Fuel poverty inquiry to look at winter payments for pensioners

Charities have raised concern the 25-a-week cold weather payments during freezing periods are not sufficient, while critics have also condemned the way they are handed out with an estimated 1.6 million pensioners missing out despite being entitled to receive them.

Now MPs on the Energy and Climate Change Committee are to investigate whether the means-tested payments are effective as part of an inquiry into fuel poverty.

The annual winter fuel allowance – which is paid to every pensioner irrespective of their wealth – will also come under scrutiny.

The inquiry has been launched amid concern growing numbers of households are considered to be in fuel poverty, paying more than 10 per cent of income on heating their home.

Despite Government pledges to eliminate fuel poverty by 2016, numbers have soared. More than four million households were deemed to be in fuel poverty in England in September 2008, compared with 1.2 million in 2004.

People receiving pension credit and various other benefits receive the cold weather payments after seven days of freezing temperature but many pensioners miss out because they do not claim pension credit.

During the recent cold snap, some homes in Yorkshire received four weeks of payments as temperatures regularly fell below zero at night.