Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer (Image: Getty)
Campaigners and MPs slammed Labour’s winter fuel payment cuts after it emerged energy bills are expected to go up next year.
Energy consultancy Cornwall Insight said it expects regulator Ofgem to reveal on Friday that the price cap will rise by 1% to £1,736 on January 1.
The predicted £19 jump to the typical household’s energy bill comes as most OAPs have lost the winter fuel allowance after it was restricted to only those on pension credit.
Tory shadow work and pensions secretary Helen Whately said: “This is another blow for the 10 million pensioners who have been robbed of their winter fuel payment by Sir Keir Starmer.
“Sadly we’re going to have to get used to bills going up under the Labour Party, and this is just the start.
“There is still time to reverse their cruel cut before the cold sets in and pensioners start to suffer from Labour’s choices.”
The Labour Government has faced an ongoing backlash over axing previously universal winter fuel payments of up to £300 a year for all but Britain’s poorest pensioners.
Ministers have blamed a £22 billion black hole in the public finances left by the Conservatives, which they deny.
Dennis Reed, director of the Silver Voices campaign group, said: “News that energy prices will drift up again in January is further proof of the folly of the Government in scrapping the winter fuel payment for most pensioners.
“Older people just above the benefit eligibility limit are already at their wits’ end in balancing heating and food costs.
“The millions with chronic health conditions know they are potentially shortening their lives by not switching on their heating, but they have no choice.
“I have asked for an urgent face-to face meeting with the Department for Work and Pensions Secretary of State Liz Kendall to discuss emergency measures to save older lives this winter. Labour cannot just wash its hands of the crisis they have created.”
Independent Age chief executive Joanna Elson described the expected price cap increase as “more concerning news” for the elderly.
She said: “Worryingly, many people in later life will be losing their winter fuel payment despite living on a low income. In the new year, they will have to make their small budget stretch even further, possibly to breaking point.
“The UK is about to enter a bitter cold snap, and we are extremely worried about the older people that cannot afford to turn their heating on.
“The people we have been speaking to are already bracing themselves, and planning drastic cutbacks such as living in one room and eating less food. Living like this can be damaging to your health.
“We urge any older person that is worried about their energy bills to check their pension credit eligibility before December 21, as successfully applying before this date will entitle you to the next winter fuel payment.”
Winter fuel payment changes – which are expected to save up to £1.5 billion a year – have been widely condemned by charities, opposition parties, unions and some Labour politicians.
Labour MP Rachael Maskell said: “Now that the cold weather has arrived, many older people will be concerned to learn that the energy price cap is expected to rise again in January.
“The deadline for claiming the winter fuel payment for this year is on December 21, and only about 10% of those who were eligible and not claiming the winter fuel payment have done so since July.
“It is vital that older people keep their homes at least at 18C (64.4F), if they are worried about their bills, they must speak to their energy provider and their local authority. I still urge Government to find a way forward so older people can keep warm and well this winter.”
The Government faced criticism for not carrying out a full impact assessment into the controversial policy, which was announced by Chancellor Rachel Reeves in July.
Figures quietly slipped out by the Department for Work and Pensions in September showed that an estimated 780,000 OAPs will lose out on the payments because they are eligible for pension credit but have not claimed it.
Campaigners are also concerned about those who will miss out because they are just above the threshold for pension credit.
The latest 1% prediction comes after the energy price cap rose by 10% in October.
Ofgem changes the cap every three months, largely based on the cost of energy on wholesale markets.
The regulator will confirm the level for the first quarter of next year on November 22.
The price cap sets a maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour (kWh) of energy they use.
While the cap is significantly lower than at the peak of the energy crisis, which was fuelled by Russia‘s invasion of Ukraine in February 2022, prices are still “very sensitive to global events” and supply concerns tied to geopolitical tensions, Cornwall Insight said.
Craig Lowrey, principal consultant at Cornwall Insight, called for the Government to help protect the vulnerable and tackle energy supply for the long-term.
He said: “With it being widely accepted that high prices are here to stay, we need to see action.
“Options like social tariffs, adjustments to price caps, benefit restructuring or other targeted support for vulnerable households must be seriously considered.”
He added: “The Government needs to keep momentum on the transition while acknowledging that immediate support is essential for those struggling now. Inaction is a choice to leave people in the cold.”
A Government spokesperson said: “We are committed to supporting pensioners – with millions set to see their state pension rise by up to £1,900 this parliament through our commitment to the triple lock.
“Over a million pensioners will still receive the winter fuel payment, and our drive to boost pension credit take up has already seen a 152% increase in claims.
“Many others will also benefit from the £150 warm home discount to help with energy bills over winter while our extension of the household support fund will help with the cost of food, heating and bills.”
Comment by Age UK charity director Caroline Abrahams
This is shaping up to be the week when the Government’s decision to fiercely ration the winter fuel payment really begins to bite.
After an unusually warm November we are about to experience a cold snap, the first of this season.
Across the UK the temperatures are set to dip to near or below zero, and in some parts of the Midlands, North of England and Scotland there could well be some snow on the ground.
In addition there’s the announcement by Ofgem on Friday of the energy price cap that will apply for the three months from January 2025, giving us a good idea of what will happen to many fuel bills in the latter part of winter.
Expert forecasters now say they expect these costs to rise by one per cent over that period.
It could have been a lot worse, many may feel, but on the other hand if you are already struggling to afford to keep your home warm, it’s more bad news.
In anticipation of this much colder weather, Age UK’s advice line has recently been hearing from older people who are worrying about whether they should run their heating on a higher setting, or in some cases at all.
They are stuck between the devil and the deep blue sea: between safeguarding their health and wellbeing on the one hand, and keeping on top of their finances on the other.
Our advice is to check you are claiming all the benefits you are entitled to – we can help with that – and if you are worried about your energy bills please don’t suffer in the cold, call your energy supplier to see what extra help they may be able to offer you.
Age UK is on your side, please don’t hesitate to get in touch.
Pensioner criticises winter fuel cuts
A pensioner hit out at “absolutely disgusting” winter fuel payment cuts as energy bills are expected to go up in January.
Robert Trewhella will no longer receive the allowance as he is £2 a week over the threshold for pension credit.
The 68-year-old, from Penzance in Cornwall, returned to work as a part-time taxi driver to help with his living costs but has to give it up after Christmas due to health issues.
He said: “My rent, my council tax, my fuel, my electric, pretty well wipes out my state pension. I might have a few quid left but not a massive amount to do anything with.”
Mr Trewhella said he would “absolutely” be cutting back on heating this winter due to the winter fuel changes.
He said: “I didn’t put it on all last year because I didn’t feel the need. Where I rent the heating system isn’t great, it’s old-fashioned storage heaters, I don’t put them on because they’re a fortune.
“I do have a small electric fire but when I put that on my smart meter goes a bit crazy. So what I do is put extra layers on, as simple as that. I’ve got an air fryer, I don’t turn the oven on any more and I keep the lights off. I’m just very, very frugal. It’s going to be harder with the cap rising.”
Mr Trewhella, who volunteers for the Independent Age charity, urged Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves to reconsider the policy.
He said: “I think if they want to have the support of the people back with them then they need to start thinking about relooking at some of the things they’ve done and the first thing they need to look at is the winter fuel allowance.
“It might not seem a lot of money to some people but to some people that small amount of money is likely to keep them from being ill.
“I would like to see these politicians have a bit of backbone and not be afraid to say actually we’ve made a mistake.”
Robert Trewhella will no longer receive the winter fuel payment (Image: INDEPENDENT AGE)