The one-off payment comes from a £3.8m pot
Low-income households in Wales are to receive extra financial support to help with heating costs as rising global fuel prices linked to the conflict in the Middle East continue to put pressure on budgets.
People who use heating oil or liquid petroleum gas (LPG) and are on the council tax reduction scheme will be eligible for a one-off £200 payment. The funding comes from £3.8m allocated to Wales by the UK Government earlier this month.
Local authorities will contact eligible households directly and invite them to apply. Applicants will need to confirm their heating fuel type and provide bank details with payments made directly into accounts.
Households will have six months from the scheme’s launch to submit a claim. Stay in the know by making sure you’re receiving our daily newsletter.
Further help is being made available through the discretionary assistance fund for those in severe financial hardship who do not qualify for the payment. The maximum award for heating oil has been increased from £500 to £750 and people can now apply up to twice within a 12-month period.
A pilot scheme aimed at improving health outcomes linked to cold homes will begin in September 2026 in the Aneurin Bevan University Health Board area. The Warmth on Prescription programme will support 100 households with £500 payments made directly to their energy supplier.
It will target people with conditions such as chronic obstructive pulmonary disease (COPD), asthma, and cardiovascular disease, which can be worsened by cold and damp living conditions. Participants will be referred through healthcare services.
The Welsh Government said the measures build on existing support including energy efficiency programmes that provide insulation and heating upgrades to low-income households. More than £130m is spent each year on such schemes.
Since 2022 more than 230,000 people across Wales have also received energy top-ups and fuel deliveries through national fuel voucher and emergency heat fund schemes run by charities.
Ministers said the new measures are intended to provide immediate relief for households most in need while longer-term support helps reduce energy costs.
Cabinet secretary for social justice Jane Hutt said: “The cost of living continues to put pressure on many households across Wales and the conflict in the Middle East is driving up prices, adding to the anxiety many people already feel about paying their bills and heating their homes.
“Supporting people through these pressures is a priority for us and we are doing all we can for those who need it most. Today’s announcements will provide immediate extra help for those in greatest need and build on the significant support we have already put in place.
“Whether you are struggling with daily expenses, managing debt, or unsure what help is available Advicelink Cymru is there to help you claim the support you are entitled to.
“If you are struggling to affordably heat your home please contact Nest for advice and support and to check eligibility for free energy efficiency improvements.”
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