Tag: Winter Fuel Payment

Scottish Government announces energy cost support for pensioners

Universal payments to be reinstated from next year

The Scottish Government will provide universal support through the introduction of Pension Age Winter Heating Payments next year ensuring a payment for every pensioner household in winter 2025-26.

Social Justice Secretary Shirley-Anne Somerville has confirmed that on the roll-out of the new benefit next winter, pensioners in receipt of a relevant qualifying benefit, such as Pension Credit will be receiving Pension Age Winter Heating Payments of £300 or £200, depending on their age. Meanwhile all other pensioner households will receive £100 from next winter, providing them with support not available anywhere else in the UK.

 Ms Somerville also announced a £41 million package of support for people struggling with energy costs this winter.  These measures include an additional £20 million which will be provided for the Scottish Welfare Fund, to enable councils to provide more vital support to people in crisis this winter.

An additional £20 million will be invested into the Warmer Homes Scotland Scheme, the national fuel poverty scheme which helps people install energy efficiency measures and more efficient heating systems, saving on average around £300 per year in household energy bills.

Meanwhile grant-funding of £1 million will be made available to registered social landlords and third sector partners to fund work to help sustain tenancies and prevent homelessness. This is in response to calls from a coalition of housing and anti-poverty organisations for a shift in spending from crisis intervention to prevention.

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Ms Somerville said: “The measures I have announced today will go some way to allay the fears of pensioners in Scotland ahead of next winter, but the Scottish Government recognises that more must be done.

“Ahead of next winter I will bring forward regulations to introduce universal Pension Age Winter Heating Payments in winter 2025-26 for Scottish pensioners.

“This universal benefit – providing much needed support not available anywhere else in the UK – will deliver support for all pensioner households as we had always intended to do before the UK Government decision to means-test Winter Fuel Payments cut the funding available to support our new benefit in Scotland this winter by £147 million.

“We will not abandon older people this winter or any winter. We will do our best to make sure no-one has to make a decision between heating and eating, and we will continue to protect pensioners”.

Reacting to yesterday’s announcement by the Scottish Government, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “The reintroduction of winter heating support for all pensioners in Scotland from next winter is welcome and will offer some comfort to the 900,000 pensioners who were set to completely lose the previous Winter Fuel Payment. 

“Since the decision to restrict the Winter Fuel Payment to only older people on Pension Credit, we’ve seen a surge in the number of older people getting in touch with Independent Age who are worried about heating their homes, and making ends meet, through the winter. Many have told us they are heating only one room, staying in bed all day with a blanket, and cutting back on food to avoid the energy costs associated with cooking.  

“With energy prices set to rise again in January, and a staggering 330,000 older households living in fuel poverty in Scotland, it is clear that changing the eligibility of the payment in this way was the wrong decision. It is positive that this has been recognised in Scotland, with the Scottish Government making a payment available to all older people next year, and we hope the UK Government will also reconsider their decision.  

“In a compassionate and socially just society, no one should face fuel poverty. We are pleased the Scottish Government has listened to older people, and taken this action today. However, we remain concerned about older people who face this winter without this much needed financial support.

“Going forward, the Scottish Government should continue to monitor the situation and be open to taking further action in future.” 

A spokesperson for AGE SCOTLAND said: “Bringing back an energy support payment for all pensioners is very good news and will be a huge relief. It shows the power of this campaign and the relentless efforts from all quarters.

“The decision to remove the universal winter fuel payment by the UK Government, and its impact on pensioners this winter is nothing short of disastrous.

“Over the last few months we have been urging the Scottish Government to bring this back and we are delighted that they have listened to the strong arguments and have taken action.

“It also demonstrates the power of devolution and what Scotland can do when we put our minds to it.”

Happy New Year? Energy price cap will rise by 1.2% from January

Energy regulator Ofgem has today (Friday 22 November) announced a 1.2% increase of the energy price cap for the period covering January-March 2025.  

The change to the price cap – which sets a maximum rate per unit and standing charge that can be billed to customers for their energy use – will rise by £21 for an average household per year or around £1.75 a month. 

