Annual household energy bills are set to rise by 10 per cent from £1,568 to £1,717 on October 1. The £149 increase will apply to millions of energy customers on the standard tariff and comes as the UK Government removes Winter Fuel Payments for around 10 million State Pensioners.
The UK Government announced in July it would only issue payments to older people in receipt of a means-tested benefit such as Pension Credit, Universal Credit or Tax Credits. The annual tax-free payment of between £100 and £300 was introduced in 1997 to help eligible pensioners meet the costs of heating their homes in winter.
However, the UK Government has been urged to rethink its plans to means-test the payment in light of the energy price cap rising just as households move into the winter months. Charities have called for a U-turn, the SNP, Conservatives and Greens have called for the payments to be made available to all pensioners this winter.
Delegates at Labour’s annual conference last week backed a union motion calling for the cut to be reversed – although the vote is not binding on the UK Government and ministers have made it clear the policy will not be changed.
Caroline Abrahams, charity director at Age UK, said restricting the Winter Fuel Payment to those on Pension Credit was “reckless and wrong” and “spells disaster for pensioners on low and modest incomes”.
An online petition launched by the charity shortly after Chancellor Rachel Reeves made the announcement on July 29, has received more than 538,500 virtual signatures of support.
Means testing the winter fuel payment is expected to save the UK Government £1.4 billion this year, which Labour said was necessary to make up the gap between the previous Conservative government’s spending plans and the money that was made available to fund them.
Labour has also criticised the Tories for failing to invest in energy efficiency and renewable power. The Government insisted that more than one million pensioners would still receive the Winter Fuel Payment, including over 125,000 in Scotland, and urged any pensioner worried about the impact of higher bills to check if they are eligible for Pension Credit.
Other charities and campaign groups have suggested different measures to mitigate the impact of rising energy bills, with Citizens Advice calling for “targeted bill support” and the End Fuel Poverty Coalition urging the expansion of other support funds and a reduction in standing charges.
Andy Manning, head of energy policy at Citizens Advice, said: “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 must urgently introduce targeted bill support that reflects the realities of people’s energy needs.”
Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: “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.
“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 eligibility for Pension Credit
Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open 8am to 6pm, Monday to Friday.
Expert help and advice is also available from:
More details about claiming Pension Credit can be fond on GOV.UK here.
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
Mixed aged older couples and Pension Credit
In May 2019, the law changed so a ‘mixed age couple’ – a couple where one partner is of State Pension age and the other is under it – are considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.
This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age.
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 have answered these questions, a summary screen shows your responses, allowing you to go back and change any answers before submitting. The Pension Credit calculator then displays how much benefit you could receive each week.
All you have 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 give using the calculator tool to help you complete the application form quicker without having to look out the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you’re receiving all the financial support you are entitled to claim.
Who cannot use the Pension Credit calculator?
You cannot use the calculator if you or your partner:
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are deferring your State Pension
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own more than one property
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are self employed
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have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit
How to make a claim
You can start 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 can get up to three months of Pension Credit in your first payment if you were eligible during that time.
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
If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.
Apply online
You can use the online service if:
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you have already claimed your State Pension
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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.