Cost of Living in Wales

Jessica Morden Excerpts

Tuesday 22nd February 2022 Westminster Hall

[Yvonne Fovargue (in the Chair)]

Before we begin, I remind Members of the House of Commons Commission’s guidance to observe social distancing and wear masks. I will call Jessica Morden to move the motion and then call the Minister to respond. There will not be an opportunity for the Member in charge to wind up because that is the convention in 30-minute debates.

[Jessica Morden (Newport East) (Lab)]

I beg to move,

That this House has considered the cost of living in Wales.

I am most grateful to be granted a debate on this most pressing issue for constituents in Newport East and across Wales, who face an unprecedented cost of living crisis, which has perhaps more accurately been described as a “can’t pay the bills crisis”. Across Wales, our constituents face galloping prices fuelled by soaring energy bills, which affect the cost of everything. This is leading to deepening inequality, as price rises hit the poorest households hardest—inequality already entrenched by years of Government austerity. With things only set to get worse in April as constituents feel the impact of the energy price cap rise, the Government’s manifesto-busting national insurance hike and a forecast rise in inflation, the Government’s lack of understanding and empathy about the stark choice households are having to make, and the absence of any meaningful response to address it, is unacceptable. This is a serious situation that demands a serious response.

I am calling the debate today to give voice to the real stories that constituents have shared with me about their day-to-day existence and how their income is not enough to cover rising bills. The following are quotes that constituents have shared with me, because the cost of living crisis is real:

“I reduce the amount of meals I have a week so the food is spread further for my children, I do not use the heating if I am home alone as I cannot afford it and we cannot use it at night as it is just too expensive.”

“I’ve found that buying cheaper, less nutritional food is the only way I can make food last longer for my children. The cost of gas and electric means I struggle to wash and dry their clothes.”

“Almost all of my tax credits, if not more, a week go on my gas and electric. Very often I have to go without food to be able to have the heating on.”

“The cost of food is jumping quite dramatically, my weekly shop was about £40 a week now it’s more like £60 to £80, unfortunately, my wages and benefits haven’t gone up to compensate. … I’m also disabled—I cannot get cold and I use hot water to manage pain!”

“I struggle to feed my children and to keep the house warm, I’m too embarrassed to use a food bank, especially as I work within the community. I have even gone without food so my daughters could eat.”

“I’ve had to cut down to one ‘meal’ a day to be able to heat our home at night. It’s so cold, too cold for my baby in his thickest sleeping bag, so I have no choice.”

“I am a community nurse and my pay rise is totally negligible. I am paying a lot of money for petrol and the increase in this is not reflected in the expenses I receive ... Food is costing me a lot more and my heating oil has gone up ... I try not to use the heating as much. I am a middle income family and I am not entitled to any financial support.”

“We’ve had to cut everything back to just the basics of daily living. We are a family of three. We have five jobs between us. We have no social life or time for relaxing … having to work to make ends meet. It’s not living, it’s surviving.”

These are just a small selection of the responses I received after asking constituents to tell me how life is for them. The overall results of the survey we carried out in Newport East was stark: 95% of those who responded said that they had seen an increase in the cost of living; 76% had cut back or made difficult choices to try and save money; and more than 15% offered that they had used food banks. This feedback chimes with the view of the Bevan Foundation, one of Wales’s leading think tanks, which called the current cost of living crisis the most challenging in living memory. Its most recent research paper describes how more than a third of Welsh households have had to cut back on heating, electricity or water, and more than a quarter have had to cut back on food.

We are seeing a perfect storm, with many factors coming together and hitting people at the same time. Since December, the UK’s rate of inflation has soared to its highest level for nearly 30 years, and it is expected to peak at 7.25% in April, higher than the growth in wages. A British Chamber of Commerce survey found that 58% of businesses are now planning to raise prices. As the prices we all pay at the till go up, household budgets will be further squeezed.

Food prices are already up. The most recent BBC food price index showed that the cost of some individual food items had skyrocketed by nearly 50% during the last year. Earlier this month, the chairman of Tesco warned that the

“worst is still to come,”

with a potential 5% increase in food prices over the coming months.

The cost of many food items has already shot up faster than the rate of inflation. According to research by Jack Monroe, the price of the cheapest loaf of bread is up by 92%, a can of baked beans by 45% and the cheapest bag of pasta by 141%. All this will be felt most keenly by those on the lowest incomes.

The Child Poverty Action Group suggests that the cost of a food shop will soon rise by £26 each month, with a disproportionate impact on families with children in poverty. The Government’s own food security report found that the poorest 20% of households spent a higher proportion of their income on food, and are therefore more impacted by the changes in food prices. These households have already seen their incomes drop since 2017.

Private rents are now £62 per month higher on average than in March 2020, with Wales experiencing some of the highest rent rises after London and Northern Ireland. The costs of mortgage repayments are also up. UK Finance estimates this will add around £26 a month on to a typical tracker customer mortgage repayment.

Rail fares will rise by 3.8% in March, the biggest increase in nine years. For the two thirds of commuters who drive to work, petrol prices have risen to an all-time high this year, with the cost of filling a tank up by an estimated £10. With oil prices likely to rise further, prices at the forecourts will only be ramped up more.

