Commons Sense

House of Commons · Ministers' Questions

Cost of Living Crisis

Wednesday 18 January 2023 · 8 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 7 Not answered 0

Key points

  • The UK Government have taken decisive action to support households and businesses across the UK, including a 26 billion package.
  • The Welsh Secretary stated that the UK Government have increased funding for the devolved Administrations, including more money for the national health service.
  • The UK Government have prioritised support for the least well-off, providing 900 to people on benefits, 300 to pensioners, and 150 to households with disabilities.

Topics (select to filter)

Questions & Answers

Q1 Ben Lake PC Ceredigion Preseli
Economy Wales
Context

The cost of living crisis is affecting both businesses and households, prompting concerns about the economic impact.

Question

What discussions have you had with Cabinet colleagues regarding the impact of rising costs on (a) businesses and (b) households in Wales?

Answer from David Davies

I understand that people across the UK are worried about the cost of living, which is why we have taken decisive action to support households and businesses across the UK. That support includes a £26 billion package for the next financial year, targeted at protecting the most vulnerable.

Partly answered

Not addressed: Specific discussions with Cabinet colleagues on Wales were not addressed.

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Q2 Chris Stephens SNP
NHS Wales
Context

The cost of living crisis is affecting mental health, with significant numbers of Welsh adults impacted. The fuel support scheme in Wales helps but faces challenges due to inflation.

Question

How does the Secretary of State justify his Government's repeated refusal to support devolved Governments in tackling a crisis created by the UK government?

Answer from David Davies

The UK Government have increased funding for the devolved Administrations. We have increased money for the national health service, but it's a shame that in Wales this funding is not being fully passed on to the NHS.

Partly answered

Not addressed: Specific refusal of support was not addressed; focus was on general funding increases.

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Q3 Anna McMorrin Lab Cardiff North
Housing Benefits & Welfare Mental Health
Context

A constituent is struggling with fear of homelessness and mental health issues due to the economic situation. Cardiff Council is £23 million worse off.

Question

Is the Welsh Secretary going to push my constituents to breaking point given their struggles with cost-of-living, financial insecurity, and potential homelessness?

Answer from David Davies

This Government have prioritised help for the least well-off. People on benefits receive £900, pensioners get £300, and households with disabilities receive £150 to support them through the cost of living crisis.

Partly answered

Not addressed: Specific measures against pushing constituents to breaking point were not detailed; general support outlined instead.

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Q4 Ben Lake PC Ceredigion Preseli
Economy Energy
Context

Government has extended support for mains gas grid but seems uncertain about providing a second round of alternative funding for off-grid premises.

Question

Will the Secretary of State push colleagues for a second round of alternative funding to provide support for off-grid premises ahead of next winter?

Answer from David Davies

The hon. Gentleman is correct that full details of payment have not yet been made clear, but my colleagues in BEIS will come forward with more information about the payment soon.

Partly answered

Not addressed: Commitment to a second round was not confirmed; vague response given.

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Q5 Jo Stevens Lab Cardiff East
Employment Business & Trade
Context

Steel businesses and workers in Wales face challenges due to increased operating costs during the cost of living crisis.

Question

What is the Government's plan for our steel industry and for steelworkers' jobs given their economic conditions?

Answer from David Davies

The UK Government are completely committed to the steel industry, demonstrated with a £30 million loan to Celsa during the covid crisis and various schemes to support high energy use industries. We also have discussions with Tata about further support.

Partly answered

Not addressed: Specific plan was not detailed; general commitment mentioned instead.

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Q6 Jo Stevens Lab Cardiff East
Wales Energy Business & Trade
Context

Steelworkers in Wales need stability from the government to support local supply chains for floating offshore wind projects. The Crown Estate leases are crucial for this development.

Question

Steelworkers need a Government on their side. The industry needs a partner that can provide stability, not sticking plasters. Floating offshore wind in the Celtic sea is a real opportunity for our steel industry and the wider supply chain in Wales. It would also help to mitigate the impact of the cost of living crisis for many Welsh businesses in the supply chain. If the Government do not provide the necessary stability, we will see platforms being built in France and Spain and floated over to the Welsh coast, which would be absolutely unconscionable. What is the Secretary of State doing to ensure that the Crown Estate leases will use local supply chains in Wales?

Answer from David Davies

I have met the Crown Estate on a number of occasions to discuss the next bidding round for the sites out in the Celtic sea. Obviously we hope to develop the industry. I agree with the brunt of the hon. Lady's question, which is about the importance of developing a floating offshore wind industry off the coast of Wales. I have been trying to ensure that the supply chain is as local as possible. That is why we have supported the conversations between developers and the Crown Estate; it is also why I have personally visited Pembrokeshire to ensure that the growth deal there supports the new infrastructure at the dock that can allow those projects to be floated out to sea.

Partly answered

Not addressed: Did not commit to specific measures ensuring local supply chains will be used in Crown Estate leases.

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Q7 Liz Saville-Roberts PC Dwyfor Meirionnydd
Economy Energy Business & Trade
Context

The company Harlech Foodservice is struggling under soaring energy bills, interest rate hikes in coronavirus business interruption loan scheme repayments. The UK Government's slashing of their energy support has been devastating.

Question

For Harlech Foodservice, a key business in my constituency, last week's news that the UK Government were slashing their energy support for businesses was devastating. The company is already struggling under soaring energy bills and interest rate hikes in coronavirus business interruption loan scheme repayments. Can the Secretary of State clarify the position? Will any support be forthcoming on CBILS repayments, and will any savings made by the Treasury as a result of falling wholesale gas prices be ringfenced for targeted support for small and medium-sized enterprises and vulnerable households?

Answer from David Davies

I hope the right hon. Lady will recognise that over the last year the Government have done an enormous amount to support businesses through the energy price guarantee. They have made it clear that that support package cannot continue at the current level after April, when the next financial year begins, but they have said that they will also make clear, fairly shortly, what the new package will look like.

Partly answered

Not addressed: Did not provide specific details on future energy support measures or assistance for CBILS repayments.

How: Confront Some Realities, Opposition To Opening Up Further Oil And Gas Projects

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Q8 Liz Saville-Roberts PC Dwyfor Meirionnydd
Economy Taxation Wales
Context

Following the last Budget, funding for Welsh public services will be worth £3 billion less over the next three years. Key workers are striking and real incomes are in freefall.

Question

I would have appreciated an answer about the coronavirus business interruption loan scheme as well. We all know that extortionate energy costs are part of this Tory winter of discontent, which bookends 13 years of deliberate austerity. Key workers are striking and real incomes are in freefall. Following the last Budget, funding for Welsh public services will be worth £3 billion less over the next three years. Enough is enough, and cutting key workers' salaries is not the right answer. Will the Secretary of State urge the Treasury to reverse this decline by establishing a truly fair funding system for Wales that recognises our nation's needs, taking into account age, disability, and poverty levels?

Answer from David Davies

The right hon. Lady will surely be aware that the Welsh Government are receiving £1.20 per head for public services for every pound that is spent in England. That is why it is so difficult to understand why not only are the waiting lists longer in Wales but educational outcomes are lower, after more than 20 years of a Labour Government.

Not addressed: Did not address the issue of reversing decline in public service funding for Wales.

How: Propping Up Welsh Labour Government

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