Charity leaders have been left “overwhelmed” by the surge in older people seeking assistance following the removal of the Winter Fuel Payment and the announcement of an energy bill hike. Age UK has reported a 40 per cent increase in calls to its helpline and a staggering 200 percent rise in the number of individuals utilising its online benefits calculator.
The charity has issued a stark warning that approximately two million elderly individuals “will be significantly worse off” this winter, with some finding themselves in a “terrible state”. Campaigners have raised alarms that the combination of escalating bills and the loss of the Winter Fuel Payment, which could amount to as much as £300, could prove fatal for some vulnerable and elderly individuals.
Paul Farmer, the chief executive of Age UK, has urged Chancellor Rachel Reeves to immediately reverse the decision to scrap the Winter Fuel Payment. Without a policy reversal, around 10 million pensioners will lose out on the payment, which would be limited to elderly individuals with incomes below £11,300 who are eligible for Pension Credit.
Concerns have been raised that nearly 1m older individuals who qualify for Pension Credit are currently not receiving it, meaning they will also miss out on the crucial Winter Fuel Payment. Additionally, there is another large group roughly 1m whose income marginally exceeds the threshold for Pension Credit eligibility.
Mr Farmer expressed his deep concern, stating: “We are extremely concerned about the 2m people who will miss out on the Winter Fuel Payment in particular this year. This announcement was far too quick to give older people the chance to make the changes they need, but also for the system to be able to cope with what is almost certainly going to happen.”
The Friday announcement of a 10 percent increase in energy tariffs this winter “is a further terrible blow for the many older people who are really going to struggle this winter”, he said. Mr Farmer revealed that Age UK has been “overwhelmed” by the volume of calls from pensioners concerned about how to stay warm and keep their lights on this winter.
“We have had a 40 percent increase in calls to our national advice service and a 200 percent increase in use of our online benefits calculator,” he stated. “I heard yesterday about a caller aged 73 who is just above the Pension Credit eligibility line. This gentleman was in a terrible state. He said he had broken down in tears several times as a result of this news.”
He pointed out that many elderly individuals are losing a £300 cost of living support payment as well as the Winter Fuel Payment, which can range from £200-£300. “Around 2m people will be significantly worse off,” Mr Farmer declared. “We want the Chancellor to reverse this particular decision at this particular moment because of the unintended consequences on these 2m people is too great.”
He highlighted the need to reconsider how support for energy bills is allocated in the medium term, suggesting that any new measures should also take into account other factors, such as introducing a low-cost social tariff for all households in difficulty and enhancing home insulation to reduce energy consumption and costs.
Speaking on the Radio 4 Today programme, Mr Farmer pointed out a particular demographic struggling with high energy bills. “He said there is an argument in the medium term to rethink how the money to support people with energy bills is distributed. But he said any proposals should also consider other factors, such as the introduction of a cheap social tariff for all struggling households and support for home insulation to help people cut energy use and bills.”
Mr Farmer, who was speaking to the Radio 4 Today programme, said there is a group of people in their 70s, 80s and 90s who are unable to find any way to increase their income to cope with high energy bills. He said applying for Pension Credit, which can be done online, is difficult and is made up of 240 questions.
He raised concerns about the complexity of applying for Pension Credit online, which involves answering 240 questions. “We know that a lot of people in this group struggle with digital access. There are many barriers in the way to fill in this particular form,” he explained.
Mr Farmer admitted that Age UK does not have the resources to assist the large number of elderly individuals entitled to Pension Credit in applying for it. Emma Pinchbeck, the chief executive of Energy UK, representing retailers, insisted that it’s a misconception to think that gas and electricity suppliers are making excessive profits. She pointed out that it’s the entities higher up in the supply chain the gas producers and electricity generators who have been reaping significant financial gains.
Ms Pinchbeck stated: “It is true that oil and gas companies and others who sell gas have made big profits through the energy crisis. That is often what you see when you are hearing stories of record profits.” She noted that energy retailers do provide support to customers who are struggling to pay their bills, adding: “You should be contacting your supplier in the first instance if you are worried about paying your bill.”