President Jo Millar said the Government payment, which comes into effect today for more than one million people receiving New Zealand Superannuation, a main benefit or veteran’s pension, was especially important for the South.
People who are eligible with no dependent children would automatically receive an extra $20.46 per week until October 1, while couples and people with children would receive an extra $31.82 per week.
The payment was "a godsend to so many people," as without it their health would suffer as they spent the winter wrapped in a blanket to try to stay warm, she said.
People needed to heat their homes, especially in areas such as Central Otago that were freezing in the middle of the winter.
However, in the southern area, the cost of power was rising and the payment was not going to cover the bills.
Her own power bill was more than $100 higher than this time last year.
"I’ve got real concerns that if some people, even with these energy payments, cannot meet these increasing electricity bills, it’s just going to mean the hospitals are going to get people back in there again because they’re not warm enough in their home."
There was also an assumption that many older people owned their own property and had some financial security, which was not necessarily true, she said.
For more and more people in their 50s and 60s, it was not the case.
The Government needed to look at this situation, as otherwise in another decade there would be more problems.
Minister for Social Development and Employment Carmel Sepuloni said the payment, part of the Government’s Families Package in 2017, was designed to help older New Zealanders and low-income families.
"Having a warm home is an essential part of preventing respiratory illnesses through the winter season and lowers the risk of other health issues," she said.
The payment follows a recent increase to NZ Superannuation and the veteran’s pension, which saw couples over the age of 65 receive $102.84 more in total a fortnight, and a single person living alone an extra $66.86.
