Jane Hutt MS, Cabinet Secretary for Social Justice, Trefnydd and Chief Whip
Today, official figures are published which show 340,000 households in Wales (25%) were living in fuel poverty in October 2024. A further 215,000 households (16%) are estimated to have been at risk of fuel poverty.
These figures reflect the ongoing challenge many households across Wales continue to face as a result of the global energy price surge caused by the reopening of economies after Covid-19 and significantly exacerbated by Russia’s war against Ukraine.
Soaring energy costs, combined with the growing price of essential goods and services, have placed enormous pressure on households across the country. Although energy prices have reduced from their peak, they remain significantly higher than before the global price surge and the rise in incomes has not kept pace. Most of us will have been affected, however, there has been a disproportionate impact on people already struggling to make ends meet.
While these global factors are outside our control, the Welsh Government is determined to support households in need. We have budgeted £35 million this financial year to the Warm Homes Nest scheme, our programme to assist people on low incomes living in cold, damp homes with free energy efficiency measures and affordable, low carbon heating solutions. This includes a crisis route which provides emergency support to households without heating or hot water. Nest also includes a free and impartial advice service to support households to access the most appropriate scheme for their individual circumstances, including Nest, the Energy Company Obligation scheme, the Great British Insulation Scheme as well as any schemes run by Local Authorities.
Our Discretionary Assistance Fund provides cash support and other help for those in financial crisis. In addition, we have funded the Fuel Bank Foundation to provide support for households in Wales that pre-pay for their fuel and are at risk of disconnection. This includes vouchers for those with pre-payment meters and help with the cost of fuel for off-grid households.
Our Claim What’s Yours benefits take up campaign also provides help for people to access the financial support they are entitled to.
Decisions by the UK Government to expand the Warm Homes Discount and restore the Winter Fuel Payment to pensioners earning up to £35,000 means vital support will be available to vulnerable households in Wales this winter. Energy suppliers also have a key role to play in supporting their customers with fair and affordable payment plans and easy to access emergency support where required.
These statistics are a stark reminder that times are tough for many of us in Wales, but we have made sure support is available. I urge anyone on a low income who is struggling to keep their home at a comfortable temperature to get in touch with Nest now, so we can help before the cold autumn nights set in. I want to make sure everyone across Wales is receiving the financial help they are entitled to and contacting Advice Link Cymru’s Claim What’s Yours helpline will ensure this. Finally, I urge anyone struggling to pay their energy bills to contact their supplier because they can work with customers to improve their situation.
This statement is being issued during recess to keep Members informed. Should Members wish me to make a further statement or to answer questions on this when the Senedd returns I would be happy to do so.