Charity says rural families face ‘impossible choices’ as energy costs rise

Nation.Cymru staff

With colder days fast approaching and energy prices due to rise again in October, Citizens Advice Cymru have warned that rural communities are bearing the brunt of rising energy costs and face systemic barriers to support.

Their latest report, Off the Grid, Off the Radar, reveals that rural households in Wales spend a higher proportion of their income on energy (5.6% compared to 4.6% in urban areas) due to older, poorly insulated housing stock and a heavy reliance on expensive, off-grid fuels like heating oil.

As a result, nearly half (48%) of rural households struggling with affordability have been forced to cut back on essential spending – including food – compared to 33% in urban locations. Among those struggling with energy bills, 58% of people living rurally reported using less heating, compared to 46% in more urban areas.

Despite having the highest level of need, rural households are largely missing out on critical government support. The report identifies that interest in retrofit schemes is relatively high, however, only 10% of energy efficiency improvements delivered through the Welsh Government’s Nest scheme during 2024-25 were installed in rural homes.

Just 40% of rural residents know about the Nest scheme, compared to 52% urban. Additionally, only one-third are aware of emergency financial support schemes like the Welsh Government’s Discretionary Assistance Fund (DAF).

There are also issues with digital exclusion and administrative barriers including complex application forms, with no person to speak to elderly rural residents struggling to access emergency grants, and costly transport in rural areas.

While vital safety-net schemes exist – including the Welsh Government’s Discretionary Assistance Fund, fuel vouchers, and the Fuel Bank Foundation Heat Fund – Citizens Advice Cymru’s research highlights systemic barriers preventing rural households from accessing this support.

Citizens Advice Cymru is calling on the Welsh Government to:

• Safeguard crisis funding through the Discretionary Assistance Fund (DAF) and keep the value and flexibility of emergency payments under review to respond to world events.
• Commit the additional investment necessary in the Welsh Government budget to make Welsh homes warmer, healthier, and more energy efficient through a retrofit scheme.
  Take action to improve access and awareness of retrofit programmes for homes in rural areas.

Pushed to brink

Simon Hatch, Director of Citizens Advice Cymru said:“Our research shows many rural families are being pushed to the absolute brink, forced to make impossible choices between heating their homes and putting food on the table.

“It is unacceptable that people living in remote communities, struggling to pay their energy bills, are missing out on vital financial help and wider support to make their homes warmer simply because application processes are too complex or locked behind a digital divide.”

“Alongside immediate crisis support, significant investment is urgently needed to protect people from future energy price hikes by supporting households to make their homes more energy efficient and switch to low carbon heating systems.”

“The new Welsh Government has sought to centre the needs of rural communities in its first months. To tackle fuel poverty, we need to see crisis funding protected, barriers to access removed, and targeted outreach introduced so that no one in Wales is left freezing in their own home this winter.”

Response

In response, a spokesperson from the Welsh Government said: “Everyone should have a warm, secure, affordable home, and we recognise the particular challenges faced by rural communities in Wales, where older housing stock and reliance on off-grid fuels can make energy costs harder to manage.

“Our off-grid heating fuel support scheme is open for applications until 30 September, and we encourage anyone eligible for Council Tax Reduction who relies on heating oil or LPG to apply for their £200 support payment.

“We’ve announced an extra £17 million of in-year budget for home energy upgrades, including £5 million to boost Nest, taking its total budget this year to over £37 million. We are working with partners to improve awareness and access to the scheme in all parts of Wales, including rural communities.

“We know people are struggling with the cost of living, and we’re determined to do all we can to prevent poverty. Crisis support is available for eligible people through programmes like the Discretionary Assistance Fund and our support for the Fuel Bank Foundation.”

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