Cost of Living in Wales

Debate between Jamie Wallis and Jessica Morden

Tuesday 22nd February 2022 Westminster Hall

[Dr Jamie Wallis (Bridgend) (Con)]

The accounts from her constituents that the hon. Lady read out earlier were very moving, and I take that to heart. Does she not think it is time, with the cost of living crisis, that the Welsh Labour Government did more to tackle the huge council tax bills in Wales? Welsh councils are consistently and disproportionately some of the most expensive in the UK. That comes up time and again with my residents. Should she not be putting pressure on her colleagues in the Senedd?

[Jessica Morden]

We have some of the lower council tax rates, compared with the UK as a whole. The support packages from the Welsh Labour Government are more generous than those of the UK Government. The hon. Gentleman’s intervention was timely, because I had just asked what we have had so far from the Chancellor. The answer is a £150 council tax rebate for a limited number of households, which is already less generous than the council tax reduction scheme in Wales, where on average people will pay £17 less on their council tax bill. An average band D council tax bill in England is £167 more than in Wales.

The second measure the Government have come up with is the buy now, pay later scheme of a £200 loan to help with bills, which the public are expected to pay back in full over five years, even if their wages fall in the meantime or energy bills rise further still, or even if they become a bill payer later and do not receive the initial £200 loan. The TUC General Secretary, Frances O’Grady, has highlighted that, for most families, the Chancellor’s support package equates to just £7 a week, with more than half of that having to be paid back. As she said,

“It’s too little, it’s poorly targeted, and it’s a stop-gap measure instead of fixing the big problems.”

Conservative MPs voted down Labour’s proposal to cap VAT on energy bills, after suggesting that we could do that once we left the EU. The Government, let us not forget, have casually written off £4.3 billion lost to fraudsters, but refuse to tax properly North sea oil and gas profits, despite the fact that leading energy companies such as BP are boasting about being cash machines, as gas prices across global markets reach record highs.

In contrast to the Tory Government, in Wales we have a Labour Government who are prepared to step in and help by using the levers that they have. Last week, the Welsh Labour Government set out a £330 million package of extra help. That is a funded package that is significantly larger than equivalent support provided by the UK Government. It includes matching the UK Government’s £150 council tax rebate and extending the eligibility criteria, so that many more households will benefit. That is funded by the Welsh Government, as the UK Government made no extra money available, even though they said they would.

The Welsh Government have also announced an extra £200 for low-income households, by extending the winter fuel payment this year and next winter, £25 million for local authorities to help struggling households, and an extension of the Wales national discretionary assistance fund. They have also invested in crucial advice services, food banks and community hubs.