Fuel Poverty

1. Questions to the Minister for Social Justice – in the Senedd on 9 November 2022.

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Photo of Adam Price Adam Price Plaid Cymru

(Translated)

2. What support is the Welsh Government providing for off-grid homes that are in fuel poverty? OQ58675

Photo of Jane Hutt Jane Hutt Labour 1:33, 9 November 2022

(Translated)

Thank you for your question.

Photo of Jane Hutt Jane Hutt Labour

The Welsh Government provides support to those in fuel poverty in off-grid homes, including the Warm Homes Nest scheme, the discretionary assistance fund, the Welsh Government fuel support scheme and the Fuel Bank Foundation.

Photo of Adam Price Adam Price Plaid Cymru

(Translated)

You will be aware, Minister, that a high percentage of homes in Wales are not connected to the gas grid—it's almost one in five homes. And in some areas in Carmarthenshire, for example, it's as much as 39 per cent. These homes, which are reliant on home-heating oil or other alternative fuels, don't benefit from the cap on fuel prices—they don't get that 4 per cent discount; they'll receive just £100 through the UK Government. Even the Secretary of State for Wales has accepted that that is insufficient. Are you putting pressure on the UK Government to do more? And in the meantime, what additional support, in addition to what you've already mentioned, can we provide to these homes that will face very difficult times in the coming months?

Photo of Jane Hutt Jane Hutt Labour 1:34, 9 November 2022

Diolch yn fawr, Adam Price. This is really important—that we're recognising that challenge in those households, and the high proportion not just in your constituency, but across Wales, who are not connected, or not on-grid. And just looking at the issues and the ways in which we've been supporting people in your constituency, in your area, at the end of March 2021, more than 5,000 lower income households in Carmarthenshire had benefited from home energy efficiency measures, because that's crucial, of course, in terms of reducing bills through the Warm Homes programme. But, you're right that the issues in relation to the setting of the price cap—. Of course, the energy regulator has no role in setting the price cap on heating oil and liquid gas, whilst the others are regulated, of course—those who are on the gas and electricity grids.

Now, this is where we have used our discretionary assistance fund, to help reach out to households—DAF support for off-grid households that are unable to afford their next delivery of oil or LPG. That's been extended to next March, and will help households with up to £250 for one-off oil payments or up to three payments of £70 for LPG. And also, I'm sure you're aware of the new Fuel Bank Foundation partnership that we've got with the Fuel Bank Foundation heat fund. But we do put pressure on the UK Government—we are calling on them to recognise the fact that people are losing out. Can I just also say that, in terms of the Government energy Bill support, which is £400 over this winter, it's not reaching many of the households that are off-grid and many on pre-payment meters as well, so we need to make sure that that is addressed. But still we call for a lower price cap for lower income households and a significant increase in the rebate paid through schemes such as the warm home discount from the UK Government.

Photo of Samuel Kurtz Samuel Kurtz Conservative 1:37, 9 November 2022

I'm grateful to the Member for Carmarthen East and Dinefwr for submitting this question, because many of the circumstances that he described are applicable to my constituency of Carmarthen West and South Pembrokeshire as well. But it's also important to note that, for many rural households, their home also acts as a place of business, and this is incredibly important for those in the agricultural community, for example—and I declare an interest as a director of Wales young farmers club. On average, off-grid homes have experienced a 21 per cent price increase in the cost of fuel, and a nearly 60 per cent increase over pre-Ukrainian-war prices. However, this disproportionately impacts households that live and work in the same setting. So, given this, can I ask what discussions the Minister has had with her colleague the rural affairs Minister to help alleviate these disproportionate financial pressures on those in our agricultural community? Diolch.

Photo of Jane Hutt Jane Hutt Labour

Well, clearly, the response to the cost-of-living crisis is a cross-Government issue, and the First Minister has set up a Cabinet sub-committee on the cost-of-living crisis. So, we're looking at the impact on households and businesses, and the rural communities and businesses that you've highlighted today, across the board. It is very important that people take up the benefits that they are entitled to—households, of course, that will benefit, in particular some of those farming businesses. So, I'm very pleased that, in terms of the £200 payment from the Welsh Government winter fuel support scheme—only announced at the end of September—already over 200,000 payments have been made. But I think it is important that also we look at the fact that, in rural areas, one in 10 households are reliant on heating oil or liquid gas, as has been said by the Member Adam Price, for their domestic space and water heating, and this increases to 28 per cent of households. And we do call on the UK Government to look at this, in terms of the impact it has. But can I just say, have you taken account—I'm sure you have—of oil-buying syndicates, such as Club Cosy and the Ceredigion fuel clubs that buy fuel together? We want to encourage that, because that can help residents and businesses.