DWP May Replace Cold Weather Payment With £10-A-Day Support in Major Shake-up

Calls are growing for a complete overhaul of the Cold Weather Payment scheme. Researchers argue that the current £25-a-week model fails to protect struggling households during freezing conditions. Their proposed solution is a daily benefit that reflects actual winter heating costs.

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DWP Cold Weather Payment shake up
DWP Cold Weather Payment shake up. credit: shutterstock | en.Econostrum.info - United Kingdom

Academics have called on the UK government to overhaul its Cold Weather Payment scheme, proposing a new £10-a-day benefit for every day temperatures fall below −4°C. The recommendation follows research that questions the effectiveness of the existing £25-per-week structure in protecting vulnerable households from freezing conditions.

According to experts from the University of Oxford and Western Sydney University, the current scheme fails to prevent low-income families from disconnecting their energy supply during extreme cold. Their findings suggest a need for a more responsive approach that reflects the true cost of staying warm in winter.

Researchers Highlight Gaps in Current Cold Weather Payment Scheme

The Department for Work and Pensions (DWP) currently provides £25 for each seven-day period when the average temperature in a given area is recorded or forecast at zero degrees Celsius or below. This benefit is available between 1 November and 31 March. However, according to academics Tina Fawcett, Thomas Longden and Brenda Boardman, the design of this scheme is “out of step” with how households experience and manage winter heating costs.

Analysing smart meter data from more than 11,500 customers of Utilita Energy, the researchers found that nearly two-thirds of prepayment households disconnected from their energy supply at least once a year because of unaffordable costs. Even during periods of severe cold, many could not keep their homes heated. The study, published via The Conversation, found “no evidence” that the Cold Weather Payment reduced the risk of disconnection.

Another concern raised by the researchers is the so-called “overlap penalty,” a rule limiting support when cold spells occur in quick succession. Under current regulations, households receive a single payment for a seven-day cold period, even if freezing conditions persist or recur immediately after.

Proposed £10-A-Day Model to Match Actual Heating Needs

To address these gaps, the research team proposes replacing the existing £25-per-week benefit with a £10-a-day payment for each day temperatures fall below −4°C. According to the academics, this would better align financial support with real energy use during extreme cold snaps, helping to prevent households from being forced to disconnect.

In Scotland, the Cold Weather Payment has already been replaced by the Winter Heating Payment, which is issued annually regardless of weather conditions. The researchers argue that reforming the payment system in the rest of the UK could have a similar stabilising effect, particularly for vulnerable households reliant on prepayment meters.

They conclude that a more flexible and targeted scheme would ensure families are not left to choose between heating and other basic needs during prolonged cold weather, urging policymakers to consider an evidence-based redesign of winter support.

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