Martin Lewis warns state pensioners over £1,238 British Gas, EON, or OVO charge | Personal Finance | Finance
Money expert Martin Lewis has issued a warning to state pensioners over a combination of three different charges which will cost them a total of £1,238 on average on their British Gas, OVO, EDF, E.On or Octopus Energy bills this winter.
The money expert suspended his career break temporarily to issue a missive to the government about the Winter Fuel Payment cut, combined with pension credit, cost of living cuts and standing charges which could cost pensioners £1,238 in total this winter.
Martin urged the Labour government to ‘rethink’ its decision to means-test the £300 Winter Fuel Payment this winter, which means it will not automatically be paid to every state pensioner any more.
Martin said: “Govt must rethink Winter Fuel Payments or almost ALL pensioners will need to find £100s more than last winter. While energy will cost less than during last winter’s crisis time, the reduction in rates only equates to a drop of roughly £100 over the six winter months for a household with typical usage. Yet specific pensioner energy support has dropped by far more.”
He then added that £300 extra per household in Cost of Living support has now been axed – and that means-testing Winter Fuel Allowance means that those who aren’t eligible for Pension Credit will also miss out on another £300.
Martin continued: “Last year pensioner homes got up to £300 extra per household cost of living support – that’s gone, and its loss alone is far bigger than the saving made by slightly lower rates.
“Piling on top of that is the governments new decision to means-test Winter Fuel Payments, that will leave all except usually those who claim Pension Credit missing out on a further £200 – £300.
“While there’s a strong argument for ending the universality of Winter Fuel payments, eligibility is being squeezed to too narrow a group.”
Martin also told state pensioners that they should be looking to switch to a cheap year-long fix. Currently, the best deals on the market offer 7 percent lower bills than the October 1 price cap.
Finally, Martin said that the ever unpopular standing charge – the daily charge just to have gas or electricity, even if you don’t use any fuel – is now £338 a year, including for state pensioners.
He continued: “This moral hazard penalises lower users, often many who are vulnerable, and means they will face a proportionately larger rise.
“I’ve long called for change, so welcome today’s long promised consultation on reducing standing charges today – though I’m slightly disappointed even the maximum proposed reduction is only £100/yr – but I’ll hold judgement until I’ve read the consultation in full.”
