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Government figures indicate just £300,000 is forecast to be spent on Cold Weather Payments this winter, compared to £100 million last year.
Administered by the Department for Work and Pensions, the scheme is designed to help more than 3.7 million people in receipt of certain benefits during prolonged periods of cold weather.
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.
A separate scheme mirroring the system in England and Wales is run in Northern Ireland, while Social Security Scotland is introducing Winter Heating Payment, a replacement for Cold Weather Payment.
In the 2020/21 scheme year, the government paid out £98.8 million overall to eligible recipients.
However, figures published by the DWP this week reveal the government forecasts spending just £300,000 which is the second lowest total on record.
Speaking to Utility Week 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.”
He added: “Making sure low-income families have access to fund the energy they need is key. This winter, the average prepayment-metered household will need around £350 to top up their meter each month, compared to a little over £200 for a direct debit customer.
“The reality is that many households will struggle, and although the CWP criteria are often not met, it doesn’t mean that low-income households are managing to keep warm.”
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