For an average household paying by Direct Debit for dual fuel this equates to £1,738 per year. This is 10% (£190) cheaper compared to January-March 2024 (£1,928) and 57.2% (£2,321) less than the energy crisis (January-March 2023). 

It comes as analysis by Ofgem shows around 1.5million households switched tariff over the past three months. The regulator is urging customers to take advantage of the rising choice in the market and look for the best deal to help keep their household bills down. By switching, savings of up to £140 are currently available.

Following a call by Ofgem in August for suppliers to offer more choice with low and no-standing charge tariffs, there has been an increase in the number of suppliers offering these kinds of deals. There are currently 8 available that are at least 10% below the level set in the price cap. 

However, while these come with a lower standing charge, they do have a higher unit rate. They could benefit customers with lower energy usage but will not work for everyone so consumers should carefully consider what works for them. 

Tim Jarvis, director general of markets at Ofgem, said: “While today’s change means the cap has remained relatively stable, we understand that the cost of energy remains a challenge for too many households.

“However, with more tariffs coming into the market, there are ways for customers to bring their bill down so please shop around and look at all the options.

“Our reliance on volatile international markets – which are affected by factors such as events in Russia and the Middle East – means the cost of energy will continue to fluctuate. So it’s more important than ever to stay focused on building a renewable, home-grown energy system to bring costs down and give households stability. 

“In the short term though, anyone struggling with bills should speak to their supplier to make sure they’re getting the help they need and look around to make sure they’re on the best, most affordable deal for them.” 

The regulator is encouraging customers to consider the way they pay their bills. Around 5 million customers pay by standard credit payments – which means paying for energy after it has been used. But this is much more expensive, particularly over the winter months.

Customers could save £100 by simply switching from standard credit payments to Direct Debit payments or smart PPM, which remains the cheapest way to pay for energy.

The cheapest deal on the market could save a typical dual fuel customer £210 compared to the upcoming price cap level. However, this requires signing up for an additional boiler cover service. 

There are other cheaper fixed deals on the market which don’t require additional services that could save customers more than £140 per year compared to the upcoming cap level. 

If consumers are worried about paying their bills, they can contact their supplier for support. Ofgem’s rules mean they must work with their customers to agree an affordable payment plan. They may also be able to help by offering more time to pay, access to hardship funds and advice on how to use less energy.

Age Scotland’s Policy Director, Adam Stachura, said: “This latest increase to the energy price cap is yet another blow for older people facing the coldest months without the safety net of the Winter Fuel Payment.

“At a time when many are already feeling under pressure, news that bills are set to rise further still will put those already struggling in an extremely difficult position. They will be very disappointed that there is no end in sight, and no support measures identified for those not claiming or not eligible for Pension Credit.

“Pensioners in Scotland are the most starkly affected by fuel poverty, so government must deliver much more to support them or the numbers in this grim position will spiral further. This another compelling reason for the Scottish Government to bring back the universal entitlement to the Winter Age Pension Heating Payment next winter.

“With Scotland already recording the coldest temperatures in the UK, we are seriously concerned about older people’s health being jeopardised if they are unable to heat their homes.”

Consumer Scotland Head of Energy Kate Morrison said: “Although lower than at the peak of the energy crisis, energy bills are still historically high and will rise further in January.

“One of the legacies of the past two years of high bills has been a growth of energy debt and arrears in the GB domestic market which now exceeds £3.6bn – a record high – and bill increases will impact further on levels of debt

“This will be a challenging winter for consumers, particularly those with higher energy needs including disabled people and those with health conditions.

“There is a need for governments to design and deliver better targeted energy affordability support for consumers, particularly given current levels of debt and ongoing pressure on household budgets.”

Age Scotland: Sign our Winter Fuel Payment Petition

We strongly oppose the decision to restrict #WinterFuelPayment eligibility to only those in receipt of Pension Credit as it means 89% of Scottish pensioners will go without this vital support to stay warm this winter.

Support our ongoing campaign at http://age.scot/saveWFP.

Latest Pension Credit take-up figures for Scotland ‘disappointing’ says Independent Age

Statistics published today by the DWP, reveal that just 65% of older people who are entitled to Pension Credit were receiving the payment between April 2022 and March 2023.

