Tag: Winter Fuel Payment

Cold damp homes cost to NHS estimated as energy price cap rises

New estimates predict that cuts to the winter fuel payment could lead to increased costs to the NHS. [1]

The analysis, first reported in the Daily Express, suggests that in 2024, the total cost to the NHS for treating pensioners in cold, damp homes may reach at least £1.5bn a year, with c.2.3m older people living in poor housing conditions.

Within these figures, an estimated 262,000 pensioners will live in cold damp homes due to the decision to axe winter fuel payments. This alone could cost the health service more than £169m a year, the research suggests.

The news comes as energy bills are set to increase for all households by 10% from 1 October.

This will leave the average household paying around 65% more for their energy than in winter 2020/21 and comes on top of years of the wider cost of living crisis, meaning households have less ability to pay these high prices. Energy debt has now hit £3.7bn according to Ofgem figures published last week.

For pensioners who previously had winter fuel payments, but now miss out, energy prices will seem higher than at any point in their lives. Those missing out on Winter Fuel Payments this year include 1.2m pensioners in absolute poverty and 1.6m disabled older people.

As personal finance experts point out, the increase in the triple lock does not replace the winter fuel payment and Uswitch.com estimate 752,000 older people will not use heating at all this winter.

Among the wider public, National Energy Action has calculated that around half of households will be rationing their energy use.

A spokesperson for the End Fuel Poverty Coalition commented:

“We’re now heading into the fourth winter of sky high energy prices, 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.

“The long term way to reduce the costs to the NHS of people living in cold damp homes is to improve insulation and ventilation of buildings as well as stabilise energy costs by getting the country away from being hooked on volatile gas prices.

“But until the Government fully implements its positive plans in these areas, vulnerable households will continue to need financial support. That’s why the Winter Fuel Payments were so important, the money provided help for older households to stay warm each winter.

“Sadly, now more older people are expected to live in cold damp homes this winter and this puts them at greater risk of ill health, meaning the costs to the NHS will soar.”

Caroline Simpson, Warm This Winter campaign spokesperson added:

“This 10 percent price cap rise is yet another blow that households can ill afford, especially when energy companies are raking in billions in profits every week.

“People want to see a transition to renewables, they want to see an end to being reliant on unscrupulous gas giants which is leading to them having to choose between eating and heating and frankly that money needs to go back in people’s pockets.

“That’s why we are pleased this government is taking great steps to end the broken energy system they inherited, but they must also help households who simply cannot afford to continue paying 65% more than they were three years ago on energy bills and look at help such as a social tariff. If they’re looking at how to fund it,  these profiteering energy companies would be a good place to start.”

Jan Shortt, general secretary of the National Pensioners Convention, said:

“The loss of the winter fuel allowance for the majority of older people clearly puts them at risk. It is a known fact that older people require warmth and a stable temperature to maintain their health.

“Living in cold, damp homes heightens the risk of strokes, heart disease, respiratory conditions and generally harms the rest of the body.

It therefore follows that the risk of overwhelming the NHS in winter is high and the cost of dealing with the consequences of the Government decision will be felt throughout the NHS and care sectors.”

Age UK charity director Caroline Abrahams added:

“We’re hearing from older people worried about how they will cope without their winter fuel payment, including many on low and modest incomes who are planning to ration their heating this winter because they’re frightened how they’ll manage this winter.

“For an older person to be forced to live in a cold home is deeply worrying because it’s very bad for their health, especially if they are living with lung or heart conditions or are very frail.

“The consequences for them could be severe and we’re sure that we’ll see more older people going to hospital this winter as a result – the last thing they or the NHS needs.

“The Government must do more at the Budget to ensure pensioners can navigate the coming cold months safely and with their health intact, or the consequences will be felt by older people and the NHS.”

Morgan Vine, head of policy and influencing at Independent Age, warned that living in a cold and damp home can have “very serious implications” for OAPs:

“Many of the older people on a low income we speak to tell us they were already cutting back on heating before the announcement to means test the winter fuel payment.

“With the reality of now losing hundreds of pounds this winter, many have shared they will be making severe cutbacks including not turning the heating on at all.

