Winter Fuel Payments (Hansard, 14 May 1998)

§ Mr. Denham

Winter Fuel payments are one of a number of initiatives the Government have taken to help vulnerable people, especially the elderly, keep warm in the winter. A total of £400 million has been committed for two years (97/98 and 98/99), to help pensioners with fuel bills to pay. This is the first time any Government have provided additional help with heating costs to all pensioners living in the United Kingdom who receive a Retirement Pension or one of a number of other qualifying benefits.

The making of this year's payments has been an enormous and unprecedented exercise. In order to establish all eligible pensioners, correctly identify pensioner households, and determine the amount each should receive, it was necessary to correlate data in around 15 million computer records, involving 15 qualifying benefits, across nine computer systems. Overall, almost ten million pensioners, in over seven million households, have received a payment.

The administration of Winter Fuel Payments is a matter for Peter Mathison, the Chief Executive of the Benefits Agency. He will write to the hon Member.

Letter from Peter Mathison to Mr. Desmond Swayne, dated 13 May 1998: The Secretary of State has asked me to reply to your recent parliamentary question asking how many pensioner households received double the proper payment under the Winter Fuel Payment Scheme. The making of Winter Fuel Payments to almost ten million eligible pensioners, in over seven million households, before the end of March 1998 has been a challenging task for the Benefits Agency (BA). This was achieved whilst maintaining normal benefit business. Around one and a half million of the poorest pensioners, those receiving Income Support (IS) or income-based Jobseeker's Allowance (JSA(IB)), received their payment of £50 during January. Almost eight and a half million other eligible pensioners, for example those in receipt of state Retirement Pension, were issued with a payment of £20 or £10. The issue of these payments was completed by 24 March 1998. So far we are aware of 645 eligible pensioners who received two £50 payments. This includes 211 who erroneously received two payments due to being in receipt of both Income Support and income-based Jobseeker's Allowance for at least one day in the qualifying week. In accordance with the legislation only one payment should have been made. A further 434 pensioners cashed both an invalid and a replacement girocheque. Due to a computer operator error, 40,801 invalid girocheques were sent out with an incorrect date of issue. The error was quickly identified and all the invalid payments were replaced within 72 hours. The letter which accompanied the replacement apologised for the error and advised the recipient to destroy the invalid girocheque or if they had managed to encash it, to return the replacement to the nearest Benefits Agency office. It appears that in a small number of instances both the invalid and replacement girocheque were cashed. Action will be taken to write to each of those eligible pensioners who received £100 instead of £50 informing of the position and inviting repayment. In the case of the 434 invalid girocheques cashed by the Post Office, where repayment is not offered by any 169W of the eligible pensioners, in accordance with agreed contractual obligations and responsibilities, any balance will be sought from the Post Office. No information is presently available on the other eligible pensioners who received either a £10 or £20 payment. To determine whether £20 or £10 was due it has been necessary to establish whether the pensioner lived alone. Where we identified they were the only eligible pensioner in a household they received £20; where they lived with other eligible pensioners each received £10. Legislation requires that the decision whether £10 or £20 is due is based on information held within official Departmental records. All the £20 and £10 payments issued have therefore been based on information which originated from pensioners and is held within these official records. We are aware from subsequent enquiries from some pensioners that the official records available and used by my Agency did not always accurately reflect the correct, current address details. For example, two eligible pensioners living at the same address have differing address details held in official records and despite expecting to receive £10 each, have received £20 each. Similarly, there will be pensioners who receive £10 but believe £20 is due. This will be because official records show the pensioner living at the same address as at least one other eligible pensioner, but they in fact are the only eligible pensioner in the household. In these circumstances they can apply to the BA for a review of the decision to pay £10. However, even though we have subsequently updated the address details the payments themselves remain correct in accordance with the legislation. They have been made using official records which were in place at the time eligibility was determined. The legislation is framed in such a way that providing the payments made are supported by records held then there has not been an incorrect payment. We are therefore not aware of any £10 or £20 payments that have been made in error. Thank you for the opportunity to explain the position.