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Dept of Social Security

Answer

Mr. Hill: To ask the Secretary of State for Social Security when she expects to announce the outcome of the annual review of the cold weather payments and if she will make a statement. [14188] Mr. Denham: The annual review has taken place against a backdrop of successful Government moves to cut fuel costs and a wide-ranging programme to make homes easier to heat. The Government are determined to tackle the problems associated with vulnerable people keeping warm during cold weather. Action will go well beyond the scope of cold weather payments. Fuel costs for many of the poorest claimants are falling. The annual fuel bills for people eligible for CWPs are estimated to be £60 million less this year than last. This fall itself is equivalent to nearly three CWPs. Last year eligible people received an average of two payments. This winter, fuel bills will fall due to the Chancellor of the Exchequer's reduction in VAT on fuel bills from eight to 5 per cent. removal of the gas levy; and recent reductions in the cost of fuel and light. Help with energy efficiency grants will continue for householders on low income benefits, disability allowances, or who are aged 60 or over. A further 400,000 vulnerable households will receive help this year. The grants have been extended to cover two new main measures--cavity wall insulation and upgrading of heating system controls. The environmental task force element of the Government's welfare-to-work new deal is now taking shape. It is expected to include a programme of energy efficiency improvements in homes of the elderly. This year's review also concluded that two further changes could not be implemented without increasing the complexity and uncertainty of the scheme and would not have provided a guaranteed improvement in the perceived fairness of the scheme. The first proposed change made use of a new product from the Meteorological Office, which would have removed the need for an annual review of post code to weather station links, but would have lead to the number of post code groups within Great Britain increasing from the present 70 to over 600. Increasing the number of areas would have created far more occasions when people in neighbouring streets received a different number of payments and made the scheme far more difficult to understand. Therefore, we decided not to introduce this change, but to keep the current arrangements under review. We also considered a new report commissioned from the Building Research Establishment into the effect of wind speed on domestic heating needs during very cold weather. Copies of the BRE report have been placed in the Library. The report was considered alongside the action the Government have already taken to cut fuel bills and promote energy efficiency. We were also mindful of our manifesto commitment to live within inherited expenditure plans. Allowing for the effects of wind speed would increase the complexity and uncertainty of the scheme without ensuring that the payments went to those with the greatest need for additional heating. The amount of additional heating required depends on a number of varying factors, including the house type, insulation standard, method of heating used and its efficiency. If the current level of expenditure was maintained, but the scheme was changed to take into account wind speed, it is highly likely that many people in less windy areas would lose payments which they could expect to receive under the current arrangements. Taking into account all the relevant considerations we have decided not to amend the scheme to take account of wind speed. The annual review of the CWP scheme has now been completed. The review involved consideration of representations made during last winter regarding the suitability of individual weather stations or their respective links with post code districts. Amending regulations were laid on 9 October. In line with the Meterological Office expert advice, we have increased the number of weather stations used in the scheme from 70--the number used last winter--to 72. The two additional weather stations will improve the fairness with which payments are made in the affected areas. The two additional weather stations will be in Scotland. One at Waterstein head will represent most of the Isle of Skye and the other at Salsburgh will represent some in land areas in the south of Scotland.

Secondary information

Type

Written question

Reference

14188; 299 c855-6W

Session

1997-98

Subjects

Cold weather payments Costs Conservation Housing Energy Households Insulation Heating Fuels Forecasts Older people Weather VAT Welfare to work Building Research Establishment Met Office Wind