Millions face being hit as government change 'raises costs'

Millions of pensioners could face a 15 percent increase in the cost of staying warm due to the loss of the Winter Fuel Payment and an increase in tariffs.

The warning comes from fuel poverty campaigners and charities who say there is a real risk to life if sick and elderly people cannot afford to put the heating on.

A group of 50 organisations has written to the Chancellor, Rachel Reeves, with a plea to reverse the decision.

Millions will lose the Winter Fuel Payment, which is worth up to £300, while tariffs are expected to rise in October through to January.

The Winter Fuel Payment will only be retained for people who receive Pension Credit; however it is claimed that as many as 1.2 million who are eligible for this are not receiving it.

The letter to the Chancellor says: “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.

“This has the potential to create a public health emergency.

“The impact of living in cold damp homes is particularly harsh on those older people with a disability, a long term health condition or with poor mental health.

“It results in these people turning to an NHS that is already under stress and in some cases, can result in additional winter deaths.”

The letter adds: “Unless we see urgent action from the Government to keep people warm this winter, one of the first actions of the new Government will be to condemn more vulnerable households to fuel poverty.”

Members of the public have also been asked to write to their MPs through the Warm This Winter campaign or the Independent Age website urging the Government to think again. Hundreds of thousands of people have also signed petitions on the Age UK and 38 Degrees websites.

The ccordinator of the End Fuel Poverty Coalition, Simon Francis, said: “We have publicly commended the Government in taking some of the long term measures to tackle high energy bills, such as the drive for more renewable energy and a Warm Homes Plan. But these solutions will take time to bring down bills.

“In the meantime, households of all ages will need more support from the Government to stay warm this winter, not less.

“We urge the Chancellor to rapidly consult with consumer groups to broaden the targeting of the Winter Fuel Payment, to introduce support to end energy debt, expand the Warm Home Discount and extend the Household Support Fund.”

General Secretary of the National Pensioners Convention, Jan Shortt, 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.”

Jonathan Bean, of Fuel Poverty Action, said: “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.”

Jacky Peacock from Fairer Housing said: “While it makes sense to withdraw the payment for wealthy pensioners, the bar has been set too low. We’re asking the Chancellor to re-think this move to allow pensioners on modest incomes to enjoy their home in comfort this winter without the worry of how they will be able to afford it.”

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 percent.

“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.

“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.”

Ken Butler, Welfare Rights and Policy Officer at Disability Rights UK said: “The removal of winter fuel payment from millions of pensioners, many of them Disabled people, is shameful.”

The Chancellor has said she did not want to remove the Winter Fuel Payment but argued it was necessary to combat a £22 billion black hole in the government’s books due to failures by the last Conservative government.

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.”