Vermont LIHEAP Expands, Gets Oil Discount

Wednesday, October 29, 2008

Montpelier, Vermont – Today the Administration and Legislature announced the expansion of the state’s Seasonal Fuel Assistance Program (LIHEAP) to cover 3,652 more households, including 1,050 more households of the state’s elders and disabled. This is the latest step taken in a joint effort by the Legislature and Administration to deal with the rising costs of home heating fuel and other living expenses brought on by the recent global economic problems.

“The expansion of the seasonal fuel assistance program is one of many steps we’ve taken to keep the promise that no Vermonter will go cold this winter,” said Administration Secretary Neale Lunderville. “Our elders and disabled represent the state’s most vulnerable population, and we continue to find new ways to ensure they will be warm this winter,” Lunderville said.

The Chair of the Legislative Joint Fiscal Committee, Senator Susan Bartlett of Lamoille County, said, “Everyone realizes the immediate need Vermonters face because of the state of our nation’s economy. Our Committee and the Administration will continue to work diligently, to bring as much relief as possible to Vermonters.”

During the 2007-2008 winter season, the Fuel Program served a total of 21,680 households. For 2008-2009 the state anticipates it will serve 25,332 households. That is an additional 3,652 households being served because of the increased caseload and requests for assistance.

Changes to the way the Agency of Human Services reviews eligibility and savings from a fuel discount will make new eligibility possible. It is estimated that 750 more households with elderly or disabled people will qualify by increasing the monthly income disregard by $100 to $250. Another 300 households with elders will qualify for help by increasing the resource limit from $5,000 to $10,000 for elders only (age 60 and up).

The changes came as a result of increased Federal Funding for LIHEAP to the state’s program, as well as from discounts that participating fuel dealers will provide. LIHEAP funds exceeded past years’ allowances, providing the state with latitude to broaden assistance. “We are very appreciative of our Congressional delegation’s efforts on behalf of Vermonter’s” noted Representative Martha Heath, Chair of the House Appropriations Committee. “It makes a major difference in our ability to serve those in need of heat assistance.”

Vermont’s fuel dealers have been an active partner in the Seasonal Fuel Assistance Program since 1996 when the Agency of Human Services first began making payments directly to fuel dealers rather than to program recipients.

Heating Fuel benefits paid directly into the bank account of fuel dealers provide many economic benefits for fuel dealers. For instance, heating fuel does not have to be delivered until after payment is received, while funds in the dealers’ accounts can earn interest. Furthermore, any overpayments by the state to dealers are not refunded until May 31. Finally, the state’s “direct payment” to dealers reduces their risks of consumers falling behind in payment.

With a 3% discount in an average case with an annual heating cost of $2,972, a total discount to the client (on the LIHEAP seasonal benefit and all other payments) is $89. Under the new changes to the state’s program, both the consumer and the state would receive the 3% discount.

With the volatility of the home heating fuel market, the Administration and the Legislature continue to examine different ways of using state resources to get more value for the money spent.

Page Last Updated: September 24, 2009