Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps her Department is taking to support people in financial hardship with utility bill payments in winter 2021-22.
The Department for Work and Pensions is providing three primary sources of support with the cost of energy bills this winter - Winter Fuel Payments, Cold Weather Payments, and the Household Support Fund – in addition to more general support, such as Universal Credit.
The aim of the Winter Fuel Payment, which is worth up to £300 per year, is to help older people with the cost of heating their homes in the winter. Over 11 million pensioners benefit from Winter Fuel Payments at an annual cost of £2bn.
The Cold Weather Payment scheme helps vulnerable people in receipt of certain income-related benefits to meet the additional costs of heating during periods of severe cold weather, between 1st November and 31st March. Cold Weather Payments are targeted at those in receipt of eligible benefits with a pension element, or disability component, or where there is a child under five in the household. Between 1 November 2020 and 31 March 2021 the Government made £98.8 million in payments to those in need.
The Warm Home Discount Scheme supports over 2 million low income and vulnerable customers each year with direct assistance with their energy costs. Energy suppliers provide rebates on energy bills currently worth £140 per household each winter. This year (2021/22), the scheme is projected to be worth £354 million.
We also recognise that some people may require extra support over the winter as we enter the final stages of recovery, which is why vulnerable households across the country will now be able to access a new £500 million support fund to help them with essentials. The Household Support Fund will provide £421 million to help vulnerable people in England with the cost of food, utilities and wider essentials. The Barnett Formula will apply in the usual way, with the devolved administrations receiving almost £80 million (£41m for the Scottish Government, £25m for the Welsh Government and £14m for the NI Executive), for a total of £500 million.