Commons Sense

House of Commons · Westminster Hall

Cost of Living in Wales

22 February 2022 · 5 other contributors · 4,699 words

Opened by Jessica Morden Lab Newport East

Responding minister: David Davies

EconomyHousingEnergyBenefits & Welfare

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

Read the full transcript on Parliament.uk

At a glance

Jessica Morden raised concerns about cost of living in wales in Westminster Hall. A government minister responded.

Key points

  • The cost of living crisis in Newport East and Wales includes soaring energy bills, food price increases, rent hikes, and rail fare rises.
  • Constituents report cutting back on meals, heating, and essential items to cope with rising costs.
  • A survey shows 95% of respondents experienced an increase in living costs, 76% made difficult choices, and over 15% used food banks.

Key requests to Government

The Government should look again at practical solutions such as a one-off windfall tax on North sea oil and gas profits to fund VAT removal on energy bills, increase local housing allowance, and expand winter fuel payment schemes. The UK Government must also reconsider the national insurance hike and cuts to support.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Jessica Morden Lab Newport East

The cost of living crisis is causing deepening inequality in Newport East and across Wales, with constituents facing soaring energy bills, food price increases, rent hikes, and rail fare rises. Constituents have reported cutting back on meals, heating, and essential items to cope. The survey conducted by the MP showed that 95% had seen an increase in living costs; 76% cut back or made difficult choices; and more than 15% used food banks. The Bevan Foundation described it as the most challenging crisis in living memory.

Other contributors (5)
  • Carolyn Harris Lab Neath and Swansea East

    Citizens Advice reports that one in 10 families were already facing financial crisis before winter, with food prices and utility bills increasing. Families are having to decide between heating and eating due to the extra burden of national insurance payments. Inquired about the higher price hikes in this country compared to France, where energy is nationalised, suggesting that allowing companies to operate without sufficient regulation has led to significant issues.

  • Christina Rees Lab Aberavon

    Does my hon. Friend agree that things would be a lot worse in Wales if it were not for the Welsh Labour Government's £330 million package to tackle the cost of living crisis, targeted at helping the most vulnerable through the winter support scheme and the discretionary assistance fund? Will she congratulate the Welsh Labour Government on their basic income pilot scheme for care leavers in Wales? This will give care leavers support to develop and become independent young adults. The Welsh Labour Government in Cardiff has used available levers to ease the cost of living crisis for Welsh people, including a £330 million package of extra help and an extension of winter fuel payments.

  • Hywel Williams PC Arfon

    Does she agree that we need a measure of inflation reflecting the costs faced by people, including pensioners and families with children? In my constituency, 3,153 children will be affected by changes to universal credit.

  • Jamie Wallis Lab Swansea East

    Does she think it is time for the Welsh Labour Government to do more about council tax bills in Wales? Councils are consistently and disproportionately some of the most expensive in the UK, with residents facing huge bills.

  • Nia Griffith Lab Llanelli

    Does my hon. Friend agree that there have been swingeing cuts to tax credits since 2010, and even though there was some adjustment to the taper last year, it is not enough with rampant inflation. There now needs to be a real effort to ensure that tax credits are actually worth something to make work worthwhile.

Government Response

David Davies

It is a pleasure to serve under the chairmanship, Ms Fovargue. The minister apologises for being briefly delayed by voting proceedings but extends congratulations to Jessica Morden on securing this debate. Acknowledging the cost of living crisis as a global phenomenon driven by factors such as increased demand and supply constraints post-covid, the minister highlights significant support provided during the pandemic including 475,000 Welsh jobs protected through furlough schemes, billions in government loans to Welsh firms, and an additional £3.8 billion of Barnett-based funding to the Welsh Government. The council tax rebate is a recognised measure with funds expected to be supplied as per the Barnett formula. Emphasising the impact of global economic challenges, the minister outlines efforts like increasing the national living wage by 6.6% and raising personal allowances for income tax, while freezing alcohol and fuel duties despite rising costs. The universal credit taper rate is reduced from 63% to 55%, and work allowances are increased by £500 annually, benefiting over a million households on average with an extra £1,000 per year. The minister discusses the global nature of energy price increases, citing the UK's minimal dependency on Russian gas (only about 2%) and reliance mainly on Norwegian imports. He highlights efforts in renewables and nuclear power, noting the transition to low-carbon sources generally incurs higher costs compared to traditional carbon-based fuels. The debate concludes with recognition that while many companies offered fixed prices pre-crisis, significant price quadrupling was unforeseen.

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