People struggling to heat their homes in Wales are to receive extra financial support as the conflict in the Middle East continues to push up global fuel prices.
People on low incomes who use heating oil or liquid petroleum gas (LPG) will be eligible for a one-off £200 payment if they are on the Council Tax Reduction Scheme. This funding comes from £3.8 million allocated to Wales by the UK Government, announced on 16 March 2026. Local authorities will contact eligible households directly and invite them to apply. People will need to confirm their heating fuel type and provide bank details, with payments made directly into bank accounts. There are six months from the scheme’s launch to claim.
Those in severe financial hardship who do not qualify can apply to the Discretionary Assistance Fund. The maximum award for heating oil has been increased from £500 to £750, and people can now apply up to twice in a 12-month period, recognising that some households who received support earlier in the winter may struggle again as prices remain high. Applications can be made through local authorities and other fund partners like housing associations and third sector organisations such as Citizens Advice.
From September 2026, a Warmth on Prescription pilot will run in the Aneurin Bevan University Health Board area, delivered by energy charity Severn Wye. The two-winter pilot will support people with chronic conditions such as chronic obstructive pulmonary disease (COPD), asthma, and cardiovascular disease that are worsened by cold, damp homes, providing 100 households with £500 paid directly to their energy supplier. Participants will be identified and referred through the health board rather than by individual application. The pilot will provide valuable evidence on whether keeping homes warmer improves health outcomes and reduces pressure on NHS services.
These measures build on existing support available. The Optimised Retrofit Programme and Warm Homes Nest scheme collectively provide more than £130 million a year for free energy efficiency improvements to low-income households, including insulation and heating upgrades to help cut bills in the long term.
In addition to the crisis support available through DAF, since 2022, more than 230,000 people across Wales have received energy top-ups and fuel deliveries through the Fuel Bank Foundation’s national fuel voucher and emergency heat fund.
The Cabinet Secretary for Social Justice, 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.
“Whether you are struggling with daily expenses, managing debt or unsure what help is available, Advicelink Cymru is there to help you claim the support you are entitled to.
“If you are struggling to affordably heat your home, please contact Nest for advice and support, and to check eligibility for free energy efficiency improvements.”
Advicelink Cymru can give clear, confidential advice to those dealing with money worries or unsure what support they are eligible for: 0800 702 2020.
The Nest Warm Homes scheme offers free energy efficiency advice and improvements to low-income Welsh households: 0808 808 2244.
