THOUSANDS of elderly people are on a financial “cliff edge” because of the government’s decision to limit who can receive the Winter Fuel Payment, according to new analysis.
Only those on Pension Credit, or other means-tested benefits, will qualify for the £300 energy bill help starting this year.
The cut to pensioners came as part of a plan by chancellor Rachel Reeves to plug a £22bn black hole in public finances.
However, a new report by Policy in Practice, has found that 130,000 older people in the UK will miss out because they are £500 over the income threshold to claim Pension Credit, making them ineligible for the benefit.
Experts said they could be better off by having lower income and claiming Pension Credit and the Winter Fuel Payment
It was also found that up to 850,000 older people could claim Pension Credit in the UK, but are not doing so.
Households opting not to claim miss out on access to other support such as the Winter Fuel Payment.
Deven Ghelani, founder of Policy in Practise said: “Taking the Winter Fuel Payment from better off pensioners is one of the few reasonable ways to save money in social security, particularly as they benefit from the triple lock.
“However, there really is no excuse for the shockingly low levels of Pension Credit take up as many older people continue to struggle with the cost of living.”
He added: “The Secretary of State should prioritise simplicity in the benefit system and promote proactive support for people.”
If you are worried about fuel payments this winter, it is worth having a read about all the support you could be eligible for.
The Sun has outlined the full list of energy help worth around £5,810 that you can check out.
This benefit gives you extra money to help with your living costs if you’re over the state pension age and on a low income.
Pension Credit can also help with housing costs such as ground rent or service charges.
This is a separate to your state pension and you can qualify for the scheme even if you have other income, savings or own your own home.
The support also opens up eligibility for social tariffs, the Warm Home Discount, cheaper broadband, free TV licenses, lower water bills and the Winter Fuel Payment.
When applying, you must flag if you are single or living with a partner.
You’ll be eligible if either:
Pension Credit tops up your weekly income to £218.15 if you are single or to £332.95 if you have a partner.
You could get an extra £81.50 a week if you have a disability or claim any of the following:
You can apply for Pension Credit online, over the phone or by post.
You can start your application up to 4 months before you reach State Pension age.
You can apply any time after you reach State Pension age but your application can only be backdated by 3 months.
This means you can get up to 3 months of Pension Credit in your first payment if you were eligible during that time.
The Warm Home Discount scheme is paid to millions of low-income households each winter to help with increased heating costs.
Households in England and Wales don’t have to apply to get the cash and receive it automatically.
However, some Scottish households do have to apply for the discount.
Eligible households get £150 credited to their electricity bill between October and March 2024.
To qualify you’ll usually need to be actively claiming one of a number of means-tested benefits during the qualifying week – which is usally in August.
However, if you later launch a successful claim for backdated benefits, you may still be able to qualify after this date and once it’s confirmed.
Last week the government confirmed to The Sun that it is committed to retaining the £150 Warm Home Discount.
Many of the UK’s biggest energy suppliers have grants in place to help support struggling customers.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
The country’s biggest supplier British Gas previously had energy grant scheme in place, with the hardest pressed households receiving a grant of up to £2,000.
The firm also has also launched a debt reduction scheme called ‘You Pay: We Pay’.
Struggling customers will also be able to get part of their debts wiped via what’s known as debt matching.
For instance, if a customer pays £100, British Gas will pay off £100, too, effectively wiping half the amount owed and getting them back on track sooner.
The £15 million “You Pay: We Pay” scheme opened in June and eligible customers have been contacted directly.
Elsewhere, fellow supplier EDF has a customer support fund which on average wipes £1,250 off customers’ bills.
It is available to vulnerable customers experiencing hardship.
To apply you must visit EDF’s website and make sure you have details of your account number (find it on your energy bills or EDF emails) and the current debt balance on all EDF accounts you have.
Check directly with your supplier to see what help is available.
Struggling households can apply for support via the Household Support Fund (HSF).
The scheme, which is funded by the Department for Work and Pensions, was first launched in 2021 but has been extended a number of times.
Funding is given to local councils to distribute, so the amount handed out varies across the country.
But in the past some families have had up to £600 help.
How much you can get also depends on where you live, but the sum should be paid as a direct bank transfer or on receipt of an electricity bill.
Check in with your local council if you would like to see if you are eligible to receive the fund.
Octopus Energy is handing out freebies such as electric blankets as part of its Octo Assist fund.
Analysis by the firm shows that customers with electric blankets saw a 20% fall in their gas bill, while only increasing their electricity usage by 0.2% – adding up to an average saving of £150 across winter.
The energy firm, which serves six million customers, is also loaning thousands of thermal imaging cameras to customers so that they can find spots in their homes where heat was escaping.
Once those draughts are identified, people can then look into ways to get them fixed and thus reduce their energy usage.
Low income households may qualify for major discounts on installing boilers or insulating their homes.
For example, the Energy Company Obligation, set up by Government, lets households on certain benefits apply to have energy-saving measures installed in their homes.
It might mean cavity wall or loft insulation, or maybe even a new boiler fitted, sometimes for free.
To qualify you usually need to be on one of the following benefits
Households’ needs are assessed on a case-by-case basis, so there’s no guarantee you’ll get help, but it is worth looking into.
You can get temporary credit from your supplier, but you will have to pay this back.
In many cases suppliers offer around £10 to £20 if you run out and can’t top up straight away to ensure that you don’t go without heat or lights.
Beware that when you do top up, this amount will be deducted.
You may also be able to get a fuel voucher through a little-known scheme.
This is a code given to you in a letter, text message or email which you can use to add credit to your gas card or electricity key.
Exactly how much it is can vary, but in many cases it’s £49, and you won’t have to pay it back.
If you get a fuel voucher, don’t forget that when you top up, come of the credit will go towards paying off any debt, for example emergency credit.
If you haven’t topped up for a period of time, you may also owe standing charges, a daily flat fee for energy use that is separate to your usage.
Contact your local council, food bank or Citizens Advice to find out more.
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
