One fund can replace lost winter fuel payment, says Age UK | Personal Finance | Finance
A seperate fund could replace themoney lost in Winter Fuel Payments if you apply now, according to Age UK. The charity says 77% of pensioners used their winter fuel payment for fuel-related expenses such as heating, hot water, and running household appliances last year. The charity also found that nearly a quarter used the payment for cooking meals.
Over a third said they would struggle financially without this aid, with the figure rising to over half among those not eligible for the payment this year but receiving other benefits like housing benefit or carer’s allowance.
More than half of pensioners might have to cut down on heating at home, while one in 10 could be forced to eat fewer hot meals, as per the Kantar survey conducted in September with over 1,000 participants aged 66 and above. In a controversial move in July, Chancellor Rachel Reeves announced restrictions on the winter fuel allowance, limiting it to pensioners on pension credit or other means-tested benefits, in an effort to address a “black hole” in public finances.
This change is set to reduce the number of recipients from 11.4 million to just 1.5 million.
Age UK is now calling on low-income individuals to verify if they qualify for pension credit, sharing a poignant account of an 81 year old man who said: “We try and only use one hour of heating a day.”
An 87 year old man shared: “I will have to stay in bed longer and only get up to eat.”
Caroline Abrahams, charity director at Age UK, commented: “It’s no surprise to us at Age UK, and it really shouldn’t be to anyone else either, that the great majority of older people spent their winter fuel payment on energy-related costs last year. With fuel prices having gone up so much compared to five or 10 years ago, even older people who expected to be relatively comfortable in retirement have been impacted and forced to tighten their belts. And for those without much money behind them, energy bills have become a source of real fear.”
She highlighted the Household Support Fund as a lifeline for those struggling with bills and essential costs over winter, urging those in need to seek support from their local council. The release of these figures coincides with Marie Curie’s call for a guarantee that anyone with a terminal illness receives the winter fuel payment, regardless of age.
Dr Sam Royston, executive director for policy and research at Marie Curie, stated: “The festive season is meant to be one of warmth, joy, and celebration. No one should have to face their final days worrying about money or whether they can afford to heat their home or even switch on Christmas lights.”
James Sanderson, chief executive at Sue Ryder, has voiced his concern amidst the UK’s icy conditions, stating: “With ice and snow on the ground across much of the UK, terminally ill people will already be feeling the devastating effects of cold weather on their symptoms. And the recent announcement of the energy price cap rise for January will have struck a further blow to their stretched finances and quality of life, leaving many uncertain of how they will keep warm over winter.”
He highlighted the dire situation, “The sad truth is that cold weather could mean many terminally ill people die before they should. They desperately need more support through social energy tariffs and compensation schemes to help with the increased costs of keeping their home warm and running the essential medical devices they rely on.”
In response, a Government spokesperson assured: “We are committed to supporting pensioners – with millions set to see their state pension rise by up to £1,900 this parliament through our commitment to the triple lock. Over a million pensioners will still receive the winter fuel payment, and our drive to boost pension credit take up has already seen a 152% increase in claims. Many others will also benefit from the £150 warm home discount and cold weather payments this winter, while our extension of the Household Support Fund will help with the cost of food, heating and bills.”
