Devolved governments outline energy bill support  

The devolved governments of Scotland and Wales have outlined how they will use £465 million of funding from Westminster to support customers through the energy crisis.

Following Ofgem’s announcement that the price cap will rise by 54% in April, chancellor Rishi Sunak unveiled a £9.1 billion support package to help ease the burden on consumers.

This included a £150 grant for English households living in properties in council tax bands A to D, as well as a £200 rebate to be given to every GB household by their energy supplier, to be repaid over a five-year period.

Through the Barnett Formula, Westminster has allocated £290 million for Scotland, £175 million for Wales and £100 million for Northern Ireland so the devolved nations can provide the council tax rebate.

Additionally, as energy policy is a devolved matter in Northern Ireland, its executive will receive £150 million next year to provide comparable support in terms of the electricity bill rebate.

Announcing its plans this week, the Welsh government unveiled a total package of £330 million, £152 million of which will be spent on matching the £150 council tax rebate in England. However, unlike in England, all Welsh households who do not pay council tax will also be given the grant.

A further £25 million will be provided as a discretionary fund for local authorities, allowing councils to help consumers who may be struggling.

Additionally more than £100 million will be provided to strengthen other schemes that help tackle the cost-of-living crisis.

More money will be provided through the Discretionary Assistance Fund which helps consumers pay for essentials such as food, gas and electricity. Meanwhile, the Winter Fuel Support Scheme, which was recently doubled to provide a one-off £200 support to low-income households, has been extended into next winter.

Rebecca Evans, minister for finance and local government, said: “The chancellor’s offer at the start of the month fell short of what people needed. We have been able to go above and beyond to provide Welsh households with more help in paying bills, heating homes and putting food on the table.

“In total we are nearly doubling the equivalent support provided by the UK government for those who need it the most, reflecting our priority of creating a fairer Wales in which no-one is left behind.”

In Scotland, MSPs have backed the 2022-2023 Scottish Budget Bill which includes the financial measures to help the soothe the energy crisis.

Of the funding allocated to Scotland, £280 million will be used to match the English £150 council tax rebate and, as in Wales, additionally to every household in receipt of council tax reduction.

The Scottish government has further revealed that £10 million will be used to continue the Fuel Insecurity Fund to prevent households from rationing their energy use and support those at risk from self-disconnection.

Announcing the funding allocation, finance secretary Kate Forbes said: “Households across Scotland, across the UK, are struggling with the wide range of rising costs and many of the macro levers, for example, around energy regulation reside with the UK government.

“That is why I will be writing to the chief secretary to the Treasury, again highlighting that we must work together urgently so we can use our joint powers to do more to tackle the cost of living.”