Frequently Asked Questions
How does welfare reform affect LIHEAP households?
Eighty percent of LIHEAP households do not receive Temporary Assistance to Needy Families (TANF) benefits. Welfare reform won't have any positive impact on the working poor or the elderly. Welfare reform (for those receiving both TANF and energy assistance) will not change their ability to close the gap between energy costs and diminishing disposable income. Proposed funding cuts to LIHEAP now and current welfare reform do not work together to assist needy households. Welfare reform hasn't offset funding cuts to LIHEAP.
Is LIHEAP a utility subsidy program?
Not at all. Neither are Food Stamps a subsidy for grocery stores. LIHEAP has a successful track record of keeping the heat on during the winter for very low-income people and helping to avoid emergency shutoffs. It's low-income families with children, seniors and the disabled who need assistance; Utility companies are our partners for getting LIHEAP benefits to the truly needy. Also, since LIHEAP is federally-funded, all payments are 'new monies' and ripple through local Washington economies as they are re-spent, having other economic benefits.
What fuel types do low income households use?
Electricity 71 % Gas 19% Oil/Propane 6 % Wood 4 %
What is the burden on LIHEAP households to pay energy costs? How does that compare to all households?
A household living at 100 percent of poverty spends almost four times, or 20%, as much again as a mid-level income household spends as a percent of its income. According to recent studies, they will spend more of their income on home energy bills, especially Oil and Natural Gas, in 2008 than they did last year. Rapidly rising fuel costs make this problem worse.
Do we get enough money to serve everyone in need with energy assistance?
No! According to the 2000 U.S. Census, Washington had 302,000 households at or below 125 percent of poverty. The number has increased from 275,000 since the 1990 US Census. During the 2007 program year (10/01/2006 - 9/30/2007, Commerce's contractors could only provide energy assistance to 63,500 households with the funds available through LIHEAP: roughly 21 percent of the state's eligible population.
Have home energy prices changed since the 1980s?
Energy prices have continued to rise over the past couple of decades and as a share of income, cost much more for low-income families. Electricity prices have risen over 180 percent since 1980. Oil & natural gas prices have been fluctuating considerably as the price per barrel of crude oil changes. Both are expected to rise this winter and on into 2008, and propane prices are still very expensive. The unknown future effects of restructuring of the electric industry may put low-income households at risk of paying even higher prices.
What percentage of households receiving energy assistance is very poor, and how many are elderly, disabled or children? How many households also get *TANF?
41 % of households who got EAP were below 75% of the poverty level (For a three person household, the monthly income would not be more than $1,590) 82% were below 100% of poverty.
Elderly: 19.4% Disabled: 28% Children: 71%
Note: Some demographic data is collected on a voluntary basis only, actual numbers are higher.
Only 20 % of the households served in 2007 got TANF, 80% did not.