Millions of households are bracing themselves for a 10 per cent hike in energy bills, from £1,568 to £1,717, starting October 1. This £149 increase will affect those on standard tariffs, coinciding with the UK Government’s decision to cut Winter Fuel Payments for around 10 million state pensioners.
The Government announced in July that only pensioners receiving means-tested benefits, such as Pension Credit or Universal Credit, would be eligible for the payment. This annual tax-free payment, ranging from £100 to £300, was introduced in 1997 to help pensioners cover winter heating costs.
However, with the energy price cap rising as winter approaches, charities and politicians, including the SNP, Conservatives, and Greens, are urging the Government to reconsider means-testing the payment. Labour’s annual conference delegates backed a motion to reverse the cut, although the vote is non-binding, and ministers have stated the policy will remain unchanged.
Caroline Abrahams, Age UK’s charity director, criticized restricting the Winter Fuel Payment to those on Pension Credit, calling it “reckless and wrong” and warning it “spells disaster for pensioners on low and modest incomes”. An online petition launched by a charity following Chancellor Rachel Reeves’ announcement on July 29, has garnered over 538,500 virtual signatures of support.
The UK Government is expected to save £1.4 billion this year through means testing the winter fuel payment, a move Labour claims is necessary to bridge the gap between the previous Conservative government’s spending plans and the funds available, reports the Daily Record.
Labour has also taken aim at the Tories for their lack of investment in energy efficiency and renewable power. The Government, however, maintains that over one million pensioners, including more than 125,000 in Scotland, will still receive the Winter Fuel Payment and encourages any pensioner concerned about higher bills to check their eligibility for Pension Credit.
Other charities and campaign groups have proposed alternative measures to alleviate the impact of rising energy bills. Citizens Advice has called for “targeted bill support”, while the End Fuel Poverty Coalition advocates for the expansion of other support funds and a reduction in standing charges.
Andy Manning, head of energy policy at Citizens Advice, commented: “This price rise means bills are now around two-thirds higher than before the energy crisis. With record levels of energy debt, the removal of previous support and changes to the eligibility of the Winter Fuel Payment, people are in desperate need.”
The Government is being urged to introduce targeted support for energy bills that takes into account people’s actual energy needs. Simon Francis, co-ordinator of the End Fuel Poverty Coalition, warned: “We’re now heading into the fourth winter of sky high energy prices. After October 1, bills will be 65% higher than in 2020/21, 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.”
He added: “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. For many pensioners, this winter will feel like the most expensive on record.”
How to check your Pension Credit eligibility
To check eligibility for Pension Credit, older people or their friends and family can use the online calculator on GOV. UK or contact the Pension Credit helpline on 0800 99 1234.
Expert advice is also available from various organisations:
Other help if you get Pension Credit
If you qualify for Pension Credit you can also get other help, such as:
- Housing Benefit if you rent the property you live in
- Support for Mortgage Interest if you own the property you live in
- Council Tax discount
- Free TV licence if you are aged 75 or over
- Help with NHS dental treatment, glasses and transport costs for hospital appointments
- Help with your heating costs through the Warm Home Discount Scheme or Winter Fuel Payments
- A discount on the Royal Mail redirection service if you are moving house
Rules for mixed aged older couples
In May 2019, the law was altered so that a ‘mixed age couple’ – a pair where one partner is of State Pension age and the other is below it – are deemed to be a ‘working age’ couple when assessing eligibility for means-tested benefits.
This implies they can’t claim Pension Credit or pension age Housing Benefit until both partners reach State Pension age. Prior to this change by the DWP, a mixed age couple could qualify for the more generous State Pension age benefits when just one partner reached State Pension age.
Here’s how to use the Pension Credit calculator
To use the calculator on GOV.UK, you will need details of:
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earnings, benefits and pensions
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savings and investments
You’ll need the same details for your partner if you have one. You will be presented by a series of questions with multiple choice answer options.
This includes:
- Your date of birth
- Your residential status
- Where in the UK you live
- Whether you are registered blind
- Which benefits you currently receive
- How much you receive each week for any benefits you get
- Whether someone is paid Carer’s Allowance to look after you
- How much you get each week from pensions – State Pension, private and work pensions
- Any employment earnings
- Any savings, investments or bonds you have
Once you’ve answered these questions, a summary screen displays your responses, allowing you to go back and alter any answers before submitting. The Pension Credit calculator then shows how much benefit you could receive each week.
All that’s left to do then is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support.
There’s also an option to print off the answers you provide using the calculator tool. This can help speed up the application process as you won’t need to search for the same details again.
Give the Pension Credit Calculator a go for yourself or a family member to ensure you’re receiving all the financial support you’re entitled to.
Who cannot use the Pension Credit calculator?
The calculator isn’t suitable if you or your partner:
- are deferring your State Pension.
- own more than one property.
- are self-employed.
- have housing costs (like service charges or Crown Tenant rent) which aren’t mortgage repayments or rent covered by Housing Benefit.
How to make a claim
You can begin your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months.
This means you could receive up to three months of Pension Credit in your first payment if you were eligible during that period.
You will need:
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your National Insurance number
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information about your income, savings and investments
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your bank account details, if you’re applying by phone or by post
Apply online
You can use the online service if:
- you have already claimed your State Pension.
- there are no children or young people included in your claim.
To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to find out how much you could get.