Well-off pensioners should donate winter fuel payments

A new campaign is pushing for wealthy pensioners to donate their winter fuel payments to those who are struggling to foot their energy bills...

Two hundred people will die in Britain every day this winter as a result of cold-related illnesses, according to Age UK.

What’s more, most of these deaths will be among the elderly. In a bid to combat this growing problem, a new appeal is calling for wealthy pensioners to donate their winter fuel payments to the less well-off.

Surviving winter

Winter fuel payments are made each year to every pensioner, regardless of their income. Currently pensioners over 80 will receive £300, while those under 80 will be paid £200.

The UK-wide ‘Surviving Winter’ appeal encourages well-off pensioners that do not need the benefit to donate the payment to help those who may be struggling to make ends meet this winter. This can be done by visiting the Community Foundations website.

The appeal accepts any level of donation meaning that you could donate part of your payment, or even a sum larger than your payment. Non-pensioners can support the campaign as well by visiting the same site.

Gift aid donations can be made too, allowing the charity to claim tax relief on the payment.

The money will be used to support organisations that help those in fuel poverty. The key aims are to make sure struggling pensioners stay warm, eat well and remain mobile as well as providing practical assistance in activities such as making doctor’s appointments, getting to the shops and maintaining an active social life.

Winter mortality rates

Fuel poverty – where a household spends more than a tenth of its income on providing adequate heat and light – is a growing problem, especially among the elderly.

Currently, 5.4 million households are living in fuel poverty. Almost half of these people are aged over 60.

Recent Age UK research found that there were 26,156 excess winter deaths during 2009-10. The Surviving Winter appeal estimates that around three-quarters of these were among the over-65s.

What’s worse is that this figure is expected to increase this year, following the relentless energy price hikes of the last 12 months.

Put frankly, the current levels of winter fuel payments just aren’t sufficient for those pensioners struggling with ballooning fuel bills.

Millionaire’s allowance

This new appeal has latched onto the fact that as a non-means tested benefit, every pensioner – regardless of their wealth – receives a winter fuel payment.

Journalist Joan Bakewell illustrated the ridiculous nature of this system nicely in a recent article for the Mail. The 78-year old – who is donating her fuel payment – had popped down to her local Post Office, when she bumped into a neighbour: the legendary Led Zeppelin vocalist Robert Plant (that’s North London for you!).

Despite being worth an estimated £80million, the rock musician had still received his £200 winter fuel payment! Madness!

Means-testing

In order to avoid the absurd situation of the mega-wealthy receiving winter fuel payments, many have called for the benefit to become means-tested. This would allow those that really need the benefit to receive a larger payment.

However the cost of making such a switch would mean that any savings would inevitably be spent on administration, and not be given to struggling pensioners.

This is why campaigns like the Surviving Winter appeal are so important, as they allow the public to redistribute excess fuel payments to help the most vulnerable, while avoiding huge admin costs.

But with the problem of pensioner fuel poverty still escalating, charity cannot be wholly relied upon to fill the funding gap.

Other energy initiatives for pensioners

Here are some further initiatives that can help pensioners with their energy bills this winter:

Cold weather payment: Cold weather payments are made to recipients of pension credit, income support, income-based jobseekers allowance and income-related employment and support allowance.

The scheme pays out for each seven day period of ‘very cold weather’ between 1 November and 31 March. ‘Very cold weather’ is defined as a recorded or forecasted average of zero degrees Celsius or below over seven consecutive days.

Warm home discount: This compulsory scheme is set to come into force over the next few years and will replace the voluntary social tariffs programme. The discount will see energy companies offer credits worth £120 to vulnerable groups, including pensioners.

Warm front scheme: This programme provides grants to certain groups to install energy-saving measures, such as loft and cavity wall insulation. Check your eligibility by heading to the direct.gov website.

Energy saving offers: Energy Saving Trust also runs a database of grants and benefits for making your home more energy efficient. Head to its website for more information.

turn2us.org.uk is also a great site for checking what grants and benefits you may be eligible for and missing out on.

Further ways to save on your energy bills

E.ON offers an Age UK tariff directed at OAPs. However, with an average annual cost of £1,169, it’s not that competitive. In fact, pensioners – and everyone for that matter – will be better off if they keep shopping around for a well-priced fixed tariff.

Here are some of the best fixed dual-fuel deals around at the moment:

All tariffs available at the lovemoney.com energy comparison centre.

Source: energyhelpline.com

Fixed tariffs will protect you from future price increases by charging you a set amount.

Other ways everyone can ensure they are not paying more for energy than they should include opting for monthly direct debit payments, giving regular meter readings and choosing online billing.

Is this a good idea?

Is this campaign a good idea? Will you be donating your winter fuel payment?

Let us know using the comment box below.

*Average usage as defined by OFGEM is 16,500 kWh pa of gas and 3,300 kWh pa of electricity. Actual charges will vary by region and consumption.

** Against a typical bill of £1,345 per year. Figures based on average usage as set by Ofgem for a dual fuel bill paid by monthly direct debit.

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