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Politics

Jane Hurtt demands urgent overhaul of energy market

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WALES’ social justice minister has called for an urgent overhaul of the energy market.

Jane Hutt warned that energy costs will remain almost double pre-crisis levels despite a decrease in the price cap from April.

She said: “The energy market needs a complete overhaul, so that customers are treated fairly no matter where they live and investment is made into local communities.”

Carolyn Thomas, a Labour backbencher, said it is a disgrace that standing charges, which hit those in fuel poverty the most, have been allowed to increase.

She told the chamber: “Standing charges also disproportionately impact my residents in north Wales, who are subject to the highest standing charges in the UK, and will be paying over £95 more than those in London.”

Ms Hutt recognised the injustice faced by people in north Wales, saying she has regularly called on the UK Government to introduce reforms.

She said: “There are two issues – the postcode lottery around the amounts charged, and the fact that costs are applied even when people have used very little or no electricity.”

The minister told the chamber north Wales households are hard done by because they live close to sources of affordable, renewable energy which is exported.

Ms Hutt said she has met the new chair of Ofgem and the Welsh Government has responded to a consultation on standing charges.

She said: “We need a solution that is fair to low-income and low-usage households, and that doesn’t continue to disadvantage households in north Wales.”

Delyth Jewell, who represents South Wales East, described the failure of the energy market as an inevitable consequence of privatisation.

Plaid Cymru’s deputy leader said: “It’s failed consumers, who have to pay extortionate prices for the basic necessity of staying warm enough to live.”

Ms Jewell warned that Ofgem’s new price cap will provide scarce comfort for many families.

She said: “It will do little to help households who still have prepayment meters being installed forcibly in their homes, a third of whom have been forced into self-disconnecting this year.

“And let’s not use nice language to hide the truth here – self-disconnecting isn’t a choice, it is enforced privation, it is state-sanctioned destitution.”

During social justice questions on March 6, Ms Hutt reiterated that major reform is needed as she urged Ofgem and the UK Government to take responsibility.

Criticising a lack of progress, she called for the introduction of a social tariff to help low-income households with their energy bills.

Jack Sargeant, who led a petitions committee inquiry into prepayment meters, warned there is nothing strict or tough about Ofgem’s new code.

He told MSs: “The disability charity, Scope, have recently said there are serious gaps in the new code, meaning that vulnerable people could still be forced onto prepayment meters.”

The Labour MS for Alyn and Deeside criticised Ofgem for failing to provide a response to the petitions committee’s report.

Mr Hutt agreed that it is an unacceptable way to treat a parliamentary inquiry, saying: “We need confidence that Ofgem is treating the Senedd with equal respect to Westminster.”

News

Hundreds of Pembrokeshire Council Tax defaulters in court next week

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HAVERFORDWEST Magistrates’ Court will hear cases against hundreds of defendants next week as Pembrokeshire County Council seeks liability orders for unpaid council tax and non-domestic rates.

The session, scheduled for Monday (Mar 17) at 10:00am, will see a block of cases between 12:00pm and 1:00pm dedicated to council tax disputes. The council is applying for liability orders under regulation 34 of the Council Tax (Administration and Enforcement) Regulations 1992.

A total of 341 defendants are listed for non-payment of council tax, while a further 18 cases relate to unpaid non-domestic rates under Regulation 12 of the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989.

Liability orders allow the council to take further enforcement action, which may include deductions from wages or benefits, bailiff action, or bankruptcy proceedings.

The Herald will provide further updates following the hearing.

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News

Reimburse charities for NI rise, say Welsh Conservatives

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CHARITIES not-for-profits, and voluntary organisations in Wales face mounting financial strain due to an increase in employer National Insurance (NI) contributions, prompting calls for government intervention.

The UK Labour Government’s decision to raise employer NI contributions has drawn sharp criticism from the Welsh Conservatives, who warn that the move will place an undue burden on charities and voluntary groups. While public sector bodies such as the NHS and local councils will receive compensation for the additional costs, charities providing essential services under local authority contracts will not be reimbursed.

A survey by the Welsh Council for Voluntary Action (WCVA) found that 84% of voluntary organisations are concerned about how they will manage the NI increase.

