Beneficiaries set to lose winter energy allowance

Beneficiaries face a $20-a-week pay cut next week, and there are concerns some are not ready for it.

The Winter Energy Payment was implemented for the first time this year.

In future years it will run from May until October, delivering $20.46 a week for single people on the pension or other main benefit with no dependent children and $31.82 for couples and people with children.

This year, it started in July and will finish at the end of September.

Budget adviser Maureen Little, of Presbyterian Support Northern, said people had become used to having it and it would be a shock for many when it was no longer available.

The payment had been enough to allow some people to eat better and go to the doctor, when they otherwise would not have been able to, she said.

‘‘Having that extra $20 has been quite helpful . . . it’s going to hurt a few people. Just that little bit extra has made a difference,’’ Little said.

‘‘What will happen is that people will go back to using their food money if their power bill is a bit high this month, or they won’t go to the doctor when they should. I did hope the Government would fit it in their hearts to leave it on.’’

She said the payment had started at the same time as petrol prices started to rise because of the introduction of Auckland’s new regional fuel tax.

That had blurred the effect of the extra transport cost, Little said, but it would become much more apparent when the payment was removed.

She said consideration should be given to an ongoing power allowance for people who lived in parts of the country with the highest bills, in the same way that higher accommodation supplements were available to people in areas with high housing costs.