DWP pension warning as millions to miss out on £300 boost | Personal Finance | Finance
Millions of pensioners face 15% rise in energy costs this winter – how to cut your bill (Image: Getty)
The Winter Fuel Payment will become means-tested this winter, meaning “millions” of pensioners will lose out on energy bill savings.
Chancellor Rachel Reeves recently announced that only those receiving Pension Credit or other means-tested benefits will be eligible for the support this year and beyond. The move comes as the Labour Government aims to fill a “£22 billion hole” in the country’s finances.
The Winter Fuel Payment, which helps pensioners with heating bills during the winter, provides between £100 and £300 to people born before 1958, depending on age.
However, with the new eligibility criteria limited to just those on means-tested benefits, energy bills are expected to increase by up to 15 percent for pensioners who would have previously been entitled, according to a new analysis by the End Fuel Poverty Coalition.
Charities have written to Ms Reeves to set out the challenges faced by pensioners and ask the Government to reconsider its plans.
Chancellor Rachel Reeves’ Winter Fuel Payment eligibility changes have been criticised widely. (Image: Getty)
The letter, signed by over 50 organisations, reads: “The decision to remove the payment to all but a small minority of pensioners will see millions more older people face the prospect of spending this winter in cold damp homes.
“This has the potential to create a public health emergency. The impact of living in cold damp homes is particularly harsh on those older people with a disability, a long-term health condition or poor mental health.
“It results in these people turning to an NHS that is already under stress and in some cases, can result in additional winter deaths.”
The letter ends by warning ministers that: “Unless we see urgent action from the Government to keep people warm this winter, one of the first actions of the new Government will be to condemn more vulnerable households to fuel poverty.”
How can pensioners cut their energy bills?
One way pensioners can “combat” the changes to the Winter Fuel Payment is to consider a fixed price deal, Elise Melville, energy expert at uSwitch has said.
She explained: “It provides greater security over what you pay for 12 months.”
Ms Melville continued: “In recent months, providers have been offering more competitively-priced tariffs, but they may not remain on the table for long, so it’s worth considering now.
“There are plenty of 12-month fixed tariffs available that are cheaper than the predicted price cap for October, which means pensioners can lock in what they pay for a year and potentially save money on their bills.”
According to uSwitch, Out Fox the Market, British Gas, and Octopus Energy are currently offering the most competitive fixed rate energy tariffs at present.
In addition to securing a fixed rate deal, pensioners can also take steps around the home to stay warm while cutting bills.
Tom Church, the co-founder of the money-saving community LatestDeals.co.uk, said: “One quick and effective DIY method is keeping your curtains and blinds closed when it’s darker and colder to reduce loss of heat through the windows. This may seem like common sense, but many people don’t do this, resulting in massive overspending on heating.
“Another method is making or buying draught excluders for the bottom of your doors. For inside doors, it’s best to use a fabric one. Dunelm has a clearance sale of up to 75 percent off which features many high-quality draught excluders.”
Additionally, Mr Church noted: “Heated blankets also offer a great, energy-friendly way of keeping warm. The average cost of using one is around 2.7p an hour, making purchasing one in time for winter a worthy investment.”
Finally, to make more “significant” savings, Mr Church suggested: “Only heat the rooms you’re using and avoid heating empty rooms such as a study, dining room, or a spare room. This can be done by switching off individual radiators and keeping doors closed in the rooms you’d like to keep warm.”
A Government spokesperson said: “This Government is committed to pensioners: protecting the triple lock, keeping energy bills low through our Warm Homes Plan, and cutting NHS waiting lists – bringing real stability to people’s lives.
“We said we would be honest with the public and, given the dire state of the public finances we have inherited, this Government must take difficult decisions to fix the foundations of the economy.
“In these circumstances, it is right that Winter Fuel Payments are targeted at those in most need, and we will work with Local Authorities to boost the uptake of Pension Credit, reaching the many pensioners who could still benefit from this year’s Winter Fuel Payments.”
