More seek heating-bill help with low-income energy assistance
— -- With unemployment soaring, a record number of people are seeking federal assistance to pay energy bills this winter, a survey set to be released Tuesday indicates.
About 7.3 million households, 1.5 million more than last year, will likely receive $5.1 billion in subsidies from the Low Income Home Energy Assistance Program, the National Energy Assistance Directors' Association says.
The projected total, which the association compiled from applications so far this winter, is an increase of 9% over the record 6.5 million households that received funds to pay heating and electricity bills in 1985.
"The increase in unemployment is creating more and more families that just don't have the resources," says Mark Wolfe, the association's executive director. Even those who still have jobs "are seeing their hours being reduced, and that translates into higher arrearages and shutoffs by utilities," he says.
The unemployment rate jumped to 7.2% in December, the highest in nearly 16 years, the Labor Department said last week. And, Wolfe says, "Energy prices haven't declined as much as we expected them to."
Energy costs will likely average about $971 for a household this winter, down from $990 a year ago, the Energy Department said last month. That's still higher than the average $807 energy bill from 2002 to 2007, the association says. Although heating oil costs are projected to plunge 20%, only about 8% of households use oil to heat their homes.
Another reason for the jump in assistance: Congress in September increased funding for it to $5.1 billion, up from $2.6 billion in fiscal 2008. As a result, more states are easing eligibility requirements and notifying residents that money is available.
For example, some states have raised the maximum income to receive help from 60% to 75% of median household income. The program will pay about half a household's utility bill, up from 35% last year.
Yet Wolfe says funding still won't be sufficient and is seeking an additional $2.5 billion.
