Plaid Cymru warns Wales risks losing out under targeted energy support plans

Plaid Cymru’s Westminster leader Liz Saville Roberts has warned that UK Government plans to limit energy bill support to gas mains usage could leave Welsh households disproportionately exposed.

Chancellor Rachel Reeves made a statement to MPs after outlining new principles for assistance to the Prime Minister and colleagues in a COBRA meeting on Monday afternoon.

Reeves said work is ongoing to prepare targeted support for households when the current energy price cap expires in June and it is likely global prices will push up domestic bills.

This differs from ‘blanket’ support offered under Liz Truss’s government in the wake of Russia’s attack on Ukraine, which Reeves said “gave the support to the most wealthiest of households” and “left us with high levels of national debt”.

The Chancellor told MPs: “Contingency planning is taking place for every eventuality so that we can keep costs down for everyone and provide support for those who need it most, acting within our iron-clad fiscal rules to keep inflation and interest rates as low as possible.”

The Competition and Markets Authority will also be given new powers to tackle firms found price gouging under an anti-profiteering framework.

However, Ms Saville Roberts has highlighted the particular vulnerability of rural and off-grid communities in Wales, warning that schemes built primarily around mains gas usage risk excluding thousands of households.

In response to the Chancellor’s statement, Ms Saville Roberts said: “Any targeted scheme designed around UK averages risks missing the reality of Welsh households, where incomes are lower, homes are older, and energy efficiency is poorer.

“If support is restricted without recognising Wales’ specific circumstances, households will lose out.

“Too many UK schemes are designed with the gas grid in mind, yet large parts of rural Wales rely on oil or alternative fuels. Without proper recognition of this, many families will be overlooked entirely. The support already announced for off-grid homes will simply not meet the level of need.

“You cannot design a fair system without accounting for the fact that many Welsh homes are harder and more expensive to heat. A one-size-fits-all approach will not deliver fairness.”

On 18 March it was confirmed that Wales will receive £3.8 million from the UK Government in support of households that do not have access to mains gas and are instead dependent on heating oil, LPG, or other alternative fuels.

The Welsh Government also announced that they would temporarily increase the amount available per award under their Discretionary Assistance Fund for heating oil to £750 and the frequency these payments are provided to twice in a rolling twelve-month period, while “the UK funding will be provided to Welsh Government from April for the 2026-27 financial year.”

However, Ms Saville Roberts, in a joint statement with Mabon ap Gwynfor MS, called for further clarity on how and when the UK Government-funded support would be delivered, as Wales has “more than double the proportion of heating‑oil‑dependent homes compared to the UK average.”

In her statement to the Chancellor on Monday 24 March, Ms Saville-Roberts continued: “It is also worth noting that residents in north Wales and Mersey are subject to the highest standing charges across the entire UK.

“My constituents are having to pay almost £100 more a year than those living in London so I would urge the Chancellor, once again, to look at and address unfair standing charges.

“People shouldn’t be paying more for their energy bills simply because of where they live.

“Decisions taken in Westminster have very different consequences in Wales. If the UK Government is serious about fairness, it must work with devolved governments to ensure support reflects the realities on the ground. That is why Plaid Cymru has called for a four-nations summit to agree a joint approach.

“This is a test of whether ministers understand how their decisions land in different parts of the UK. A policy that ignores Welsh circumstances is not fair, and it will leave people here paying the price.”

Wales has the oldest housing stock in the UK, with 26% of homes built before 1919. Plaid Cymru has also warned that less energy-efficient housing stock and higher levels of fuel poverty mean Welsh households face greater exposure to price shocks.

Plaid Cymru called on the UK Government to guarantee that any support scheme reflects Wales-specific needs, including rural and off-grid households, and to ensure fair access for those in older, less energy-efficient homes.

Ms Saville Roberts had also called on the Prime Minister, Keir Starmer, to ensure that devolved governments are fully involved in shaping any response to rising energy costs, including through a four-nations summit between the UK and devolved governments.

The UK Government’s approach has also faced wider criticism.

David Maddox, Political Editor at the Independent, criticised the Chancellor’s “promise to look at fuel prices again”, writing: “It feels hard to believe that the COBRA meeting on Monday could have only come up with a ‘steady as it goes’ plan with no new serious measures if the expected economic shock comes.”

Though the US pause on strikes against Iranian energy infrastructure calmed markets and saw oil prices ease back, Sir Keir Starmer said Britain must be prepared for the Iran war to continue “for some time”.