The
Welsh Government has said today's Spring Statement must be used to
provide meaningful action to tackle the cost of living crisis. |
In
a letter to the Chancellor of the Exchequer, the Welsh Government’s Finance
Minister Rebecca Evans (pictured) called on the UK Government to “act now and stand with
the Welsh Government to provide a full crisis response to the cost of living
emergency.” The
Welsh Government has said UK Government decisions on unemployment support,
changes to universal credit and increases in taxes on income are adding to
the pressures on household budgets. It
calls for the uprating of welfare benefits – currently set at 3.1% - to be
significantly increased in the context of inflation levels expected to hit
almost 8% by April. The Welsh Government is also calling the reversal of the
decision to remove the £20 universal credit uplift. The
case for a windfall tax on the excessive profits made by big energy
companies, with money raised to be spent on supporting vulnerable households,
has been described as “irrefutable” by the Finance Minister. The
Welsh Government has also put forward a number of other suggestions to help
people. Proposed measures include moving the social policy costs to general
taxation, introducing a low income energy tariff to better target support to
lower income households, and providing further and increased support through
the Warm Home Discount and other winter fuel payment schemes. Rebecca
Evans, said: “We have invested more than £330m to support people through
the cost of living crisis, nearly double equivalent support in England. “But it is the UK Government that has the key levers,
particularly through the tax and benefit system, to offer people more
financial protection. “The cost of living crisis is very real for people, and is set
to get worse from April. No one can afford to underestimate the gravity of
the challenges we face. The suggestions we have made are effective, practical
measures that would help people pay bills and put food on the table. Now we
need the UK Government to listen, act, and stand with us to provide a full
crisis response to the cost of living emergency.” The
Finance Minister also calls on the Chancellor to take the necessary steps to
secure the UK’s energy security, in response to the major geopolitical crisis
arising from the Ukraine conflict. She calls on greater investment to
incentivize renewable energy generation to meet net zero targets and support
a more resilient domestic renewable energy system. |