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Politics

Benefits system ‘failing Wales’

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A REPORT from a Welsh Assembly Committee states the benefits system is too complex and does not treat people with dignity, fairness and compassion.
An inquiry held by the National Assembly for Wales’ Equality, Local Government and Communities Committee heard the benefits system is failing some people on the lowest incomes and is causing wider problems for our communities – in areas from mental health, to local government to poverty.
The UK Government’s programme of welfare reform is one of the most important political issues to affect Wales since devolution.
By 2023, one-third of Welsh households will receive Universal Credit, and the Committee heard particular concerns that long waits for the first payment and monthly, rather than fortnightly, payments were causing numerous problems.
The Committee’s report – Benefits in Wales: Options for a better delivery – contains 17 recommendations for Welsh Government. These include changes within the current devolution settlement, as well as exploring the devolution of housing-related benefits and the assessment process for disability and sickness benefits.
Included in the Committee’s report are recommendations to address these issues. They call for the Welsh Government to ensure that Discretionary Assistance Fund (DAF) payments are made available as an immediate action. DAF payments are non-repayable emergency grants for people on low-income in Wales and could ease the pressure on households as they wait for their Universal Credit payments.
Welsh Government should also seek payment flexibilities, so people can opt for more frequent payments, direct payments to the landlord, or to split payments between couples.
The complex system is not working at its best and could do more to help people on the lowest incomes, says John Griffiths AM, Chair of the Equality Local Government and Communities Committee;
“The current system is not working for far too many people. We repeatedly hear that benefits are not enough to cover basic and essential household costs, and the system does not treat people with dignity, fairness or compassion. The human cost of these failures is unacceptable, in one of the world’s largest national economies.
“Whilst recommending that Welsh Government explore opportunities to devolve more control of benefits to Wales, our recommendations emphasise what can be done now, within the current settlement, and in the longer term. We believe they set out a clear framework for positive change, which will reduce poverty and inequality at an individual and household level, improve well-being and the economy at a community and national level.
“Almost half of the Welsh population receive some kind of benefit, but the social security system is largely non-devolved. The system plays a vital role in the Welsh economy, for individual households and also the wider Welsh purse.”
Alone, among Wales’ principal political parties, Plaid Cymru supports the devolution of welfare benefits’ administration to Wales.
And a report published by the Wales Governance Centre outlines how Wales could be financially better off if it followed the same model over welfare as Scotland.
The report says that if a fiscal framework agreement similar to the one negotiated by the Scottish Government had been agreed by the Welsh and UK governments and had powers over S-benefits been devolved to Wales in 2018-19, the Welsh Treasury “would have been cumulatively better off by £700 million by the end of 2023-24.”
The Wales Governance Centre estimates we could be generating surpluses of over £200 million by the middle of the next decade if Wales had the same deal as Scotland. There would also be the indirect savings to the NHS and Housing Associations who have had to pick up the tab from Westminster’s shambolic handling of the welfare system.

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News

Chancellors economic update includes VAT cut for hospitality sector, and customer discounts

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The Chancellor had set out his coronavirus recovery package today.

Rishi Sunak set out the measures in his summer economic update in the House of Commons on Wednesday (Jun 8), as he faces pressure to assist those who are most vulnerable to the financial crisis.

The Chancellor said he will cut VAT from 20% to 5% for food if people eat out to help those businesses which he said had been hardest hit by the coronavirus pandemic.

The chancellor announced discount to encourage people to eat out in August.

He says restaurants, pubs, bars and hotels as well as other attractions will be able to claim the money back within five days. It had been reported he was considering giving all UK adults a £500 voucher to spent with companies hit by coronavirus, but the Chancellor has decided not to go ahead with that proposal.

Instead Sunak announced a discount worth up to £10 per head for eating out in August. He said his final measure has never been tried in this country. It is an “eat out to help out scheme”, offering customers as discount worth up to £10 per head when they eat out from Monday to Wednesday in August.

Speaking in the Commons today, he said: “Our plan has clear goals, to protect, support and retain jobs.”

