Cost of Living

The Economy, Trade and Rural Affairs Committee gathered views on the economic and rural impact of cost of living pressures.  This inquiry seeks to build on the work being undertaken or planned by other Senedd Committees around cost of living, including on fuel poverty, decarbonisation of housing, debt, and mental health inequalities.

Purpose of the Consultation

Rising energy prices, tax increases and falling real wages have led the Resolution Foundation to term 2022 as the ‘year of the squeeze’, with disposable household income set to see its largest fall since the Office for National Statistics started keeping records.

The energy “price cap” for households increased by 54% on 1 April, and is expected to see a further rise later this year. Rural areas have the highest domestic energy prices in Wales, partly explained by the higher costs faced by off-grid households.

Estimates from the National Institute of Economic and Social Research show that the poorest households in Wales are likely to be hit hardest by cost of living pressures, as they spend much more of their income on energy and food.

The Committee welcomed your views on any or all of the issues covered in the terms of reference, and in particular on the following questions:

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>>>   What are the likely economic impacts of the cost of living crunch?

>>>   How are cost of living pressures affecting the workforce, and how are different groups within the workforce being affected?

>>>   How are cost of living challenges impacting upon businesses and economic sectors, and how are businesses responding to these?

>>>   How are rural communities being affected by the cost of living crunch, and to what extent are the pressures they face different to urban areas?

>>>   How effective are the support measures that the Welsh and UK governments have put in place, and what further support might be needed over the coming months?

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The deadline for submissions to this inquiry was Monday 16 May 2022