Cost of Living

1. What steps she is taking with Cabinet colleagues to help reduce the cost of living in Wales.

4. What steps she is taking with Cabinet colleagues to help reduce the cost of living in Wales.

Let me begin by congratulating all the Welsh recipients of King’s birthday honours, which were announced over the weekend—particularly my hon. Friend the Member for Newport East (Jessica Morden).

We are doing everything we can to tackle the cost of living. We are increasing wages faster than inflation, creating thousands of jobs, helping people into work, and increasing pensions and universal credit, and we are going even further to ease the pressure on families this summer, because tackling the cost of living is the core purpose of this UK Labour Government.

The Great British summer savings scheme announced by the Chancellor will have a positive impact on families across my constituency of Ayr, Carrick and Cumnock. More people will be able to save money while taking up opportunities to visit businesses and contribute to the local economy. Can the Secretary of State update the House on the impact that these measures will have in Wales?

My hon. Friend is right. What matters for families is not just getting by, but being able to enjoy time together without worrying about the next bill. The Great British summer savings scheme is cutting VAT on, for instance, children’s meals, tickets for cinemas and theatres and other attractions, and we are cutting the cost of the weekly shop by lowering tariffs on more than 100 staple products. All of that will ease pressure on household budgets, support parents during school holidays, and back Welsh businesses.

This Government removed the two-child cap, which took 5,000 children in my constituency out of poverty. Will the Secretary of State please explain how that is helping children in Wales?

As my hon. Friend knows from his constituency experience, poverty scars children’s lives and life chances. That is why we announced the child poverty strategy, including the removal of the two-child limit, which will benefit nearly 70,000 children right across Wales. We have also increased universal credit for 320,000 families in Wales and raised the minimum and living wages, and, as I mentioned earlier, we are slashing VAT on days out to help families not just get by but enjoy the summer, as everyone should. Meanwhile, what can Welsh families expect from the new minority Plaid Government in Wales? Well, the First Minister has announced a steering group, and has promised to come up with a plan at some point soon. That is the difference between Labour and Plaid: we act and they talk.

Funnily enough, in the first 100 days of this Labour UK Government the Prime Minister cut winter fuel payments for vulnerable pensioners, whereas in the first 100 days of the Plaid Cymru Welsh Government, an extra £55 million is being invested in free childcare for parents. Does the Secretary of State concede that, unlike Labour, Plaid Cymru is focusing on making a difference to people’s lives and lowering the cost of living for households in Wales? Actions speak louder than words.

I have to say that it has been rather amusing to hear the new minority Plaid Cymru Welsh Government bragging about what they have done since the election. They have started a review, they have set up a steering group, they are working on a plan for another plan, they have set a target, and they are thinking about things. Meanwhile, this Government have invested £134 million in the Cardiff capital region, approved seven new youth hubs across Wales, launched the summer savings scheme to cut the cost of living, announced a new ban on social media to keep our children safe, given a pay rise to over 3,000 armed forces personnel in Wales, and expanded the Valour programme for veterans. That is the difference between us and Plaid: we are getting on with the job.

I call the Liberal Democrat spokesperson.

A few months ago I met farmers in Merthyr Cynog, in Brecon and Radnorshire, who warned me about the growing pressures that they were facing. Since then, Trump’s reckless war with Iran has sent fertiliser prices soaring by up to 45% and red diesel prices by up to 30%. Does the Secretary of State accept that unless urgent action is taken, higher costs for Welsh farmers will ultimately mean higher food prices for families across Wales and the UK?

As the hon. Lady will know, red diesel has been slashed to its lowest rate for over 20 years. We have protected farming budgets, all the trade deals that we have signed have helped farmers, and we are looking at all the measures that we can introduce to tackle the cost of living and the impact of the Iran war—in which we did not want to get involved, and we decided not to get involved, despite the protestations of some parties in this House. We are making sure that the economic impact is mitigated.