The Welsh Government's £150 cost of living payment scheme opens in April 2022 and runs until September, the Minister for Social Justice, Jane Hutt, said in a written statement published on 31 March 20221. The payment goes to all households in properties in council tax bands A to D, and to all households receiving support from the Council Tax Reduction Scheme in every council tax band1. Local authorities administer the scheme1.
The payment sits within a wider package. Since November 2021, the Welsh Government said it had invested more than £380 million in support for low income households1. A further £25 million is available to local authorities as a discretionary fund, which they can target at households that may be struggling1.
"This financial support will help fund a £150 cost-of-living payment for all households in properties in council tax bands A to D and to all households which receive support from the Council Tax Reduction Scheme in all council tax bands."
The statement also set out the Welsh Government's view of UK Government decisions. It said the Chancellor announced an increase of just £27 million in the Welsh Government's resource funding for 2022-23, that welfare benefits were uplifted by just 3.1% against a forecast inflation rate of 7.4%, and that this meant a £290 real terms year-on-year fall in benefit income for the lowest income households1. It said over 230,000 households lost the £20 per week Universal Credit uplift when it ended in October 2021, on top of £1,000 a year1.
| Measure | Detail |
|---|---|
| Cost of living payment | £150, council tax bands A to D and Council Tax Reduction Scheme recipients in all bands |
| Scheme period | April to September 2022 |
| Administration | Local authorities |
| Discretionary fund | £25 million for local authorities |
| Winter Fuel Support Scheme | £200 payment for eligible households over winter |
| Discretionary Assistance Fund | Further £15 million; off-grid oil and LPG support extended to March 2023 |
Other elements of the package include £2.84 million allocated to relieve pressure on food banks, building on £2 million provided for the third year running to community food organisations1. A further £15 million has been made available for the Discretionary Assistance Fund, extending flexibilities until March 2023, in addition to a £7 million per annum uplift for the next three years1. Off-grid households unable to afford their next delivery of oil or LPG can receive up to £250 for a one-off oil payment or up to three payments of £70 for LPG, extended to the end of March 20231.
Why it matters for households
The £150 payment is a fixed cash sum tied to council tax banding rather than to energy use, so it does not change how much gas or electricity a home consumes. For a household in bands A to D it reduces the amount of other income needed to cover bills during the April to September period, which covers the months when heating demand falls but standing charges and other costs continue. Households receiving Council Tax Reduction Scheme support qualify regardless of band, which extends the payment beyond the A to D range1.
The separate £200 Winter Fuel Support Scheme payment and the autumn fuel support scheme address the winter period directly1. The statement says the Welsh Government is looking at how that scheme can reach more households1. Off-grid households, which buy oil or LPG in deliveries rather than paying a standing charge, have separate support through the Discretionary Assistance Fund1.
The statement frames the payment against a fall in benefit income and rising energy prices, and notes that the UK Government holds what it calls the key levers for tackling poverty1. It does not set out any change to energy tariffs, metering or supply arrangements.
What happens next
The scheme runs from April to September 20221. A further fuel support scheme is to be launched in autumn 20221. Jane Hutt said she will host a second cost of living summit in the summer1. A food poverty roundtable is to be held in May1. The Discretionary Assistance Fund flexibilities run to March 2023, and grant funding for the Single Advice Fund is extended to March 2023, with approval to extend to March 2024 subject to budget confirmation1. A No Interest Loan Scheme is to begin in Wales in 20221.
Households comparing support routes can read the site's guides to the Winter Fuel Payment and who qualifies for it, and the comparison of the Warm Home Discount and Winter Fuel Payment. The grants and schemes hub lists further support.