Poverty campaigners welcome energy payments in Wales but warn of tough choices for households

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The announcement follows the British Budget where Chancellor John Healey gave payments of £100 to households in council tax bands A-D.

The money was provided to devolved administrations with the Chancellor urging them to pay the money out in the same way as England.

The £130 million cost-of-living support package includes a £100 payment to households in council tax bands A-D and extends the payment to all recipients of the Council Tax Reduction Scheme.

There will also be an £8m fund for local authorities to help those facing hardship not captured by other schemes, £5m for off-grid fuel costs and £7m support for bus travel.

The Bevan Foundation’s Steffan Evans said: “The decision to provide additional support is to be welcomed.”

But he said the support by the Welsh government and the Chancellor was unlikely to be enough to stop people having to decide whether to heat their home or put food on the table.

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