Then there are the soaring household gas and energy prices. Households in Wales and across the UK will see their energy bills rise by nearly £2,000 a year from April, when the energy price cap lifts, an increase of 54%, or an average of £693.

[Christina Rees (Neath) (Lab/Co-op)]

Does my hon. Friend agree that things would be a lot worse in Wales if it were not for the Welsh Labour Government’s £330 million package to tackle the cost of living crisis, targeted at helping the most vulnerable through the winter support scheme and the discretionary assistance fund?

[Jessica Morden]

I thank my hon. Friend for her excellent intervention. In fact, we saw a further announcement and more detail last week.

--- Later in debate ---

On resuming—

[Jessica Morden]

Before the vote, I was talking about the soaring household gas and electricity prices and about how households in Wales and the UK would see their energy bills rise to nearly £2,000 a year from April, when the energy price cap lifts. I agree with the excellent intervention by my hon. Friend the Member for Neath (Christina Rees) about the interventions of the Welsh Labour Government in Cardiff and how they have used the levers at their disposal to do all they can to ease the cost of living crisis for Welsh people. I will talk more about that later.

The proportion of households spending at least 10% of their budget on fuel bills will be trebling from 9% to 27% and, on top of that, taxpayers will be asked to foot an estimated £120 a household to shoulder the extra costs of the energy companies that have gone under in the last year. Based on that increase alone, National Energy Action Cymru estimates that 280,000 households in Wales could be in fuel poverty come April. That is a further 100,000 households since October 2021, and all that at a time when pay is not keeping pace with rising prices. When we factor in inflation, average weekly pay packets across Britain fell in December by 1.2% and TUC research suggests that real wages are set to fall by £50 a month this year, after taking into account the cost of living, with incomes after tax forecast to drop by 2%. That represents the biggest fall since records began in the 1990s. Although the national living wage may be going up, the proliferation of insecure, casual jobs and cuts to in-work benefits mean that a higher minimum wage does not mean higher living standards.

[Nia Griffith (Llanelli) (Lab)]

Does my hon. Friend agree that, although many people think of benefits as going to people who are not in work, there are in fact a lot of benefits that go to people who are in work? The fact is that there have been swingeing cuts to tax credits since 2010, and even though there was some adjustment to the taper last year, that alone is not enough. With rampant inflation, there now needs to be a real effort to make sure that those tax credits are actually worth something, to make it worthwhile to be in work. At the moment, people face horrendous poverty because of that accumulation of 12 years of cuts.

[Jessica Morden]

I thank my hon. Friend for that intervention. She is absolutely right: the levels of in-work poverty are really terrifying, and it is those on the lowest incomes who are feeling the squeeze most acutely. As she said, that is made worse by the Government’s £20 cut to universal credit in the autumn, which impacted 8,630 households in my constituency. Research from Wales TUC and the Bevan Foundation suggests that Wales was particularly hard hit by the cuts to universal credit and working tax credit, especially when it comes to the in-work poverty that she mentions.

Of the 280,000 individuals in receipt of universal credit in Wales, around 104,000, or 37%, are in work—the highest proportion of any nation or region in the UK. In April, universal credit will increase by 3.1%, just as inflation is predicted to peak at 7.25%. As the Child Poverty Action Group has highlighted, that means that the real value of universal credit for families with children will fall by around £570 a year on average.

[Carolyn Harris (Swansea East) (Lab)]

Citizens Advice tells us that, heading into the winter, one in 10 families were already facing financial crisis. With food prices going up, utility bills going up and the extra burden of the national insurance payments, families are having to decide between heating and eating.

[Jessica Morden]

I thank my hon. Friend for that intervention. She is absolutely right. The experiences of her constituents that she relays were borne out in the comments from my constituents that I read earlier on. The average fall of £570 will affect 3,355 families and 6,272 children in Newport East alone. Meanwhile, families across the UK hit by the benefit cap will experience an even greater fall.

Increases in other benefits are totally insufficient in the face of the inflation juggernaut. Carers allowance has increased by only £2 a week, statutory sick pay by £3 a week and the severe disability premium by £2.10 a month. Local housing allowance rates were also frozen again until 2023, meaning that help for housing costs through universal credit and housing benefit have not kept pace with inflation.

Pensioners are also hit hard. Comparing state pension increases to inflation projections, there is a real-terms cut of £355 for a couple on the basic state pension and £222 for an individual. That is not to mention the hundreds of thousands whose pensions have been underpaid because of admin errors and the 1 million pensioner households still missing out on pension credit.

[Hywel Williams (Arfon) (PC)]

I apologise for missing the first part of the hon. Lady’s speech—I was keen to vote. Does she agree that we need a measure of inflation that reflects the costs that people—including pensioners and families with children—actually face? In fact, 3,153 children in my constituency will be hit by the change to universal credit.

[Jessica Morden]

I very much understand the point that the hon. Member makes about inflation, which runs through this whole debate.

