Rachel Reeves slammed as 'absolutely shocking' decision will see pensioner energy bills soar this winter

In a bid to close the £20billion "black hole" in the public finances, Chancellor Rachel Reeves announced last week that the eligibility criteria of Winter Fuel Payments will change.

The payments will no longer be universal this year and will only be available to pensioners on means-tested benefit support, such as Pension Credit.

Households can get up to £300 from this support and Britons have been eligible if they were born were born on or before September 20, 1958.

However, as the cost of living crisis continues, this change will see millions of pensioners pushed into further fuel poverty.

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

Energy bills are predicted to fall to an average of £1,723 a year this autumn under the price cap, marking a saving of around £70 per household compared to last year.

However, an estimated 10 million pensioners are set to see their bills rise up to £228, according to analysis by the End Fuel Poverty Coalition campaign group.

Charities have written to 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 explained the decision could see millions in damp homes this winter, potentially creating a public health emergency - particularly harsh on those older people with a disability.

Jan Shortt, National Pensioners Convention General Secretary said: “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.”

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 per cent 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 per cent.

“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.

Defending the Government's decision-making, Deputy Prime Minister Angela Rayner blamed ITV's This Morning on the "horrendous" finances Labour have been saddled with.

According to Labour's second-in-command, the newly launched GB Energy will bring down household energy bills and lower reliance on support like Pension Credit.

Rayner explained: "So there were some really difficult choices and what the Chancellor set out with the winter fuel payments was about people on pension credit. Now there’s thousands of people who are eligible for pension credit that are not currently receiving it.

"So my plea to people who are listening to this is check out whether you’re available for pension credit because there’s so many people that won’t and those people will continue to get the Winter Fuel Payment."

"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."

A Government spokesperson said: "This Government is committed to pensioners: protecting the triple lock, keeping energy bills low through our Warm Homes Plan, and cutting NHS waiting lists – bringing real stability to people’s lives.

"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.

"In these circumstances, it is right that Winter Fuel Payments are targeted at those in most need, and we will work with Local Authorities to boost the uptake of Pension Credit, reaching the many pensioners who could still benefit from this year’s Winter Fuel Payments."