Charities fear double hit for pensioners

Charities are warning that pensioners may be “going to bed in hats and coats” this winter as energy prices rise and financial support is withdrawn.

Organisations including Independent Age have said that some older people would be cut off from a vital source of income when winter fuel payments are means-tested this time around.

It will come as domestic gas and electricity prices rise for 27 million households in Scotland, Wales and England in October.

The government said it was forced into the cut and is urging everyone eligible to claim the benefits to which they are entitled.

For a household with typical gas and electricity consumption, and paying by direct debit, an annual bill will rise to £1,717 from October, an increase of £149 compared with now.

After two cuts earlier this year, the increase will still leave most people paying slightly less than last winter, but much more than the pre-pandemic norms.

Alongside the rise, more than 10 million older people will no longer receive the winter fuel payment, worth up to £300 and previously universal for pensioners.

That will hurt some more than others, including Brian Jones, from Durham, who said the payment would have helped cover “obscenely inflated energy bills”.

He said he and his wife Carol would have to “bite the bullet” when it came to their finances.

They invested in a new electric oven and got rid of their gas one because it was too expensive to use. They also wear more clothes so that they can keep the thermostat low and stay warm in winter.

He added they felt really extravagant recently when buying lamp chops which they noticed had gone up in price – only doing so because they had cut back on other purchases that week.

Libby Romain, from Wiltshire, said she would be just above the eligibility criteria for the winter fuel payment and so would miss out.

She said she felt “totally cheated, worthless and sick” as a result of the government’s plan.

“Why should other groups be considered to be eligible [for] a better standard of living than those that have paid in [and form] the economic backbone of the country?” she said.

“MPs with no insight at all of what it is like to struggle now take away an annual necessity from those that need it the most.”

The End Fuel Poverty Coalition called on the government to come up with a plan to prevent more households entering fuel poverty this winter as support for pensioners is withdrawn.

Caroline Abrahams, charity director at Age UK, said that the “reckless” plans would have a huge impact on pensioners on low and modest incomes, as well as those living in vulnerable circumstances due to ill health.

“We simply cannot see how some of them will cope,” she said.

Earlier in the week, Work and Pensions Secretary Liz Kendall said the new Labour government had been forced to take “difficult decisions”.

“But I am determined to ensure low-income pensioners are supported,” she said.

Mrs Romain has a disability, and said the cold affected her condition.

James Taylor, executive director of strategy at disability equality charity Scope, said higher energy costs would be disastrous for disabled households.

Some, including various wealthier pensioners themselves, have argued that the money previously given in the form of winter fuel payments could be better spent.

Citizens Advice said that it was always a poorly-targeted benefit, and not necessarily concentrated on those most in need.

“A lot of the people who are struggling most with energy costs are people who are younger, on low incomes or have children,” said Alex Belsham-Harris, from the charity.

“Those are the households most likely to be in fuel poverty so, in general, a more targeted approach from the government is what we need to see this winter.”

An estimated 880,000 low-income pensioner households eligible for pension credit currently fail to claim it.

The government says it is worth an average of £3,900 a year and claiming it can qualify people for other financial support such as winter fuel payments.

You can check your eligibility for pension credit via the government’s online calculator.

Information is also available on how to make a claim. There is also a phone line available on weekdays – 0800 99 1234.

There is a guide to benefits, when you qualify and what to do if something goes wrong, provided by the independent MoneyHelper website, backed by government.

Benefits calculators are also run by Policy in Practice, and charities Entitledto, and Turn2us.