Tory MP Stephen Crabb says Sunak should do more for low earners
- Published
A former Conservative Welsh secretary has called for the Chancellor Rishi Sunak to do more to help people on low incomes.
Stephen Crabb praised the Spring Statement but said more was needed before the autumn budget.
Meanwhile experts at Cardiff University say average Welsh households will be £315 a year worse off, even after the changes on Wednesday.
The UK government said it was saving typical Welsh families £330 a year.
The chancellor announced a cut to fuel duty and is allowing workers to keep more of their wages before they start paying national insurance.
But he announced no boost to benefits or state pensions beyond what has already been planned.
This has led to fears that people on the lowest incomes, who are already struggling to make ends meet, will suffer further as the 3.1% uplift to benefits is well below inflation.
Cardiff University's Wales Governance Centre said the statement failed to provide targeted support for the worst hit households or shield public services from rising inflation.
They said that even after changes like the national insurance threshold are applied average Welsh households are £315 a year worse off.
It suggested that the poorest Welsh households will see the largest hit to their finances, made worse by a 4% real terms reduction in working-age benefits, pension credit and the state pension.
Meanwhile the academics said inflation has "wiped out" 16% of the planned real increase in the Welsh government day-to-day spending by 2025.
The Welsh government could see more money through devolved taxes, with an additional £175m by 2025, although Cardiff University said the forecast is uncertain.
Speaking after the statement, the current Welsh Secretary Simon Hart appeared to leave the door open for Rishi Sunak to come back with further announcements if needed.
The prime minister has also hinted at further action.
Boris Johnson told LBC Radio: "The cost of living is the single biggest thing we're having to fix, and we will fix it.
"As we go forward, we need to do more."
Mr Crabb said: "The measures announced yesterday should not be dismissed - they will make a meaningful difference to a great many families in Wales where take home pay is lower than average and where running a car is essential for many.
"But there is certainly more to do when it comes to supporting those on the very lowest incomes and I don't think waiting until the autumn budget for further action is sustainable."
Related topics
- Published23 March 2022
- Published24 March 2022