Welsh Government Fuel Support Scheme 2022-23 launches with wider eligibility

The Welsh Government's Fuel Support Scheme launched on 26 September 2022, with eligibility extended to cover more households, according to a Welsh Government paper to the Senedd's Equality and Social Justice Committee¹. The paper states that the government provided support worth £1.6 billion this year through programmes protecting disadvantaged households and delivering the social wage in Wales¹.

The paper also records the outcome of the previous scheme: "£146.6m was paid out to 977,483 eligible households before the main scheme closed on 30 October"¹. For off-grid households unable to afford their next delivery of oil or LPG due to extreme financial hardship, support runs until the end of March 2023, and local authorities have until the end of March 2023 to deliver this additional funding, which they are targeting at households that are struggling¹.

On fuel poverty, the paper cites figures published on 13 April 2022 showing that in October 2021, 196,000 households in Wales, 14%, were estimated to be living in fuel poverty¹. Modelling the April 2022 price cap against those figures, it estimates up to 45% (614,000) of all households could be in fuel poverty and 8% (115,000) in severe fuel poverty¹.

The paper sets out wider financial pressures. It cites ONS data showing median disposable income for the poorest fifth of the population fell by 3.8% to £14,500 in the financial year ending 2022, while the richest fifth saw an increase of 1.6% to £66,000; median UK household disposable income was £32,300, down 0.6%¹. On Universal Credit, it says payments can be cut by up to 25% under the deductions policy, that 44% of those receiving Universal Credit have money automatically deducted, and that the most frequent deduction is recovery of advances given to cover the five-week wait before the first payment¹.

The paper reports ONS Opinions and Lifestyle Survey data for 22 June to 11 September 2022 on difficulty affording bills:

Source: Welsh Government paper¹

Around half of those with personal income below £20,000 a year reported difficulty affording energy bills, against around a quarter (23%) of those earning £50,000 or more¹. Citizens Advice reported that the number of people it has helped with debt issues has risen in each of the last five months, and that average energy debt for disabled people or people with a long-term health condition rose by over 25% between 2019 and 2022, against just under 10% for those without¹.

Why it matters for households

The scheme's extension means more Welsh households fall inside the eligibility criteria than under the first scheme, which paid £146.6m to 977,483 households before closing on 30 October¹. Off-grid households facing hardship can receive help towards an oil or LPG delivery until the end of March 2023, and councils have until the same date to distribute the additional funding¹. Separately, £11m in grant funding will be made available to Single Advice Fund services in 2023-24, funding generalist and specialist advice; 83% of people using those services identified themselves as coming from a group hardest hit by the cost of living crisis¹. The paper also notes free school meals are being extended to primary schools from September 2022¹. Households in Wales needing urgent financial assistance can approach the Discretionary Assistance Fund, which the paper says some people turn to because of the five-week Universal Credit wait¹. Broader help is set out in the site's guide to money help in Wales.

What happens next

Local authorities have until the end of March 2023 to deliver the additional funding for off-grid households and to target help at households that are struggling¹. The £11m for Single Advice Fund services covers 2023-24¹. The paper says the Welsh Government continues to call on the UK Government to end the five-week wait for the first Universal Credit payment, and notes the House of Commons Work and Pensions Committee has called for debt-recovery deductions to be paused during the cost of living crisis¹.