On top of all that, the Government have decided to go ahead with the national insurance rise in April, with the average worker’s contribution set to be hiked from £274 to £500 a year. National insurance contributions will be charged at 13.25% on earnings up to £50,000, but just 3.25% on income above that threshold. Low and middle-income earners will be affected yet again—a tax on ordinary working people and on jobs. The Government have had an opportunity to do something about the cost of living crisis, but the Prime Minister and the Chancellor have been distracted and slow to act. What have we had so far from the Chancellor?

[Dr Jamie Wallis (Bridgend) (Con)]

The accounts from her constituents that the hon. Lady read out earlier were very moving, and I take that to heart. Does she not think it is time, with the cost of living crisis, that the Welsh Labour Government did more to tackle the huge council tax bills in Wales? Welsh councils are consistently and disproportionately some of the most expensive in the UK. That comes up time and again with my residents. Should she not be putting pressure on her colleagues in the Senedd?

[Jessica Morden]

We have some of the lower council tax rates, compared with the UK as a whole. The support packages from the Welsh Labour Government are more generous than those of the UK Government. The hon. Gentleman’s intervention was timely, because I had just asked what we have had so far from the Chancellor. The answer is a £150 council tax rebate for a limited number of households, which is already less generous than the council tax reduction scheme in Wales, where on average people will pay £17 less on their council tax bill. An average band D council tax bill in England is £167 more than in Wales.

The second measure the Government have come up with is the buy now, pay later scheme of a £200 loan to help with bills, which the public are expected to pay back in full over five years, even if their wages fall in the meantime or energy bills rise further still, or even if they become a bill payer later and do not receive the initial £200 loan. The TUC General Secretary, Frances O’Grady, has highlighted that, for most families, the Chancellor’s support package equates to just £7 a week, with more than half of that having to be paid back. As she said,

“It’s too little, it’s poorly targeted, and it’s a stop-gap measure instead of fixing the big problems.”

Conservative MPs voted down Labour’s proposal to cap VAT on energy bills, after suggesting that we could do that once we left the EU. The Government, let us not forget, have casually written off £4.3 billion lost to fraudsters, but refuse to tax properly North sea oil and gas profits, despite the fact that leading energy companies such as BP are boasting about being cash machines, as gas prices across global markets reach record highs.

In contrast to the Tory Government, in Wales we have a Labour Government who are prepared to step in and help by using the levers that they have. Last week, the Welsh Labour Government set out a £330 million package of extra help. That is a funded package that is significantly larger than equivalent support provided by the UK Government. It includes matching the UK Government’s £150 council tax rebate and extending the eligibility criteria, so that many more households will benefit. That is funded by the Welsh Government, as the UK Government made no extra money available, even though they said they would.

The Welsh Government have also announced an extra £200 for low-income households, by extending the winter fuel payment this year and next winter, £25 million for local authorities to help struggling households, and an extension of the Wales national discretionary assistance fund. They have also invested in crucial advice services, food banks and community hubs.

[Christina Rees]

My hon. Friend might have been about to come on to this point. Will she also congratulate the Welsh Labour Government on their basic income pilot scheme for care leavers in Wales? That will give care leavers the support they deserve to develop and become independent young adults.

[Jessica Morden]

I thank my hon. Friend for that intervention. I am glad she mentioned that scheme because I am running out of time, and it is another thing we are able to highlight. All those steps are in addition to Wales’s more generous council tax reduction scheme, the warm homes programme, free prescriptions, a free school meals programme and more. Their actions ensure that people who need support get support, but many of the solutions fall in non-devolved areas, which is why it is the responsibility of the UK Government to step up.

The Government should look again at the practical solutions Labour is putting forward. A one-off windfall tax on North sea oil and gas profits could pay for the removal of VAT on energy bills for a year, and an increase and expansion of the warm homes discount. That is a support package that could mean up to £600 for those who need it most. The UK Government should also reconsider their increase to NI and cuts to support.

The Minister should look at the sensible five asks on the cost of living that the Welsh Government put forward last month, none of which has been responded to. They include the social energy tariff to support lower-income families, increasing local housing allowance, increasing the support available through the warm home discount and other winter fuel payment schemes, expanding suppliers’ ability to write off household energy debt and removing the regressive social policy costs imposed on household energy bills by moving those costs to general taxation.

In the longer term, we need a fundamental reform of our energy system. We also need the Government to set out a national strategy for food, including how they intend to ensure access to high quality, sustainable, affordable food for all and meet the United Nations goal to end hunger by 2030. The national Food and Drink Federation has been clear that it wants greater collaboration between the industry and Government on finding a solution. The next Labour Government would support business to bolster the sustainability and affordability of good quality food.

As the Welsh Government said last week:

“Paying bills, heating homes and putting food on the table shouldn’t be so hard.”

They have taken the action they can with the levers they have available to them. If the Conservative party will not take action, the Opposition stand ready to.

