Our response to the Economy, Trade and Rural Affairs Committee inquiry into the cost-of-living crisis

The Bevan Foundation have submitted written evidence to the Economy, Trade and Rural Affairs Committee inquiry into the cost-of-living crisis 

The Senedd’s Economy, Trade and Rural Affairs Committee recently called for written evidence to support its inquiry into the cost-of-living crisis. The Bevan Foundation were pleased to be provided with an opportunity to inform the committee and to share its extensive expertise on poverty and inequality in Wales.

A summary of the Foundation’s key points are outlined below:

• Whilst the cost-of-living crisis is affecting everyone in Wales, it is low-income households that are the hardest hit. Low-income households are far more likely to have to cut back on essentials or fall into debt because of rising costs than middle and high income households.
• In November 2021, 39 per cent of Welsh households reported that they struggled to afford anything beyond essential items. This is likely to have increased over recent months. A significant proportion of the Welsh population are therefore likely to have minimal discretionary spending over the coming months. This will have an impact on sectors such as tourism, hospitality and entertainment, sectors that were hit especially hard by the pandemic
• Rural households are likely to be more negatively affected by rising costs than urban households.
• The actions taken by the UK Government in response to the crisis have been grossly inadequate and are failing to protect those who are most likely to be affected by rising costs.
• The response of the Welsh Government has demonstrated a greater understanding of the scale of the challenge facing Welsh households. There is further action that could be taken however, to provide greater support to households and to improve delivery.

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