More than 400,000 households in Wales are to be offered £200 to cope with soaring energy bills.

Last year, around 166,000 people on universal credit, legacy means-tested benefit and working tax credits benefited from the Welsh Government’s winter fuel payment.

Under new plans, ministers said the cash could go to 422,000 households after a decision was taken to include those on child tax credits, pension credits, disability benefits, carers allowance, contributory benefits and the council tax reduction scheme.

Unlike other automatic grants such as the prior council tax rebate or the UK Government’s cost-of-living package – the first instalment of which is due this month – individual households will have to apply for this money.

Welsh social justice minister Jane Hutt said the scheme is being extended so the most vulnerable struggling with the cost-of-living crisis can afford to keep their homes warm during the winter months.

Ms Hutt said: “We know a lot of households are feeling anxious and worried about their rising energy bills, so we hope this extension of our Welsh Government Fuel Support Scheme to many more people will provide some comfort in these challenging times.”

Funding of £90 million has been set aside for the scheme.

Both Conservative and Plaid Cymru members in the Senedd welcomed the increased support but said more needs to be done to raise awareness of the available money as not all who were eligible last year applied for it.

Plaid’s Sioned Williams MS suggested energy payments should be extended beyond winter.

“Poverty does not adhere to seasonal constraints – this summer’s bills are now as high as those that used to be limited to winter, and because we are not yet out of the cost-of-living storm,” Ms Williams said.

The crisis has been exacerbated by the increase in the domestic energy cap rise in April, with predictions the cost of energy will rise higher than expected this autumn.

Those with prepayment meters are believed to be the most susceptible to rising costs and increased standing charges.

Rocketing fuel and food prices are also having a huge impact on households, while driving inflation to the highest level since February 1982.

Separate to the Welsh Government payments, the UK Government is offering a £400 off energy bills for all households from October, a one-off payment of £650 for people on means-tested benefits paid in two instalments, £150 will go to those receiving non-means-tested disability benefits by September, and pensioners on the winter fuel scheme will get an additional £300.