[The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)]

It is a pleasure to serve under your chairmanship, Ms Fovargue. I apologise for the fact that I was at the vote for a few minutes, as one or two others were. I congratulate the hon. Member for Newport East (Jessica Morden) on securing this debate, and I thank those who have contributed. I am pleased that we are having this debate on a subject that is of great importance to colleagues. I want to make it absolutely clear that I fully accept that there is a cost of living crisis. It is a global crisis with many causes, one of which is the quadrupling of gas prices as a result of factors such as the sudden increase in demand for goods and energy as we come out of the covid crisis, and the inability of some suppliers to match that need. It is a global crisis, and I do not deny for one minute that people are suffering.

It is worth reflecting on the unprecedented support provided to businesses and individuals by the UK Government in Wales during the pandemic: 475,000 Welsh jobs have been protected through the furlough scheme, billions have been provided in Government loans to Welsh firms and an extra £3.8 billion of Barnett-based funding has been provided to the Welsh Government. The hon. Lady suggested that the extra money for the council tax rebate had not been supplied yet. That might be the case, but it will be supplied because it was a Barnettised sum, so I am certain that that money will arrive. That is why the Welsh Government were right to pass that reduction on.

The pandemic has had a significant effect on the global economy, and the Government have intervened to ensure that the UK persists and is strengthened throughout the economic challenges. As a result of actions taken by the Government, more people are on a payroll than before the pandemic began. The UK economy is the fastest growing among the G7 nations, so I hope we can agree that the best way to support people’s living standards is not through handouts but by offering access to good quality jobs, better skills and higher wages.

We are helping people across the UK, including in Wales, to find work and to boost wages and prospects through our plan for jobs. That includes the kickstart scheme, which has seen 122,000 young people begin work across the UK, including 6,000 in Wales. I am pleased to say that the Wales Office has a kickstart worker from Merthyr Tydfil working in our Cardiff office, and I was absolutely delighted to meet her today.

We are increasing the national living wage by 6.6% to £9.50 an hour, which will benefit more than 2 million workers. We want to ensure that people in Wales keep more of what they earn, so we are raising income tax personal allowances and freezing alcohol and fuel duties. Although the price of filling up a tank has gone up, it is still £15 cheaper than it would have been if we had kept the original fuel duty escalator.

We have also, as the hon. Lady knows, reduced the universal credit taper rate from 63% to 55%, and we are increasing universal credit work allowances by £500 a year. Together, that should mean more than a million households—I do not have the exact figure, but it is certainly a significant number of households—keeping an extra £1,000 a year, on average.

We absolutely recognise that this is a worrying time because of significant increases in global energy prices. We understand that people such as the hon. Lady’s constituents are concerned, and we have done what we can to help. We have provided £12 billion of support over this financial year and next to ease the cost of living pressures across the UK. We have targeted help for working families, low income households and the most vulnerable in society, in addition to providing a £9.1 billion package of support to help households with rising energy bills during 2022 and 2023.

The hon. Lady is right about the impact that these prices will have, but we cannot do very much about the fact that global gas prices have quadrupled in the last year alone. This will be an issue for every country across the world. The more dependent a nation is on gas, the more of an impact that will have.

[Jessica Morden]

The Minister is quite right, but he missed the comments that I read out from constituents about how hard life will be. He is also quite right that there is a global gas crisis, but we are more exposed to it because of a decade of Tory mismanagement. Gas storage has been cut, so we are reliant on Russia and other countries. We have been slow on insulating homes and we have not been investing in renewables. Does he not accept that?

[David T. C. Davies]

Funnily enough, I do not accept that. First, gas storage will make no difference whatsoever to the price. It does not matter if we are storing two, 20 or 200 days’ worth of gas, because if the unit price of gas has gone up at some point, we will have to pay that higher price.

--- Later in debate ---

[David T. C. Davies]

I fear the hon. Lady may not be right about that. About 70% of the electricity in France comes from nuclear power plants, which are already built. That is one reason why they have managed to control their costs. I hope we will be building nuclear power stations across the UK, and I would very much like to see one built at Wylfa in Wales; there is pretty much cross-party support for that.

I welcome the fact that we are going further and looking into developing modular reactors. I know the hon. Member for Newport East is chair of the all-party parliamentary group for the western gateway, and I may see her later on when I talk to that group about the spherical tokamak for energy production, which could lead to nuclear fusion by 2040.

[Jessica Morden]

Will the Minister give way?

[David T. C. Davies]

I have only 30 seconds left and I have a conclusion here as well, but I give way to the hon. Lady.

[Jessica Morden]

Does the Minister accept that a failure to regulate our energy market has led to dozens of energy companies going bust and consumers footing the bill for that? Consumers have had to move their bills to new energy companies, and they do not know what those will be like in the future.

[David T. C. Davies]

A fairer analysis would be that a lot of energy companies had not expected prices to quadruple and had given people fixed prices. In conclusion, this has been an excellent debate and I wish we had more time for it.

Motion lapsed (Standing Order No.10(6)).

Strengthening the Union as it Relates to Wales (First sitting)

Jessica Morden Excerpts

Tuesday 18th January 2022 General Committees

[Jo Stevens]

My hon. Friend is right. As my colleague the shadow Culture Secretary said yesterday, it is focusing on red meat rather than the dead meat of the Prime Minister.

