The Welsh Government announced on 19 July 2022 that it is investing £90m in its Fuel Support Scheme, extending eligibility for a £200 payment to more than 400,000 low-income households in Wales1. A written statement from Jane Hutt MS, Minister for Social Justice, published the following day, confirmed the funding and set out how the scheme will operate2.
Previously, around 166,000 households on universal credit, legacy means-tested benefit and working tax credits received the £200 2021/22 Winter Fuel Support Scheme payment1. The extension brings in nearly 200,000 more households on child tax credits, pension credits, disability benefits, carers allowance, contributory benefits, and those receiving help from the Council Tax Reduction Scheme to pay their council tax bill1.
Eligible households can claim a one-off £200 payment from their local authority towards fuel bills, available regardless of whether they pay by prepayment meter, direct debit or quarterly bill, and whether they use on-grid or off-grid fuel2. The extended scheme includes the £4m announced in June 2022 for a fuel voucher scheme supporting those on prepayment meters and households not connected to mains gas1.
"We are targeting the Fuel Support Scheme at low-income households and extending the number of those eligible, as we understand how the winter months can be the hardest of the year and families face the difficult choice of heating or eating."
The Welsh Government said the extension follows feedback from stakeholders through its cost of living summits2. It said households across Wales are struggling with higher energy bills, exacerbated by the April rise in the domestic energy cap, and that a further rise in the cost of energy and standing charges is expected in the autumn1. People with prepayment meters are described as the most susceptible to rising costs and increased standing charges1.
The Welsh Government also said that since November it has invested more than £380m to mitigate the cost of living crisis for disadvantaged households, including a £150 cost-of-living payment for households in council tax bands A to D and those receiving Council Tax Reduction Scheme support in all bands, with £112m having reached eligible households to date2.
Why it matters for households
The £200 payment is a one-off contribution towards fuel bills, not a change to how energy is priced or supplied. For a household that qualifies, it reduces the amount owed to a supplier or the amount that must be loaded onto a prepayment meter, which matters most where energy is paid for in advance. Eligibility is tied to receipt of specific benefits rather than to the property or the fuel type, so the same £200 is available to homes using mains gas, off-grid fuels such as heating oil, and prepayment meters2. The Welsh Government states that powers over tax and welfare, which it describes as the key levers for tackling poverty on a more sustainable basis, sit with the UK Government2. The scheme sits alongside the wider landscape of help with energy bills and debt in Wales and the benefits that qualify for energy grants.
What happens next
Applications are made to local authorities2. No further dates have been reported.