Wales should get the energy sector powers Westminster won’t use

THE cost-of-living crisis is already causing unacceptable hardship for too many families across Arfon. More should be done to prevent even more Welsh families from being pushed into poverty and suffering the devastating effects of the cost-of-living crisis.

Directly or indirectly, this has been exacerbated by the UK Government – from their cuts to Universal Credit, to ignoring calls for a windfall tax on energy companies – it’s no wonder that so many families feel powerless in the face of this economic storm.

The House of Commons has voted in favour of a windfall tax on energy companies. But the UK Government has said it will ignore that decision. Spain has cut VAT on energy. The UK Government will not despite Johnson and Gove’s pledge to do so post-Brexit. France has capped the rise in energy bills to 4% while in the UK they will rise in April by 54%. The powers to tax and regulate the energy sector, to set a windfall tax, to cut VAT, to set a price cap and if necessary to restore public ownership, should reside here in Wales where we can use them rather than they lie in Westminster where they won’t.

The Welsh Government has introduced a package of measures to tackle the cost of living crisis.

They will provide a further Winter Fuel Support Scheme, giving more people on low incomes a non-repayable £200 cash payment towards their energy bills.

Plaid Cymru Members in the Senedd have argued that more people should benefit from this scheme.

The Government will invest in the Discretionary Assistance Fund, extending the flexibilities, ensuring more people receive emergency financial support when they need it.

And a further £25m will be available to local authorities in the form of a discretionary fund. They will be able to target this additional funding to help households which may be struggling. All this is to be welcomed.

The Government will also provide a £150 cost-of-living payment to all households living in properties in council tax bands A to D and to all households receiving support from the Council Tax Reduction Scheme in all council tax bands.

Criticism has been levelled against the council tax rebate approach arguing that it spreads the money too thinly and fails to target the hardest hit.

Plaid Cymru has issued a plan with further ideas about what should be done including accelerating the rollout of free school meals and increasing the Educational Maintenance Allowance, cancelling debt - such as council tax arrears and school meal debt and extending the Tenancy Hardship Grant.

As politicians, we must do all we can to support those suffering hardship through no fault of their own during this cost of living emergency.

It comes hard on the heels of the public health emergency caused by the pandemic and will further exacerbate the longlasting consequences arising from the last two years.