“Others have told us they will reduce the amount they eat so they can turn the heating on for a few hours a day.

“It is unacceptable that people in later life are having to make dangerous sacrifices as we approach the colder months, and we are concerned that the demand for NHS services could increase as a result.”

ENDS

[1] Estimates and calculations available online in this pdf. The research was first reported in the Daily Express on 29/30 September 2024.

Ministers unveil plans to help renters, but winter fuel payments axe stays

The Energy Secretary has announced a plan to ensure warm homes for all renters  – in both private and social rented housing – in his speech to Labour’s annual conference.

What ministers claim is the “biggest boost to home energy standards in history” follows the Deputy Prime Minister’s confirmation of a raft of measures to ensure good quality homes for all.

Under the plans, landlords will be banned from renting out properties that don’t meet stricter energy efficiency standards.

Caroline Simpson, Warm This Winter campaign spokesperson, said:

“This is very welcome news. UK properties are some of the worst insulated in Europe, with millions of Brits currently condemned to living in cold, damp, mouldy homes they can’t afford to heat. With energy bills still 65% more than they were at the start of the energy crisis, home insulation is the quickest way to bring down bills, but is seldom prioritised by landlords.

“The government must now ensure the private rented sector meets its obligations to tenants, as well as ring fencing funding for local authorities to make these promised energy efficiency upgrades a reality for those living in social housing.”

A spokesperson for the End Fuel Poverty Coalition commented:

“People in rented accommodation are almost twice as likely to live in cold damp homes compared with people who own their own properties. [1]

“The Energy Secretary is to be congratulated for recognising the importance of the need for better energy efficiency standards in rented homes, but the Government shouldn’t drag their heels with more consultations.

“This issue has been consulted on widely in the past and Ministers must move to take action. There is no time to waste as improvements will take months or years to be felt by tenants and the longer it takes, the more support households will need to stay warm in the winter.

“That’s why right now we also need to see the Government revoke cuts to the winter fuel payment for this year and commit to more support for vulnerable households so that everybody can stay warm this winter and next.”

However, in her speech, Rachel Reeves refused to back down on plans to cut Winter Fuel Payments from 1.2m pensioners in absolute poverty and for 1.6m older people with disabilities.

An End Fuel Poverty Coalition spokesperson added:

“The Chancellor doubled down on her gamble with older people’s lives to fill a budgetary black hole, which according to reports is £10bn less than was initially claimed. And that’s before the Government takes receipt of the £3bn which it is recovering from the collapse of one of the energy firms.

“While Rachael Reeves tries to claim that the triple lock on pensions is enough to replace Winter Fuel Payments, personal finance experts point out that the rise starts next April, when pensioners face an energy bills crisis now. Equally, there are up to 800,000 of the poorest pensioners who get less than the full state pension and don’t even get Pension Credit.

“And of course, the full rise only applies to the one in four pensioners who get the ‘new’ state pension.”

ENDS
[1]  Research by Opinium for Warm This Winter campaign among a representative sample of 2,000 UK adults in November 2023 found 13% of those who own outright and 12% of those who own with a mortgage live in cold damp homes. This compares with 25% of those who live in a private rented home, 23% rented from a local authority and 19% rented from a housing association.

MPs back dangerous winter fuel payments axe

MPs have approved plans to axe Winter Fuel Payments to millions of older households.

Politicians approved the measure despite recent research finding five out of every six pensioners living the below the poverty line will lose the support.

Age UK now estimate that at least 2.5m pensioners will suffer hardship as a result.

MPs who backed the cut have claimed that the Household Support Fund could pick up the slack, but this will involve local authorities removing the HSF help from other groups struggling with the cost of living.

A spokesperson for the End Fuel Poverty Coalition, commented:

“MPs have made the dangerous decision to condemn some of the most vulnerable pensioners to living in cold damp homes this winter.

“Many pensioners in poverty will now see energy bills higher than they have ever experienced in their lives.

“Parliamentarians and ministers should examine their conscience and the deluge of correspondence they have had on this issue from worried pensioners and back ways to mitigate the pain of the cut.

“We and others have given the government a number of ways they can target extra support to those pensioners most in need. One clear solution would be to extend eligibility to those on other forms of benefit and making more support available to vulnerable pensioners.

