A council tax benefit funding gap of £22m which would have affected 20,500 households in Caerphilly County Borough has been plugged by the Welsh Government.
The financial hole was caused when the UK Government devolved responsibility for the benefit but slashed funding by 10%.
Labour’s Welsh Ministers have previously said there was no money available to plug the gap meaning average cuts to people on the benefit of £67.
Opposition parties have welcomed the ‘U-turn’ but have criticised the Welsh Government’s handling of the situation.
The extra money announced on Thursday means the cut will not happen when the next financial year starts in April. People entitled to the full benefit will still get it.
Local Government Minister Carl Sargeant said: “This not a U-turn – this is protecting the most vulnerable people in our communities.
“As a responsible government, we have held back an element of our reserves as a contingency for unforeseen pressures such as extreme winter weather, pandemics and other emergencies.
“However, as these pressures pass, and as we approach the end of the financial year, we are now able to safely utilise some of this money to provide this much needed additional support for those eligible for help with their council tax.”
Plaid Cymru leader Leanne Wood said: “This U-turn from the government is a victory for all those who joined with Plaid Cymru to campaign against the cuts to council tax benefits.
“It is welcome news that the First Minister has finally bowed to sustained pressure from Plaid Cymru and has agreed to fund the gap that would have caused the cuts. Plaid Cymru has long argued that action should be taken to protect people, many of them pensioners, from these cuts.”
Jeff Cuthbert, Assembly Member for Caerphilly previously said on this subject:-
Jeff Cuthbert said on January 4th,
The Welsh Government made it clear some time ago that it would not use its reduced resources to cover the Tory cuts. Blame for the changes to Council Tax Benefit rests solely with the UK Government.
If the Welsh Government (which has less money than the Scotish Government) were to cover the cuts then that money would have to be found from other already reduced budgets. Budgets that have been reduced of course by the Tories and their Lib Dem partners.
So when Plaid and others criticise Labour in Wales they should explain where they will take the money from. But they never do.
Now, THATS, a U-turn by any measure. so for goodness sake admit it, and get on with what Assembly Members are paid to do.
'U-Turns' are often the correct way to proceed, pig headed people like Margaret Thatcher came out with quotes such as "The Lady's not for turning."
I'm glad the Assembly did a U-Turn, they should not be afraid to admit to doing so.
Richard:
Quite correct: But according to all statements coming out of the Assembly they have NOT done a u-turn, meaning of course this was the outcome they expected when they refused to find the money to protect Welsh Citizens from the proposed `hardship penalty` we hear so much about, I dont think so, Scotland did find the money to protect their citizens, and before anyone had to drag them kicking and screaming to do so, – this is a monumental u-turn, and only after the public and political outcry, they should have had enough political experience between them to understand that their original decision was incorrect and admit it and clear the decks, not Labour of course, they are not big enough to admit their mistakes!!!!, and they have law making powers? god help us.