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 support during winter months to pensioners and those receiving specific social security benefits in colder regions of the UK, aiming to alleviate the financial burden of higher heating costs.

Description

The Allowance

The proposed Cold Climate Allowance is a weekly payment made for 17 weeks, starting in the first full week of December. Eligibility is tied to receipt of the State Pension, Universal Credit, Income Support, income-based Jobseeker’s Allowance, or income-related Employment and Support Allowance.

Payment Rates

Payment amounts vary based on a zonal system dividing the UK into four climatic zones (detailed below). The weekly rate is the higher of a fixed amount (£45.05 for Zone 4, £27.56 for Zone 3, £13.78 for Zone 2) or a percentage (30%, 20%, and 10% respectively) of a reference rate (based on Housing Benefit Regulations).

Zonal System

The UK is divided into four zones based on climate: Zone 4 (highest payment) includes Shetland, Orkney, etc.; Zone 3 includes Northern Ireland, parts of Scotland and Northern England; Zone 2 encompasses much of central and southern England and Wales; Zone 1 (lowest payment) covers the south of England.

Report Requirement

The Secretary of State must present a report to Parliament within six months of the bill passing, detailing the merits of the allowance and its potential impact on fuel poverty.

Government Spending

The bill itself doesn't specify a cost. The report mandated by the bill will quantify the potential financial implications of implementing the Cold Climate Allowance.

Groups Affected

Positively Affected: Pensioners and recipients of Universal Credit, Income Support, income-based Jobseeker’s Allowance, and income-related Employment and Support Allowance residing in Zones 2, 3, and 4. The level of positive impact varies based on the zone and individual circumstances.

Potentially Affected: The UK government (due to the potential cost of the allowance), and potentially taxpayers (depending on how the allowance is funded). The report will assess the overall impact on fuel poverty.

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