The example of the BBC—vandalising an envied British institution in its centenary year—is a pathetic attempt to divert attention from the Prime Minister, whose premiership is hanging by a thread. Did the Secretary of State not tell the Culture Secretary that the BBC’s role in our creative industries in Wales is a huge success story? Every £1 of the BBC’s economic activity in Wales generates £2.63 in our economy. Growth in the number of creative jobs and businesses as a result of the BBC’s integral role in Wales has outstripped growth in the sector across the whole UK. Was the Secretary of State even consulted before the Culture Secretary was let loose on her Twitter account over the weekend? I know he will say that S4C is getting £7.5 million a year to support its digital offering, which is welcome. However, in 2010, S4C’s annual budget was nearly £102 million. This year, it is £81.3 million. That is a real-terms cut of £51 million by this Government.

[Jessica Morden (Newport East) (Lab)]

All this is taking place within a succession of stories about this Government wasting Welsh taxpayers’ money. We have the PPE contracts that we have talked about; the Ministry of Defence and its £13 billion of procurement; the Ministry of Justice and its lost projects; and the Department for Work and Pensions losing control of universal credit fraud. Just yesterday, the Treasury gave away billions from the relief schemes that it is not chasing up. Is that not a criminal waste?

[Jo Stevens]

Absolutely, and the list could go on. I could add the privatisation of probation services, which was a huge waste of money.

The Union could also have been strengthened if the Government had made a better fist of negotiations over post-Brexit trade deals and tariffs. We have the humiliating failure of the International Trade Secretary to get agreement from the US Administration for face-to-face talks on steel and aluminium tariffs. If the Prime Minister did not have to focus solely on his disintegrating premiership, he would be able to heed our call to personally intervene on this issue and show the leadership required to protect Welsh and UK jobs in steel and aluminium—

[Jessica Morden]

And in energy.

[Jo Stevens]

And in energy, indeed—my hon. Friend is quite right.

Finally, we probably could have had a whole Welsh Grand Committee on the issue of respect, because it is at the very core of strengthening the Union. Respect for people and places must be at the heart of our Union of nations. Everyone has a right to be treated with respect and no place should be left behind. Everyone matters. Respect between the four Governments of the United Kingdom needs to be embedded in everything we do.

Climate Change: Wales

Jessica Morden Excerpts

Wednesday 14th July 2021 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

Thank you, Mr Dowd, for allowing me to leave early to go to another Committee; it is much appreciated. I congratulate my hon. Friend the Member for Gower (Tonia Antoniazzi) on securing this timely and important debate ahead of COP26 this autumn.

Like my hon. Friend the Member for Newport West (Ruth Jones), I was reminded of the proximity of the conference this week when my hon. Friend and I welcomed and spoke at an event for the Young Christian Climate Network, which was stopping in Newport as part of an epic 1,000-mile relay on its way to the conference in Glasgow, not only to raise awareness of climate change, but to raise awareness of the UK Government’s promises to tackle climate change. It really did typify the dedication to climate justice shared by so many young people across our society—a generation that will really help to define the future of the planet left to them, so I thank them.

I also want to point out that in Newport East we have two of Wales’s 12 youth climate ambassadors, Maham Aziz and Poppy Stowell-Evans, who very much reflect that passion for a sustainable future. Members can hear more from Poppy, who will speak virtually at the all-party parliamentary group on youth action against climate change next week, so watch this space. The youth climate ambassadors’ campaigns are around making businesses in Wales more responsible for their carbon emissions, and they focus on the amount of plastic that people use. Those are initiatives that we would all like to get behind.

There are lots of volunteers and organisations across my constituency doing great work to restore local habitats and biodiversity, which goes hand in hand with the fight against climate change. I want to thank the Royal Society for the Protection of Birds for its work in the Newport wetlands, the Gwent Wildlife Trust in Magor Marsh, the Rogiet wildlife-friendly village team, the Woodlanders, and the Bee Initiative at Penhow. As the young marchers we met last week said, “This is a critical decade for action to prevent climate change and for action to prevent future harm to our planet.”

The Senedd Climate Change, Environment and Rural Affairs Committee’s third assessment report was published last month. It highlighted that in our children’s lifetime, Wales will experience wetter winters with drier, hotter summers and sea level rises of up to 2½ feet along our coast. I have looked at the maps and I have a coastal constituency, which is why it is so important, as other hon. Members have said, that the Welsh Labour Government have set a legal and ambitious commitment to achieve net zero emissions by 2050, and are pushing to get that ambition even sooner. Ambition is critical. Inaction is not an option; nor is doing the minimum.

We were the first country in the world—I was here at the time, along with the hon. Member for Monmouth (David T. C. Davies)—to pass a Climate Change Act in 2008, and under the Welsh Labour Government we were the first country in the world to enshrine in law the Well-being of Future Generations (Wales) Act 2015, ensuring that any decision that our Government make must serve the needs of our children and grandchildren, including on environmental issues. As my hon. Friend the Member for Gower said, we have a Minister and Deputy Minister for Climate Change, too.

