Credit, Collections & Insolvency News
Households in England and Wales received an estimated £29,550,000 in Cold Weather Payments from 1st November 2023 to 9th February 2024, according to Compare the Market’s analysis of data from the Department of Work and Pensions (DWP). The fall is £108,050,000 wh compared to the £137,600,000 reported between 1st November 2022 and 10th February 2023. The decline could be a result of the milder than average weather between December 2023 and January 2024.
The UK Government offers Cold Weather Payments to support households who may be struggling to cover the costs of heating during extremely cold weather. Reflecting the milder weather reported, the number of Cold Weather Payment ‘triggers’ fell by 87 year-on-year, from the 118 reported between 1st November 2022 and 10th February 2023, to 31 from 1 November 2023 to 9 February 2024.
The estimated number of Cold Weather payments varies depending on how many times each weather station is activated. Areas can receive multiple payments if the weather station is triggered for separate periods of cold spells. The average temperature must be below zero degrees Celsius for seven consecutive days. Those eligible receive £25 for each seven-day period of very cold weather between 1 November and 31 March. To be eligible, households must receive certain benefits, such as Pension Credit, Income Support, Jobseeker’s Allowance, and Universal Credit, as well as other criteria.
As a result of the lower number of ‘triggers’, this winter has also seen a lower number of Cold Weather Payments, with an estimated 1,182,000 payments reported, compared to an estimated 5,504,000 reported last winter. There have been an estimated 3,921,000 people in England and Wales who have been eligible for a Cold Weather Payment this winter, representing an increase of 207,000, compared to the 3,714,000 eligible recipients reported last winter.
Sajni Shah, Utilities expert at Compare the Market, said “The significant drop in the number of Cold Weather Payments reported this winter may be reflecting the relatively milder weather we’ve been having in the UK in recent months, despite some colder spells in December and January. Nevertheless, if temperatures fall in the coming weeks, additional support could be valuable for some households, particularly as higher living costs continue to stretch many people’s budgets. Across all your existing household bills, it’s a good idea to check where you could save money and encourage friends and family to do the same.”
| Winter period | 2022-2023 | 2023-2024 |
| Number of triggers | 118 | 31 |
| Estimated number of payments made | 5,504,000 | 1,182,000 |
| Estimated cost of payments | £137,600,000 | £29,550,000 |
| Estimated total eligible recipients | 3,714,000 | 3,921,000 |