The Welsh Government's Cost of Living Support Scheme closed on 30 September 2022, the date from which payments relating to retrospective banding and new-build banding would no longer be made1. Registration responses had to be completed by 5.00pm that day1. The package was announced as part of the Welsh Government's Supplementary Budget on 15 February 20221.
The scheme provided £152m for a £150 cost of living payment to eligible households, alongside £25m for discretionary support for other purposes related to living costs, a total of £177m of funding1. Eligibility under the main scheme rested on one of two conditions. Households in receipt of support through the Council Tax Reduction Scheme on 15 February 2022 were automatically assessed as entitled to £150 regardless of valuation band1. Households in council tax Bands A to D were assessed as entitled provided they were liable for council tax on a property on 15 February 2022, were not in receipt of an exemption for it, lived there as their main or primary residence, and were responsible for the associated utility and other regularly incurred bills1. Only one payment was to be made in relation to any single dwelling under the main scheme1.
The Welsh Government identified around 740,000 properties in council tax Bands A to D, and around 273,000 properties in receipt of support under the Council Tax Reduction Scheme, including 18,600 in Bands E to I1. Households whose property band was amended retrospectively after 15 February 2022 to fall within an eligible band, for example after a successful banding challenge to the Valuation Office Agency, were eligible, as were households in new-builds awaiting a banding, if the band subsequently allocated met the criteria1. Payments in these respects stopped when the scheme closed1.
"payments will no longer be made in these respects after the scheme has closed on 30 September 2022"
Each local authority could use the discretionary funding to support households it considered to be in need of assistance with living costs, whether through a payment or by covering the cost of essential services, for example extending the provision of free school meals or meals-on-wheels1. Authorities had discretion to award a reduced amount or pay by instalments1. There was no right of appeal against any decision not to award a payment1.
| Item | Detail |
|---|---|
| Main scheme payment | £150, single payment per dwelling |
| Main scheme funding | £152m |
| Discretionary scheme funding | £25m |
| Total funding identified | £177m |
| Properties in Bands A to D | around 740,000 |
| Properties in receipt of Council Tax Reduction Scheme support | around 273,000, including 18,600 in Bands E to I |
| Closure date | 30 September 2022 |
Why it matters for households
The £150 payment was a one-off cash sum, not a continuing discount, so its ending does not change any household's ongoing council tax or energy bills. For homes that were waiting on a banding decision, the closure set a hard cut-off: a successful challenge or a new-build banding confirmed after 30 September 2022 no longer produced a payment under the main scheme1. Households that fell outside Bands A to D and were not on the Council Tax Reduction Scheme were not covered by the main scheme at all, though their local authority could have supported them through the discretionary fund1. The payment was made as Local Welfare Provision, was not taxable, and was disregarded in the assessment of Income Support, income-based Jobseeker's Allowance and income-related Employment and Support Allowance, with no change to Universal Credit entitlement1. It was also disregarded as income for assessing entitlement to the Council Tax Reduction Scheme1. The scheme supported households in their primary residence only1.
What happens next
No further payments under the main scheme were to be made after 30 September 2022, and registration responses were due by 5.00pm that day1. The guidance states that each local authority determines how it uses discretionary support to address local needs, and directs households to their local authority's website for information on how the discretionary scheme operates in their area1. No successor scheme is set out in the guidance.
Households looking at how earlier grant schemes worked, and how they closed, can find them set out in the grants-schemes hub, including the Green Homes Grant, the Green Deal and the Home Upgrade Grant. Schemes delivered separately in each nation are collected in the nations hub, among them Arbed in Wales, the Northern Ireland Boiler Replacement Scheme and the closed Home Energy Scotland Loan and Cashback Scheme.