The Department for Work and Pensions (DWP) is facing calls to increase Cold Weather Payments by £15 and overhaul the system, following stark warnings from energy experts about the rising risk of fuel poverty.
What are the proposed changes?
In a significant intervention, academics from leading universities have proposed a major reform of the support scheme. They suggest increasing the payment to £10 per day when temperatures plummet below -4°C, a substantial rise from the current £25 for each seven-day period of freezing weather.
The experts also advocate for paying the benefit in advance, potentially through utility companies for those with smart meters. This crucial change aims to prevent vulnerable people from self-rationing their energy use due to financial fears.
The current Cold Weather Payment rules
Currently, the DWP triggers a £25 payment for each consecutive seven-day period where the average temperature in a specific postcode area is recorded at zero degrees Celsius or below.
Eligibility for these payments typically extends to households receiving:
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Universal Credit
- Support for Mortgage Interest
It is vital to note that eligibility differs in Scotland, where qualifying households receive an annual Winter Heating Payment instead of the Cold Weather Payment.
Why is reform desperately needed?
The push for change is backed by alarming data. Research published in The Conversation reveals that 63 per cent of UK households disconnected their energy supply at least once in the past year, primarily due to cost concerns.
The authors of the report—Thomas Longden from Western Sydney University, Brenda Boardman from the University of Oxford, and Tina Fawcett, also from the University of Oxford—emphasised the human cost of the current system. They stated: "A policy will only be effective when it is clearly communicated and understood by those it applies to. To prevent self-rationing, people need to know that payment support has arrived, otherwise they may hesitate to turn up the heating on the coldest days of winter, with all the risks that involves."
This sentiment is echoed by Peter Smith, Director of Policy and Advocacy at National Energy Action, who warned: "Millions of vulnerable households could narrowly miss out on Cold Weather Payments, despite having to endure freezing conditions for almost a whole week and facing record high energy bills."
He further called for a larger energy discount or a new social tariff to protect low-income households, alongside significant government investment in energy efficiency to make fuel-poor homes cheaper to heat.
As winter tightens its grip, the pressure is now on the DWP and the Labour government to decide whether to act on these expert recommendations and provide more substantial, timely support to those most in need.
