HC Deb 24 October 1994 vol 248 c428W
Mr. Kirkwood

To ask the Secretary of State for Social Security (1) if he will publish the current value of the cold weather allowance if increased to a sum equivalent to the value of £5 in 1986 using the September increase in the RPI to calculate the current value;

(2) if he will estimate the cost to the Exchequer of increasing the cold weather allowance to 1994 price levels and paying the allowance at the new level during financial year 1994–95;

(3) whether he will consider increasing the level of payment of cold weather allowance to a sum equivalent to £5 in 1986 and raising the annual increases thereafter in line with the increase in the RPI;

(4) what increases he proposes to the value of the cold weather allowance to compensate for the increases in VAT on fuel costs imposed in the 1993 Budget.

Mr. Roger Evans

Cold weather payments towards the cost of domestic fuel bills will increase to £7 from 1 November 1994 and to £7£50 from 1 November 1995. If the previous payment of £5, originally introduced in December 1986, had been increased using the September value of the fuel and light component of the retail price index the amount would have increased to £6.70 from 1 November 1994–30p less than the actual new payment. Using this alternative payment, the Exchequer would have saved £619,256 this winter, if the same number of cold weather payments were made as last year. As cold weather payments are a contribution towards fuel costs designed to complement day-to-day living expenses met through income support, we have no plans to link these payments with the RPI.