Up to 20,000 homes in Wales that rely on heating oil could receive a £250 payment this winter, after the Welsh Government announced a £130 million cost-of-living package. The payment is aimed at households beyond the reach of the gas network, whose heating depends on oil or liquefied petroleum gas (LPG).

The Welsh Government announced the package on 9 November, and the BBC reported the details on 10 November. The £250 payment is one part of a wider programme of winter support that also extends a £100 household energy payment, gives councils extra money to help households in hardship, and supports bus operators with fuel costs.

What is in the £130m package?

Five million pounds of the package is set aside for the off-grid payment. Households that qualify will receive £250 towards the cost of heating oil or LPG this winter.

The package also extends the £100 household energy payment to everyone who receives Council Tax Reduction, whatever council tax band their home falls in. The £100 payment had previously been announced for households in council tax bands A to D.

An additional £8 million will go to local councils so they can extend the £100 payment to households facing financial hardship that are not covered by the other schemes. A further £7 million will support bus, school and community transport operators with high fuel costs, to help protect passengers from fare increases. That bus support, known as Bus Services Support Grant Plus, will end when the average diesel price has stayed below 170p a litre for four consecutive weeks, when the £7 million has been used, or at the end of the 2026-27 financial year.

Who can get the £250 payment?

The £250 payment is aimed at households that meet two conditions: they must be eligible for Council Tax Reduction on the basis of their income, and they must depend on heating oil or LPG for heating. Using an off-grid fuel on its own is not enough to qualify.

The Welsh Government has not yet set out exactly how the scheme will work. It said it was working with local councils to decide how eligible households would receive the payment, and that more information, including detailed guidance, would be published in the coming weeks. No payment timetable has been announced.

The government described off-grid households as people who are often overlooked by energy support because their homes are not connected to mains gas. The BBC reported that as many as 20,000 homes using heating oil could qualify.

What ministers said

Deputy First Minister Sioned Williams, who is also Cabinet Secretary for Social Justice and Equalities, said supporting families with the cost of living was a key priority for the Welsh Government.

"We understand that this is a challenging time for many households across Wales," she said. "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."

The announcement follows the UK Government's Budget on 28 October, in which Chancellor John Healey set out a £100 energy payment for council taxpayers in bands A to D in England and urged the Welsh Government to follow his lead. Wales' Finance Minister Elin Jones subsequently said households in the same bands in Wales would also benefit. Healey also announced an end to gas standing charges, but did not address the position of people, mainly in rural areas, who rely on heating oil or LPG.

Reform Wales leader Helen Jenner criticised the package, arguing that money spent elsewhere should instead be used to ease the cost of living and support public services.

The Welsh Government said it would also boost its Claim What's Yours campaign, which is intended to help people find out what support they may be entitled to.