Jane Hutt MS, Minister for Social Justice, published a written statement on the cost of living and the energy crisis on 28 March 2023, setting out the Welsh Government's position on the energy market, prepayment meters and its own support funding1.
Hutt said she remained concerned about the market and its effect on people in Wales, particularly those using prepayment meters, and described the cost-of-living crisis as continuing to have a devastating impact on low-income households1. She welcomed the decision to keep the Energy Price Guarantee at £2,500 for a typical household until July, having called on the Chancellor not to raise it to £3,000, but said it was disappointing that the £400 Energy Bill Support Scheme payment was ending in April1. In her account, a typical household would pay £400 more for energy from April1. She stated that bills in Wales are higher because of the age of the housing stock and extremely high standing charges1.
On prepayment meters, Hutt said the existing rules were clearly not working as intended and welcomed the decision to bring prepayment energy charges in line with direct debit customers, calling the prepayment penalty manifestly unfair1. She said standing charges for prepayment customers are a further injustice and that she has called for their removal, and has asked the UK Government to ensure benefits and cheaper rates available on standard credit meters are also available on prepayment meters1. She wrote to Grant Shapps, Secretary of State for the Department for Energy, Security and Net Zero, on 13 March calling again for the removal of prepayment meters, for a social tariff, and for magistrates' courts to permanently end bulk approving warrants, and for the UK Government to follow the water industry, where companies are prohibited by law from disconnecting or restricting supplies to households in debt1.
"I remain extremely concerned at the state of the energy market and its effect on the people of Wales"
Hutt said the ban on forced prepayment meter installation, announced by Ofgem Chief Executive Jonathan Brearley on 14 March, is being extended beyond the end of March and will lift "only when and if" firms follow Ofgem's new code of practice, and that she was meeting Brearley again at the end of March1. She said households subject to forced prepayment meter use must be offered the chance to revert their meter at no cost1. She also said she met Catherine Brown, Chair of the Enforcement Conduct Board, in mid-February and supports calls for energy supplier debt collectors to be accredited by the board1.
On Welsh funding, Hutt said £1.2m was given to credit unions in 2022-23 to expand lending, in addition to £500k per annum given to the sector to promote its growth and expansion across Wales1. An extra £18.8m was secured for the Discretionary Assistance Fund, taking its 2023/24 budget to £38.5m1. From 1 April 2023, one set of rules will apply to all Emergency Assistance Payments, with each award uplifted by 11%, applications allowed up to three times in a rolling twelve-month period and a seven-day gap between applications1. She said the previous two Claim What's Yours campaigns led over 8,000 people to contact Advicelink Cymru, where they were helped to claim over £2.7m of additional income1.
| Welsh Government support | Figure |
|---|---|
| Credit unions, 2022-23 lending expansion | £1.2m |
| Credit union growth promotion | £500k per annum |
| Extra secured for Discretionary Assistance Fund | £18.8m |
| Total DAF budget, 2023/24 | £38.5m |
| Emergency Assistance Payment uplift from 1 April 2023 | 11% |
Why it matters for households
The statement sets out where Welsh Government control ends and UK Government and Ofgem control begins, which shapes what help a household in Wales can actually access. Energy policy in Wales covers areas such as housing stock and efficiency schemes, while the price cap, the Energy Price Guarantee and prepayment rules sit with Westminster and Ofgem. The ending of the £400 Energy Bill Support Scheme payment in April is the change with the most direct effect on a household budget, because the £2,500 guarantee level applies to unit rates and standing charges rather than capping the total bill, so a home using more energy pays more. For homes on prepayment meters, the alignment of prepayment charges with direct debit rates and the extended ban on forced installation affect how emergency credit and standing charges apply. The Discretionary Assistance Fund changes are the main new Welsh lever, with higher payments available more often from 1 April. For households carrying debt, the statement does not announce any new Welsh debt write-off; the British Gas Energy Trust and the Energy Debt Relief Scheme are separate from the funding described here. Energy independence for a household in Wales therefore depends on both devolved support and reserved market rules, and the statement does not report any change to the split of those powers.
What happens next
Hutt said she would meet Ofgem Chief Executive Jonathan Brearley and energy suppliers again at the end of March 20231. The Ofgem ban on forced prepayment meter installations was extended beyond the end of March, to lift only when and if firms follow Ofgem's new code of practice1. The £400 Energy Bill Support Scheme payment ends in April 20231. The new Discretionary Assistance Fund rules and the 11% Emergency Assistance Payment uplift take effect from 1 April 20231. No date has been reported for a decision on removing prepayment standing charges or on a social tariff.