Pensioner energy bills to rise by £500 after Winter Fuel Payment 'axe': 'Worst winter on record!'
Pensioners are forecast to see their energy bills rise by £500
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Pensioners in the UK will experience their "worst winter on record" and £500 hike to energy bills following the new Labour Government's decision to "axe" the Winter Fuel Payment and the pending Ofgem price cap increase.
Campaigners are urging Chancellor Rachel Reeves to reverse her decision to means-test the energy bill benefit which offers claimants up to £300 off their heating bills in the winter months.
Last month, Reeves confirmed that the Winter Fuel Payment will no longer be universal and will instead be reserved for those on means-tested benefits from the Department for Work and Pensions (DWP), such as Pension Credit.
Earlier today, the UK's energy regulator Ofgem confirmed that the price cap will increase by 10 per cent in October, jumping from £1,568 to £1,717 annually for the average household.
Charities are warning the decision to means-test the Winter Fuel Payment will result in 10 million pensioners paying more for gas and electricity, with bills going up by 39 per cent or £483 a year.
According to the End Fuel Poverty coalition, "axing" the benefit will mean pensioners' energy costs have risen by 131 per cent since the beginning of the cost of living crisis.
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The cost of living crisis has pushed energy bills to new heights in recent years GETTY Simon Francis, the coordinator of the End Fuel Poverty Coalition, called for the Winter Fuel Payment to continue being universal.
He said: "With energy bills for the winter ahead now confirmed as being 65 per cent 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."
According to the campaigner, this week's announcement from Ofgem has exacerbated the existing cost of living woes for pensioners and a policy U-turn should be considered.
"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 per cent," Francis added.
“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."
Despite the recently announced changes to the Winter Fuel Payment, Labour has launched a new campaign to convince Britons to apply for Pension Credit.
Research conducted by Policy in Practice found that £3.8billion in unclaimed benefit support linked from the DWP's Pension Credit goes unclaimed.
As part of the Government's "awareness drive", older Britons will be permitted to backdate claims to improve uptake.
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People can find out if they’re eligible for Pension Credit and how much they can get online via the Pension Credit calculator PEXELSA DWP spokesman said: “We urge anyone who thinks they may be entitled to pension credit to check.
"We said we would be honest with the public and, given the dire state of the public finances we have inherited, this Government must take difficult decisions to fix the foundations of the economy.
"This includes reforming winter fuel payments so they are targeted at those most in need and leaving no stone unturned to encourage eligible pensioners to take up pension credit.”