Autumn Budget as it Relates to Wales

Geraint Davies Excerpts

Wednesday 7th February 2018 General Committees

[Hywel Williams]

Mae’r Foneddiges anrhydeddus yn gwneud pwynt arbennig o dda. Mae’r Trussell Trust, a mudiadau eraill wrth gwrs, yn rhedeg banciau bwyd trwy Gymru gyfan, ac maen nhw wedi cynyddu’n sylweddol. Mae gennym ni rhai da iawn yng Nghaernarfon ac ym Mangor, a ’dwi wedi bod yna yn eu gweld nifer o weithiau. Gyda llaw, fy marn i am fanciau bwyd yw bod o’n dda i’w cael nhw, ond yn gywilydd bod gennym eu hangen. Fel dywedodd y Foneddiges anrhydeddus, mae cael benthyciad ar y dechrau yn golygu bod yna ddyled yn syth bin. Tydi hynny ddim yn safbwynt da i gychwyn gyrfa fel hawliwr credyd cynhwysol. Nes ymlaen, wna’i sôn am ymchwil sydd wedi cael ei wneud yn Sir Fflint ynglŷn â lle mae’r problemau efo credyd cynhwysol. Bydd hyn yn ddadlennol.

O’r hyn roeddwn i’n deall, prif bwrpas yr wythnos o ddisgwyl oedd arbed arian. Doedd dim pwrpas arall iddi. ’Dwi’n eithriadol o falch o weld y cyfnod yna yn mynd, ond gallasai’r Canghellor fod wedi gwneud llawer mwy, er enghraifft, torri’r cyfnod prosesu hefyd, fel bod rhywun yn cael yr arian mwy neu lai’n syth bin ar ddiwedd y pedair wythnos pan mae’r incwm wedi’i wirio.

Newid arall ydy, fel y sioniodd yr Aelod anrhydeddus dros Fynwy, y bydd taliad ymlaen llaw ar gael o dan rhai amgylchiadau o fewn pump diwrnod o wneud y cais. Yn fuan iawn, bydd rhywun yn dod i sylweddoli efallai nad yw’r credyd cynhwysol ddim yn ddigon a bydd rhywun yn medru gwneud cais am bres ychwanegol. Gobeithio bydd pobl ddim yn mynd heb ddim. Ond er hynny, fel ddywedodd yr Aelod anrhydeddus dros Ddwyrain Casnewydd, mae hyn yn rhoi rhywun i fewn i ddyled. Y newid arall positif a gyhoeddodd y Canghellor oedd bod y cyfnod talu’n ôl yn 12 mis yn hytrach na chwech. Ond benthyciad ydy hwn. Newid bychan ond un i’w groesawu. A dyna ni yn y bôn, hyd y gwela i, o’r Gyllideb. Nid y cyfnod disgwyl ydy’r brif broblem efo credyd cynhwysol, na chwaith y taliadau ymlaen llaw.

Hoffwn siarad ychydig bach am y pethau y byddwn i a Phlaid Cymru yn hoffi gweld yn cael eu newid ynglŷn â’r budd-dal, fel rhyw rhestr siopa i’r Ysgrifennydd Gwladol a’r Canghellor at y dyfodol. Mae credyd cynwhysol yn arbennig o bwysig i Gymru, gyda chynifer o bobl yn medru ei hawlio. Ac i fod yn blaen—waeth i ni fod yn blaen ddim—mae hynny am fod gennym ni gymaint o bobl sy’n dlawd ac ar gyflogau isel. Dyna pam rydym yn medru hawlio gymaint o’r arian yma ar gyfradd uwch na’r Alban a Lloegr.

Bydd y cyfanswm o bobl sy’n medru hawlio credyd cynhwysol yng Nghymru yn cynrychioli tua 400,000 o aelwydydd. Mae hyn yn gyfran enfawr o’r bobl sydd yn byw yn ein gwlad, yn arbennig o gofio mai cartrefi ac aelwydydd yw’r 400,000, ac mae’r teuluoedd sy’n byw yno—y plant a’r gŵr neu’r wraig—yn ychwanegol i hynny. Felly, bydd y nifer absoliwt o bobl fydd yn dibynnu i ryw raddau ar gredyd cynhwysol yn sylweddol eto. Oherwydd hynny, byddai diwygio pellach o fudd eithriadol i ni yng Nghymru, yn arbennig o gofio fod pobl ar incymau is yn tueddi i wario’n lleol ac mae’r bunt sy’n cael ei gwario’n lleol yn mynd ymhellach o lawer yn yr economi lleol hefyd. Felly, nid mater absoliwt o gael incwm ychwanegol yw hyn, ond hefyd rhoi hwb i’r economi lleol.

(Translation) The hon. Lady makes an exceptionally good point. The Trussell Trust and other organisations run food banks throughout Wales. The number of food banks has increased substantially—we have two very good ones in Caernarfon and Bangor, which I have visited many times. It is good to have them, but it is shameful that we need them. I will try to assist them. As the hon. Lady said, receiving a loan at the beginning means that debt is immediately accrued, which is not a great position for someone receiving benefits to start from.

The problems in Flintshire are illustrative of the problems with universal credit. From my understanding, the main purpose of the additional week of waiting was to save money, so I am glad that it has been removed. The Chancellor could have done much more, however, such as trying to cut down on the processing time so that people get the money almost immediately after the four weeks in which income has been checked.

The other proposed change is that the payment beforehand, which the hon. Member for Monmouth mentioned, will be available five days before. Very soon, people will come to see that universal credit may not be sufficient, and it will be possible to apply for further funding. I hope people will not lose out or go without anything as a result because, as the hon. Member for Newport East said, that can lead to debt. The other positive change that the Chancellor introduced was to make the repayment period 12 months, rather than six. I welcome that change, although it is very small. I do not think the waiting time or the advance payments are the biggest problem with universal credit.