Others have highlighted our national recycling rate, which is at an all-time high of 65%. I say to the hon. Member for Montgomeryshire (Craig Williams) that the UK Government could learn from that as we are the third best recycling nation in the world and the best in Europe. I thank Wastesavers at Newport Council for its work, and I look forward to the new youth centre in Magor opening shortly. As others have mentioned, we also have the national forest for Wales to improve air quality and remove harmful greenhouse gases from the community.

Others want to speak, so I will finish here. There is clearly much more to do. Lots of hon. Members have mentioned decarbonising steel. My hon. Friend the Member for Swansea West (Geraint Davies) was right about the dangers of importing steel, which can make things worse. UK steel should be right at the heart of a green recovery, in terms of jobs and new skills, but also in terms of providing steel for solar energy, the tidal lagoons and for electrification. Green jobs for the future in new industries are important to us, too, as are transport, housing and energy efficiency—all of which are in Labour’s green recovery plan.

Wales and Labour have shown a lead on environmental issues, which the UK Government would do well to follow. As the host of COP26, the UK Government must strain every sinew to keep the possibility of limiting global heating to 1.5 degrees, in line with the goals of the Paris agreement. We owe that to the young people who are out there campaigning for that this week.

Oral Answers to Questions

Jessica Morden Excerpts

Wednesday 30th June 2021 Commons Chamber

[Simon Hart]

The hon. Gentleman, like me, has significant agricultural interests in his constituency in west Wales. We have had local conversations as well as national ones to try to reassure farmers—I think successfully, in some respects—that the transition period and our commitments on animal welfare and environmental standards will not be compromised. I do not think there is anything I can say to him that suggests that that has changed in any respect, but I urge him—I know he will take this seriously—to look at the trade deal as a huge opportunity for food and drink producers in Wales. As we work to challenge some of the myths that have been written and spoken about the Australia deal, let us also use the platforms that we have to promote everything that is good about it and how it will provide access to new markets of the sort that we have not had before.

[Jessica Morden (Newport East) (Lab)]

As my hon. Friend the Member for Llanelli (Nia Griffith) said, this Government have until tonight to step in and temporarily retain crucial steel import safeguards to protect our steel industry from cheaper foreign imports. There is still no action from the Government. I hear what the Secretary of State says, but we will be waiting with keen interest. Is this what Ministers meant by promising to protect and champion our businesses post Brexit, and what exactly have Wales Office Ministers done to intervene and stop this?

[Simon Hart]

I assure the hon. Lady that we have been in regular touch with our colleagues in Government on this, as well as with the industry itself, with whom, as the hon. Lady knows, we deal on a regular basis. I said earlier that our commitment to steel in Wales—as she knows, because we have talked about it so many times—is absolutely resolute, but I am afraid that she will have to wait until later this afternoon to have a statement or announcement of some sort, which I hope will clarify the situation.

Support for People and Businesses in Wales: Covid-19

Jessica Morden Excerpts

Wednesday 21st October 2020 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

I congratulate my hon. Friend the Member for Islwyn (Chris Evans) on securing this debate and on the excellent speech he made. I apologise profusely for having to leave before the winding-up speeches, as I must go and chair a Committee.

As my hon. Friend said, this debate on support for people and businesses in Wales during covid-19 comes in the context of the Welsh Government’s announcement that Wales will enter a national firebreak for a fortnight from the end of this week. That is a sensible, proportionate response to the national rise in cases we have seen over recent weeks—we only have to listen, for instance, to national health service staff from the Aneurin Bevan health board on social media to know that. I know it is also something that many of my constituents, while accepting the challenges it will pose—and it will be hard —will understand.

The First Minister’s tone, which encouraged the people of Wales to come together to look after each other and ease the burden on our NHS, was well judged. That is not least because in Newport, which has been under local lockdown since 22 September, we saw our cases drop yesterday to the joint lowest figure in the Aneurin Bevan health board area, along with Monmouthshire, part of which I represent. People in Newport have stuck to the rules, and there are some signs that that is now having an effect, even against the backdrop of a worrying national picture. We thank them for their efforts and their sacrifices at this time, and we also thank those working hard on the frontline during the second wave, who must be exhausted but who are keeping going. We are eternally grateful.

In his announcement on Monday, the First Minister, Mark Drakeford, highlighted the challenges that businesses across Wales are continuing to face. That is why it is good to hear that businesses affected by the firebreak will be supported with the new £300 million fund, which opens next week, on top of the economic resilience fund that has safeguarded 100,000 jobs. It will include payments for businesses covered by small business rates relief; small and medium-sized retail, leisure and hospitality business; and targeted support for struggling businesses, for which it cannot come soon enough. We need to repeat the First Minister’s ask: the Chancellor must give Welsh businesses early access to the new, expanded job support scheme from Friday. The Welsh Government are offering to pay the extra costs to retain staff. I hope that can be resolved quickly.

It goes without saying that the past few months have been incredibly challenging for us all in Wales, and all the more so for individuals and businesses that are falling through the cracks of the support offered by the UK Government. In Welsh questions last week, I spoke up for constituents who are locked out of the Government’s new job support scheme or are deemed to be in unviable jobs. In his response, the Secretary of State invited me to raise individual examples of gaps in Government support that my constituents have encountered. Here are just a few for my constituency neighbour, the Minister.

