MS, Cabinet Secretary for Social
Justice, Trefnydd and Chief Whip: With the ongoing conflict in
the Middle East causing uncertainty across global markets, we
recognise that many people are struggling with the
cost-of-living, particularly households who rely on oil for their
domestic heating.
We welcome the £3.8m from the UK Government to support households
in Wales that use oil for heating and hot water in light of the
recent spike in prices. Costs for heating oil in some cases have
more than doubled.
We engaged with the UK Government to ensure that funding for
Wales is based on the number of households using heating oil
rather than basing it on the Barnett formula – which is a
positive outcome.
The UK funding will be provided to Welsh Government from April
for the 2026-27 financial year. However, I recognise
households need support now – and we are taking steps to get
additional financial support immediately to households in the
most need as part of our ongoing cross-government approach to
tackling the cost-of-living crisis.
We already provide support for those experiencing fuel poverty
with purchasing off-grid fuel through our Discretionary
Assistance Fund. We are acting now to increase support to those
in financial crisis who use off-grid fuel by temporarily
uplifting the amount to £750 per award that can be provided for
heating oil while prices are inflated – using our own budgets
this year. We are also increasing the frequency these payments
can be provided, from once to twice in a rolling twelve-month
period, a minimum three months apart.
These changes will be communicated to the DAF Approved Partners
who submit the applications for this support, which includes
local authorities.
The Fuel Bank Foundation, supported by Welsh Government, is
increasing the minimum delivery support through their National
Heat Fund Scheme in Wales for those in fuel crisis. The
Foundation provides fuel vouchers for deliveries of oil or gas
for those not connected to the mains gas network. This will
ensure that they can continue to support households that pre-pay
for their fuel and are at risk of disconnection.
We will continue to invest in our Warm Homes Nest Scheme to build
resilience against future price shocks. Over £30 million has been
allocated next year to fund energy efficiency, renewables and
clean heat measures – lowering bills, reducing climate impacts,
increasing energy independence and supporting local jobs.
We are keeping a close eye on the situation and will develop
options for our wider response and how best to deploy the £3.8m
that will be provided in 2026-27.
Between 2022 and 2026 we have invested over £7bn to support
households through programmes to alleviate financial pressures,
help maximise income and to help keep more money in their
pockets. This includes investing in our Childcare Offer and
Flying Start, in Universal Primary Free School Meals and free
breakfasts in primary schools.
This winter, eligible households receiving both the Council Tax
Reduction Scheme and Disabled Band Reduction are receiving a £100
payment through their local authority, and our Council Tax
Reduction Scheme has provided more than £290m of financial
assistance this year to almost 260,000 low-income
households. Of these, almost 214,000 pay no council tax at
all.
Our funding for Safe and Warm Hubs provides warm and safe spaces
in the community where people can find company and get support.
Over 800 warm hubs across Wales are providing vital support to
communities this winter.
The provision of Emergency Food Aid support remains a key part of
the Welsh Government's response to the ongoing increase in the
cost-of-living faced by our communities and is making a
real difference to those struggling with affording the cost
of food. We recently confirmed an additional £1m for community
food organisations and food banks across Wales to help feed more
people who need support. Since 2019, we have allocated over
£30 million to support community food organisations to address
these issues and to tackle food insecurity. This includes funding
to local food partnerships to address
issues of affordable food and to tackle food insecurity.
We are encouraging anyone who may be struggling to
contact AdviceLink Cymru's Claim
What's Yours helpline to check what financial support
they may be entitled to. The service helps people access
benefits, pensions, help with care costs and council tax
reductions they may be entitled to. More than £10.5 million has
been returned to people since 2020.
