Cold Weather Payments have ‘lagged behind inflation’

Payments made to vulnerable customers during prolonged periods of cold weather have failed to keep pace with inflation, an energy charity has warned.

Matthew Copeland, head of policy and public affairs at National Energy Action, was speaking after the government published figures indicating just £300,000 is forecast to be spent on Cold Weather Payments this winter, compared to £100 million last year.

Between 1 November to 31 March each year a network of 72 Met Office weather stations across England and Wales records daily average temperatures.

When the average temperature has been recorded as, or is forecast to be, 0℃ or below over seven consecutive days, a payment of £25 is automatically made to those eligible in the coverage area of each station.

However Copeland told Utility Week the government must address what he labelled the scheme’s deficiencies, including the fact the £25 figure has not been updated in more than 10 years.

He said: “Cold Weather Payments need to be paid faster in order to ensure that vulnerable households can afford to heat their homes during cold weather, not after.

“Unfortunately, the scale of support has not been increased in over a decade and has lagged behind inflation.

“These deficiencies should be addressed in order to ensure the scheme works in the best interests of fuel poor households this winter and beyond.”

Responding to the comments the Department for Work and Pensions, which administers the scheme, said: “Cold Weather Payments are part of a wider package of measures to support millions of vulnerable households facing higher energy costs this winter.

“Further support includes Winter Fuel Payments, £400 per household towards energy bills and our Energy Price Guarantee will save the typical household another £900 on top of this.”

NEA is not the only charity to raise concerns about the scheme.

Speaking to Utility Week on Thursday (8 December) Matthew Cole, head of the Fuel Bank Foundation charity, warned of the risks facing vulnerable customers during shorter periods of extremely cold weather.

He said: “Contrary to what people think, Cold Weather Payments only kick in when we have long periods of really cold weather, and so don’t apply when we have short sharp cold snaps.

“Pensioners, of course, receive the Winter Fuel Allowance which covers the higher average cost of energy over winter, as does Warm Home Discount, but there isn’t a targeted benefit to support sudden additional heating costs prior to the CWP kicking in, or not.”