With election of the new Labour government, apparently the finances are worse than was thought, and already the new Chancellor has committed to scrapping Winter Fuel Allowance for people not on Pension Credit. There has of course been uproar, as many people ‘just above’ the benefit level will lose extra money, at a time when energy bills are soaring. Leading to many tempted in winter to choose between ‘heating and eating’. So let’s look more at what the Winter Fuel Allowance is, and why some people are no longer receiving it. And importantly, how to afford your energy bills, if you are in the catchment area of just above Pension Credit.
It’s not safe to advise people to ‘turn down the thermostat’ to reduce energy bills (could cause hypothermia for people & pets). If using portable radiators, choose oil-powered ones that heat up slower but are more comfortable and safer than fast-blowing fan heaters (which can cause heatstroke for people & pets and cost a fortune to run). For older people living in big draughty homes, take the quiz at Carbon Savvy to reduce energy bills for uninsulated homes (your local council may be able to offer grants).
The Winter Fuel Allowance is normally automatically paid to people on Pension or Universal Credit or on some other benefits like income-related jobseeker’s allowance. People in care homes who qualify also receive it (to help pay towards soaring care home costs). The amount differs but is generally between £200 or £200 depending on your age and marital status.
The reason given for stopping the universal payment is that one in 6 pensioners in England are now millionaires, so of course many people are receiving the payment, when they could afford their own energy bills. So the reasoning behind the decision is understandable, but critics say this has not been thought through. Ofgem recently announced that energy bills will rise by almost £2000 a year from October 2024, yet 10 million pensioners (most of whom are not millionaires) will have to find the extra money. Huge bills are being blamed on the price of oil since the Russia/Ukraine war, but if governments had made us more energy-independent a long time ago, this would never have happened.
As the party that originally brought in the Winter Fuel Allowance, the decision to scrap it is causing a political revolt amid the far-left and MPs of all colours are getting more letters about the decision than any other subject (apart from the war in Gaza). Age UK has criticised the decision, as has England’s consumer rights champion Martin Lewis, who says that confining the allowance to people on incomes below £12,600 is setting the bar too low (he instead wants support given to the people who live in the four lowest council tax bands, linked to value of property, which would far better protect people from huge bills, on low incomes). Some Labour ministers have privately told him they back this solution instead.
Also the government assumes that rich pensioners remain rich. In fact, many wealthy pensioners are giving a substantial portion of their own money away to children and grandchildren, so they can get on the property ladder.
Social Market Foundation (a progressive think-tank) wants to replace the Winter Fuel Allowance with a modernised Warm Home Discount to help a wider range of people. At present, the Warm Homes Discount offers £150 a year and Winter Fuel Allowance at up to £300 a year, both of which are not keeping up with rising energy bills or inflation, so people are still worse off. Instead, tiering the Warm Homes Discount so that those with highest energy needs get more support makes more sense, and could help an extra 1.4 million households, yet still avoid paying an allowance to people who financially don’t need it. And would actually cost less than the present Winter Fuel Allowance and stop older people having to live in cold homes, too frightened to turn on the heating. Also join the Big Energy Credit Claim Back.
invest in a few radiator boosters
Radflek is up there with ‘England’s best invention’ and it’s a mystery why energy companies and the media don’t promote it more. For around £25 for a pack of three, these modern alternatives to sticking aluminium foil behind your radiator can reflect 95% of wasted heat energy that often simply goes out the wall and into the fresh air. No DIY skills are needed to reduce heat loss by almost half, and therefore your bills too.
Designed to last years, these are made with laminated aluminium foil and pays for itself within a year, but is designed to last at least 5 years. The booster simply hangs from the wall brackets, for radiators that have a gap between the radiator and the wall. If you have unique radiators (like brackets that sit higher) their FAQ page has answers for best fitting. The company can also supply for commercial use (say for hospitals, hospices and care homes).
could people in England freeze to death?
Yes. The ending of the Winter Fuel Payment for poor pensioners that don’t qualify for Pension Credit could see many turning off their heating in very cold weather. When following advice above given by experts to simply tier the Warm Home Front could be easily done before winter 2024. Copley is the ‘snowiest village in England’ with an average of 53 days of snow, and locals are concerned. Located in County Durham, many houses were built for miners, so are made of stone which means they easily get cold in the winter, unless well-heated.
One local told The Guardian that when it’s windy, it’s like a train coming down the road’. The homes have no cavities to insulate, and use oil to heat, which is more expensive than gas. This plan has not been thought through. One man in a wheelchair said he will have to wear more clothes, and another said he voted Labour but not to take away his winter fuel payment.
Labour MP Rachael Maskell predicts that people will die, if this law is brought in (and says she will not vote alongside her government). Guardian columnist Larry Elliott says that the Chancellor and Prime Minister would be ‘wise to admit’ they were wrong on this, and look at alternative ways to find the funds they say they need to raise. The government has been able to afford inflation-busting pay rises to some sectors of society, so should be able to afford stopping pensioners from dying of hypothermia. He writes:
Many pensioners will be shivering in their homes, as the nights drawn in. They will be hoping and praying it is a mild winter. Many Labour supporters oppose this decision, because they believe it to be mean and stupid. They are right on both counts.
Consumer champion Martin Lewis (who spent years targeting Tory policy) is now doing the same, warning the Chancellor that her decision will leave millions of pensioners struggling to pay their heating bills. He doesn’t disagree with means-testing but says the program is too narrow, with millions being £300 a year worse off, by just cutting it off for people not on Pension Credit.
On 10 September 2024, MPs will be able to debate the proposed cut and have a vote. It will be interesting to see how many Labour MPs risk losing the Whip to follow their principles. Considering that removing the Winter Fuel Allowance will affect 84% of pensioners living in poverty. Sign the petition at Age UK to restore the Winter Fuel Allowance to keep people & pets warm.