Keir Starmer and Rachel Reeves Confront Growing Backlash Over ‘Reckless’ Winter Fuel Payment Cuts for Pensioners Amid 10% Energy Price Cap Hike—Labour MPs Urge U-Turn to ‘Protect the Old and Frail’ from Devastating Impact.H
Keir Starmer and Rachel Reeves are facing fresh pressure over their decision to change the winter fuel payment for pensioners as a Labour MP warned it could lead to frail elderly people ending up in hospital.
Around 10 million over-65s will miss out on the £250 payment as the new Government restricts the benefit to pensioners only.
The move was announced by the Chancellor last month as part of a package of measures to tackle a £22bn “black hole” in this year’s budget.
But following Ofgem ‘s announcement on Friday that the energy price cap would rise by 10 per cent from October, there have been calls for a change of heart.
Labour MP Rachael Maskell, chair of the all-party parliamentary group (APPG) on older people and older people, told the BBC the decision would leave many pensioners deciding “whether to turn on the heating this winter”.
“We need to make sure we protect the elderly and the vulnerable… people could get sick or end up in the NHS if we don’t get this right,” she told the Today programme.
‘We have to protect the most vulnerable in society and I am therefore very concerned that some of those protections are being removed through the end of the universal winter fuel allowance.’
Around 10 million over-65s will miss out on the £250 payment as the new Government restricts the benefit to pensioners only.
Labour MP Rachael Maskell, chair of the all-party parliamentary group (APPG) on older people and older people, told the BBC the decision would leave many pensioners deciding “whether to turn on the heating this winter”.
Chancellor of the Exchequer: ‘Faced with a £22bn black hole, I had to act’
Regulator Ofcom today announced it would increase the price cap from the current £1,568 for a typical household in England, Scotland and Wales to £1,717, adding around £12 a month to the average bill.
However, this is still around £117 cheaper than the cap set in October last year of £1,834.
The price cap sets the maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour (kWh) of energy they use.
What is the Ofgem price cap?
The price cap sets the maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour (kWh) of energy they use.
This means it doesn’t limit a household’s total bill, as people still pay for the total amount of energy they use.
Figures provided by Ofgem show how much a household using gas and electricity, and paying by direct debit, could expect to pay if their energy usage was normal.
While the cap doesn’t limit a household’s total bill, raising the cap could leave people facing higher bills heading into the colder months than earlier in the year.
Both the Conservatives and the Greens have also called for a winter fuel payment to be made available to all pensioners this winter following Ofgem’s announcement.
‘Because they have not been honest about their plans, it means millions of pensioners will have no plan to cope with rising energy bills this winter,’ said opposition energy minister Claire Coutinho.
Caroline Abrahams, charity director at Age UK, said restricting winter fuel payments for pensioners was “reckless and wrong” and “spells disaster for low-income and modest-income pensioners”.
She said: ‘The latest bad news about significant energy price increases makes it even clearer that testing (winter fuel payments) with little advance notice and no protection for vulnerable groups is the wrong policy choice and is likely to put some older people at risk.’
The winter fuel payment means test is expected to save the Government £1.4bn this year, which Labour says is needed to plug the gap between the previous government’s spending plans and the money allocated to fund them.
Labor also criticised the previous government for failing to invest in energy efficiency and renewable energy.
Ofgem has increased the price cap to £1,717, up £149 from the current £1,568.
Electricity bills soar 10 per cent as Ofgem announces new price cap
A party spokesman said: ‘This price increase is the result of 14 years of Conservative neglect and failure to prepare and invest in British-owned clean energy.
‘While they were quick to blame everyone but themselves for the energy crisis, the Conservatives have been slow on energy security and have hit the renewables sector hard, while working families continue to pay the price.’
The government also stressed that more than a million pensioners will still receive the winter fuel payment and urged any pensioners worried about the impact of higher bills to check whether they are eligible for pension credit.
Other charities and campaign groups have proposed various measures to mitigate the impact of rising energy bills, with Citizens Advice calling for “targeted bill support” and the End Fuel Poverty Coalition calling for an expansion of other support funds and a reduction in fixed charges.
The union’s Simon Francis also criticised Ofgem’s decision to increase the profit level energy suppliers can earn by 11 per cent, saying it “adds to vulnerability”.
‘Plus, every month we hear about the huge profits being made by companies in the energy sector as a whole. It’s time to tax these companies fairly – not just fossil fuel producers – and use that money to keep people warm now and in the long term,’ he said.
Ofgem said high international energy prices due to increased political tensions and extreme weather events were the main drivers behind the decision.
Chief executive Jonathan Brearley said: ‘Ultimately, the price increase we are announcing today is due to our reliance on a volatile global gas market, which is vulnerable to unforeseen international events and the actions of aggressive states.’
‘We know that this price cap increase will cause a lot of hardship for many households.
‘Anyone who is struggling to pay their bills should ensure they are accessing all benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support.’
He also urged consumers to “look carefully” and consider choosing a flat rate to save money.