Debt help: Scottish homes 'missing out' on cold weather payments

26/02/2010

Vulnerable households, who could already be struggling to meet debt payments, may be missing out on financial assistance for paying their energy bills.

A weekly payment of £25 should be given to vulnerable households whenever the temperatures drop below zero.

However, the remote nature of much of Scotland means that many are missing out on payments as their nearest weather station is recording warmer temperatures.

A debt management plan could help people to balance their finances, while still leaving space to meet priority payments, such as gas and electricity bills.

Scotland's housing and communities minister Alex Neil has brought the problem to the attention of the UK government by calling for a more flexible system to be installed which would make sure vulnerable households had the money needed to stay warm.

"There is a postcode lottery for cold weather payments. Households living in freezing conditions may find they are not eligible on certain weeks because the data from the nearest weather station, miles away, is out of touch, said Mr Neil.

Even if Mr Neil manages to make provide Scottish homes with the help they are entitled to, a rise in energy bills this year is likely to keep money tight for many people.

British Gas's home energy department, Centrica, has warned that a "very different commodity price environment" was likely to see bills rise in 2010 as wholesale energy prices rose and companies are forced to invest in the country's energy infrastructure.

Posted by Jim Mead

Tags; Housing Debt and Bills,

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