People in Wales who have pre-payment meters or households which aren't connected to mains gas will be able to claim money towards their energy bills. The scheme is open to those in intense financial crisis and who are at immediate risk of self-disconnection, or have already self-disconnected.
The Welsh Government scheme will see vouchers distributed via the Fuel Bank Foundation. Nearly 120,000 people on prepayment meters will be eligible for approximately 49,000 vouchers which will range from £30 in summer months to £49 in winter, with households receiving up to three vouchers over a six-month period. The £4m scheme will also include a Heat Fund to provide direct support to an estimated 2,000 households across Wales who are living off the gas grid and are reliant on heating oil and liquid gas.
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Energy bills have risen dramatically in recent months after the price cap was raised, and will continue to rise due to uncertainty in the market. The boss of Ofgem has warned the cost of heating and electricity is likely to rise to £2,800 for the average household this October. That is up from £1,971 a year now. You can read that here.
Those on default tariffs paying by direct debit have seen a typical average household energy bill increase by £693 a year, while people on prepayment meters have seen increases of £708 a year. Households not connected to the mains gas network are also suffering with approximately one in 10 households reliant on heating oil in Wales. Many have reported the cost of heating oil has more than doubled over the past two months. A delivery of 500 litres normally costing approximately £340 now costs upwards of £750.
Who is eligible?
- You must be a pre-payment energy customer, or off the gas grid
- You must also be in intense financial crisis, unable to fund the basic essentials for everyday living (including food, rent or mortgage, energy, water, council tax, and essential travel).
- You must be at immediate risk of self-disconnection, or indeed have already self-disconnected, or making choices that may cause significant detriment to ensure that energy is funded
How to apply
People will need to apply to the Fuel Bank Foundation. The organisation will now spend the next couple of months getting the scheme ready to support people when the next energy price rise is implemented in October.
The bank says it aims to see the organisation provide "same day" help for those who apply for a voucher, which is a code that is sent to a person's phone, through email or in the post. This code is then taken to the place they usually top up their prepayment meter where it can be redeemed.
A person will need to prove they have no credit on their meter or that it will run out very soon before they are referred to the Fuel Bank Foundation, who will then carry out additional validation. The new scheme will not come into place immediately and while it is put in place people are advised to speak to Single Advice Fund providers if they are struggling or look at the Welsh Government Discretionary Assistance Fund.
When will they be available from?
Social Justice Minister Jane Hutt said figures show people on pre-payment meters in north Wales have seen rising standing charges, with costs increasing by 102% while in south Wales they are up 94% - the fourth highest in Britain.
She said: "The cost-of-living crisis is having a devastating impact on people in Wales. Today, nearly half of all households in Wales are at risk of falling into fuel poverty. This is deeply shocking. We are investing an extra £4m in the Fuel Bank Foundation to roll-out a national scheme that covers the whole of Wales and supports people most in need.
"This extra help is for people on pre-payment meters and for those who are not on mains gas or electricity – both ignored by the Chancellor in his latest package."
Matthew Cole, head of Fuel Bank Foundation, said: "We are extremely grateful for the support from the Welsh Government, particularly at a time when people are really struggling to cope financially with the cost-of-living crisis and soaring energy bills.
"The funding will enable the Fuel Bank Foundation to continue providing vital services to the most vulnerable in society, to ensure they don't go cold or hungry this winter, when they can't afford to top up their prepayment gas and/or electricity meter. This support will also extend to households who live off the gas grid and rely on solid fuels such as oil, wood or coal to heat and power their homes. Furthermore, it will enable us to expand our operations and capabilities across Wales, with a Fuel Bank centre in every local authority, which will be up and running in time for autumn, when the weather starts to turn colder."
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