Wales outlines £380m funding plans amid 'biggest fall in living standards since records began'

2022-2023 will see the biggest fall in living standards in the UK since records began, according to the Office for Budget Responsibility. Credit: PA Images

The Welsh Government has outlined how it will spend £380 million on tackling the cost of living crisis in Wales.

It comes amid the biggest fall in living standards in the UK since records began, according to the Office for Budget Responsibility.

Many are being forced to choose whether to heat their homes or eat after the biggest jump in domestic energy bills in living memory.

The price rises have sparked UK-wide protests demanding action, with "growing public outrage" according to the People's Assembly.

The Social Justice Minister has criticised the UK Government's response to the crisis, accusing it of showing a "lack of support and leadership".

The energy price cap has risen by 54%, affecting around 22 million customers. Credit: PA Images

Jane Hutt MS said Chancellor Rishi Sunak's announcement of an extra £27 million for Wales in his Spring Statement falls short.

"The cost of living crisis is affecting every household across Wales, disgracefully, we have people that are being forced to make the unfortunate decision of whether to heat or to eat," she said.

"This is completely unacceptable for a modern day society.

"If the UK Government were serious about tackling the problem we would see real solutions and not soundbites about levelling up, when it’s clear for all to see, they're levelling the country down."

How will Welsh Government funding be spent?

The Welsh Government said it has invested more than £380 million to support low income households since November, including a £200 payment to help pay bills over the winter.

The Finance Minister said it will provide additional support for fuel costs next winter, and is considering how to extend the £200 payment to more people.

Households in council tax bands A-D and those who receive support from the council tax reduction scheme will also receive a £150 payment.

Rebecca Evans MS said: "A further £25 million is available to local authorities in the form of a discretionary fund to provide additional and targeted support for households struggling with the massive surge in the costs of living.

"A further £15 million has been made available for the Discretionary Assistance Fund to provide financial support for those experiencing extreme financial pressures, extending the additional support until the end of March 2023.

"In addition to this, we will continue to put pressure on the UK Government to use the significant levers they have to support the most vulnerable through the difficult times ahead."

Credit: PA Images

Plaid Cymru's spokesperson for the economy said it "sickens" him that families are faced with unaffordable bills "while energy companies sit on profits in the billions".

Luke Fletcher MS said: "The package announced today by the Welsh Government already includes a past payment - the winter fuel support scheme.

"But the price rise is happening now, in spring – the support cannot stop now. For families in Wales, a few hundred pounds could make the difference, and yet contrast this with the billions that we know energy companies are sitting on.

"We can no longer wait for Westminster to do the right thing by Wales - we need the powers to tax and regulate the energy sector, here in Wales.

"This starts with imposing a one-off windfall tax on energy companies. If they don't want to do it for us, then give us the powers so we can do it ourselves!"

As part of his Spring Statement, Chancellor Rishi Sunak announced fuel duty would be cut by 5p a litre. Credit: PA Images

On Monday, the Secretary of State for Wales defended the UK Government's handling of the cost of living crisis.

Simon Hart MP told ITV Wales: "We are doing absolutely everything we can to strike this balance, to keep the cost of living within reasonable control but at the same time keeping the lid on inflation and interest rates.

"We are in for a tough time, nobody's denying that. We knew that the pandemic was going to have a financial hit, it has.

"We know that the war in Ukraine is going to have a huge financial hit, particularly around the energy sector."

Chancellor Rishi Sunak has been criticised for being "out of touch" in his Spring Statement. Credit: PA Images

Mr Hart also defended Rishi Sunak after he was criticised from several angles in the aftermath of his recent Spring Statement.

Described by some critics as "woefully out of touch", the Chancellor announced measures including a 5p cut in fuel duty, a raising of the National Insurance threshold and the promise of a future 1p cut in income tax.

Mr Hart dismissed criticism, saying it was "unnecessarily harsh" and that the Chancellor had done all he could to help people and families.

"Rishi Sunak has had a very difficult balancing act.

"In my view what he's done, for now and he's stressed for now, is to go as far as he reasonably can. He hasn't ruled out further measures.

"I think we need to really stand back and depoliticise this. The idea that he just misread the mood or misread the situation - he went as far as he thought he safely could for now to protect families and business across the country."


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