A worryingly large amount of correspondence has come in from constituents who were denied access to the furlough scheme in the first place, including those on maternity leave; those who are shielding; those made redundant before 19 March, whose previous employer does not agree, for whatever reason, to re-employ them and place them on temporary leave; and many zero-hours contract staff, particularly agency workers. There are also those who started new jobs in March and who have been unable to access support through the furlough scheme. For example, a constituent who started a new job in south Wales in March was told to stay at home after a week in the office. He was later informed that the company could not afford to pay everyone, and he was put on eight weeks’ unpaid leave.

There are also ongoing problems with Government support schemes that affect those who have received support. They include the deeply unfair situation, which is only now becoming apparent, whereby lower paid workers who fall ill after returning to work from furlough risk losing their entitlement to statutory sick pay, as their earnings fall under the limit of £120. I thank Mike Payne of the GMB union for highlighting that, and I think the Government should sort it out.

There are also gaping holes in the Government’s support for the self-employed, including those who work on short pay-as-you-earn contracts. For example, constituents in the creative sector on local film sets have not been covered by the self-employed income support scheme or the job retention scheme. Those I have spoken up for in previous debates who serve as directors for limited companies and draw down their income in dividends currently have no support under either scheme. Those small business owners and directors are often not high earners, paying themselves a nominal salary and taking the rest as dividends.

The new job support scheme is also flawed. An Institute for Public Policy Research report estimates that only 10% of so-called viable jobs will be saved by the package. The truth is that a grant of two thirds of their salary for workers is simply not sufficient for those on the lowest wages, and will make it harder for many of my constituents to pay bills and feed their families, especially in the run-up to Christmas. Government adviser Dame Louise Casey said last week:

“It’s like you're saying to people, ‘You can only afford two-thirds of your rent, you can only afford two-thirds of the food that you need to put on the table.’ There’s this sense from Downing Street and from Westminster that people will make do. Well, they weren’t coping before Covid.”

She is absolutely right that this level of support simply will not cut it. The UK Government should reconsider the policy and listen to the Wales TUC, which has rightly stated that the wage replacement should be at least at the current furlough level of 80%.

Given that two thirds of the national minimum wage is about £800 a month, there is a strong likelihood that many of the lowest-paid workers in Wales, where the average wage is 15% lower than the UK average, will need to claim universal credit under the new job support scheme. That again illustrates the pressing need to address the in-built flaws in the universal credit system, including the five-week wait, which the Work and Pensions Select Committee highlighted yesterday, and the advance loan payment, which pushes people into debt.

Whole sectors of the Welsh and UK economy are facing an uncertain future. In my constituency—my hon. Friend the Member for Islwyn has mentioned many of these—the sectors include the exhibition and events industry and its many supply chains, driving instructors, garages, dog kennels, gyms, the wedding industry, and beauty and hair, as well as others. As chair of the all-party group on steel, may I point out the need to help out our steel industry, which we will definitely need if we are to build back greener? I urge Ministers to work with their counterparts in the Welsh Government to produce a road map for recovery for these businesses, particularly those where supply chains frequently cross borders within the UK.

My final point is about lower-paid workers, particularly women, and I draw Ministers’ attention to the excellent report by the Welsh equality charity, Chwarae Teg, “Covid-19: Women, Work and Wales”. What we are going through might be the new normal, but for lower-paid workers in unfurloughed sectors, such as care, retail and the NHS, who are keeping the country going, there is nothing normal about the contribution they are making to keep us safe in the second wave. The lowest paid—those on the living wage—deserve the Government to commit, at the very least, to giving them a raise next year. As I highlighted in Prime Minister’s questions last month, Ministers should confirm that the hourly level will still rise to £9.21 in April. Working people in Wales and across the UK should not be made to pay for this crisis.

Oral Answers to Questions

Jessica Morden Excerpts

Wednesday 14th October 2020 Commons Chamber

[Tonia Antoniazzi (Gower) (Lab)]

What recent discussions he has had with the Chancellor of the Exchequer on financial support for people in Wales affected by the covid-19 outbreak.

[Jessica Morden (Newport East) (Lab)]

What recent discussions he has had with the Chancellor of the Exchequer on financial support for people in Wales affected by the covid-19 outbreak.

--- Later in debate ---

[Simon Hart]

The hon. Lady and I have a similar dependence on tourism in our constituencies, so I understand absolutely the argument she makes about its value, but I remind her that so far UK taxpayers have contributed £1.1 billion by way of bounce back loans; £490 million in self-employed income support; £303 million in coronavirus business interruption loans; £30 million-worth of eat out to help out; future funding of £7 million—I would carry on, Mr Speaker, if only you would let me—and that is not to mention the 401,000 employees on furlough. The Treasury has gone above and beyond the international average and tried to get to every single business in every single area of the UK, and that includes Gower just as much as anywhere else.

[Jessica Morden]

For those who are able to access the Government’s new job support scheme—many are locked out or deemed by the Government to be in unviable jobs—a cut of a third of wages for the low paid makes it extremely hard to pay bills and feed families. Does the Secretary of State really get this? If so, will Wales Office Ministers fight to get a better scheme?

