Cold Weather Payment: Pensioners on low income may be eligible for £25 payment this winter | Personal Finance | Finance
The Cold Weather Payment is a scheme which is available to people claiming certain qualifying benefits. It is awarded to them if their local area experiences sub-zero temperatures or “very cold weather” over a seven-day period. This support can help pensioners pay for their energy bills which are expected to exceed £3,500 for the average household annually after this week’s price cap rise.
Among the qualifying benefits for the Cold Weather Payment, include Pension Credit and Universal Credit, with recipients receiving £25 for every eligible period.
Pension Credit is benefit payment from the Department for Work and Pensions (DWP) which gives pensioners a financial boost.
However, this cold weather support is only available to households between October and March.
Last year, between November 1, 2020 to January 7, 2022, the DWP made Cold Weather payments to over 3,994,000 eligible individuals.
READ MORE: State pension set to rise next year but 520,000 people will miss out
For the winter season in 2021/22, the following places in the UK have been able to claim Cold Weather Payments:
- Aboyne – 7,000 estimated eligible recipients
- Aviemore – 1,000 estimated eligible recipients
- Loch Glascarnoch – 2,000 estimated eligible recipients
- Braemar – 1,000 estimated eligible recipients
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Recently, the Government introduced a wave of new support to help people struggling with the rise in the cost of living.
This included the £650 cost of living payment for those on means-tested benefits, such as Pension Credit, and the £400 energy bill grant.
However, this support has received criticism in light of the recent increase to the energy price cap.
Myron Jobson, a senior personal finance analyst, at interactive investor, explained: “The Government’s existing cost of living support measures will not stretch far enough to shield the most vulnerable members of society from rising cost of seemingly all areas of expenditure.
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“And there are not enough tools in the personal finance box of tips and hacks to shield low-income households within the context of this inflationary environment.
“The harsh reality is households already living on a shoestring are running out of options and face financial disaster without further intervention.
“However, the national conversation is now turning increasingly on further support packages, whether that’s from government or business.
“This week, British Gas Energy said it will donate ten percent of its profits to help customers cope with soaring bills, and while there has been much debate about the impact of that, it is perhaps indicative of where the conversation is heading.”
A Government spokesperson said: “We recognise people are struggling with rising prices which is why we are protecting millions of the most vulnerable families with at least £1,200 of direct payments, starting with the £326 cost of living payment, which has already been issued to more than seven million low-income households.
“Through our £37billion support package we are saving the typical employee over £330 a year through a tax cut, allowing people on Universal Credit to keep £1,000 more of what they earn, while all households will receive £400 energy payments.”
Both Rishi Sunak and Liz Truss have pledged more energy bill support during the Tory leadership contest to see who will become the next Prime Minister.
The eligibility period for the Cold Weather Payment scheme will kick-off once again from November 1, 2022.
