Chancellor Rachel Reeves is being called to “freeze energy bills” and scrap the cut to Winter Fuel Payments for millions of pensioners by the leader of the Liberal Democrats.
Sir Ed Davey MP is lobbying Labour to U-turn on its current policies following Ofgem’s confirmation that the energy price cap will rise in the New Year.
The typical energy bill for families on a variable rate tariff will increase to £1,738 a year between January and March 2025.
Older households are already having to contend with Reeves’s decision to means-test the Winter Fuel Allowance.
Going forward, Britons will need to be in receipt of support such as Pension Credit from the Department for Work and Pensions (DWP).
To rectify this situation, the Lib Dems are demanding urgent action from Prime Minister Sir Keir Starmer to ensure people do not suffer
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Ed Davey is calling for action on energy bills
GETTY
Davey explained: “Enough is enough. This further rise in energy prices cannot go ahead. As we enter another cold and difficult winter, many people simply can’t afford to see their heating bills go up yet again.
“The disastrous Government cuts to the Winter Fuel Payments coupled with this energy price rise will be a hammer blow for millions of vulnerable pensioners this winter.
“The new Government must step in now, cancel this bill rise and reinstate Winter Fuel Payments to stop families and pensioners being left out in the cold this winter.
“This is a Government that has pledged to bring down energy bills, it is time for them to live up to their word.”
Ranjit Blythe, the managing director of the the UK’s biggest gas distribution network Cadent Foundation, is among the many pushing for the Government to address fuel poverty.
Blythe shared: “It’s a mistake for anyone to think that the cost-of-living crisis is over and we’ve seen, first-hand, through all of our projects, the impact of fuel poverty on the most vulnerable.
“The news of today’s price cap changes, preceded by the removal of the Winter Fuel Allowance for many pensioners, could mean that those who may have just about managed last year are now being tipped into fuel poverty.
“We’ve witnessed unprecedented demand for support in the last month alone, distributing almost £500,000 of assistance from our Winter Support Fund to the most vulnerable members of society. Our partners have reported high levels of uptake, particularly from those impacted by recent cuts to the Winter Fuel Allowance.”
The Chancellor confirmed the Winter Fuel Allowance would be means-tested earlier this year
PA
Research conducted by the Liberal Democrats found the number of pensioners who may be negatively impacted this winter is on the rise. Some 55 per cent of pensioners admitted that they expect to heat their homes less in the coming months and a fifth (19 per cent) saying that they will eat less.
Earlier this week, data revealed that 100,000 extra pensioners will be pushed into relative poverty due to the means-testing of the Winter Fuel Payment.
A Government spokesman said: “Internal modelling on poverty estimates was produced as part of routine policy advice. The modelling is subject to a range of uncertainties and does not take into account the significant work we’re doing to encourage pension credit take-up. Our awareness drive has resulted in a 152 per cent increase in claims since July.
“The modelling also doesn’t reflect that we have put in place extra support for those who need it most, such as our extension of the Household Support Fund. Many pensioners will also benefit from the £150 Warm Home Discount and Cold Weather Payments to help with energy bills and millions of pensioners are also set to benefit from an increase of up to £470 to the state pension in April.
“This Government inherited a £22 billion black hole in our public finances, which means we needed to take tough decisions to balance the books. We continue to urge pensioners to check their eligibility for pension credit to ensure as many people as possible receive the support they’re entitled to.”