Jane Hutt 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.