The Welsh Government announced a package of cost-of-living support amounting to more than £330m on 15 February 2022, published alongside the second supplementary budget for 2021-221. Rebecca Evans, Minister for Finance and Local Government, said the funding would help people across Wales "manage their budgets and meet some of the rising costs-of-living during the next 12 months"1.
At the centre of the package is a £150 cost-of-living payment for all households in properties in council tax bands A to D, and for households receiving support through the Council Tax Reduction Scheme in all bands2. The Welsh Government puts the total cost of this element at £152m1. A further £25m is being made available to local authorities as a discretionary fund, which councils can target at households they consider to be struggling2. More than £100m is being invested in 2022-23 in the Discretionary Assistance Fund and the Winter Fuel Support Scheme1. The Winter Fuel Support Scheme pays a one-off £200 towards winter fuel bills and is available to some 350,000 people on low incomes1.
"This crisis is set to worsen from April as households feel the impact of the 54% increase in the energy price cap rise, which was announced by OFGEM earlier this month and the introduction of the biggest tax rises in almost 30 years."
The Welsh Government said the package is significantly larger than equivalent support provided by the UK Government in England2. Evans said the total was "nearly doubling the equivalent support provided by the UK Government for those who need it the most"2. The written statement notes that the UK Government's £200 rebate on electricity bills in October will have to be repaid by all bill payers, with £40 added to every electricity bill each year for five years1.
| Measure | Amount | Who it covers |
|---|---|---|
| Cost-of-living payment | £150 | Households in council tax bands A to D, and Council Tax Reduction Scheme recipients in all bands2 |
| Discretionary fund | £25m | Allocated to local authorities to target locally2 |
| Winter Fuel Support Scheme | £200 | Low income households, extended into 2022-232 |
| Discretionary Assistance Fund and Winter Fuel Support Scheme | More than £100m | Invested in 2022-231 |
Why it matters for households
The £150 payment is a cash sum towards living costs, not a discount on energy specifically, but it arrives as the energy price cap rises by 54% from April1. For a household in bands A to D, it is a one-off payment made as soon as possible, with the Welsh Government working with local authorities on how the scheme will operate2. The Winter Fuel Support Scheme payment is directed at energy bills and is non-repayable1. The extension means the scheme can run next winter and reach more households2. The Discretionary Assistance Fund helps with essential costs including food, gas, electricity, clothing and emergency travel, and the additional flexibilities introduced since May 2020 will now remain in place until March 20232.
What happens next
The Winter Fuel Support Scheme remains open in this financial year, and applications must be received by a local council by 28 February2. A Wales-wide Cost of Living Summit was convened for Thursday 17 February, with more than one hundred participants from social partners and third sector organisations2. The Minister for Social Justice was to make a further announcement about the Discretionary Assistance Fund and the Winter Fuel Support Scheme1. Later guidance for local authorities, published on 23 March 2022, set out that the main £150 scheme would close on 30 September 2022, with registration responses required by 5.00pm that day3. That guidance identified around 740,000 properties in council tax bands A to D and around 273,000 properties in receipt of Council Tax Reduction Scheme support, including 18,600 in bands E to I3. It also confirmed the £150 payment is not taxable and is disregarded for Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance and Universal Credit entitlement3.