Senedd debate on reimbursement

Next week, the Welsh Conservatives will bring forward a Senedd debate urging the Welsh Labour Government to press Westminster for financial support for Welsh charities, not-for-profits, and voluntary organisations. The motion argues these groups should be classified under the Office for National Statistics’ (ONS) definition of public sector employees to qualify for reimbursement.

Welsh Conservative Shadow Secretary for Economy, Energy, and Welsh Language, Samuel Kurtz MS, said:

“Welsh charities, not-for-profits, and voluntary organisations play a vital role in delivering public services that the most vulnerable in society depend upon.

“Labour’s decision to increase employer National Insurance contributions will have a detrimental impact on the future and viability of these organisations.

“The Welsh Conservatives are clear: Labour must ensure that Welsh charities, not-for-profits, and voluntary organisations are reimbursed for this rise in employer National Insurance contributions.”

Sector voices concern

The WCVA has also warned that the NI increase could put crucial community services at risk.

A WCVA spokesperson said: “WCVA is deeply concerned about the impact of increased Employers’ National Insurance contributions on voluntary sector organisations across Wales. Many of these organisations already face significant financial pressures, and this increase threatens to put additional strain on their resources and potentially jeopardise vital services delivered to communities.

“We have strongly urged both the UK and Welsh Governments to recognise the invaluable role the voluntary sector plays, especially in partnership with public services. We believe it is critical for voluntary organisations delivering public services to be treated equitably and included in any financial support measures, ensuring they are not disproportionately disadvantaged by these policy changes.

“WCVA welcomes the debate in the Senedd and hopes it will lead to productive discussions and practical solutions to protect the voluntary sector’s essential contribution to Welsh society.”

Motion to be debated

The Senedd motion, set for debate next week, states:

  • Notes the UK Government’s increase to employer National Insurance contributions, coming into effect for the 2025-26 tax year.
  • Recognises the detrimental impact the increase will have on Welsh charities, not-for-profits, and voluntary organisations.
  • Calls on the Welsh Government to make urgent representations to the UK Government to ensure that these organisations delivering public services are included in the ONS-defined public sector category and are reimbursed for the rise in employer National Insurance contributions.

The debate will determine whether Welsh Labour will push for financial support to shield the voluntary sector from these additional costs.

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News

Local Authority is ‘hoarding cash’ as Council Tax rises by 9.35%, says MS

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DEMANDS FOR REFORM AS COUNCIL’S £83 MILLION RESERVES REVEALED

PEMBROKESHIRE residents are bracing for a 9.35% council tax rise, despite local authorities across Wales holding more than £2 billion in reserves. The increase, among the highest in Wales, comes as families struggle with soaring living costs and a series of consecutive tax hikes.

Paul Davies MS: Welsh Government should do more to help keep Council Tax as low as possible (Image: File)

Local Senedd Member Paul Davies has called for urgent reform, criticising the Welsh Government’s Local Government Funding Formula and urging councils to use their reserves to ease the burden on taxpayers.

‘UNFAIR AND UNSUSTAINABLE’

Mr Davies said: “Under the Welsh Government, the Local Government Funding Formula remains broken.

“It cannot be right that people in Pembrokeshire face such a huge increase in their council tax while councils across Wales are sitting on over £2 billion in usable reserves.

“The Welsh Government must do more to keep council tax as low as possible by encouraging the use of reserves, improving efficiency within councils, and promoting the sharing of resources across council boundaries.”

CALLS FOR CHANGE

The Welsh Conservatives have consistently opposed large council tax increases, calling for an independent review of the Local Government Funding Formula. They argue that councils should:

  • Use reserves to reduce tax rises.
  • Improve efficiency by cutting unnecessary spending.
  • Increase cooperation between councils to share services and lower costs.

RISING RESERVES, RISING BILLS

For years, Pembrokeshire had the lowest council tax in Wales, but after a 12.5% rise in 2024-25, it has surged significantly. Despite this, Pembrokeshire County Council holds £82.6 million in usable reserves, equivalent to 28.4% of its annual service expenditure.

In 2016-17, the council held just £47 million in reserves, rising to £83 million in 2021-22. Critics argue that this surplus should be used to relieve financial pressures rather than imposing further tax hikes.

With councils under fire for hoarding cash while demanding more from residents, pressure is mounting on the Welsh Government to overhaul funding and prevent further unaffordable rises.

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