“But the Treasury could also look at a more comprehensive system of support for all of those living in cold damp homes, such as an emergency energy tariff or reform and expansion of the Cold Weather Payment system.”

Caroline Simpson, spokesperson for the Warm This Winter campaign commented

“The government needs to commit to keeping everybody warm this winter. Many people back some form of means testing for the Winter Fuel Payment, but scrapping it for all at short notice carries a very real risk of putting millions of vulnerable pensioners in harm’s way.

“While we back the government’s plans to prioritise home insulation which is the long term way to bring down everyone’s bills for good, no one should be forced to live in a cold damp home this winter.”

Caroline Abrahams CBE, Charity Director at Age UK added:

“We’re deeply disappointed, but not surprised, that the vote to brutally means-test Winter Fuel Payment was passed today. As soon as the Government announced it was instructing its MPs to support it this was the inevitable result, but we would like to thank all those in every party who voted against the policy or abstained.

“There’s been a lot of discussion about the Government’s decision, but at heart Age UK’s critique of their policy is really simple: we just don’t think it’s fair to remove the payment from the 2.5 million pensioners on low incomes who badly need it, and to do it so quickly this winter, at the same time as energy bills are rising by 10%.

“It is crystal clear that there is insufficient time to make any serious impact on the miserably low take-up of Pension Credit before the cold sets in this autumn, and the Government has brought forward no effective measures to support all those whose tiny occupational pensions take them just above the line to claim. It’s true they have agreed to extend the Household Support Fund until April and they deserve some credit for that, but the HSF is an all-age fund that you have to apply for, so we know it will only help a small proportion of all the pensioners who will be in need as a result of their policy change.

“The Government has also tried to suggest that the increase in State Pension for older people next year as a result of the Triple Lock means there’s no need to worry about how they will cope now, but that won’t help anyone this winter and most pensioners will not benefit to the extent being suggested – either because they are on the old State Pension which attracts less of an increase, or because they don’t qualify for a full State Pension in the first place.

“The reality is that driving through this policy as the Government is doing will make millions of poor pensioners poorer still and we are baffled as to why some Ministers are asserting that this is the right thing to do. We and many others are certain that it is not, and that’s why we will continue to stand with the pensioners who can’t afford to lose their payment and campaign for them to be given more Government support.

“Meanwhile, winter is coming and we fear it will be a deeply challenging one for millions of older people who have previously relied on their Winter Fuel Payment to help pay their energy bills and who have no obvious alternative source of funds on which to draw. As a charity we will do everything we can to help them, but with so many in need and no extra support on offer from the Government at the moment it’s looking like an incredibly uphill task.”

Winter Fuel Payment backlash enters fourth week

The campaign against the Chancellor’s decision to axe Winter Fuel Payments from millions of older people has continued into a fourth week.

In a speech to the media in Downing Street, the Prime Minister attempted to justify the impact of the decision after a report from Age UKfound that nearly 2 million pensioners could face poverty this winter.

The Prime Minister hit out at “rot” in the system which had harmed the nation’s finances, that the Payments were “not a particularly well designed scheme” and that “support” will be there for the pensioners who need it the most. The PM hinted that those in society with the “broadest shoulders” could expect to see tax rises in the Budget.

However, analysis has found that some older people will face 131% year-on-year bill increases and the Pension Credit system has been hit with delays in processing applications.

Over 400,000 people have signed a Age UK petition with 300,000 signing a 38 Degrees petition and over 4,500 members of the public have shared their concerns with MPs via the Warm This Winter campaign.

A spokesperson for the End Fuel Poverty Coalition, commented:
“Axing Winter Fuel Payments is not about rot in the system, it is about basic fairness for older people facing soaring energy bills.

“In real terms, the changes this winter mean that some older people will face the highest energy bills on record.

“This has the potential to create a public health emergency which will actually create more pressure on the under-pressure NHS which the Prime Minister says he wants to fix.

“The impact of living in cold damp homes is particularly harsh on those older people with a disability, a long term health condition or with poor mental health. It results in people turning to an NHS and, in some cases, can result in additional winter deaths.

