Wales' government is offering a £250 payment to households relying on heating oil or liquefied petroleum gas, as part of a broader £130m support package announced to help families through winter. The Welsh government said the £5m allocation will reach up to 20,000 off-grid homes that are eligible for council tax reduction based on their incomes. Deputy First Minister Sioned Williams said supporting families with the cost of living was a priority, stating: "We understand that this is a challenging time for many households across Wales. In total this represents an additional investment of £130m, providing immediate relief for households this winter."
The package extends beyond oil and LPG users. The Welsh government is making available the £100 household energy payment announced by Chancellor John Healey in October, but widening it to households eligible for council tax relief regardless of their band. This differs from the English scheme, which restricted payments to council taxpayers in bands A-D. An additional £8m will allow councils to extend the £100 payment to households not captured by other schemes and facing financial hardship.
The package also includes £7m to support bus operators with their fuel costs and shield passengers from fare increases. The Welsh government had previously committed to providing the £100 energy payment to approximately one million households in Wales following the chancellor's October budget announcement. However, that original scheme did not address rural households dependent on heating oil or LPG, a gap the new £5m allocation aims to fill.
The Welsh government said the timing reflects challenging conditions heading into winter, citing geopolitical tensions in the Middle East and the ongoing cost of living pressures. The government stated: "This package represents a significant investment in Welsh communities and reflects our determination to stand alongside households during challenging times." Deputy First Minister Williams also called on the UK government to play its part in supporting Welsh households, indicating that devolved administrations cannot fully offset pressures alone.
For Welsh households using heating oil or LPG and eligible for council tax reduction, the £250 payment offers direct winter relief, while the broader £130m package provides support across energy, transport and targeted hardship assistance.