Winter Fuel Support Scheme Payment doubled to £200

The Welsh Government has doubled the Winter Fuel Support Scheme Payment to £200, the Bevan Foundation reported on 24 February 2022¹. Mark Isherwood MS, Shadow Minister for Social Justice and Chair of the Cross Party Group on Fuel Poverty and Energy Efficiency, said he had welcomed the announcement and called on ministers to ensure all those eligible are aware of the scheme and benefit from the payment¹.

The increase comes as the Energy Price Cap set by Ofgem rises by a further 54% on 1 April, with those on default tariffs paying by direct debit seeing an average increase of £693 to £1,971 a year¹. National Energy Action Cymru estimates that over 280,000 households in Wales could be in fuel poverty from April, a further 100,000 households since October 2021¹. Wales has the oldest housing stock in the UK and among the least energy efficient in Western Europe, the article states¹.

The Welsh Government has since announced further support: another Winter Fuel Payment later this year; a £150 payment to households in council tax bands A to D and to households receiving support from the Council Tax Reduction Scheme in all council tax bands; and a £25m Discretionary Fund available to local authorities "to help households which may be struggling"¹. The Welsh Government will receive £180 million of Barnett Funding from the UK Treasury as a consequence of UK measures¹.

At UK level, the Energy Bills Rebate will provide around 28 million households with a £200 energy bill discount, applied by suppliers from October and recovered from bills in equal £40 instalments over five years from 2023¹. Households in England in council tax bands A to D will also receive a £150 rebate, and local authorities in England have been given £144 million discretionary funding¹.

The article notes that the Winter Fuel Payment will not reach everyone in need, including those in fuel poverty not in receipt of means-tested benefits¹. National Energy Action is calling on the Welsh Government to make the next payment ahead of October before the coldest months, expand support to those who have missed out, and use the time to ensure payments reach as many eligible households as possible¹. The Welsh Government is consulting on the future of its Warm Homes Programme, its key delivery mechanism to tackle fuel poverty and improve home energy efficiency¹.

Why it matters for households

Households in Wales eligible for the Winter Fuel Support Scheme Payment will receive £200 following the Welsh Government's decision reported in February 2022¹. Separately, households in Wales in council tax bands A to D, and those receiving support through the Council Tax Reduction Scheme in any band, are due a £150 payment announced later¹. A £25m discretionary fund is available to local authorities in Wales to help households which may be struggling¹.

From April, households on default tariffs paying by direct debit face an average increase of £693 to £1,971 a year under the Energy Price Cap¹. National Energy Action Cymru estimates over 280,000 households in Wales could be in fuel poverty from April, up 100,000 since October 2021¹. The UK-wide Energy Bills Rebate gives around 28 million households a £200 discount from October, recovered in £40 instalments over five years from 2023¹. Households in England in council tax bands A to D also receive a £150 rebate¹. The Warm Home Discount and other help with energy bills sits alongside these schemes.

What happens next

The Energy Price Cap rise takes effect on 1 April¹. Energy suppliers will apply the Energy Bills Rebate from October, with recovery from bills beginning in 2023¹. The Cross Party Group on Fuel Poverty and Energy Efficiency has its second meeting scheduled for 14 March¹. The Welsh Government is consulting on the future of its Warm Homes Programme¹.