The costs of housing benefit currently makes up more than a tenth of the UK Government's expenditure on welfare, with costs forecast to reach £25 billion by 2014-15. The Government's policy on under-occupation came into force in April 2013 and it is estimated that 40,000 tenants in Wales will be affected; representing 46% of working age housing benefit claimants living in the social rented sector. This is the highest proportion of any region in Great Britain. There could therefore be a shortage of one and two bedroom homes in Wales to re-house everyone who wants to downsize. If local authorities are struggling to find alternative smaller accommodation for Government should undertake a speedy review of this policy. It is also increasingly urgent for the Welsh Government to continue with its house-building programme, with a particular focus on the building of smaller sized properties: obviously this is a long-term solution that would require additional resources. If no social housing is available, tenants may need to move to the private rented sector and private rental costs would need to be monitored. The costs of moving disabled households who require adaptations are also a concern. There may be a case for exempting disabled households from the policy. The Government's proposal to pay housing benefit direct to social tenants under Universal Credit may result in some tenants being unable to manage their rent payments. The Committee recommends that the Government provide for housing benefit to be paid direct to the landlords in certain circumstances, for example after a specified period of non-payment

The Work Programme is the latest government-contracted employment programme, which aims to support long-term jobseekers into work and off unemployment benefits. Launched in June 2011, the Work Programme replaced a number of previous welfare-to-work programmes and consolidates employment support for a very wide range of jobseekers into a single mainstream programme. Providers, who are predominantly commercial companies, provide support to participants, and receive payments for finding participants sustained employment. In Wales one in nine people who joined the Work Programme in its first two years found sustained employment (defined as 13 or 26 weeks). This is the lowest rate in Great Britain, though not much lower than the average. The Committee's conclusions include: Working Links Wales and Rehab Jobfit-the two providers operating in Wales-must ensure that both they and their subcontractors have specific measures in place to support lone parents; and that Work Programme participants in Wales-unlike those in England-cannot access European Social Fund training and skills courses which is hampering the performance of the Work Programme in Wales and ultimately the opportunities available to the long-term unemployed. Similarly, DWP must enable participants to exit the Work Programme if required in order to access Jobs Growth Wales. The key issue here seems to be that there is a lack of flexibility in and between the various programmes set up to get people into work, and that this lack of flexibility appears to be more marked in Wales

The draft Wales Bill was published following the recommendations of the Silk Commission in November 2012. It sets out to devolve tax and borrowing powers to the Welsh Government and National Assembly for Wales, make changes to the electoral arrangements of the National Assembly for Wales, and clarify and update the devolution settlement. The Government hopes that the provisions in the draft Wales Bill will enable devolved governance in Wales to become more accountable. The cross-party Committee believes partial devolution of income tax to the Welsh Government should be put to the people of Wales in a referendum. The cross-party Committee also has sympathy with the argument that the issue of "fair funding" must be resolved before any income tax powers are devolved so that Wales is not unfairly disadvantaged. The issue of fair funding - how the size of the block grant from the UK Government is determined, currently by the Barnett formula which has long been criticised as providing an unfairly low allocation to Wales - needs to be examined and should not wait until after the 2015 General Election. The National Assembly for Wales should have power to decide its own Assembly term length, rather than this being decided at Westminster. The Committee recommends the clause in the draft Bill which permanently extends the length of the Assembly from four to five years should be scrapped and replaced with provisions that give the National Assembly the powers to determine the length of its own electoral term.