With millions of retirees set to lose their Winter Fuel Payment at the same time as energy bills rise, these five steps can help protect them from financial hardship.
The decision to axe the Winter Fuel Payment has left many pensioners just two bill increases away from crisis, the UK’s largest pensioners organisation has warned.
The National Pensioners Convention (NPC) held an emergency debate on the issue at its event in Blackpool this week.
Jan Shortt, the NPC’s general secretary, said that some pensioners who are “really squeezed” financially and only just above the pension credit qualification "only need one bill to increase and their budget goes out the window; more than one bill, and they're in crisis."
The new Government is controversially scrapping the £300 Winter Fuel Payment for 10 million pensioners.
Chancellor Rachel Reeves said the move is necessary to save £1.5 billion and help fill what it claims is a “£22 billion black hole” in the UK’s finances.
However, the Government said this week that it is to extend the Household Support Fund to help pensioners experiencing financial difficulties.
Nevertheless, at the same time energy regulator Ofgem’s price cap on energy bills will also increase by £149 in October to £1,717 for the average household, with another hike due in January.
Here are five steps that pensioners can take to protect themselves from rising energy bills.
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1. Claim Pension Credit (if you can)
Make sure you aren’t one of the 800,000 eligible people missing out on Pension Credit payments.
Previously all pensioners were entitled to the Winter Fuel Payment but now only those receiving Pension Credit will be eligible for it during winter 2024/2025.
Pension Credit payments are also worth an average of £3,900 a year and, if you are on a low income, you could still qualify even if you have savings.
Check here to find out more: Pension Credit: Overview - GOV.UK (www.gov.uk)
2. Check the Household Support Fund in your area
Find out more about the Government’s Household Support Fund to see if you can get help from your local council if you are experiencing financial difficulties.
The Government has announced an expansion of the scheme which is run by local councils and can provide help with energy bills, food and other essential items.
Contact your local council to find out more. Get help with the cost of living from your local council - GOV.UK (www.gov.uk)
3. See what steps you can take to cut your energy usage
Make sure your heating is on a timer and check whether you have unused ‘zombie’ items such as lights and TVs plugged in around your home costing you money.
Electrical items which heat water tend to use the most energy in households. Take a shower rather than a bath and time it to ensure you don’t stay in too long.
Dry clothes naturally rather than in a tumble dryer and turn off radiators in unused rooms to save money.
Insulate your loft and ensure your boiler has a jacket. Get your energy company to install a (free) smart meter in your home to track your energy usage.
Check out our energy-saving guide to find out more way to save cash on your bills.
4. Consider fixing your energy bills
Check to see if locking into a fixed-rate energy deal will save you any money.
A number of energy suppliers, such as British Gas, Octopus Energy and Eon, are currently offering fixed-rate deals that lock in the price per energy unit you pay for 12 to 24 months.
Use an online comparison website, such as Moneysupermarket (affiliate link) or Uswitch, to see if you could be saving on your bills by doing so.
5. Check for more Government help, make savings
Go through your finances to see if you can save money elsewhere in your budget to compensate for the lack of a Winter Fuel Payment.
Read: how to save money on EVERY bill
Check, too, if there are other state benefits you may qualify for.
If you are experiencing financial difficulties, you may be eligible for help from your Local Council. You can find out more here: Check benefits and financial support you can get - GOV.UK (www.gov.uk).
You should also have a look at our guide to all the pension benefits and entitlements you can claim.
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