“Ending energy debt, extending the Household Support Fund, expanding Warm Home Discounts and evolving standing charges are all now needed urgently to help mitigate the impact of high bills and the axe to the Winter Fuel Payment.

“But as well as support this winter, the public need to see a clear timetable for when the very real benefits of cheaper renewable energy and the Warm Homes Plan will kick in.

“If the Prime Minister needs to find some ‘broad shoulders’ to pay for this support, let’s not forget that every month we hear about more massive profits for firms in the wider energy industry.”

Jonathan Bean from Fuel Poverty Action, added:

“Reeves’ reckless decision has robbed pensioners of their winter heating lifeline, just as prices rise again. Urgent action is needed by the Government and Ofgem on inflated energy prices, high standing charges and obscene profits.”

Energy bills up as some pensioners face worst prices on record

The average household energy bill is to increase by £149 from 1 October after Ofgem said it was hiking its price cap by 10% from the current £1,568 for a typical household in England, Scotland and Wales to £1,717.

Meanwhile, analysis by the End Fuel Poverty Coalition has found that in real terms, the changes this winter mean that some older people will face the highest energy bills on record.

A spokesperson for the End Fuel Poverty Coalition, commented:

“With energy bills for the winter ahead now confirmed as being 65% above where they were before the crisis, the Government needs to come up with a plan to prevent even more households entering fuel poverty this winter.

“Ending energy debt, extending the Household Support Fund, expanding Warm Home Discounts and evolving standing charges would all help mitigate the impact of high bills and the axe to the Winter Fuel Payment.

“But as well as support this winter, the public need to see a clear timetable for when the very real benefits of cheaper renewable energy and the Warm Homes Plan will kick in.

“To add insult to injury, in the detail of today’s Ofgem announcement is the fact that the profit margins energy suppliers are allowed to make will increase by 11% [pdf, page 4].

“Add to this that every month we hear about more massive profits for firms in the wider energy industry. It’s time to tax these firms fairly – not just the fossil fuel producers – and use the money to keep people warm now and in the long term.”

Warm This Winter spokesperson Fiona Waters said:

“This price hike is yet another blow to the millions in fuel poverty who, like every other bill payer in the UK, are still forking out 65 percent more than they did for their energy than at the start of the crisis.

“Meanwhile energy companies have been profiteering, making more than £470 billion since 2020. That shows there is money in the system but that is going to energy bosses and their shareholders, when it needs to go to ordinary people.

“Today just highlights the Government’s policies on renewables and energy efficiency are needed to mend this broken system but we also need help now to get everyone of all ages through the winter ahead.”

Richard Kramer, Chief Executive of the national disability charity Sense, said:

“This increase in the energy price cap will be very alarming for many disabled households, who face unavoidable extra energy use for essential equipment such as powered chairs and feeding machines. This is a stark reminder that the cost-of-living crisis is far from over, and disabled households still need extra support.

“We would like the government to implement a social energy tariff, which would help level the playing field for disabled people who rely on energy-intensive equipment. Disabled people cannot be left waiting any longer for targeted help with their energy bills.”

More reaction to follow

Government winter fuel payment plans hit by chaos

Hundreds of thousands of pensioners could miss out on getting Winter Fuel Payments before cold weather hits.

Almost 900,000 pensioners need to apply for the Pension Credit if they want the payments designed to keep them warm this winter, but the official helpline claims that they may not have their application processed in time.

A recorded message on the Pensions Credit helpline says applications could take nine weeks to process, but the “qualifying period” for the Winter Fuel Payment is 16 September, in just over 3 weeks. [1]

Ministers have admitted that pensioners can still apply for the Winter Fuel Payments after the qualifying period has closed, as long as they apply for Pensions Credit before 21 December and would have been eligible in the qualifying period (16-22 September).

Assuming a pensioner meets the Pensions Credit criteria, the DWP advise that any eligible claimants whose Winter Fuel Payment does not come through automatically will have to claim for that by 31 March 2025.

However, campaigners have highlighted that backdating payments means extra bureaucracy and that the money may not reach vulnerable pensioners until after the first cold spell of the winter has hit.

A spokesperson for the End Fuel Poverty Coalition, commented:

“It’s clear Ministers have not thought this through. 