Independent Age estimate that in Scotland this means that up to 70,000 older households could be missing out on the Pension Credit they are entitled to, with a combined value of £140 million.

We know there has been an increase in applications since the UK Government announcement that the Winter Fuel Payment would be means tested, but it is unclear how many of these will result in successful claims.

Both Governments must work together to address the issue of low take-up of Pension Credit and the unacceptably high levels of poverty in later life. Independent Age is urging the UK Government to review and ensure overall adequacy of the social security system for older people, to prevent pensioner poverty.

Alongside calling on the Scottish Government to introduce a pensioner poverty strategy for Scotland – setting out the actions that can be taken  alongside with local authorities, to tackle poverty in Scotland.

Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age, said: “What is clear from the figures released today is that too many older people living on a low income are still missing out on Pension Credit in Scotland, and across the UK.

“There has been a disappointing lack of progress on Pension Credit take-up. We estimate that up to 70,000 older households could be missing out on Pension Credit between April 2022 and March 2023 worth a combined £140 million.

“Independent Age is urging the UK Government to maintain the Winter Fuel Payment in its current form until significant action can be taken to substantially increase Pension Credit take-up.

Previous strategies have not moved the dial, we can’t have more of the same. We need an innovative, evidence-based, long-term take-up strategy that maps out how older people living in, or on the edge of, poverty can access the financial support they are entitled to.

“It is too early to say what the impact of the recent increase in claims for Pension Credit will have on overall take-up rates. However, there is no room for complacency when an estimated 70,000 older households in Scotland are missing out on this much needed money and 150,000 live in poverty. In a socially just and compassionate society, we can and should do more.”

Holyrood votes for action on Winter Fuel Payment

UK Government urged to reverse ‘damaging’ decision

The UK Government’s decision to introduce means testing for the Winter Fuel Payment must be reversed, according to MSPs.

Following a debate as part of Challenge Poverty Week, the Scottish Parliament voted in favour of a motion that the UK Government reverse its decision to restrict entitlement to the benefit. Labour MPs Richard Leonard and Alex Rowley supported the motion.

Fourteen Scottish Labour MSPs, including Edinburgh MSPs Sarah Boyack, Foysol Choudhury and Daniel Johnson, voted with their leader Anas Sarwar against the motion.

First Minister John Swinney said that as a result of this damaging decision, Scottish Government analysis indicates roughly 900,000 Scottish pensioners will no longer be entitled to support with heating costs this winter.

Commenting after the debate, the First Minister said: “More austerity is not the solution to the restrictive fiscal environment in which the UK Government, and governments across the globe, find themselves.

“It is a mistake to think that action to tackle poverty for our most vulnerable citizens are costs to be mitigated. These measures are investments in our people, our communities and our nation’s future. I have urged the UK Government to deliver an Autumn Budget that recognises this reality.

“Scotland’s Parliament has spoken, and I repeat my call for the UK Government to reverse its damaging decision to restrict entitlement to Winter Fuel Payments for pensioners.

“The Scottish Government will continue to support households with their energy bills and tackle fuel poverty. However the UK Government must ensure their budget in October provides the necessary support to those who need it most.”

Starmer’s Labour all about greed and power, says resigning Labour MP

CANTERBURY MP Rosie Duffield has resigned from the Labour Party, criticising Labour leader Sir Keir Starmer – now labelled Free Gear Keir – for accepting thousands of pounds worth of personal items while at the same time removing Winter Fuel Payments from thousands of struggling pensioners.

Ms Duffield will now sit as an Independent MP.

Her scathingly critical letter is below:

Letters: Charity urges older people to check Pension Credit eligiblity

Dear Editor

With the days feeling shorter, our thoughts are turning to the winter ahead and people up and down the country will be thinking about switching their heating on soon. But now, many older people, including millions living on a low income, will head into the colder months justifiably anxious about having their Winter Fuel Payment taken away from them as they do not receive Pension Credit.

The latest figures show that only 63% of eligible people are receiving Pension Credit, meaning up to 1.2 million older people could be missing out on an important entitlement, and so could have their Winter Fuel Payment taken away despite living on an extremely low income. In Edinburgh a massive £12.5 million in Pension Credit is going unclaimed.