Regards furlough scheme, he said it must wind down, adding: “flexibly and gradually supporting people through to October” but that he is introducing a bonus for employers who bring staff back from furlough.

Employers who bring someone back from furlough and employ them through to January, paying them a minimum of £520 a month, will receive a £1,000 bonus.

He says that “in total we have provided £49bn to support public services since the pandemic began”.

He added: “No nationalist can ignore that this help has only been possible because we are a United Kingdom.”

Mr Sunak says the UK economy has already shrunk by 25% – the same amount it grew in the previous 18 years.

He also announced:

A £2bn kickstart scheme paying employers to take on unemployed 16 to 24 year olds for a minimum of 25 hours a week – he says the Treasury will pay those wages for six months plus a sum for overheads. He says there is no cap. This will apply in England and Wales.

VAT on food from restaurants, cafes, pubs and hotels will be cut until January 12 from 20% to 5%
Funding for apprenticeships and traineeships in England, there will be a separate announcement for Wales.

£1bn for the DWP to support millions of people back to work through Job Centres. A £2bn green homes grant in England to cover two thirds of the cost, up to £5,000, for energy efficient home improvements. Again the Welsh Government will have their own proposals on this given time.

A temporary cut to stamp duty in England and Northern Ireland.

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Politics

Next stage of the rollout by Open Reach

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Local member of the Welsh Parliament Lee Waters has welcomed news that Open Reach is bringing super-fast fiber broadband to new parts of the Llanelli constituency.

The next stage of the rollout by Open Reach will bring full fibre to the premises broadband to thousands of homes over the course of the next few years. Provision of super-fast broadband has been a priority of Welsh Government, and the new roll out will increase provision across Wales and Carmarthenshire. The provision of broadband is the responsibility of the Westminster Government, but the Welsh Labour Government have stepped in to fill gaps in the network in Wales that commercial providers have left behind.

Lee Waters MS said:

“I’m really pleased that super-fast fibre broadband is being rolled out to more homes in the area.

“Burry Port, Llanedi, Cross Hands, Hendy, Llannon, Pembrey and Tumble will all start having full fibre installed later this year. This stage of the roll-out is being fully funded by OpenReach.

“This is on top of the investment made by the Welsh Government to get 95% of households connected to fast broadband.

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Community

AM seeks assurances for Llanelli car industry

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Mid and West AM Helen Mary Jones has asked for assurances in the Senedd from the Welsh Government about the future of automotive industry in Llanelli.

Car production in the UK fell to its lowest level in almost a decade last week. It was revealed output fell 14 per cent to 1.3 million, according to figures from the Society of Motor Manufacturers and Traders.

Production shutdowns in anticipation of Brexit is one of the factors impacting on the decrease in output.

Shadow Minister for Economy, Tackling poverty and Transport for Plaid Cymru, Helen Mary Jones AM said:

“It is just over a year since the Schaeffler automotive factory in Llanelli announced that it would be closing with the loss of 220 jobs. These were good-quality jobs, jobs that could sustain families productively. There are real concerns in the sector about the access to markets. I asked the Brexit Minister about further discussions the Welsh Government could have with the UK Government to try and ensure that we do have a voice around the table when negotiations are being made.

“This is especially important with regard to both the new trade deal that we’ll hopefully have with the European Union and any other free trade deals, to ensure that there are no unintended consequences.  For example, allowing access to markets for vehicles and vehicle parts from outside Wales that might have a negative effect on the supply chain that companies have put a lot of effort into building up over many years.”

The automotive sector in Wales is comprised of about 150 firms, mainly component manufacturers, employing over 18,000 workers adding £3 billion to the Welsh economy.

Brexit Minister Jeremy Miles AM said:

“We are in regular dialogue with companies in the sector, with the Welsh Automotive Forum, and with national sector bodies regarding the potential impact of Brexit. Having an ongoing and frictionless trading relationship with the EU is very important for the automotive sector, and indeed for other sectors.”

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