“When the Chancellor cruelly snatched away the winter fuel payment from millions of pensioners, she promised to help households who are eligible to claim the benefit.

“But as it takes so long to process new claims, even those applying now may be forced into a back-dating procedure which could delay payments.

“While we support ministers’ drive for longer term reduction in energy bills through renewables and a Warm Homes Plan, households need help this winter.

“The Government must broaden the targeting of the Winter Fuel Payment, to introduce support to end energy debt, expand the Warm Home Discount and extend the Household Support Fund.”

In a poll by YouGov for the Energy and Climate Intelligence Unit (ECIU), two thirds of people (67%) were aware of the move to remove winter fuel allowance payments from pensioners, apart from those who receive means-tested benefits. The pollsters found that 59% opposed it, with only 28% in favour.

Jonathan Bean from Fuel Poverty Action, said:

“The Winter Fuel Payment axe has been wielded at short notice and with no consultation. And now the whole process is mired in confusion.

“Left caught up in the chaos are older people who will be left fearful of the winter ahead. Many will be unsure if they will get the Winter Fuel Payment or not and delays to payments will only add to the misery.

“If ministers think that a communications campaign to encourage take up of Pensions Credit is any substitute for actual help with energy bills this winter, then they are very much mistaken.

“The Government needs to face up to the fact that this policy is unpopular and dangerous and change track.”

Meanwhile, Citizens Advice research found that a quarter of the UK population believe they could be forced to turn off their heating and hot water this winter due to an expected rise in household energy bills from October. The figure rises to 39% of bill payers on a low income.

Jan Shortt, General Secretary of the National Pensioners’ Convention added: 

“Choosing pensioners as an easy option to cut support from is set to condemn hundreds of thousands of older, and vulnerable people to a grim and potentially life threatening winter ahead.”

ENDS
[1] Call to 0800991234 made 12:25 21 August 2024

Councils warn on Household Support Fund while Scottish fuel payments axed

More than four out of five councils in England expect demand for welfare support to increase over the winter, according to the Local Government Association.

However the Household Support Fund, which is the main route for councils to provide assistance, will close in September as central government funding will run out. This has left six in 10 local councils saying they will be unable to provide extra welfare support.

The Household Support Fund was introduced by the previous government in 2021 aimed at helping people struggling to buy food, pay bills and cover other essentials.

A spokesperson for the End Fuel Poverty Coalition, commented:

“The Household Support Fund is one of the last lines of defence against poverty for hard-pressed families and vulnerable people.

“We have publicly commended the Government in taking some of the long term measures to tackle high energy bills, such as the drive for more renewable energy and a Warm Homes Plan. But these solutions will take time to bring down bills.

“In the meantime, households of all ages will need more support from the Government to stay warm this winter, not less.

“As well as extending the Household Support Fund, we urge the Chancellor to rapidly consult with consumer groups to reverse planned changes to Winter Fuel Payments, to introduce support to end energy debt and expand the Warm Homes Discount.”

The Scottish Government has also now outlined how the UK Chancellor’s cuts to winter fuel payments will affect pensioners in Scotland.

Plans to means-test Winter Fuel Payment in England and Wales will see the Scottish Government’s funding for the scheme cut by up to £160 million.

The Winter Fuel Payment UK benefit was due to be replaced by a Scottish alternative – but ministers have confirmed it will be means tested, while the roll out has been delayed.

Age Scotland said the government in Edinburgh has been left with no decision but to replicate plans to means-test the Winter Fuel Payment.

Frazer Scott, chief executive of Energy Action Scotland, commented:

“The UK Government has left little choice for the Scottish Government but to remove this vital support from hundreds of thousands of older households.

“It is a real body blow for pension age households struggling to pay for unaffordable energy.

“Confirmation of the loss of this income for budget conscious older households will undoubtedly put additional pressure on health and advice services putting health at risk. This is not a fairer system, it widens inequalities.

“Deeper and more targeted support is need to ensure that older people can stay warm this winter and help them avoid unrepayable debt. A reformed support not a wholesale removal from many who are just above the level of means tested benefits.”

