Leaders in Carmarthenshire will decide next month who will benefit from a £1.55 million cost of living support scheme which was announced in February. Councils in Wales shared a £25 million pot of Welsh Government money that month which they could use to target those they felt needed help the most.
Ministers issued guidance the following month, March, about how it could be spent along with a larger £152 million scheme providing £150 for all council tax band A, B, C and D households in Wales. The guidance said: "The schemes are intended to provide immediate support as Wales recovers from the pandemic and support households to deal with the impact of increasing energy and other costs." This is what people shopping in Swansea said about the much higher energy bills coming our way from October.
Asked by the Local Democracy Reporting Service what its share of the £25 million fund was and whether a decision had been taken about how to spend it, a Carmarthenshire Council spokesman said it hadn't decided how to spend the £1.55 million sum yet, but that cabinet would do so next month. Council elections took place in May, but Swansea Council allocated its share of the £25 million fund before voters went to the polls. Payments in Swansea included an extra £28 for all council tax band A to D properties.
A number of Wales's 22 councils, such as Bridgend, hadn't decided what to do with their share when they were contacted by Wales Online last month. Others, including Neath Port Talbot Councill, had. You can get more Carmarthenshire news and other story updates straight to your inbox by subscribing to our newsletters here.
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Councils are administering the wider £152 million scheme to hand out £150 for council tax band A to D households. Asked for an update on progress in Carmarthenshire, the council spokesman said just under 58,000 households had received the £150 payment, with some 4,800 eligible households invited to apply for it. Carmarthenshire's share of the scheme was £9.4 million.
Cllr Alun Lenny, cabinet member for resources, said the council's priority had been distributing the main £150 scheme for band A to D residents, and that the Welsh Government hadn't given detailed guidance.
He said: "It's crucial that every penny of the £1.55m allocation goes to those in the most desperate need – and the A-D council tax band tactic might not necessarily be the best yardstick.
"This must be done in as reasonable a timescale as practically possible. That's the most responsible approach to distributing the extra money." Options, he said, were being prepared.
Cllr Lenny added that "it is not alarmist to say that we face an economic tsunami" as the cost of living crisis deepens.
The energy price cap rose in April this year by 54% to £1,971 and is set to rise considerably more in October - and possibly again next January. An announcement on the October price cap is due to be made by energy regulator Ofgem on August 26.
The UK Government has announced support including a £400 energy bill reduction for every household. This will be applied in monthly instalments between October and March. In addition, a £650 payment will be made to eight million lowest income households, £300 for eight million pensioner households, and £150 for six million people receiving non means-tested disability benefits.
Conservative leadership contender Rishi Sunak said he would provide further support if he became Prime Minister. Rival Liz Truss said she had not ruled out further grants, but said her preference was for support via tax cuts.
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