Our helpline is regularly receiving calls from older people that are frightened about losing the money, and we are concerned that many will feel forced to keep their heating off. Being cold can be damaging to your physical and mental health, but the people we speak to think this is their only option as they simply do not have enough money to cover even higher energy bills.

If you are 66 and over and are concerned about losing the Winter Fuel Payment, we urge you to check your Pension Credit eligibility as the one-off payment is now tied to this entitlement.

Your claim for Pension Credit can be backdated, and if you successfully apply before the 21st December you will qualify for the Winter Fuel Payment as long as you lived in the UK during the qualifying week which is between 16th and 22nd September 2024, and you can show you were entitled to Pension Credit during that time.

You can check your eligibility through the UK Government’s Pension Credit Calculator and apply direct by calling this number 0800 99 1234. Or you can come to a charity like us at Independent Age by calling our free and confidential helpline on 0800 319 6789 and we can help work out what you might be eligible for and help you apply if needed.

Pension Credit can be transformative, it tops up income by on average, almost £4,000 a year. It also acts as a gateway to other benefits such as free TV licences for over 75s, free NHS prescriptions, council tax reduction, Housing Benefit, free eye tests and much more.

Yours Faithfully,

Joanna Elson, CBE

Chief Executive of Independent Age

Social Justice Secretary urges UK Government to reinstate Winter Fuel Payment

Call for action to tackle root causes of fuel poverty

Social Justice Secretary Shirley-Anne Somerville has written to Secretary of State for Work and Pensions Liz Kendall to urge the UK Government to reverse the cut to Winter Fuel Payment.

Call for action to tackle root causes of fuel poverty.

Social Justice Secretary Shirley-Anne Somerville has written to Secretary of State for Work and Pensions Liz Kendall to urge the UK Government to reverse the cut to Winter Fuel Payment.

Ms Somerville called on the UK Government to take action to address root causes of fuel poverty and volatile energy prices.

The full text of the Social Justice Secretary’s letter: 

Winter Fuel Payment: Letter to UK Government

To: Secretary of State for Work and Pensions Liz Kendall

From: Cabinet Secretary for Social Justice Shirley-Anne Somerville

20 September 2024


Dear Liz,

I am writing to you to express further concerns, following the publication of the UK Government’s equality analysis on the impact of the introduction of a means-tested Winter Fuel Payments, which shows that across all assessed characteristics those affected by this change in policy will greatly outnumber those unaffected.

The Scottish Government continues to support vulnerable households from fuel poverty through a range of actions within our limited devolved powers. This year alone, we are spending £134 million on activities to mitigate UK Government policies through schemes such as Discretionary Housing Payments and the Scottish Welfare Fund, which provide vital support to households struggling to meet their housing and energy costs.

However, we cannot continue to mitigate UK austerity policy decisions. What is really needed is reform of the UK energy markets to address the root causes of fuel poverty in Scotland, such as high fuel prices. In these circumstances I would urge you to now reverse the Winter Fuel Payment decision and reinstate the payment for all pensioners.

This decision was of course taken without consultation or discussion with the Scottish Government and it has had devastating consequences for our planned launch of Pension Age Winter Heating Payment, reducing the Block-Grant Adjustment for our devolved payment by over 80%.

Having carefully considered the options, given the significant impact of this decision and the wider cuts being imposed by the Chancellor of the Exchequer on our budgets, we have had no choice but to mirror this approach in Pension Age Winter Heating Payment, our replacement for Winter Fuel Payment, which is to be delivered in Scotland this Winter by the Department for Work and Pensions on behalf of the Scottish Government.

A copy of this letter goes to the First Minister, the Deputy First Minister, the Cabinet Secretary for Finance and Local Government, the Chancellor of the Exchequer and the Secretary of State for Scotland.

Winter Fuel Payment: Protecting the poorest ‘was a lie’

A Freedom of Information request made by financial journalist, broadcaster, and speaker PAUL LEWIS has revealed the likely impact of cuts to the Winter Fuel Payment.

Mr Lewis says the DWP response (below) that shows the Labour government knew:

* 1.6m disabled pensioners would lose winter fuel payment

* 780,000 of the poorest pensioners who were entitled still would not get it – so ‘protecting the poorest’ was a lie.