The End Fuel Poverty Coalition spokesperson added:

“This is a decision essentially made in Westminster by the Chancellor, but it is pensioners in Scotland and across the rest of the UK that will pay the price.”

Letter to the Chancellor on Winter Fuel Payments

Charities have written to Chancellor, Rachel Reeves MP, to set out the challenge now faced by pensioners this winter and ask the Government to reconsider its plans to axe Winter Fuel Payments.

The full text of the letter is below.

To: 

Rt Hon Rachel Reeves MP, Chancellor of the Exchequer

Copied to:

Rt Hon Ed Miliband MP, Secretary of State for Energy Security and Net Zero

Rt Hon Liz Kendall MP, Secretary of State for Work and Pensions

Rt Hon Darren Jones MP, Chief Secretary to the Treasury

Miatta Fahnbulleh MP, Minister for Energy Consumers

Monday 5 August 2024

Dear Chancellor,

The Winter Fuel Payment to pensioners has been a settled part of support to help older people stay warm each winter for years.

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 with 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.

We understand the arguments for means testing the benefit, but the approach you have taken is the wrong one.

We urge you to rapidly consult with consumer groups to broaden the targeting of the Winter Fuel Payment, to introduce support to end energy debt, expand the Warm Home Discount and extend the Household Support Fund. 

For the medium term, we recommend that the Government reforms standing charges and consults on how a social tariff could protect the most vulnerable in society from the cost of energy.

We have publicly commended the Government in taking some of the long term measures to tackle high energy bills, such as the drive for more renewable energy and a Warm Homes Plan. But these solutions will take time to bring down bills.

Energy bills are due to increase further on 1 October, meaning that a pensioner who no longer receives Winter Fuel Payment, will experience a real-terms increase in their energy bills of up to 15% in winter 2024/25 compared to winter 2023/24.

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.

We would be happy to meet with you to discuss this further.

Yours sincerely,

End Fuel Poverty Coalition

Disability Poverty Campaign Group

Fuel Poverty Action

National Pensioners’ Convention

Disability Rights UK

Warm This Winter

350.org

Community Action Northumberland

Advice for Renters

Fairer Housing

Scope

Green Rose CIC

MND Association

The Printing Charity

VOICES ADFOCAD

Surrey Coalition of Disabled People

Bringing Us Together

Independent Age

Agewell CIC

Adult Social Care Warriors

Zero Hour

The Working Class Climate Alliance

38 Degrees

High Peak Green New Deal

Voluntary Organisations Disability Group (VODG) 

Community Housing Cymru

Hackney Foodbank

Equal Right

Global Witness

Harrow Association of Disabled people (HAD)

Bristol Reclaiming Independent Living

WinVisible (women with visible & invisible disabilities)

The Climate Coalition

Community Money Advice

Climate Cymru

Clynfyw Care Farm

Stop Climate Chaos Cymru 

Pontypridd Land Society

Awel Amen Tawe

Cardiff Quakers

Ffynnone Community Resilience

Climate and Community

Tir Natur

Egni Cooperative

The Coproduction Network for Wales

Climate Shop

Gwyrddni

The One Planet Centre

The Mentor Ring

Sustainable Wales

Datblygiadau Egni Gwledig

XR Cardigan

Friends of the Earth

Medact

Image Credit: Martin Suker / Shutterstock

Pensioners face surge in winter energy bills

The Chancellor’s decision to cancel the Winter Fuel Payment for most pensioners will leave millions of older households facing an inflation-busting energy bills increase this winter.

A combination of the end of the Winter Fuel Payment and a likely increase in energy prices from 1 October will mean that the average older household will see their energy bills increase by up to 15% in real terms, compared with winter 2023/24. [1]

Charities have written to Rachel Reeves MP this week to set out the challenge faced by pensioners and ask the Government to reconsider its plans.

The letter, signed by over 50 organisations, says:

“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 with 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.”

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented:

“We have publicly commended the Government in taking some of the long term measures to tackle high energy bills, such as the drive for more renewable energy and a Warm Homes Plan. But these solutions will take time to bring down bills.

“In the meantime, households of all ages will need more support from the Government to stay warm this winter, not less.

