Pensioners face £228 energy bill hike triggered by 'absolutely shocking' Labour decision

Pensioners face an energy bill surge of up to 15% after being stripped of the winter fuel payment, charities have warned.

The group of more than 50 organisations spearheaded by the End Fuel Poverty Coalition has written to Chancellor Rachel Reeves urging her to rethink the decision to axe the previously universal payments for older people unless they are on benefits.

The letter, signed by charities including the National Pensioners Convention and Independent Age, 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 warns that pensioners will be hit by a year-on-year increase in their energy bills of up to 15% this winter.

The calculation is based on a forecast by Columbia Threadneedle Investments that average bills will go up to £1,762 from October 1.

Last October average bills stood at £1,834, but would have been reduced to £1,534 for households receiving the full £300 winter fuel payment.

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.”

The annual payments of up to £300 have previously been available to everyone above state pension age, but from this winter only those who receive pension credit will be eligible.

National Pensioners Convention general secretary 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. The triple lock alone will not enable them to keep up with energy bills.”

Morgan Vine, head of policy and influencing at Independent Age, added: “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%.

“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.”

The change means almost 10 million pensioners will stop receiving the yearly payment.

Simon Francis, coordinator of the End Fuel Poverty Coalition, 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.”

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.”