[Simon Hart]

Often in this questions session we have talked about the fact that there will always be those in all our constituencies who do not quite fit every single one of the intervention measures that the Chancellor has announced over the past few months. In those circumstances, of course we want to be as flexible as possible and to try to find ways, through either the intervention schemes or universal credit, to support the hardest-hit families as best we can. If the hon. Lady brings to my attention individual examples of those gaps, I will of course do my best to address them.

Oral Answers to Questions

Jessica Morden Excerpts

Wednesday 16th September 2020 Commons Chamber

[Simon Hart]

A third of the workforce in Wales has been supported by the UK Government during the pandemic. We have gone further and deeper than pretty well any Government in the world, with VAT deferrals, mortgage holidays, rental support, increases in universal credit, relaxation of the minimum income floor and VAT reductions. This is not a one-size-fits-all arrangement. This is a whole package of measures that are designed to help as many people as possible to stay in work and get back to work as soon as it is safe to do so. I am surprised that the hon. Lady does not welcome that.

[Jessica Morden (Newport East) (Lab)]

On the issue of the 3 million excluded, my hon. Friend the Member for Rhondda (Chris Bryant) is right. At a time when more local areas are facing lockdowns, I urge Ministers to do far more to help those who have fallen through the gaps, at the very least by addressing the five-week wait for universal credit—it should be a grant, not an advance.

[Simon Hart]

I assure the hon. Lady that there will never be a moment when the Government or the Wales Office sit back and think we have done enough as far as this is concerned. We are always striving and will always strive to ensure that we improve every one of our schemes. Where there are gaps, which we have identified before—Government Members have also been helpful in that respect—we will do everything we can to ensure that they are plugged.

Welsh Affairs

Jessica Morden Excerpts

Thursday 27th February 2020 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

I will attempt to condense my speech in the brief time available. I obviously want to echo what other hon. Members have said about the terrible flooding that has taken place in communities across south Wales. Newport East was fortunate not to be directly impacted, although nearby Monmouthshire was, and we sympathise and stand in solidarity with those whose homes and businesses were affected. I thank all the emergency services and everyone who helped.

We have had difficult news again this week for the Orb, with Tata announcing that no suitable buyer has been found for the steelworks. Hon. Members may know that the site was mothballed before Christmas, and Tata is now considering offers to use it for other purposes. Fewer workplaces are more ingrained in the history of Newport than the Orb, and I have spoken at great length about its history, but it also had a fantastic future as the only producer of electrical steels in the UK. With investment, it could have played its part in the electric vehicle revolution and electrification generally, so this is a huge shame. We went to the Government for help, and the Welsh Government did what they could, but help was not forthcoming. I echo the comments of my hon. Friend the Member for Aberavon (Stephen Kinnock), who said that we need far more action than warm words from the Government on steel if the industrial strategy is to mean anything.

Given that today has been a time for maiden speeches, I felt the need to renew my vows and talk at great length about the brilliant things going on in Newport, but there is not much time to do that. However, the CAF railway factory in Newport was officially opened by the Prince of Wales last week. It has the capacity to provide trains for HS2, so I hope that Ministers take that on board, because we would really appreciate it. I fully support the excellent “We’re Backing Newport” campaign launched by the South Wales Argus to promote our city as a great place to live, work and bring up a family, which I know that because I am bringing up my own family there.

Brilliant opportunities are coming to Newport. It is the ninth-fastest growing city in the UK. We have experienced the fourth highest rise in property prices. We have the international convention centre and amazing things going on in the city centre, which is in the constituency of my hon. Friend the Member for Newport West (Ruth Jones). We have had help from the Welsh Government, and Newport City Council has a new visionary leader in Jane Mudd, who is doing a fantastic job.

It is not all about urban regeneration either. We have the fantastic RSPB Newport wetlands, which will feature on BBC “Countryfile” on St David’s Day, so please watch that. Lots of great things are going on.

My hon. Friend the Member for Neath (Christina Rees) mentioned colleagues who, since the general election, are no longer with us for a variety of reasons. They played a fantastic role in this place and their work will continue. I, for one, have inherited the all-party mindfulness group from Chris Ruane. We will continue with that and with Madeleine Moon’s campaign to scrap the six-month rule for those with terminal illnesses, on which the Government have been silent—we need to press further on that.

Oral Answers to Questions

Jessica Morden Excerpts

Wednesday 26th February 2020 Commons Chamber

[Simon Hart]

Absolutely. I could not agree with my right hon. Friend more. That is one of the great benefits of leaving the European Union.

[Jessica Morden (Newport East) (Lab)]

If we want to maximise the benefits of HS2 for Wales, which will require about 3 million tonnes of steel and new high-speed trains, will the Secretary of State lobby the Department for Transport to procure Welsh and UK steel and trains from CAF in Newport for the project?

[Simon Hart]

Yes, that will definitely be an objective of the UK Government. As the hon. Lady knows, we take the future of the steel industry in Wales extremely seriously, and I want to ensure that every opportunity it has to contribute to UK infrastructure projects is taken.