Cold Weather Payments (Hansard, 13 March 1998)

§ Mr. Denham

The Government made a manifesto commitment to set up a review of central areas of insecurity for elderly people, including all aspects of the basic pension and its value; and second pensions including SERPS. The key objective of the Government's Pensions Review is to ensure that pensioners should have an adequate income in retirement; that they should share fairly in rising prosperity; and that public finances should be both sustainable and affordable. The Government are also committed to examining ways of delivering more automatic help to the poorest pensioners. It is estimated that one million do not receive the Income Support to which they are entitled. Research has been commissioned into why they do not claim Income Support. Last November, we announced funding of £15 million for a number of pilot schemes, starting in April, to help find the most effective way of getting Income Support to pensioners who do not claim it.

During his pre-budget statement, my right hon. Friend the Chancellor of the Exchequer stated that the Government were not prepared to allow another winter to go by, when pensioners are fearful of turning up their heating, even on the coldest winter days, because they do not know whether they will have the help they need for their fuel bills. He announced that a total of £400 million was being committed to help all pensioners with fuel bills to pay, for this winter and next—each pensioner household receiving £20, but the poorest receiving Income Support £50.

1995–96 data	Gross earnings (£/week)	Net income before housing costs (£/week)	Equivalisation (Divide by)	Equivalised net income (£/week)	Decile
(a) Single person	150	141.23	0.61	231.52	6
	200	154.66	0.61	253.54	6
	250	187.16	0.61	306.82	8
	300	219.66	0.61	360.10	8
	400	284.66	0.61	466.66	10
(b) Lone parent, child aged 4	150	202.83	0.79	256.75	6
	200	203.56	0.79	257.67	6
	250	208.83	0.79	264.34	7
	300	241.33	0.79	305.48	8
	400	306.33	0.79	387.76	9
Lone parent, children aged 4 and 6	150	220.15	1	220.15	5
	200	223.56	1	223.56	5
	250	222.40	1	222.40	5
	300	249.78	1	249.78	6
	400	314.78	1	314.78	8
Married couple, child aged 4	150	201.24	1.18	170.54	4
	200	201.35	1.18	170.64	4
	250	206.87	1.18	175.31	4
	300	235.03	1.18	199.18	5
	400	300.03	1.18	254.26	6

396W

This is an unprecedented initiative and is the first time any Government have been prepared to help all pensioners with their winter fuel bills.

Around one and a half million pensioners receiving Income Support or income-based Jobseeker's Allowance have already received their Winter Fuel Payment of £50. The other eight and a half million eligible pensioners should receive their payment by the end of March.

Overall, almost ten million payments will be made to over seven million pensioner households.

The Winter Fuel Payments are in addition to any Cold Weather Payments which may also be made to pensioners, the disabled, or people with a child under the age of five, receiving Income Support or income-based Jobseeker's Allowance if there is a period of very cold weather.