State pensioners could get new energy bill help after Winter Fuel Payment cuts

Ministers have been urged to look at a range of other targeted measures including reductions in standing charges and a lower tariff for the most vulnerable

Government ministers are being asked to look at a range of other support for state pensioners who will miss out on this year's Winter Fuel Payment. Around 10 million people are set to lose the allowance this year.

Chancellor Rachel Reeves announced that the payment of £200-£300 would now only go to those on Pension Credit and some other means-tested benefits. It's believed another 100,000 people will come forward to claim Pension Credit in time to receive this year's Winter Fuel Payment but this still means the vast majority of those who would have previously been eligible will not get it.

Charities and campaigners are asking Labour to look at a range of other measures as the Ofgem price cap hike is set to add to the worries of older people. Between October 1 and December 31, the energy cap is going to be set at £1,717 per year for a typical household that uses electricity and gas and pays by direct debit. This represents an increase of £149 or 10 per cent on the previous cap of £1,568.

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Caroline Abrahams, charity director at Age UK, said restricting the Winter Fuel Payment to those on Pension Credit was "reckless and wrong" and "spells disaster for pensioners on low and modest incomes." To help ease the problem, Citizens Advice is calling for "targeted bill support" and the End Fuel Poverty Coalition has urged the expansion of other support funds and a reduction in standing charges.

Andy Manning, head of energy policy at Citizens Advice, said: "This price rise means bills are now around two-thirds higher than before the energy crisis. With record levels of energy debt, the removal of previous support and changes to the eligibility of the Winter Fuel Payment, people are in desperate need. The Government must urgently introduce targeted bill support that reflects the realities of people’s energy needs."

Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: "We're now heading into the fourth winter of sky-high energy prices. After October 1, bills will be 65 per cent higher than in 2020/21, meaning the average household will have paid more than £2,500 extra for their energy than had we not been so exposed to volatile energy markets.

"For older people who previously received the Winter Fuel Payment, but will no longer do so under the Chancellor's new rules, the situation is even worse. For many pensioners, this winter will feel like the most expensive on record. What's worse, there are more price increases on the horizon.

"We welcome the Government's long-term plans to boost home energy efficiency to bring down bills and to improve energy security to stabilise prices, but these reforms will take time to take effect and will be cold comfort to those struggling this winter. That's why it is so vital the ministers bring in more support for vulnerable households this winter, reductions in standing charges and a social tariff.

"The energy industry has made more than £457 billion in profit since the start of the crisis – so there is plenty of money in the system to be able to ensure everyone stays warm this winter and next."

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