Cost of living crisis: Jane Hutt accuses UK Government of 'making problems worse'

Wales' minister for social justice has hit out at the UK Government over the cost of living crisis, saying it has failed to offer "practical solutions" to help millions of families.

Speaking at a Welsh Government briefing on Tuesday, Jane Hutt said there's "little sign of hope coming from Whitehall" amid the crisis.

Referencing the 'partygate' scandal and the Sue Gray report, she said: "Instead of practical solutions to help millions in crisis now, we have a Government more focused on supporting just one person - the Prime Minister."

Hutt added: "When they have acted, they’ve made problems worse.

"They cut the Universal Credit £20 uplift, which was such a vital lifeline during the pandemic, helping working people and those on low incomes. And just when this help is needed the most – it’s gone."

The UK Government has repeatedly stressed that the uplift was a temporary measure to help those struggling during the pandemic, and the focus now is supporting people into work.

Ms Hutt was holding the Welsh Government briefing to speak about a move to double the winter fuel allowance in Wales from £100 to £200.

The increase in winter fuel allowance is part of a £51 million package of targeted support for families and the most vulnerable across Wales, which was first announced in December.

An estimated 350,000 households in Wales will benefit from the increase as concerns grow about cost of living pressures and soaring energy bills.

Also on the horizon is the 1.25% increase in national insurance from April, as well as a rise in the energy price cap this spring, which could see bills increase by 50%.

Overall, gas prices have increased by 28% over the last 12 months and electricity prices by 19%.

Ms Hutt told journalists: "We are in the middle of a cost of living crisis. The Resolution Foundation calls it a cost of living catastrophe.

"Families across Wales are seeing monthly bills rise, and wages are being stretched like never before.

"From energy bills, to prices at the pumps and the cost of everyday food and essentials – people across Wales are feeling the impact of rising costs and soaring inflation.

"But some families; some households, are facing really tough choices when they can’tmake ends meet – whether to heat or eat. In a modern day society, in a rich country, I find this truly shocking."

People who have already received a £100 payment under the scheme do not need to do anything – they will receive a further £100 payment in the coming weeks.

Local authorities will process new applications from eligible households.

Applications are open until 28 February. However, councils may have already contacted people they believe are eligible.

Sioned Williams, Plaid Cymru's social justice spokesperson, says she welcomes the additional support - but warned: "It is of concern that this additional support will not reach everyone who needs it."

Ms Williams suggested households already in debt "as a result of the cost of living crisis" and "people living with fuel poverty who are not in receipt of benefits" should be included.

Meanwhile, Ms Hutt also criticised the UK Government's latest plans to try to hasten people into work.

Under the Way to Work scheme, jobseekers will be forced to widen their job search outside their area of work after four weeks instead of three months.

If they are deemed to not be making sufficient effort to secure a role, or turn down a job offer, they face sanctions on their benefits.

Ms Hutt described the scheme as "a shortcut to slash spending on welfare while driving people into insecure, short-term work".

She continued: "We've seen the huge damage that sanction can cause and the Government wants to apply sanctions before people even receive their first Universal Credit payment."

A DWP spokesperson said: “With a record number of jobs available, it’s right that people who can work are encouraged to take up available roles.

"Our new approach will help claimants get quickly back into work while ensuring businesses get the people they and the economy need.

"Work is the best way for people to get on, to improve their lives and support their families because, as well as being good for mental wellbeing, people are at least £6,000 better off in full time work than on benefits.”

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