The Welsh Government set out a £380 million package of cost-of-living support on 6 April 2022, presented by the Minister for Social Justice, Jane Hutt, and the Minister for Finance and Local Government, Rebecca Evans1. The package covers the Winter Fuel Support Scheme, a £150 cost-of-living payment, a £25 million local authority discretionary fund and £15 million for the Discretionary Assistance Fund1.
Rebecca Evans said the Winter Fuel Support Scheme had provided a £200 payment for eligible households towards essential bills over the winter, and that further support for fuel costs is planned for the coming winter1. The government said it is considering how the scheme could be widened so that more people receive the £200 payment1. The £150 cost-of-living payment is for households in Council tax bands A to D and for all households receiving support from the Council Tax Reduction Scheme1.
The £25 million discretionary fund is held by local authorities to provide additional and targeted support for households struggling with rising living costs1. A further £15 million goes to the Discretionary Assistance Fund for people experiencing extreme financial pressures, extending the additional support until the end of March 20231.
"Since last November, we have invested more than £380 million in a package of support for low income households to meet the immediate and severe pressures on living costs."
| Measure | Amount | Who it covers |
|---|---|---|
| Winter Fuel Support Scheme | £200 per eligible household | Eligible households, winter bills1 |
| Cost-of-living payment | £150 | Council tax bands A to D and Council Tax Reduction Scheme recipients1 |
| Local authority discretionary fund | £25m | Households struggling with living costs, allocated by councils1 |
| Discretionary Assistance Fund | £15m | People in extreme financial pressure, to end of March 20231 |
Jane Hutt said the Chancellor's spring statement had increased the Welsh Government's resource funding for 2022-23 by just £27 million, and cited the Office for Budget Responsibility's statement that 2022-2023 would see the biggest fall in living standards in the UK since records began1. The government said it would continue to press the UK Government to use its levers to support vulnerable households1.
Why it matters for households
The payments are cash support against bills rather than changes to how a home uses energy. The £200 Winter Fuel Support Scheme payment is a fixed sum towards winter fuel costs, and the government has said it is considering widening eligibility for the coming winter, though the detail of any widened scheme has not been reported1. The £150 payment is tied to Council tax band or to receipt of Council Tax Reduction, so eligibility follows the council tax system rather than energy use1. The £25 million discretionary fund sits with local authorities, which means the support available and how it is accessed can differ between areas; the announcement does not set out how each council will distribute it1. The £15 million for the Discretionary Assistance Fund runs to the end of March 20231. None of the measures changes a household's control over its own supply or generation; they offset cost. For homes in Wales looking at wider energy efficiency support, the Arbed scheme is closed, and the nations hub covers schemes across the UK.
What happens next
The additional Discretionary Assistance Fund support runs until the end of March 20231. Jane Hutt said she would host a second cost-of-living summit in the summer of 2022 to look at further action with partners1. The government said it will provide additional support for fuel costs for the coming winter and is considering widening the £200 payment, but no date or eligibility detail for that has been reported1.