MARTIN Lewis has warned that Labour must “rethink” the decision to cut Winter Fuel Payments after Ofgem increased the price cap.
Chancellor Rachel Reeves recently announced that the UK Government would cut back the Winter Fuel Payment, which was previously universal and worth between £100 and £300 for British pensioners.
But now, the average household energy bill is to increase by £149 from October after Ofgem said today it was increasing its price cap as homes approach the winter months.
The money saving expert took to Twitter/X to give his thoughts (below), including a warning that “almost all pensioners” will need to find £100s more than last winter.
“While energy will cost less than during last winter’s crisis time, the reduction in rates only equates to a drop of roughly £100 over the six winter months for a household with typical usage,” he said.
“Yet specific pensioner energy support has dropped by far more. Last year pensioner homes got up to £300 extra per household cost of living support - that’s gone, and its loss alone is far bigger than the savings made by slightly lower rates.”
NEWS. ENERGY PRICE CAP TO RISE 10% on 1 OCT. (pls share). Here's my instant briefing incl who it'll hit hardest, why govt needs change winter fuel payments, standing charges & WHAT TO DO NOW. First, here's the average Direct Debit Cap (it varies by region) ELEC - Standing charge…
— Martin Lewis (@MartinSLewis) August 23, 2024
Lewis then added that the Labour government’s new decision to means test Winter Fuel Payments will “leave all except usually those who claim Pension Credit missing out on a further £200 - £300”.
He said: “While there's a strong argument for ending the universality of Winter Fuel payments, eligibility is being squeezed to too narrow a group. Those just above the thresholds will be hardest hit.
"I'm due to meet the Chancellor in a couple of weeks, and will then be urging her to look at methods to widen eligibility – such as to homes in council tax bands A to D – an imperfect but workable proxy for lower household incomes.”
