A government minister has given an update on the winter fuel payment axe which has left 10 million pensioners missing out on the £2-300 cash when asked if it should be ‘put off’ for a year to help people. New research has shown that the decision to cut the benefit will push 100,000 pensioners into relative poverty this decade.
Consultancy Cornwall Insight forecasts that energy bills will rise by 1% this winter after wholesale prices rose by 10% in October. Appearing on BBC Breakfast Miatta Fahnbulleh, Minister for Energy Consumers, said the decision to axe the money ‘has been made’ when she was asked if it should be paused for a year.
She explained people need to get in touch with their supplier if they need help: “What I would say to anyone, whether it’s a pensioner, whether it’s a mom with 3 kids, pick up the phone. If you’re worried about your energy bills, if you’re worried about turning off your heat, please call your supplier because there is support in the system waiting to help people.
“We do have people who got in touch over this policy to say they agree it should happen, it shouldn’t be blanket for everybody to receive that money. The criticism is that it’s happening too quickly and even those who reach the threshold for credit don’t have the time to access it. “
Presenter Nina Warhurst flagged up emails from viewers: “So this is from Andrew, ‘my mum applied for credits and the process was difficult. She struggled with the form online. The follow up letter was so confusing. They refused in June. We’re still seeking a mandatory review’. This one from Jackie, who lives in Bournemouth. ‘I applied for my disabled mother on the 1st of February. We are still waiting for them to process this application. I’ve not had a call and was told I would receive one within 48 hours. At the DWP there is no sense of the urgency on this issue’.“
Ms Fahnbulleh replied: “Well, listen, what I would say is there’s absolutely a sense of the urgency. We know that the forms are too long. We know that it is a difficult system for people to navigate. That’s a system we’ve inherited. We are very quickly trying to make it simpler and easier for people, you know, we’ve seen record uptake in pension credit because we’re driving to make sure that if you are eligible, you can access pension credit.
“On top of that we are providing additional support. So this is why we’ve been working with energy suppliers to make sure there is 500 million pounds of support in the system so people can pick up the phone, speak to their supplier if they’re worried, alongside the help that we’re already providing through our warm homes discount. So we’re trying to do everything we can to help people. We know that people are worried about their energy bills. We know that there will be people really anxious going into the cold months. And we will, we are trying to do what we can to get support to people. So if you’re worried, pick up the phone, speak to your supplier, call Citizens Advice, there is support in the system to help you.”
Nina Warhurst asked: “Would the sensible thing to do not be just to put it off for a year? We know that 2 out of 5 pensioners haven’t even checked whether they’re eligible for support. Another year, another winter would give everyone the time to know where they stand.” But Ms Fahnbulleh replied: “Well, listen, the winter fuel payment decision has been made. My job is to make sure that we’re getting the energy system that is affordable for people, because look, the bottom line is, energy is simply unaffordable for too many households, and that’s the thing that we need to change.”
Ovo Energy, Octopus and British Gas had already pledged to continue financial support schemes from previous years, in commitments worth a combined £120 million for this winter. Several suppliers have called for a social tariff, something which is already used in the telecoms industry to help people who receive benefits like Universal Credit pay their broadband bills.
The measure, which campaign groups have proposed for several years, would likely take the form of a targeted discount energy deal for poorer customers, and could be below the price of the cheapest available standard energy tariff.
Dhara Vyas, boss of the trade body Energy UK, pointed to record high levels of consumer debt of £3.7 billion in June. She said that many people are “yet to recover from a sustained period of high energy bills and an accompanying increase in the cost-of-living”.
“As in previous winters, energy suppliers have already been stepping up the amount and range of support they offer to customers. There is, however, only so much they can do when a large number of households are struggling to afford energy at the price it costs to supply it.”