“We urge the Chancellor to rapidly consult with consumer groups to broaden the targeting of the Winter Fuel Payment, to introduce support to end energy debt, expand the Warm Home Discount and extend the Household Support Fund.”

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.”

Members of the public have also been asked to write to their MPs through the Warm This Winter campaign or the Independent Age website urging the Government to think again. Hundreds of thousands of people have also signed petitions on the Age UK and 38 Degrees websites. [2]

National Pensioners Convention General Secretary Jan Shortt commented:
“I seriously believe the Chancellor has underestimated the harm her decision will cause to older people still struggling with energy costs and facing higher rates in October.  It is absolutely shocking that the new Labour government should treat older, vulnerable people in this manner.  The triple lock alone will not enable them to keep up with energy bills.”

Jonathan Bean from Fuel Poverty Action added:

“Making heating even more unaffordable for those trying to survive on basic pensions is a cruel and reckless move that will cause widespread suffering, and increased NHS admissions this winter. Instead we need an energy pricing system that guarantees everyone the essential energy they need to stay warm and safe.”

Jacky Peacock from Fairer Housing said:

“While it makes sense to withdraw the payment for wealthy pensioners, the bar has been set too low.  We’re asking the Chancellor to re-think this move to allow pensioners on modest incomes to enjoy their home in comfort this winter without the worry of how they will be able to afford it.”

Jenna Fansa from Hackney Foodbank commented:

“We urge the government to widen the eligibility criteria for Winter Fuel Payments. Last year we saw a 95% increase in the number of older people coming to our food bank due in part to rising food and fuel costs. For many, it’s a choice between having the heating on or going hungry. Restricting the criteria only to those on certain benefits will cause more anxiety for many pensioners and will inevitably bring more pressures for food banks like ours.”

Morgan Vine, Head of Policy and Influencing at Independent Age, said: 

“It is not an overstatement to warn that, in its current form, this sudden change puts lives at risk. Pension Credit has an unacceptably low take-up at just 63%. 

“This means up to a staggering 1.2 million older people who are eligible could be missing out on money they need to turn their heating on. On top of this, every day we hear from older people who just miss out on Pension Credit but still struggle to pay their energy bills. They could now be heading into winter without this important lifeline. 

“We urge the Chancellor to not make this change now, and instead ensure every older person has an adequate income to avoid financial hardship before removing the Winter Fuel Payment.”

Ken Butler, Welfare Rights and Policy Officer at Disability Rights UK said:

 “The removal of winter fuel payment from millions of pensioners, many of them Disabled people, is shameful. Many pensioners live on the margins of poverty and need more heat and energy to manage their health conditions and charge their health-related equipment.

“In addition, due to a DWP backlog assessing pension credit claims, award decisions are taking several months to be made. Because of this, many eligible pensioners could miss out on fuel payments this winter.”

ENDS

For a full copy of the letter visit: https://www.endfuelpoverty.org.uk/letter-to-the-chancellor/

[1] Average energy bills in winter 2023/24 were GBP1,834 – but for households receiving the full GBP300 Winter Fuel Payment this would have been GBP1,534.

Average energy bills for winter 2024/25 are forecast to be GBP1,762 according to analysts Columbia Threadneedle (accessed 22 July 2024). This means the average household who received the full Winter Fuel Payment in 2023/24 will now pay 14.68% more for energy in winter 2024/25.

[2] Age UK petition stands at over 138,000 and the 38 Degrees petition stands at over 105,000 as at 1500 on 2 August 2024

Charities condemn Chancellor’s Winter Fuel Payment decision

Charities have lined up to condemn the new Chancellor’s decision to restrict the Winter Fuel Payment (WFP) to a smaller group of older households.

Age UK estimate that more than 800,000 older people living on very low incomes – under £218.25 a week for single pensioners and under £332.95 for couples –  who are already missing out of the Pension Credit, will now lose the WFP that helps them to pay their fuel bills.

In addition, the charity estimates that there are also about a million pensioners whose weekly incomes are less than £50 above the poverty line, who will also be hit hard by the loss of the Payment.

Finally, older people whose incomes are a little higher, but who live in energy inefficient homes and/or who are seriously unwell and need to keep the thermostat turned up high in order to protect their health will also suffer.

