More than 50 organisations wrote to Chancellor Rachel Reeves this week asking the Government to reconsider its plans for the Winter Fuel Payment and to broaden its targeting, according to the End Fuel Poverty Coalition1. The coalition said the decision to cancel the payment for most pensioners will leave millions of older households facing an inflation-busting energy bills increase this winter1.
The coalition said the average older household will see energy bills rise by up to 15 per cent in real terms compared with winter 2023/24, combining the end of the payment with a likely energy price increase from 1 October1. Its figures put average energy bills in winter 2023/24 at GBP1,834, or GBP1,534 for households receiving the full GBP300 payment, against a forecast of GBP1,762 for winter 2024/25, a rise of 14.68 per cent for those households1. The forecast came from analysts Columbia Threadneedle, accessed 22 July 20241.
The letter said the change would see millions more older people face spending winter in cold damp homes, and warned of a public health emergency1.
"The decision to remove the Payment to all but a small minority of pensioners will see millions more older people face the prospect of spending this winter in cold damp homes."
Simon Francis, coordinator of the End Fuel Poverty Coalition, said households of all ages would need more support from the Government to stay warm this winter, not less, and urged the Chancellor to consult consumer groups on broadening the targeting of the payment, introduce support to end energy debt, expand the Warm Home Discount and extend the Household Support Fund1. Morgan Vine, Head of Policy and Influencing at Independent Age, said Pension Credit take-up stands at 63 per cent, meaning up to 1.2 million eligible older people could be missing out1. Ken Butler of Disability Rights UK said a DWP backlog meant Pension Credit award decisions were taking several months, so eligible pensioners could miss out on fuel payments this winter1.
Warm This Winter records that Rachel Reeves announced the payment will be restricted to pensioners who receive certain means-tested benefits2. Its news page also reports that one in five people across the UK live in cold damp homes, which the NHS has warned have serious adverse health effects2.
| Measure | Winter 2023/24 | Winter 2024/25 |
|---|---|---|
| Average energy bill | GBP1,834 | GBP1,762 forecast |
| Average bill for households receiving the full GBP300 payment | GBP1,534 | GBP1,762 forecast |
| Change for those households | 14.68 per cent higher |
Why it matters for households
The payment is a cash sum paid towards winter heating costs, and the change turns it into a benefit tied to who qualifies for the Winter Fuel Payment through certain means-tested benefits. For a household that received the full GBP300 in 2023/24, the coalition's figures show a forecast bill of GBP1,762 this winter against GBP1,534 last winter, so the payment's removal accounts for most of the increase. Households that just miss Pension Credit are the group charities say is most exposed, since they receive neither the payment nor the passported help that comes with it. The Warm Home Discount is a separate scheme, and the coalition has asked for it to be expanded rather than changed by this decision1. For a home's energy independence, the practical effect is that a larger share of winter heating cost falls on the household's own income, at the point in the year when consumption is highest.
What happens next
The letter asks the Government to reconsider its plans and to consult consumer groups on broadening the targeting of the payment1. The coalition also asks for support to end energy debt, an expanded Warm Home Discount and an extension of the Household Support Fund1. No response from the Treasury to the letter has been reported. The coalition said hundreds of thousands of people have signed petitions on the Age UK and 38 Degrees websites, with the Age UK petition at over 138,000 and the 38 Degrees petition at over 105,000 as at 1500 on 2 August 20241.
Sources2 cited
- Pensioners face surge in winter energy bills, endfuelpoverty.org.uk
- Updates From Warm This Winter, warmthiswinter.org.uk