Part of the debate – in the Senedd at 2:36 pm on 8 November 2022.
Diolch, Llywydd. The cost-of-living crisis is in large part driven by energy price increases affecting the price of all consumables. Whilst this is having a detrimental effect on all our living standards, it is having a devastating effect on households who are least able to pay, driving families into fuel poverty. The Welsh Government has consistently called for a social domestic energy tariff, setting lower than standard tariffs to better protect low-income households and a windfall tax on the excessive profits enjoyed by energy companies. The UK Government recently committed to an average price cap of £2,500 until April 2023. However, I remain concerned that this fails to provide the appropriate targeted support to those who need it the most.
With the levers we have, the Welsh Government has acted quickly to introduce support to help householders struggling with the cost-of-living crisis. More than £380 million has been invested since October 2021. We've expanded the support available for the discretionary assistance fund until March 2023, committing a further £25 million. More than 332,000 households have received the £150 cost-of-living payment, and the winter fuel support payment of £200 has been paid to over 204,000 households. Nearly £4 million of funding is enabling the Fuel Bank Foundation to introduce a national fuel voucher and heat fund scheme in Wales for households who prepay for their fuel. Four thousand fuel vouchers have already been issued to support struggling households. The Warm Homes programme Nest winter fuel campaign, launched on 1 November, will provide much-needed advice and signposting to vital support services. Over 8,000 people contacted Advicelink Cymru as part of the 'Claim what's yours' benefit take-up campaign, helping to claim over £2.1 million of additional income.
However, the energy system is not functioning for the benefit of householders in Wales, and fundamental energy market reform is required. I continue to urge the UK Government to take action. With limited levers to change the energy market, Welsh Government’s focus is on improving the energy efficiency of homes in Wales. Our flagship optimised retrofit programme has allocated almost £60 million in grant funding this year, with indicative amounts of £70 million for the next two years. Channelling ORP investment through social landlords supports a testing and learning approach to how to decarbonise homes effectively and efficiently. We will learn from this work to expand to the private-rented and owner-occupied sectors. We've also made a number of improvements to the Warm Homes programme Nest scheme by installing solar PV and battery storage, enabling homes to use energy at source. Over £394 million has been invested to support more than 67,100 lower income homes to improve their energy efficiency. Increased funding of £35 million is expected for the next two financial years.
Whilst we support families through these difficult times, we cannot forget climate change and the challenge of decarbonising 1.4 million homes in Wales. The Welsh Government’s focus will continue to be on supporting lower income homes who are in fuel poverty to reduce their bills and their carbon emissions.