I would like to talk about some of the things that I and Plaid Cymru would like to see in relation to the benefit—a sort of shopping list for the Secretary of State and the Chancellor to look at in the future. Universal credit is extremely important for Wales, because we have so many people who can claim it. To be plain—we might as well speak plainly—that is because we have so many people who are poor and on low incomes, which is why we claim the benefit at a higher rate than England and Scotland.

About 400,000 households can claim universal credit in Wales, which is a huge number, particularly when we bear in mind that there are other members of those families, including children, so a huge number of people are to some extent dependent on universal credit. Further reform would be extremely beneficial for us in Wales, particularly bearing in mind that people on lower incomes tend to spend their money locally. A pound that is spent locally goes much further in the local economy. This is about not simply getting additional income, but boosting the local economy.

[Geraint Davies (Swansea West) (Lab/Co-op)]

I am following what the hon. Gentleman is saying very closely. Is he aware of a study commissioned by the University of Cambridge and University College London, which found that austerity killed 45,000 people between 2010 and 2014, and that a further 152,000 people will die because of austerity between 2018 and 2020? It describes austerity as economic murder. Does he agree that Wales is particularly vulnerable to the impact of that inhumane policy?

[The Chair]

Order. Before I call the hon. Member for Arfon, may I remind Members that, when they stand to speak or intervene, they must turn down the volume of their headsets? Otherwise, we all hear the noise that we are currently experiencing in our headsets.

--- Later in debate ---

[Geraint Davies]

Thank you, Mr Hanson. I will be brief, so I will speak in English. I say in passing that my mam-gu—my grandmother—had to wear the “Welsh Not”, which was introduced after the Blue Books. Children were required to pass on a “Welsh Not” to a child who spoke Welsh. They were beaten at the end of the day, and she was beaten at the end of every day because she was very religious and did not want to pass on the “Welsh Not”.

I thought I would also mention, on the centenary of women’s suffrage, an Emily—not Emily Davison or Emmeline Pankhurst, but Emily Phipps. She was one of the 17 women who stood 100 years ago, and she was in fact from the Swansea area. She hid in a cave in the Gower to avoid the census, as a protest.

[David T. C. Davies]

Will the hon. Gentleman give way?

[Geraint Davies]

I am very short on time, but I will give way.

--- Later in debate ---

[The Chair]

I call Geraint Davies, on the Budget.

[Geraint Davies]

I certainly regret taking that intervention. On the Budget, the mammoth in the room is obviously Brexit. This Budget should have been preparing Wales for Brexit. Some 70% of our trade goes to the EU, and 25,000 jobs in Swansea bay depend on those exports. We wanted to see investment in infrastructure and skills to boost productivity to our most important market, but instead there has been a failure in rail investment, including the electrification of Swansea. There was no commitment on the Swansea metro that we asked for, either. I mentioned earlier that despite having 6% of the rail network, Wales gets only 1% to 2% of the overall investment.

People have mentioned the lagoon. At a time when 80% of fossil fuels cannot be exploited, if we are to avoid irreversible climate change it is plainly stupid not to invest at the start of a technology that could drive a future global export market. It is strange that the cost per unit of energy at Hinkley Point far exceeds the projected cost for the lagoon. The reason, of course, is Brexit; the Prime Minister needs to go out to China on bended knee, ignoring human rights and everything else, plead for a trade deal, and we are suffering the consequences.

On skills, the primary skills delivery system is the Welsh Assembly Government, but they have undergone cuts of some 5% in the last year alone—£900 million in cuts. That is delivering cuts on the doorstep of local schools, and Swansea is certainly suffering as a result of that.

I welcome the news on tolls. That tax on Welsh trade and industry has been going on for far too long. The fuel freeze should have been more sophisticated, to push us in a more sustainable direction for transport in terms of our air quality problems; there are 40,000 diesel deaths a year in Britain.

People have not talked about quantitative easing. Basically, quantitative easing lifts asset values so the rich get richer and the poor stay poor or get poorer. The value of property in Camden is now worth more than the value of all property in the whole of Wales.

On austerity, I mentioned earlier that a study done by University College London and the University of Cambridge attributed 40,000 deaths to austerity between 2010 and 2014, and 152,000 more are expected between 2015 and 2020. Until 2010, the death rate was falling by 0.7% a year; it is now rising by 0.8%. The International Monetary Fund has shown that greater inequality generates less growth. What we are doing in Britain is making the poor poorer to pay for the bankers’ greed. In so doing, we are stifling growth. All that pay freezes, cuts to benefits and universal credit do is prevent people who would spend every penny they have to reflate the economy from doing so. They are becoming ill, and becoming liabilities to our social and health services. We are in a crisis. We must invest in a stronger, fairer future for Wales and Britain. That means investing in our skills, productivity and infrastructure, especially in Wales, which is the poorest part of western Europe, particularly the valleys and west Wales.

Finally, I will mention in passing some of the issues with universal credit. Although the Labour party has said that we should pause and look again, the reality is that the universal credit system pulls together through complicated computer systems—the Inland Revenue system, the local authority system and the jobcentre system—into an integrated system that is doomed to failure, as a way of delaying and reducing overall benefit costs and cutting corners, in the hope that the poorest, who are often the most vulnerable, can cope with their own meagre allowance and pay the rent themselves rather than being tempted to spend it on other things, even though they face delays and loans. This is a mean Government causing terrible damage to Wales, particularly its poorer communities. We need to think again and invest in the future and in productivity. We need a fairer, better Wales.