A government minister has provided an update on the controversial decision to axe the winter fuel payment, which has left 10 million pensioners without the £2-300 cash boost. When asked if the cut should be ‘put off’ for a year to assist people, Miatta Fahnbulleh, Minister for Energy Consumers, appearing on BBC Breakfast, stated that the decision to axe the money ‘has been made’.
She urged those in need of assistance to contact their supplier: “What I would say to anyone, whether it’s a pensioner, whether it’s a mom with 3 kids, pick up the phone. If you’re worried about your energy bills, if you’re worried about turning off your heat, please call your supplier because there is support in the system waiting to help people.”
New research indicates that this benefit cut will plunge 100,000 pensioners into relative poverty within this decade. Consultancy Cornwall Insight predicts a 1% increase in energy bills this winter following a 10% surge in wholesale prices in October.
The minister acknowledged criticism over the speed of the policy change and the difficulties faced by those eligible for credit in accessing it: “We do have people who got in touch over this policy to say they agree it should happen, it shouldn’t be blanket for everybody to receive that money. The criticism is that it’s happening too quickly and even those who reach the threshold for credit don’t have the time to access it.”
Presenter Nina Warhurst shared some viewer emails: “So this is from Andrew, ‘my mum applied for credits and the process was difficult. She struggled with the form online. The follow up letter was so confusing. They refused in June. We’re still seeking a mandatory review’. This one from Jackie, who lives in Bournemouth. ‘I applied for my disabled mother on the 1st of February. We are still waiting for them to process this application. I’ve not had a call and was told I would receive one within 48 hours. At the DWP there is no sense of the urgency on this issue’.”
Ms Fahnbulleh responded: “Well, listen, what I would say is there’s absolutely a sense of the urgency. We know that the forms are too long. We know that it is a difficult system for people to navigate. That’s a system we’ve inherited. We are very quickly trying to make it simpler and easier for people, you know, we’ve seen record uptake in pension credit because we’re driving to make sure that if you are eligible, you can access pension credit.”
Discussing the measures being implemented to combat the energy crisis, an official highlighted: “On top of that we are providing additional support. So this is why we’ve been working with energy suppliers to make sure there is 500 million pounds of support in the system so people can pick up the phone, speak to their supplier if they’re worried, alongside the help that we’re already providing through our warm homes discount. So we’re trying to do everything we can to help people. We know that people are worried about their energy bills. We know that there will be people really anxious going into the cold months. And we will, we are trying to do what we can to get support to people. So if you’re worried, pick up the phone, speak to your supplier, call Citizens Advice, there is support in the system to help you.”
When queried by Nina Warhurst on whether delaying the price cap increase would be wiser, given many pensioners haven’t checked their eligibility for support, with another year potentially providing necessary preparation time, Ms Fahnbulleh responded: “Well, listen, the winter fuel payment decision has been made. My job is to make sure that we’re getting the energy system that is affordable for people, because look, the bottom line is, energy is simply unaffordable for too many households, and that’s the thing that we need to change.”
Ovo Energy, Octopus and British Gas have already committed to continuing financial support schemes from previous years, with a combined worth of £120 million for this winter. Several suppliers are advocating for a social tariff, similar to what is used in the telecoms industry to assist those receiving benefits like Universal Credit with their broadband bills.
This measure, which has been proposed by campaign groups for several years, would likely be a targeted discount energy deal for less affluent customers, potentially below the price of the cheapest standard energy tariff available. Dhara Vyas, head of the trade body Energy UK, highlighted the record high consumer debt levels of £3.7 billion in June.
She noted that many people are “yet to recover from a sustained period of high energy bills and an accompanying increase in the cost-of-living”. “As in previous winters, energy suppliers have already been stepping up the amount and range of support they offer to customers. There is, however, only so much they can do when a large number of households are struggling to afford energy at the price it costs to supply it.”
