Welsh households on low incomes to get £200 heating oil payment as fuel prices rise
Households in Wales that heat their homes with oil or liquid petroleum gas and are on the Council Tax Reduction Scheme are to receive a one-off £200 payment, the Welsh Government has announced.
The funding comes from £3.8 million allocated to Wales by the UK Government on 16 March 2026, as rising global fuel prices linked to the conflict in the Middle East continue to put pressure on household bills.
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.
Residents who do not qualify but are in severe financial hardship can apply to the Discretionary Assistance Fund.
The maximum award for heating oil through the fund has been raised from £500 to £750, and people can now apply up to twice in a 12-month period.
Applications can be made through local authorities, housing associations and third sector organisations including Citizens Advice.
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.”
The Welsh Government said more than £130 million a year is already committed to free energy efficiency improvements for low-income households through the Optimised Retrofit Programme and Warm Homes Nest scheme.
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.
Households struggling to afford heating can contact the Nest Warm Homes scheme on 0808 808 2244 for free energy efficiency advice and to check eligibility for free improvements.
Advicelink Cymru offers free, confidential advice on available support on 0800 702 2020.
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