Fuel Direct scheme paused

The Fuel Direct scheme was paused in April 2022, according to Macmillan Cancer Support¹. Under the scheme, people getting benefits who were struggling with energy or water bills could contact the Jobcentre Plus or their local pension centre, and with their agreement a fixed amount could be taken each month from their benefits to pay those bills directly¹.

Because of the pause, suppliers cannot currently approach the Jobcentre Plus to arrange payments from benefits¹. Claimants who want to pay bills straight from their benefits must contact the Jobcentre Plus themselves to arrange it¹. Macmillan also states that people who pay their bills under the scheme should not get any final payment demands from their supplier¹. The scheme is changing in 2024, the charity says¹.

The pause sits alongside other support for heating costs that Macmillan sets out. Cold Weather Payments are made automatically on top of usual benefits, at £25 for each 7-day period of very cold weather between 1 November and 31 March, where the temperature is 0˚C (32˚F) or lower for seven days in a row¹. In Scotland the payment is called the Winter Heating Payment¹. The Warm Home Discount gives certain people a one-off £150 discount on electricity bills between September and March, and suppliers in Northern Ireland do not offer it¹. The Winter Fuel Payment is a government scheme to help older people keep warm in winter, and Macmillan says it is changing in 2024; it will still be available to eligible people who are over a certain age, live in England or Wales, and get certain means-tested benefits¹.

Why it matters for households

People who receive benefits and owe money on energy or water bills are the group affected. Since April 2022, the route by which a supplier could ask for payments to be taken from benefits has been closed, so any arrangement now depends on the claimant making contact with the Jobcentre Plus¹. The change does not alter the amount of benefit received; it changes who can start the deduction. Macmillan's guidance also notes that those already paying under the scheme should not receive final payment demands from their supplier¹.

Separately, the winter payments described above operate on their own rules and dates. Cold Weather Payments depend on a run of very cold weather and are paid automatically to those eligible, with no application needed¹. The Warm Home Discount is a one-off £150 on electricity bills between September and March, and Macmillan says people on Pension Means-Tested Benefits in England and Wales are awarded it automatically, while in Scotland automatic qualification applies to those getting the Guarantee Credit part of Pension Credit¹. Macmillan states that energy suppliers in Northern Ireland do not offer the discount¹.

What happens next

Macmillan says the Fuel Direct scheme is changing in 2024, and that the Winter Fuel Payment scheme is also changing in 2024¹. No further detail on either change is given in the guidance. For Winter Fuel Payment eligibility, Cold Weather Payment qualifying periods and the Scottish Winter Heating Payment, the rules and dates above apply as reported.