This equates to around 2m pensioners forced into fuel poverty. In addition, Warm This Winter data suggests that another 2.9m pensioners will now face financial difficulty this winter due to the decision. [1]

Caroline Abrahams, charity director at Age UK said:

“We strongly oppose the means-testing of Winter Fuel Payment (WFP) because our initial estimate is that as many as two million pensioners who badly need the money to stay warm this winter will not receive it and will be in trouble as a result – yet at the other end of the spectrum well-off older people will scarcely notice the difference – a social injustice.

“It is well established that pensioners tend to do everything possible to avoid going into debt so if they are worried about their future energy bills we know their likely response will be to ration their fuel use and economise by reducing their spending on other essentials. This proposed policy change is therefore certain to result in more older people experiencing a horrible ‘eating or heating’ dilemma.

“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. With winter now just over the horizon, the Government should halt their proposed change to WFP and think again, given the clear evidence of how it will hurt the older people who need it the most.”

National Pensioners Convention General Secretary Jan Shortt said:
“This is devastating news for millions of older people whose income is literally just a few pounds above the threshold to receive pension credit.

“These people are already barely able to make ends meet – this move effectively wipes out any benefit they receive from the triple lock increase on the state pension.

“I seriously believe the Chancellor has underestimated the harm her decision will cause to older people still struggling with energy costs and facing higher rates in October.  It is absolutely shocking that the new Labour government should treat older, vulnerable people in this manner.  The triple lock alone will not enable them to keep up with energy bills.”

Matt Copeland from National Energy Action commented:

“Today the Chancellor announced that the Winter Fuel Payment will only be given to pensioners receiving benefits going forward. Although this would make the policy more progressive, it will leave many pensioners who need support, without it. One third of fuel poor households do not receive benefits. They should not be forgotten.

“Energy prices remain high and are due to increase again this winter. This creates a significant challenge for low income households. Any funds raised from this policy change should go towards helping low income and vulnerable energy customers this winter as a priority.”

A spokesperson for the End Fuel Poverty Coalition added:

“When Rishi Sunak threatened to axe Winter Fuel Payments in September 2023 we said that this could be a death sentence for pensioners who are only just about managing to keep out of fuel poverty.

“Nothing has changed.

“Energy prices are still high, people are still struggling with the cost of living and this dangerous decision by the Chancellor could condemn pensioners to living in cold damp homes this winter.

“Figures for the Warm This Winter campaign suggest that almost half of over 75s could now see their winter heating budget torn to shreds as they have modest incomes and will not now be eligible for the payment.

“The Chancellor must urgently think again and consult with older people’s charities on a better way to target this support to a wider group of pensioners.”

Jonathan Bean from Fuel Poverty Action, said:

“Making heating even more unaffordable for those trying to survive on basic pensions is a cruel and reckless move that will cause widespread suffering, and increased NHS admissions this winter. Instead we need an energy pricing system that guarantees everyone the essential energy they need to stay warm and safe.”

A spokesperson for Independent Age commented:

“Today’s decision to end the Winter Fuel Payment for those not receiving Pension Credit risks driving hundreds of thousands of older people into further financial hardship. We welcome the Chancellor’s intention to tackle the low uptake of Pension Credit, however means testing the Winter Fuel Payment now will mean too many older people will fall through the cracks and not get the vital financial support they desperately need, especially when household bills like energy are still extremely high.

“Pension Credit has an unacceptably low uptake at just 63%. This means a staggering 880,000 older people who are eligible could be missing out on money they need to turn their heating on. On top of this, every day we hear from older people who just miss out on Pension Credit but still struggle to pay their energy bills. They could now be heading into winter without this important lifeline.

“We understand the UK Government needs to make some tough choices, but today’s announcement demonstrates just how important it is for all older people facing financial hardship to receive the money they are entitled to. We also hope the new UK Government will take this opportunity to work cross party to determine what an adequate income in older age is and ensure that everybody receives it so that nobody lives in poverty in later life.”

ENDS

[1] 2m based on Age UK calculations. 2.9m based on Opinium data for Warm This Winter (December 2023) and based on the number of pensioners with an income of GBP20-30k a year combined with population estimates from the ONS.