Up to 20,000 homes using heating oil could get a £250 payment from the Welsh government to help with the rising cost of living.

The government said £5m from a new £130m package will help "off grid" households who are dependent on either heating oil or LPG and are eligible for reduced council tax.

The package includes the £100 household energy payment, with this extended to those eligible for council tax relief "irrespective of band".

It also includes £7m support for bus travel and £8m for councils to help those "not captured by other schemes".

It follows the UK government unveiling a £100 "household energy payment" for council taxpayers in bands A-D in England in October.

Wales' Deputy First Minister Sioned Williams said supporting families with the cost of living was a "key priority".

"We understand that this is a challenging time for many households across Wales," she said.

"In total this represents an additional investment of £130m, providing immediate relief for households this winter. While we are taking firm action wherever we can, we need the UK Government to play its part".

Five million pounds of the package will help towards "off-grid" fuel costs with a £250 payment available to households eligible for Council Tax Reduction based on their incomes and are dependent on either heating oil or LPG.

An additional £8m will allow councils to extend the £100 payment to households "not captured" by other schemes and are facing financial hardship.

While £7m is being made available to support bus operators with their high fuel costs and protect passengers from fares increases.

"This package represents a significant investment in Welsh communities and reflects our determination to stand alongside households during challenging times," it added.

The Welsh government had already said it would make the £100 energy payment to about one million households in Wales following Chancellor John Healey's UK Budget announcement in October.

The chancellor said council taxpayers in bands A-D in England would get the payment and urged the Welsh government to follow his lead, with Wales' Finance Minister Elin Jones subsequently saying households in the same bands in Wales would also benefit.

Healey announced an end to gas standing charges but did not address call to help those people, mainly in rural areas, who relied on either heating oil or LPG.