A charity has said it is “incredibly concerned” that up to 1.2million people may struggle this winter after Ofgem announced a huge energy bill hike.
Ofgem today confirmed energy bills will rise for millions of people this winter, with the average household set to see their annual bill rise from £1,568 to £1,717 a year. At the same time, the eligibility for Winter Fuel Payments is changing and up to ten million fewer pensioners will be entitled to this support.
Winter Fuel Payments are worth up to £300, depending on your circumstances, and were previously available to all pensioner households - but as part of changes announced by Labour Chancellor Rachel Reeves, they will now only be available to households claiming means-tested benefits, such as Pension Credit.
Figures from the Department for Work and Pensions (DWP) show 800,000 people could be missing out on Pension Credit. Independent Age says the actual amount could slightly higher at potentially 1.2million households missing out. Joanna Elson CBE, Chief Executive at Independent Age said: "This bill increase coincides with the ending of the Winter Fuel Payment for people not receiving Pension Credit.
"There could be up to 1.2 million older people eligible for Pension Credit who don’t receive it. On top of that, many are just above the eligibility threshold but still live on a low income and struggle to make ends meet. We are incredibly concerned about the people in later life who will be cut off from a vital source of income worth up to £300 at a time when their bills are rising."
Campaigners are urging pensioner households to check their eligibility for Pension Credit so they don't miss out on Winter Fuel Payments. Pension Credit tops up your weekly income to £218.15, or to £332.95 if you’re in a couple. But as well as giving you extra income, you'll also unlock other perks such as free dental treatment and vouchers for glasses or contact lenses, or a free TV licence if you're over the age of 75. The average Pension Credit award is worth over £3,900 per year.