The UK Government is going ahead with plans to means test the Winter Fuel Payment, the End Fuel Poverty Coalition said, after the first Budget of the new Government confirmed energy investment but offered no further support for household energy bills1. The coalition, an independent campaign body, published its response on its website1.
The Budget set out £3.4 billion over three years for retrofitting homes, described by the coalition as a welcome first instalment on the Warm Homes Plan, but short of the £13.2 billion promised in the Labour manifesto1. E3G's Ellie Mae O'Hagan said the initial £3.4 billion "is well short of the Labour Manifesto pledge to invest £13.2 billion over the Parliament", adding that "the door has been left open to boost this investment in the Spending Review due in the Spring"1. The coalition said uncertainty remains over whether ministers will confirm the £13.2 billion1.
On the Household Support Fund, the coalition said the increase announced in the Budget "is essentially an extension of the current Fund through to the end of March 2026 at the same level as under the last Government and with no adjustment for inflation"1.
Independent Age chief executive Joanna Elson said the Budget was a mixed bag for older people in financial hardship, and that many on low incomes will be concerned the government "is going full steam ahead with plans to means test the Winter Fuel Payment"1. She said the latest figures show "up to 970,000 eligible older people could be missing out on Pension Credit, and now they will lose the Winter Fuel Payment despite living on a low income"1.
"What we needed to see in the short term was a restoration of winter fuel payments, an expansion of warm home discounts and reforms to improve and extend cold weather payments."
The coalition also cited polling finding that 75% of the public say there should be financial help for older and disabled people to pay their energy bills, and that 87% of people aged 65 and over think the UK Government does not understand the issues facing older people1. It said energy firms have made £457 billion in profits since the start of the energy crisis1. National Energy Action chief executive Adam Scorer said the Budget "will not lessen the impact of unaffordable energy bills and record levels of energy debt this winter"1.
Why it matters for households
The Winter Fuel Payment is a annual payment to help older people with heating costs, and means testing changes who qualifies. Under the change described, entitlement is tied to receipt of Pension Credit and certain other benefits, so a household that does not claim Pension Credit does not receive the payment, even where income is low1. Independent Age said the change should not be made until Pension Credit take-up is substantially increased1.
The Warm Home Discount is a separate scheme, and the coalition called for it to be expanded alongside reforms to cold weather payments1. For a household's energy independence, the practical effect is that bill support now depends more heavily on benefit take-up, while the longer-term route to lower bills rests on insulation and home improvements funded through the Warm Homes Plan1. The coalition said the only way to bring down bills permanently is investment in insulation, home improvements, renewables and infrastructure1.
What happens next
The coalition said the door has been left open to boost Warm Homes Plan investment in the Spending Review due in the Spring1. It also said the Household Support Fund extension runs to the end of March 20261. National Energy Action said energy bills are likely to increase later in January1. No date has been reported for a decision on Winter Fuel Payment eligibility.