Susan Hawthorne from Community Action Nelson wants people who get a Winter Energy Payment but don't need it the opportunity to pay it forward to those less fortunate.

A community initiative is redistributing the Government's Winter Energy Payments to families left in the cold.

The Government payments to help with heating costs go to superannuitants, those on the veteran's pension and a number of other beneficiaries.

Recipients were given the opportunity to opt out but Community Action Nelson (CAN) has come up with another option - paying it forward to those in need.

Co-coordinator Susan Hawthorne said it seemed like the obvious thing to do.

READ MORE:

* Kiwis hungry and cold in their own homes

* Optimism as NZ families get pay packet boost

* Why the Winter Energy Payment is two months late

* Struggle for housing keeping families in poverty

"Some people were getting it and realised they didn't need it."

CAN look for initiatives to improve people's lives in the community.

The Winter Energy Payment, paid from July until September 29, is $20.46 a week for singles without dependent children and $31.82 a week for couples or people with dependent children.

MARTIN DE RUYTER/STUFF Hawthorne says the amount may seem insignificant for some, but for those on the bread line, it would make a world of difference.

Hawthorne said for her, it was a very small amount that could "make a huge difference for some families".

"That's part of the reason for doing it this way, to make us more aware and alert to what's going on around us."

Fifeshire Foundation and Budget Advice were approached by CAN as benefactors of the donations to ensure the right people benefited.

The initiative snowballed in less than a fortnight after social media and One News brought it to the community's attention.

Fifeshire Foundation manager Rachel Swarbrick said the response had been fantastic.

She said a number of people had donated in different ways, including setting up weekly automatic payments of $10 to $30 a week, one off payments and "large lump sums", many anonymous.

Estimates of the total amount were between $3000 and $5000, she said.

The money goes to families and individuals who needed warm homes.

"So that's power bills, wood, heaters – a variety of different ways.

"There's been a big call for firewood. We had 16 applications for firewood last month. Even people who maybe budgeted for wood have probably run out because it's been quite a cold winter."

The Fifeshire Foundation supports individuals and families in need as well as the organisations who work with those people.

Swarbrick said last month the organisation received more than 50 applications for help.

​"A large percentage of those were for basic survival – warm homes, warm clothing and food."

Some people were living in homes where the bedroom was -2 degrees Celsius, she said.

"They might be living in one small area of their home with a heater and do all their living in one room."

The payout will help approximately one million New Zealanders each year as part of the Families Package, providing assistance to improve incomes for low and middle-income families with children.

Ministry of Social Development client service support manager Dwina Dickinson said an estimated 1742 households had opted out of the payment.

That amounts to more than $450,000 which could have been paid forward.

Hawthorne said she aspired for other cities to follow CAN's initiative.

"That's what we'd hope, is that eventually it spreads everywhere."

* To donate the Winter Energy Payment, contact Fifeshire Foundation or Nelson Budget Services.