The Welsh Government has confirmed it will offer people in Wales an extra £150 to help with the cost of living crisis.
All people who live in properties in council tax bands A to D in Wales, as well as recipients of the Council Tax Reduction Scheme in all bands will get the payment, it has been confirmed.
On February 3, UK Government chancellor Rishi Sunak said that there will be a £200 rebate on energy bills for all households and that people in England living in properties in Band A to Band D for council tax will get an additional £150 council tax rebate.
While the £200 rebate will go to homes in Wales, because council tax is a devolved issue it wasn't certain whether that £150 would be rolled out in the same way in Wales. In fact, it led to a huge row between UK and Welsh Governments.
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The UK Government said it was giving Wales £175m and it would be able to choose whether to spend this funding this year or next year. When the Welsh Government said it was considering what to do, there was pressure from MPs for them to announce the same would apply in Wales. But the Welsh Government then came out and said it had not been given any additional funding from UK Government. First Minister of Wales Mark Drakeford said "there's no extra money for Wales" - something flatly and strenuously denied by Whitehall.
The Welsh Government has now confirmed it will offer a £150 cost-of-living payment to all households who live in properties in council tax bands A to D, as well as recipients of the Council Tax Reduction Scheme in all bands. It will work with councils who will be tasked with providing more detail and will begin making payments "as soon as possible".
At the beginning of February, the Welsh Government had already said it would double a £100 winter fuel payment for low income households to £200. That is available to households where one member of the household must be in receipt of certain welfare benefits. Again, councils will distribute that money and people who think they are eligible can apply for the money until February 28.
It has been announced that payment will also be available next winter. The Welsh Government says the combined payments mean it is offering a more generous scheme than the UK Government.
In total, it means that:
- All households will get a £200 payment via their energy provider which will have to be repaid in £40 instalments over the next five years
- Welsh households in council tax bands A to D will get £150 as will all those who get the Council Tax Reduction Scheme in all bands
- Households where one member of the household gets certain welfare benefits can claim up to £200 this winter and next year
Wales' finance minister Rebecca Evans said: “People are facing very real cost-of-living crisis and urgent, meaningful action is required.
"The Chancellor’s offer at the start of the month fell short of what people needed. We have been able to go above and beyond to provide Welsh households with more help in paying bills, heating homes and putting food on the table.
"In total we are more than doubling the equivalent support provided by the UK Government for those who need it the most, reflecting our priority of creating a fairer Wales in which no-one is left behind.”
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The UK Government's energy bills rebate will be an upfront £200 discount on bills. It will be applied by energy suppliers from October with the Government meeting the costs.
This discount will then be automatically recovered from people’s bills in equal £40 instalments over the next five years. This will begin from 2023, when global wholesale gas prices are expected to come down. The UK government said this was aimed at helping households spread the costs of the current spike in prices.
More details will be given in the Welsh Government press conference, being taken this week by Mrs Evans, from noon on Tuesday.
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