Major energy supplier launches £50million of bill support after winter fuel payment cut
The Big Six energy supplier is offering a range of financial support to its customers as the Government scraps winter fuel payments for millions of pensioners.
Ovo Energy, one of the Big Six energy suppliers, has unveiled a new £50million scheme to support customers with their energy bills this winter. This comes following the Government's decision to cut winter fuel payments for millions of pensioners.
The company plans to use the funds to provide direct financial aid to customers who are struggling to pay their bills, temporary reductions in direct debit payments, personalised energy-saving advice, and free or subsidised home upgrades such as insulation, new boilers, or heat pumps in certain cases. Ovo's chief executive, David Buttress, stated that it is "on us" to assist customers through the winter months.
The company had previously provided similar support packages of £40million in 2023 and £50million in 2022. The Government's decision to limit state winter fuel payments to those receiving Pension Credit will affect approximately 10 million people, leaving only the poorest pensioners in the country eligible for the benefit.
Previously, about 11.5 million people received it. The Government maintains that means-testing the benefit, which can be worth up to £300, is necessary to address what it refers to as a "black hole" in public finances.
The announcement of the narrowing eligibility criteria has sparked an intense backlash, including among Labour MPs. Critics stress that Pension Credit merely brings income up to £11,300 annually for single individuals, highlighting the issue that numerous people who fall outside the eligibility criteria will still be stretched thin when it comes to settling their utility bills.
Ovo Energy, serving around four million customers, stands as the UK's fourth-largest energy provider behind Octopus Energy, British Gas, and Eon Next, reveals data from Ofgem.
The package opens on October 1 but OVO's website is live from today for customers to check if they're eligible.
Mr Buttress also called for a longer-term solution in the form of a social tariff, something campaign groups have proposed for several years. The measure would likely take the form of a targeted discount energy deal for poorer customers and could be below the price of the cheapest available standard energy tariff.
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Mr Buttress said: "We know it's on us to ensure our customers are supported through the winter months.
"That's why our winter support scheme is bigger than ever this year with £50 million of funds.
"But this isn't a long term solution. We need to make the energy system work better for everyone."
He added: "That starts with targeted support in the form of a social tariff so we're not plugging the gaps no one can be, or no one needs to be left behind."
Greg Jackson, the chief executive of Octopus Energy Britain's largest supplier, has publicly stated that energy suppliers should "be helpful" to the Government and provide additional support for individuals set to lose their winter fuel payments.
In a separate announcement last month, Octopus revealed its plan to carry on with its £30million assistance fund into the upcoming winter.
