Autumn Budget as it Relates to Wales

Jessica Morden Excerpts

Wednesday 7th February 2018 General Committees

[Hywel Williams]

Mae’r Bonheddwr anrhydeddus yn gwneud pwynt da iawn, a byddaf yn sôn am hynny gyda hyn. Mae’n bosib cael taliad, ond fel dywedodd fy Nghyfaill anrhydeddus dros Dwyfor Meirionnydd o’i chadair, benthyciad yw hwnnw, nid taliad.

(Translation) The hon. Gentleman makes a good point. I will come to that in a moment, but I might as well say now that it is possible to have a payment beforehand, but that is a loan rather than a payment, as my hon. Friend the Member for Dwyfor Meirionnydd said from a sedentary position.

[Jessica Morden (Newport East) (Lab)]

That change puts people into debt straightaway. The Government have not addressed the flaws in the system. The Trussell Trust says that in areas where universal credit has been rolled out for six months or more, there has been a 30% increase in people taking up food parcels. Does the hon. Gentleman agree that those statistics lay bare the link between welfare reform and emergency help?

[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.