The UK’s leading charity representing pensioners is demanding the Government reverses its decision in means-testing the Winter Fuel Payment following today’s energy price cap announcement from Ofgem.
This morning, the nation’s energy regulator confirmed that the price cap will increase to £1,738 a year between January and March 2025, representing a £21 hike in energy bills for the typical household.
Earlier this year, Chancellor Rachel Reeves confirmed that the Winter Fuel Allowance will no longer be made universal and will instead be reserved for those on Pension Credit and other means-tested support from the Department for Work and Pensions (DWP).
Age UK is calling on Labour to make a U-turn on this policy move in light of 10 million pensioners now non longer being eligible for the support during the winter months.
Caroline Abrahams, the charity director at Age UK, broke down why older households are concerned about the cost of living over the upcoming festive period.
“Older people, struggling without their Winter Fuel Payment, who were praying for a reduction in energy prices to help them in the New Year, will be bitterly disappointed today,” she shared.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Age UK is urging the Government to reverse its decision to means-test the Winter Fuel Payment following the energy price cap announcement
GETTY
“The news that the energy price cap is instead slightly rising is the latest in a series of blows for pensioners living on a low or modest income, who do not receive Pension Credit because they don’t claim it or are not eligible.
“There are millions of older people in this situation and we know that many are hoping against hope that something will turn up to help ease their situation over the next few months, when the weather is at its coldest.
“If you are an older person for whom every penny counts, managing your energy bills until the rise in your State Pension starts coming through from April, just got harder.”
Based on the Government’s own impact assessment modelling, around 100,000 older Britons are expected to fall into relative fuel poverty over the next two years due to the benefit being cut.
Yesterday, Labour unveiled its revised Warm Homes Plan to help families access environmentally-friendly technologies which will bring down energy costs long-term.
However, analysts have warned this will only do so much for the pensioners currently struggling to make ends meet amid the volatile cost of living.
Holly Holder, the deputy director of Homes at the Centre for Ageing Better, explained: “This week we learned that the removal of the winter fuel payments will drive 100,000 more pensioners into poverty by 2026.
“Today’s news of the increase to the energy price cap will only add to the gloom of many older people who will be wondering how they will keep themselves warm this winter.
“Yesterday’s announcement on the Warm Homes Plan is welcome but it does not go far enough to tackle an issue of this magnitude and severity.
“This national strategy must be backed by sufficient, long-term funding and include a mechanism for delivery at the local level, such as Good Home Hubs which would allow people to access trustworthy support to guide their home improvements.”
A DWP spokesperson told GB News: “The modelling also doesn’t reflect that we have put in place extra support for those who need it most, such as our extension of the Household Support Fund.
“Many pensioners will also benefit from the £150 Warm Home Discount and Cold Weather Payments to help with energy bills and millions of pensioners are also set to benefit from an increase of up to £470 to the state pension in April.”
