

Alex Davies-Jones Excerpts

Tuesday 20th July 2021 Westminster Hall

[Fay Jones]

I completely agree with my hon. Friend the Member for Aberconwy (Robin Millar), too. I will cover later in my speech the issues that have been raised. They are common issues, and that is why we all need to work together. This involves not just the UK Government, but the devolved Administrations in Cardiff, Edinburgh and Northern Ireland.

This proves the point that cash is extremely important. The Lloyds group talks about a group of 3 million cash-critical people. These are not the people that we might expect: 41% of this group are aged between 35 and 54; they earn less than £20,000 a year; and they often rent their home or live in social housing. Therefore, we are not just talking about the elderly, the vulnerable and those who live on their own. We need to ensure that this extremely important group in society has access to cash.

Let me turn to my ask of Government. As I have mentioned, the Government have taken some really positive steps towards addressing the challenges, and there is currently a consultation open on access to cash. The proposals include the Treasury granting powers to require certain firms such as retail banks to provide deposit and withdrawal facilities for customers within certain distances, and the Financial Conduct Authority would have oversight for monitoring and enforcing those requirements. I very much welcome that. Those proposals suggest that the Government are introducing a legal guarantee for consumers and businesses to be able to withdraw and access their cash. That is absolutely what we need. I think that the point about certain distances will be critical for people in my constituency of Brecon and Radnorshire. We are the largest constituency in England and Wales—the constituency is bigger than Luxembourg—and I urge my hon. Friend the Minister to bear that in mind as the consultation goes forward. I will certainly respond to it, but it is imperative to remember that miles are not the same in urban areas as they are in rural areas.

Brecon has four banks, and that is great news, but Ystradgynlais, the largest town in my constituency by population, has only one. Builth Wells has one. Hay-on-Wye, as I have said, has none. Crickhowell has none. Rhayader has none. Knighton has none. Since the mid-1990s, the number of bank branches in the UK has been falling steadily.

[Alex Davies-Jones (Pontypridd) (Lab)]

My Welsh colleague is making important points on the importance of banking infrastructure. In my constituency of Pontypridd, loyal customers whose life savings have been invested in banks are being abandoned by these corporations, which claim to serve the communities that we represent. Does the hon. Member agree with me that it is completely wrong for banks to bale out of local communities such as ours and others across Wales when just a few years ago they had to be bailed out by the public purse themselves?

[Fay Jones]

I certainly agree that it is wrong for banks to withdraw when there are no options left. We need to be really careful. I have worked with and spoken to a number of them in preparation for this debate, and I implore them to remember that we do need physical banking services. We cannot just push them down the line or rely on a certain urban area.

On that point, it has just been announced that Barclays bank in my constituency, in Llandrindod Wells, is about to close. From my office in Llandod, I can see the number of people who use that bank every day, and I am quite surprised that the decision is going ahead. I understand it is too late to influence that, but I make the plea none the less. It will cause considerable problems for people in my constituency: those who live in Knighton or Presteigne, or further north. I again remind the House that it is the largest constituency in England and Wales.

As much as this decision causes a headache for personal banking, businesses will also suffer. It is crucial that we recognise the value of these rural businesses. Farmers rely on good relationships with their banks, for obvious reasons. It is often said that nobody knows how to spend money better than a farmer, and it is really important that we remember how that money gets filtered out right through the rural community. One farmer sustains hundreds of businesses in a rural area, including the vet, the insurance agent, the feed merchant and the contractors that he will work with, so remembering that rural businesses need access to banking infrastructure is so important. I urge the Minister to put some real teeth behind the proposal in the consultation for a right to withdraw cash, again remembering that point about mileage. Some of my constituents who used to rely on Barclays bank in Llandrindod Wells are now going to need to travel 20 or 30 miles to get cash to pay their bills, or to give a grandchild their birthday money, so that right is absolutely essential.

The final point I will make is about the importance of banks to the high street, because nobody just pops to the bank as a one-off transaction: they pop into the post office, go into the butcher or go for a coffee. Banks are important parts of a thriving high street—again, I stress the importance of a high street to rural areas, particularly in Brecon and Radnorshire, where we do not have large urban conurbations or city centres. Our high streets are the lifeblood of the rural economy, and it is incredibly important that as we move towards a purely digital platform, we remember the need for face-to-face contact. If the pandemic has demonstrated anything over the past 18 months, it is that we all need and cherish human interaction, and it is incredibly important that we remember the impact that closures like these can have on mental health. Again, I think of the farmers in my constituency who take their cattle to market and then, while they are in Brecon market, go to the high street and into the bank. This is part of an important rural chain, and when one link goes, so goes the rest of it.

I really want the Government to think about the impact that these closures can have. Obviously, we cannot control the commercial decisions that the retail banks make, but I believe we should be doing all we can to preserve rural communities, remembering that rural banking services are so crucial. We talk a lot in this place about levelling up, and rightly so, but there can be no levelling up if we forget rural areas. I urge the Minister to think about that.