How winter fuel payments and energy bills are changing: alternatives available to retirees

Hundreds of thousands of pensioners will lose Winter Fuel Payments worth up to £300 each this winter, but there is still other help available for energy bills.

MPs voted yesterday that the Government should press ahead with plans to test the means of Winter Fuel Payments, aimed at helping pensioners with the cost of high winter energy bills.

Previously, the winter fuel payment was paid to all pensioners, but these payments have now been reduced so that only those receiving benefits such as Pension Credit will receive it from this winter.

The loss of winter fuel payments is a blow to retirees, but the good news is that there are other energy bill relief options available for retirees.

Pension credit

Pension Credit tops up the weekly income of the poorest pensioners to a minimum of £218.15 for single people and £332.95 for couples.

If your income is higher, you may still be eligible for Pension Credit if you have a disability, care for someone, have savings or have housing costs.

The pension credit also opens the door to a lot of extra help with household bills, including the Winter Fuel Payment.

The problem is that the Pension Credit must be requested and is not paid automatically.

Six out of ten households that are eligible for the Pension Credit do not apply for it.

Warm Home Discount

The Warm Homes Discount program discounts energy bills for certain low-income households.

The way the scheme works is that a one-off annual payment of £150 is made directly to the electricity supplier of eligible households.

It is paid to retirees who claim the Guarantee Credit portion of the Pension Credit and to those of working age if they have other qualifying benefits.

The Department for Work and Pensions (DWP) informs energy suppliers if one of their customers falls into this group and the money is automatically credited to the customer’s electricity bill.

Cold weather payment

The Cold Weather Payment is a benefit paid by the DWP to households in areas where the temperature is at or below zero degrees Celsius for seven days in a row.

Pensioners must claim Pension Credit to be eligible, and the DWP must pay the money directly into bank accounts.

The plan will come into effect on November 1, 2024, and will last until March 31, 2025.

Household Support Fund

The Household Support Fund is a fund of government money distributed by local councils to those who have difficulty meeting the cost of living.

Work and Pensions Secretary Liz Kendall topped up the fund with £421m by early September 2024.

The way councils distribute the money varies. Some pay in cash, usually less than £200, while others prefer vouchers that can be spent in shops.

To access the Family Support Fund, you must apply directly through your local council.

They will check that you really need the money, which will probably involve proving that you cannot meet your needs in any other way (for example, you cannot afford the heating you need).

Help from your energy company

Energy companies are required by regulator Ofgem to offer support to those struggling to pay their bills.

In rare cases, this may take the form of bill discounts or access to grants through emergency funds.

Your energy company is more likely to offer you a review of your payments, or a payment holiday, to give you more time.

To find out what you are entitled to, you will need to contact your energy company directly.