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Winter fuel payments will be stopped for millions of pensioners this winter as Labour pushes on with its plan to boost public finances by means-testing the cold weather benefit.
The Labour government has been urged to review its decision affecting 10 million pensioners after the regulator Ofgem announced household energy bills will rise by £150 in October.
Sir Keir Starmer has been warned the double hit will lead to disaster for pensioners on low and modest incomes or living in vulnerable circumstances due to ill health.
Labour now faces a challenge from trade unions over the measure at its annual conference in Brighton. Led by Unite and the Communication Workers Union (CWU), representatives are reportedly looking to force a debate and vote on the cut.
While it would be embarrassing for the government if they were defeated, the vote would be non-binding and so unlikely to force the Sir Keir’s hand.
It comes just weeks after the prime minister faced a fresh rebellion in Commons as MPs were granted a vote on the measure. Members voted 348 to 228 to press ahead with cutting the payment, as 53 Labour MPs abstainined and one voted against.
Rachel Reeves revealed the change amongst several cost-cutting measures in July, designed to plug the £22bn “black hole” in public finances which Labour argues was concealed by the previous government.
Pensioners have spoken to The Independent about how they face a bleak winter ahead due to the price cap rise and the introduction of means-tested winter fuel payments.
Analysis shows energy bills this winter will be the highest on record for older people who previously received the winter fuel payment, worth up to £300.
The winter fuel payment was introduced by Tony Blair’s government in 1997, and expanded to all pensioners from 2000. The new change will now mean that only those in receipt of pension credit or other certain benefits will continue to receive them.
The payment amount remains unchanged, at £200 for those aged between 66 and 79, and £300 for those over 80.
Since announcing the measure, charities and campaigners have urged the government to reconisder. Research from Age UK shows that around 2 million vulnerable pensioners are likely to miss out, while money expert Martin Lewis has also said Labour should “rethink” the measure.
Age UK director Caroline Abrahams said: “An estimated two million older people, in all, will face an even steeper mountain to climb in paying their energy bills and staying warm and well when the weather chills.
“With pensioners also losing the cost-of-living payments they’ve received over the last two years we simply cannot see how some of them will cope.”
She adds that lifting of Ofgem’s price cap for energy bills makes it “even more obvious” that making the winter fuel payment means-tested could be “hazardous for some older people”.
If you’ve been affected by the change to winter fuel payments here’s what you can do:
Check if you’re eligible for pension credit
The first thing anyone affected by the changes to the winter fuel payment should do is check if they’re eligible for pension credit. If you are able to claim this benefit, it will now unlock the winter fuel payment for you.
Research from Age UK shows that around 800,000 pensioners are missing out on the means-tested benefit. The charity recommends calling their helpline or using their handy benefits calculator to check their eligibility.
To qualify for pension credit, you must be above state pension age – currently 66 – and on a low income. It will top up your weekly income to either:
- £218.15 if you’re single
- £332.95 if you have a partner (shared jointly)
This works out at £11,343.8 a year if single, or a shared income of £17,313.4 for two.
It’s crucial those who are eligible for the credit apply for it, as experts describe it as a ‘passport’ benefit. Alongside the winter fuel payment, claiming pension credit can unlock housing benefit, support with mortgages, a free TV licence and help with NHS dental appointments. This can add up to thousands of pounds in additional support.
However, the eligibility is not tapered: if you receive even £50 over the pension credit income, you will not qualify for this additional support.
Age UK says there are around one million pensioners in this situation. A spokesperson said: “Older people in this group often tell us they really struggle financially; the proposed change will make it even harder for them to afford to stay warm when it gets chilly.
“Means-testing WFP this winter, with virtually no notice and no compensatory measures to protect poor and vulnerable pensioners, is the wrong policy decision, and one that will potentially jeopardise their health as well as their finances – the last thing they or the NHS needs.”
Other support available if you’re not eligible for pension credit:
Attendance allowance
Attendance allowance is a non-means tested benefit is designed to support pensioners who need daily living help. It offers a minimum of £3,700 a year, rising to £5644.6 depending on the level of support needed.
To be eligible for the benefit, the claimant must have needed help or supervision for six consecutive months, even if none has been received. This means you need assistance with daily living, or someone to watch you to avoid danger to yourself.
Money guru Martin Lewis recently launched a campaign to raise awareness of the benefit, which he says is going unclaimed by around a million eligible pensioners.
Household support fund
The household support fund is money given to all local councils to support vulnerable households in their area. Councils are free to allocate the funds however they feel is best.
Some have provided cash grants, supermarket vouchers, or energy bill assistance. You will need to visit your local council’s website to find out what help may still be available.
To find out what support is available, the End Furniture Poverty charity offers a helpful assistance finder tool.
Energy provider help
Some energy suppliers are offering help for those struggling with their energy bills. These include Scottish Power, EDF, E.ON and Octopus. You will need to contact your energy provider to find out if you are eligible.
British Gas also offer a grant of up to £2,000 to customers of any energy provider. You will need to meet specific criteria to be eligible, and can apply on the British Gas Energy Trust website.
Charitable grants
If you are struggling financially, you may be eligible for certain charitable grants. There are a wide range of grants available depending on your circumstances.
However, these grants will typically require you to meet specific criteria and only be able to offer limited funds.
Several charitable grants are available for older people, with some having additional criteria such as being disabled or ill – and many more. The charity Turn2us has an online tool to search for grants which may be available to you.
