Plaid Cymru warns Reeves’ cost-of-living measures fail to address Welsh reality

Mark Mansfield

Plaid Cymru has warned that the UK Government’s new cost-of-living package fails to address the higher everyday costs faced by households in Wales, particularly energy bills.

The criticism came after Chancellor Rachel Reeves unveiled a package of measures designed to ease pressure on families and businesses following rising global energy prices linked to the conflict in Iran.

Among the announcements were an extension of the fuel duty cut, reductions in import tariffs on selected supermarket foods and a temporary cut in VAT from 20% to 5% on attractions and children’s meals during the summer holidays.

The “Great British Summer Savings” package will apply across Wales, England, Scotland and Northern Ireland from 25 June to 1 September and is expected to reduce the cost of visits to attractions including theme parks, zoos, museums, cinemas and theatres.

Speaking in the House of Commons, Plaid Cymru Westminster leader Liz Saville Roberts said that while the measures were welcome, did not go far enough to reflect the realities facing Welsh households.

She highlighted what she described as “structural inequality” in heating costs and urged the UK Government to introduce longer-term support.

She said: “People are very aware that President Trump’s war with Iran is worsening the cost of living.

“But there are measures within the gift of the government – long-term measures – which could improve heating costs for households.

“In north Wales and Merseyside we pay the equivalent of £255 a year on standing charges – that compares with £160 for London.

“When will she be addressing this structural inequality in heating costs?”

Responding, the Chancellor pointed to support already introduced.

She said: “In the Budget last year I reduced energy bills by £150 and just a few weeks ago I put in additional money to help with the cost of heating oil.

“The issue around standing charges and those allocations is one for DESNZ, but I will pass on her concerns to the relevant minister.”

Unique pressures

Speaking afterwards, Ms Saville Roberts said Welsh families continued to face unique pressures not adequately recognised in Westminster.

She said: “While support announced by the UK Government is welcome, the Chancellor has not alleviated my concerns that the scale of challenges facing people in Wales is not being fully recognised – including our sky-high heating costs.

“It’s not just higher standing charges either – we also have the oldest housing stock in the UK, and a high proportion of off-grid housing that fall outside the scope of the energy price cap.

“So while Welsh families will certainly benefit from the fuel duty cut extension, and the temporary VAT cut on summer holiday attractions – this package fails to recognise the unique costs facing Welsh households and businesses. Wales requires a serious, dedicated response.

“From ending unfair standing charges, increasing support for those on heating oil and LPG, tackling exploitation by energy companies, and reducing bills by fully breaking the link between electricity and gas prices – Plaid Cymru call on the UK Government to include targeted measures that will make a real difference to communities across Wales.”

‘Key priority’

Secretary of State for Wales Jo Stevens said: “The new measures announced today by the UK Government will help people and businesses across Wales with the cost of living.

“We are tackling rising prices at the fuel pumps by extending the 5p cut in fuel duty. Welsh families will also benefit from cheaper tickets for attractions and meals out through VAT reductions.

“Other cost of living measures already taken include giving households £117 off energy bills and increasing the National Minimum and Living Wage. Today’s announcement will help deliver our key priority – putting more money back in people’s pockets.”

The wider package is expected to cost around £1.8 billion over six years, with ministers saying changes to the taxation of overseas oil and gas operations will help fund the measures.