Overview

This bill mandates the UK Secretary of State to produce a report assessing the feasibility of a Cold Climate Allowance. This allowance would provide extra financial assistance during colder months to pensioners and those receiving specific social security benefits in areas with colder climates to help with increased heating costs.

Description

The bill proposes a 17-week Cold Climate Allowance payable annually from the first week of December. Eligibility is limited to recipients of the State Pension, Universal Credit, Income Support, income-based Jobseeker's Allowance, or income-related Employment and Support Allowance.

Payment Rates

The weekly allowance varies depending on the climatic zone, as defined in the bill's schedule, and is the higher of a fixed amount or a percentage of a reference rate (derived from the Housing Benefit Regulations 2006):

• Zone 4 (e.g., Shetland, Orkney): £45.05 or 30% of the reference rate.
• Zone 3 (e.g., parts of Scotland, Northern England): £27.56 or 20% of the reference rate.
• Zone 2 (e.g., much of England and Wales): £13.78 or 10% of the reference rate.

The report to Parliament, due within six months of the bill's passage, will evaluate the allowance's merits and potential impact on fuel poverty.

Geographic Zones

The UK is divided into four climatic zones (detailed in the schedule of the bill) for the purposes of determining eligibility and payment rates.

Government Spending

The bill doesn't specify the exact cost of the proposed allowance. The actual financial implications will depend on the number of eligible recipients in each zone and the final rates determined after the report's assessment. A significant increase in government spending is expected should the allowance be implemented.

Groups Affected

The bill primarily affects:

• Pensioners: Receiving the State Pension in colder areas could receive additional financial support.
• Social Security Beneficiaries: Those receiving Universal Credit, Income Support, income-based Jobseeker's Allowance, or income-related Employment and Support Allowance in colder areas could also benefit.
• UK Government: Responsible for funding the allowance, with potentially substantial budgetary implications.

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