SUPPORT from the UK Government to assist Welsh families in paying their energy bills has not only benefited those most in need but has also resulted in a notable increase in the average household income by 7.6 percent, as per a recent analysis. The report reveals that the poorest 10 percent of households in Wales have received an average of £2,482 in payments from the UK Government since July of the previous year. This substantial amount equates to an additional two months’ net salary, surpassing 20 percent of their annual disposable income.
On average, households in Wales have received approximately £1,914 in financial support from the UK Government, leading to a significant 7.6 percent increase in the average household income. This analysis, which draws on data provided by various expert bodies, estimates that households and businesses in Wales will benefit from a total of £4 billion in energy support spending by the UK Government for the years 2022/23 and 2023/24.
In addition to assisting with energy bills, the UK Government is diligently working to alleviate the pressure of rising living costs by aiming to halve inflation. This objective serves as the foundation for long-term growth, which is essential for enhancing living standards and securing a better future for future generations.
The comprehensive support package for households across the entire UK, since the summer of the previous year, is projected to incur an estimated cost of £78 billion, making it the largest single fiscal intervention by the UK Government since World War II. The magnitude of this support exceeds the expenditure on the furlough scheme implemented during the COVID-19 pandemic.
Michael Gove, the Levelling Up Secretary, highlighted, “Rising energy bills and the cost of living were the issues that people across the UK were most concerned about as we headed into last winter. The broad shoulders of the UK have allowed us to deliver one of the most generous cost of living packages anywhere in the world. This has been an unprecedented intervention by the Government in response to global events, to help those that needed it most.”
David TC Davies, the Secretary of State for Wales, affirmed the Government’s commitment to providing assistance to the people of Wales during challenging times. He stated, “We were clear that we would help people across Wales through these difficult times, and we continue to do so. A typical household in Wales has so far received almost £2,000 in UK Government support, while 140,000 Welsh workers are receiving a pay rise thanks to an increase in the National Living Wage and National Minimum Wage. Fuel duty support has also been extended for another 12 months for drivers. Additional help is also available to thousands more people. I urge anyone eligible for pension credit to claim it, and households on prepayment meters should redeem their energy bill support vouchers before the 30 June deadline.”
Out of the £4 billion of financial support provided in Wales, over £2 billion was allocated through the Energy Price Guarantee, which capped the energy bill for an average household at £2,500 per year, in addition to an extra £400 given to each home to reduce their energy costs. Furthermore, £1 billion was directed towards targeted cost of living payments for individuals already receiving specific UK benefit payments. The remaining funds were utilized for other support measures, including the freeze in fuel duty.
The report discloses that the total support provided in Scotland, Wales, and Northern Ireland amounts to approximately £13 billion. By the end of June 2023, the average households in these regions are expected to receive the following total amounts: Northern Ireland (£2,221), Wales (£1,914), and Scotland (£1,850). The poorest tenth of households are projected to receive the following amounts: Northern Ireland (£2,799), Wales (£2,482), and Scotland (£2,302).
In response to the news, Andrew RT Davies MS, Leader of the Welsh Conservatives, commented, “The UK Conservative Government has provided record levels of support to combat cost of living pressures driven by Putin’s barbaric invasion of Ukraine. The average Welsh household received nearly £2,000 in financial support last year from the UK Conservative Government, with the poorest 10 percent of households receiving an average of nearly £2,500 in packages – exceeding the support provided through the furlough scheme during COVID. This proves that despite Rishi Sunak’s laser focus on reducing debt, any fiscal headwinds available are utilized to provide that much-needed assistance, with a particular focus on the most vulnerable. Labour Ministers in the Senedd now need to use the levers at their disposal to reverse the trends we are seeing in the economic figures, with unemployment rising in Wales despite falling UK numbers, pay packets here in Wales thousands of pounds behind the UK average, and child poverty rising in Wales while it is falling elsewhere in the UK. The Conservatives are delivering while Labour has the wrong priorities.”
