Energy price: Governments row over cash for struggling households

The row over the money has been conducted via social media

The first minister is in a Twitter row with the chief secretary to the Treasury over whether Wales is getting extra UK government money to tackle the pressures on household bills.

Last week the chancellor revealed plans to tackle the cost of living crisis.

They included a £150 council tax rebate for band A-D properties in England and the Treasury said it would result in £175m coming to Wales.

However Mark Drakeford claims his government is not getting extra money.

Plaid Cymru said people in Wales "deserve better than being caught in the middle of a twitter slanging match between the two governments".

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He tweeted: "Last week HM Treasury said Wales would receive £175m from its English Council Tax rebate plan.

"Just as we're finalising our plans to tackle the cost of living crisis, we've learned there's no extra money for Wales. We will continue to work to support those who need it most."

But Simon Clarke, the Chief Secretary to the Treasury, has denied the claims.

He has responded, "The Welsh government will receive £180m of Barnett consequentials as a result of the council tax rebate announced by the chancellor.

"Exceptionally, we have given the Welsh government the flexibility to choose whether they spend this money in this financial year or next in order to make the biggest impact on the cost of living."

Later, a UK government spokesperson repeated the promise that Welsh ministers would get the £180m, which was "new funding".

"People in Wales expect both governments to be working together for them, their families and communities so we will continue engage with them on this support," the spokesperson added.

Mark Drakeford says he has just found out there is no extra money for Wales

When the UK government decides to spend new money in England on things that in Wales are under the control of the Welsh government, some new money is allocated to Wales using a long established funding formula, those are called Barnett consequentials.

When it was announced that Wales would get an extra £175m as a result of the spending in England, Conservative politicians in Westminster and Cardiff Bay called on the Welsh government to use the money to reduce council tax bills here.

In First Ministers' Questions on Tuesday, Mark Drakeford said Wales already had a more generous council tax support arrangement but promised to use the extra money from the Treasury to help with the cost of living crisis.

"If we receive £175m to help households in Wales with the cost-of-living crisis, that is what the money will be used for.

Simon Clarke says Wales will get £180m due to the decision on council tax in England

"But it will be used in ways that recognise the existing landscape in Wales, the fact that help is already available in Wales that doesn't exist across our border.

"We will find the most effective ways of getting that money from us to the families who need it, and we'll make those decisions as quickly as we are able."

Asked to clarify the current position, a Welsh government spokesperson said: "We had already been provided an assurance of a further and separate £178m from other commitments indicated by the UK government.

"Money has been shifted from those commitments by the UK government to fund the council tax rebate.

"As a result, there is no additional funding for Wales arising from the council tax rebate over and above what we were already expecting."

Welsh Conservative Senedd leader Andrew RT Davies accused Mr Drakeford of "deliberately" whipping up "noise and confusion relating to funding for Wales" as it was clear Wales would receive the £180m.

"Rather than playing political games with people's lives, it's now vital this funding is used by the Labour administration in Cardiff Bay to support Welsh families with the cost of living."

Plaid Cymru finance spokesperson Llŷr Gruffydd said: "Despite numerous requests for greater transparency around this process, it seems that the Westminster government is content for Wales to have to play a constant guessing game when it comes to funding.

"When it comes to dealing with the cost of living crisis, the people of Wales deserve better than being caught in the middle of a twitter slanging match between the two governments."

The first minister's tweet appears to conflate two different streams of funding.

The £180m of extra money as a consequence of the English council tax rebate is coming to Wales from the Treasury.

But it is also the case that health spending is lower than initial estimates, leaving Welsh government with less money than the original benchmark.

People in UK government say the Welsh government always knew the health spending estimates would need to be adjusted, especially in light of the uncertainty over the impact of Omicron.

People in Welsh government say the adjustment leaves their settlement broadly flat, even with the additional £180m, but they will be announcing further help with the cost of living next week.

And the Welsh Conservatives will continue press for the entire amount to support families with their bills.