Mr. BendelTo ask the Secretary of State for Social Security what is the additional annual cost of administering a one-off winter fuel payment. [51822]
§ Mr. DenhamWinter 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 was committed for two years (1997–98 and 1998–99), to help pensioners with fuel bills to pay.
As my right hon. Friend the Secretary of State announced in the House on 17 July 1998, Official Report, column 704, a further £0.5 billion has been allocated to extend the scheme beyond next winter. This will provide each eligible pensioner household with a £20 winter fuel payment.
The administration of winter fuel payments is a matter for Peter Mathison, Chief Executive of the Benefits Agency. He will write to the hon. Member.
Letter from Peter Mathison to Mr. David Rendel, dated 22 July 1998:
The Secretary of State has asked me to reply to your recent Parliamentary Question asking what is the additional annual cost of administering a one-off Winter Fuel Payment.Last winter, Winter Fuel Payments were made to almost ten million eligible pensioners. The total administration cost of the exercise was in the region of £20 million. The annual average cost of making each payment was approximately £2.I hope that this is helpful.