The cost of living crisis: a Welsh action plan

Poverty
ReportsResourcesFebruary 15th, 2022

The cost of living is taking a heavy toll on households and the effects are expected to worsen.  This short report recommends action that the Welsh Government and local authorities can take.

The cost of living is already taking a heavy toll on households and the effects are expected to worsen over the next year.  While everyone is squeezed by rising prices, people on the lowest incomes are hardest hit.

Many of the levers to reduce the pressure rest with the UK Government. The Welsh Government demonstrated in the pandemic that it could use its devolved powers creatively and progressively to top up incomes and reduce costs.  These tools can now be used to ease the effects of the cost-of-living crisis.

We focus on action that is deliverable in the short term using existing powers and programmes. It recommends action on the three areas that are the biggest pinch-points in households’ budgets:  housing, energy and food.

Housing

We urge the Welsh Government to:

  • maximise Discretionary Housing Payments;
  • extend the Tenancy Hardship Grant;
  • provide more help with Council Tax through the Council Tax Reduction Scheme.

Energy costs

We urge the Welsh Government to:

  • extend the Fuel Support Scheme over the next year and extend eligibility to people receiving Pension Credit;
  • fund local keep-warm initiatives.

Food

We urge the Welsh Government to:

  • accelerate the roll out of Free School Meals for primary pupils;
  • top up the meal allowance of secondary school pupils; 
  • increase take-up of Healthy Start;
  • extend Discretionary Assistance Fund flexibilities;
  • support local action to increase food security.

Delivery

We urge the Welsh Government and local authorities to:

  • streamline and simplify application processes;
  • remove barriers rapid delivery;
  • increase public awareness of help available
  • support community-based activities that provide advice and essential services.

  

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