A call has been issued to fix the Cold Weather Payments system due to an ‘overlap penalty’ which is pushing people into fuel poverty instead of using their heating.
Cold Weather Payments, introduced all the way back in 1986, see people who receive certain benefits given an automatic payment of £25 for every seven days that the temperature drops below 0C in winter.
The way it works is, if the average temperature recorded or forecast in your area is 0C or below for seven consecutive days in a row, the £25 is paid into your account. The £25 is paid out for every seven-day period between November 1 and March 31. Qualifying benefits for the payment include Pension Credit, Income Support, Universal Credit and Income-based Jobseekers Allowance.
But according to Thomas Longden, a senior researcher at Western Sydney University, Brenda Boardman, Emeritus Research Fellow at the University of Oxford, and Tina Fawcett, Associate Professor at the University of Oxford’s Environmental Climate Change Institute, who co-wrote an article published by The Conversation, the system is flawed.
They pointed to analysis of smart meter data from 11,500 Utilita Energy customers which showed that 63% of households disconnected their energy supply at least once a year, meaning they were choosing to live without heating over fear of the costs.
They wrote: “There was no evidence to show that the cold weather payment as presently designed reduced this risk.”
Furthermore, they said that the current payments are only paid once, even when there are several periods of cold weather close together.
They added: “The cold weather payment is only paid once even when there are multiple periods of cold. This ‘overlap penalty’ severely affects those living in northern England and particularly Yorkshire, which is a colder region where cold weather spells are more common.”
Instead, they are calling for the system to change to allow for the payment to be made in advance: “The payment should be made in advance of cold weather, and utility companies could pay it directly to customers who have smart meters.
“Credits could be applied for those using other types of meters. This is likely to reduce self-disconnections and self-rationing during very cold nights.”
They also called for the amount to be significantly increased up to £10 a day if weather drops to -4C.
They said: “Payments should be triggered by the minimum night-time temperature. The temperature measure used at present is confusing and the money is not paid until up to two weeks after extremely cold weather, which is problematic for those on tight budgets.
“To better match the support needed during cold weather, the amount paid should be increased to £10 a day for every day that minimum temperatures are forecast to be below −4°C. This would improve energy security for people in England, Wales and Northern Ireland.”