Low-income households to get help with surging fuel prices

Low-income households in Wales will get extra financial help to cope with surging fuel prices, the government has said.

People who are struggling and rely on heating oil or liquid petroleum gas will be eligible for a one-off payment of £200 if they are part of the Council Tax Reduction Scheme.

The funding forms part of £3.8m allocated by the UK government on 16 March and it's estimated that between 20,000 to 25,000 households will be eligible in Wales.

The Welsh government said it will also support those facing significant financial hardship who do not meet the eligibility criteria.

When mum-of-two Holly Pugh, from Llanbrynmair, Powys, last bought oil to heat her home it cost about £235 for 500 litres.

But since then it's soared.

"I was very shocked when I went to order in March. I didn't know oil prices had gone up, that it had gone up to £640 for 500 litres of oil - that's very high."

She said the price had more than doubled at a time when some families were struggling with the cost of fuel and food.

"I've had to turn my heating off already, I've put more blankets on the bed to try and keep the girls and myself warm, I've put jumpers on, I've made sure we don't use as much hot water as that drains your oil quite substantially, so I'm boiling the kettle more, but that uses more electric," she added.

Pugh said she was "very worried about the price because it's a lot of money".

She said that while the oil company she used had offered her the chance to purchase 350 litres, it still cost £425, which was still a lot for half the amount she normally ordered.

Pat Bedford, from Llanwenog in Ceredigion, where nearly 60% of people have oil central heating, said she does not qualify for the payment but she also cannot afford the oil price increase.

"I have half a tank left, but I'm not using it," she said.

"I am actually relying on my log burner situated in the hall. I wear three layers in the evening, including a hat.

"I love my life here, it's a perfect existence, but times like these it feels like a third world country. I'm not sure I worked for 40 years as a public servant to have to endure this in 2026."

About 7% of households in Wales depend on oil as their primary heat source, but there are much higher proportions in rural communities.

Nearly a third of homes in Ceredigion and Powys are reliant on oil, as well as 24% in Carmarthenshire.

That number is even greater in certain communities away from the main towns.

Pat added: "West Wales is starting to feel like a place where only rich people can live.

"I'd love to get an alternative to oil, but there isn't one. There's a rural, ageing population here that is struggling. Someone needs to start joining the dots to support people that live here in Wales."

Local authorities are expected to contact eligible households directly, inviting them to apply. Applicants will be asked to confirm their type of heating fuel and provide bank details, with payments made directly into accounts. Households will have six months from the launch of the scheme to submit a claim.

To qualify for the Council Tax Reduction Scheme residents need to be receiving one of the following, and have less than £16,000 in savings and property:

• Universal Credit
• Income-based Jobseeker's Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support

Through the Discretionary Assistance Fund, the maximum award for heating oil has increased from £500 to £750. Individuals can now apply up to twice within a 12-month period. Applications can be made via local authorities and partner organisations, including housing associations and charities such as Citizens Advice.

Social Justice Secretary 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."

Responding to the rising cost of heating oil, a Welsh Labour spokesperson said it was taking action to get practical support to low-income households to combat this.

A Plaid Cymru spokesperson said thousands of struggling households will be ineligible "due to the narrow nature of this support" and called on the UK government to outline a broader package of help.

Reform Wales leader Dan Thomas said Reform "has a plan to cut bills and cut fuel duty to ease the pressure on working families".

A Welsh Conservative spokesperson said "this one-off payment will only go so far for families already under pressure", adding that the UK Conservatives had launched an enhanced Cheap Power Plan to cut energy bills by £200 to help families with the cost of living.

The BBC has approached the Liberal Democrats and the Green Party for comment.