Households, bus operators and off-grid communities across Wales are set to benefit from a new £130 million support package as the Welsh Government steps up efforts to ease the cost of living burden this winter.
With energy prices and household expenses continuing to put pressure on families, the Welsh Government has announced a series of targeted measures designed to provide immediate financial relief to vulnerable residents while protecting essential public transport services.
Central to the package is the continuation and expansion of the £100 energy payment scheme. Households living in council tax bands A to D will continue to qualify for the payment, while eligibility will now be extended to everyone receiving support through the Council Tax Reduction Scheme, regardless of their council tax band.
The move is expected to provide additional assistance to lower-income households facing significant energy costs during the colder months.
An extra £8 million will be allocated to local authorities, enabling councils to provide the £100 payment to residents who may not be covered by existing schemes but are still experiencing financial hardship.
Detailed guidance on the administration of the fund is expected to be issued to councils shortly.
Recognising the unique challenges facing rural and off-grid communities, the Welsh Government is providing £5 million to help households reliant on alternative fuel sources.
Under the scheme, eligible households receiving Council Tax Reduction and dependent on heating oil or LPG will receive a one-off payment of £250 towards fuel costs.
The package also includes £7 million in support for bus operators struggling with rising fuel costs.
Using the framework of an existing bus grant scheme, the funding is intended to help prevent the loss of local bus routes, community transport services and learner transport provision. The measure is also designed to reduce pressure on operators to increase passenger fares.
For many communities, particularly in rural areas, maintaining bus services remains critical for access to employment, education and healthcare services.
Alongside direct financial support, the Welsh Government will strengthen its Claim What’s Yours campaign. The initiative aims to raise awareness of available financial support and ensure residents understand what benefits and assistance they may be entitled to claim.
Deputy First Minister and Cabinet Minister for Social Justice and Equalities Sioned Williams said:
“Supporting families with the cost of living is a key priority for this government. We understand that this is a challenging time for many households across Wales and today I am announcing a further package of immediate help.
“In total this represents an additional investment of £130m, providing immediate relief for households this winter. While we are taking firm action wherever we can, we need the UK Government to play its part.
“We will continue to press the UK Government to remove the benefit cap, increase Local Housing Allowance and introduce social tariffs. Our joint calls with the Scottish Government makes it clear that these are needed to provide long term relief to households in need.
“This package represents a significant investment in Welsh communities and reflects our determination to stand alongside households during challenging times”

The latest funding package will place local authorities at the forefront of delivering targeted support to residents most affected by rising living costs. Council leaders, housing teams, welfare officers and community support services will play a key role in identifying eligible households and ensuring assistance reaches those most in need.
The measures also underline the continued importance of partnership working between local government, social services, transport providers and welfare organisations as demand for support services remains high across Wales.
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