Nip in the tail of Government's energy payment

Pensioners will have to wait until next year to get the full $700 winter energy payment promised by Government. This year the payment will be $413.66 paid over 13 weeks.

The nasty nip of winter may bite a bit harder for elderly residents expecting a decent government winter energy payment, as promised during last year's general election campaign.

The new winter energy payment was promoted by the Labour Party in the election campaign as helping older people on New Zealand superannuation or a veteran's pension to heat their homes by increasing the money available to them over the winter.

During the campaign Labour's Kieran McAnulty told the Dannevirke News married couples would receive $700 and a single person $415.

However, as Dannevirke pensioner and businessman Ian Mollison has discovered, the amount promised and what will actually be delivered this year is vastly different.

"It seems reality has hit and I've had it confirmed by Work and Income that single people will receive $265.85 and married couples $413.53," Mollison said.

McAnulty said the initiative doesn't kick off until July 1 this year, making this year's payments less than in subsequent years - after which payments will be made in full for the five months from May 1 to September 30.

"The feedback I've received about this payment has been incredibly positive," McAnulty said.

"We expect it to make a substantial difference to pensioners over winter, when finances can be tight due to increased heating costs."

The money isn't means-tested and is also to be paid to people under 65 on a "main benefit".

This year the money will be paid in weekly instalments from July 1 to September 30 at $20.46 for single people and $31.82 for married couples.

"The Government announced the Families Package would not come into force until July this year and as the winter energy payment is part of the Families Package, it will be implemented then.

"This year the winter energy payment will run for 13 weeks from July 1 until September 30, however in future years, the payment will start on May 1 and continue for 22 weeks," McAnulty said.

Wairarapa National MP Alastair Scott told the Dannevirke News the Labour Government's winter fuel payment was "cynically" paid to superannuitants to compensate them for the cancellation of the National Party's tax cuts.

"Our tax cuts would have given the $25 (same as winter fuel payment) but would have started on April 1," Scott said.

"Superannuitants and all earners would have been better off, with more money in their pockets under a National Government.

"Furthermore, the winter fuel payment is not adjusted up for inflation as superannuation is, so over time the winter fuel payments value erodes as inflation and time passes."

People don't need to apply for the payment. It will be paid automatically to everyone getting New Zealand Super, Veteran's Pension, Jobseeker Support, Sole Parent Support, Supported Living Payment or a Youth Service Payment.

However, people receiving the residential care subsidy or residential support subsidy are not eligible.