* 2.7m over-80s would lose £300.

FOI-Paul-LewisDownload

Charities respond to Winter Fuel Payment vote defeat at Westminster

In response to the House of Commons voting in favour of cutting the Winter Fuel Payment, Independent Age Chief Executive Joanna Elson, CBE said: “People in later life living in financial hardship will be rightly concerned that, despite mounting public pressure about the impact on older people on the lowest incomes, the UK Government will continue with its plans to means test the Winter Fuel Payment from this year.  It’s clear that making this decision now means many people in later life struggling in poverty will be forced to make dangerous cutbacks.

“The Chancellor still has time to reassess. Even with today’s vote, the UK Government can show it is listening to the concerns of older people in poverty, and delay this policy change until more older people start receiving Pension Credit.

“Boosting take-up is complex and will take time, the latest take-up figures show that up to 1.2 million older people could be missing out on this financial entitlement. They will already be living on a low income as they are eligible for Pension Credit, but now they will have even less money to live on this winter.

“We are also concerned about the large group of older people that just miss out on Pension Credit. Many of them are in financial hardship and do not have enough money to live well, but will still have their income cut at an already challenging time of year with energy prices on the rise.  

“In the short term we hope the UK Government listens to the evidence being shared, and doesn’t means-test the Winter Fuel Payment now.

“Long-term there must be financial security for all of us as we age.

“We urge the UK Government to lead a review where all major parties come together and agree on what an adequate income in older age is, then ensure that everybody receives it so that no one lives in poverty in later life.”

Caroline Abrahams CBE, Charity Director at Age UK said: “We’re deeply disappointed, but not surprised, that the vote to brutally means-test Winter Fuel Payment was passed today.

“As soon as the Government announced it was instructing its MPs to support it this was the inevitable result, but we would like to thank all those in every party who voted against the policy or abstained.

“There’s been a lot of discussion about the Government’s decision, but at heart Age UK’s critique of their policy is really simple: we just don’t think it’s fair to remove the payment from the 2.5 million pensioners on low incomes who badly need it, and to do it so quickly this winter, at the same time as energy bills are rising by 10%. 

“It is crystal clear that there is insufficient time to make any serious impact on the miserably low take-up of Pension Credit before the cold sets in this autumn, and the Government has brought forward no effective measures to support all those whose tiny occupational pensions take them just above the line to claim.

“It’s true they have agreed to extend the Household Support Fund until April and they deserve some credit for that, but the HSF is an all-age fund that you have to apply for, so we know it will only help a small proportion of all the pensioners who will be in need as a result of their policy change.

“The Government has also tried to suggest that the increase in State Pension for older people next year as a result of the Triple Lock means there’s no need to worry about how they will cope now, but that won’t help anyone this winter and most pensioners will not benefit to the extent being suggested – either because they are on the old State Pension which attracts less of an increase, or because they don’t qualify for a full State Pension in the first place.

“The reality is that driving through this policy as the Government is doing will make millions of poor pensioners poorer still and we are baffled as to why some Ministers are asserting that this is the right thing to do.

“We and many others are certain that it is not, and that’s why we will continue to stand with the pensioners who can’t afford to lose their payment and campaign for them to be given more Government support. 

“Meanwhile, winter is coming and we fear it will be a deeply challenging one for millions of older people who have previously relied on their Winter Fuel Payment to help pay their energy bills and who have no obvious alternative source of funds on which to draw.

“As a charity we will do everything we can to help them, but with so many in need and no extra support on offer from the Government at the moment it’s looking like an incredibly uphill task.”

ALL Scottish Labour MPs voted with the government, but Rebecca Long Bailey was one of more than fifty Labour MPs who refused to vote in favour of the cut. She explained why:

Former Labour Party leader and now independent MP Jeremy Corbyn also voted against the withdrwal of the payment. He said: “I voted against cuts to winter fuel payments. Politics is about choices, and the government has chosen to push pensioners into poverty.

What’s next for means testing? The NHS?

“I will always defend the principle of universalism. That is how we build a fairer society for all.”