Charity Raises Alarm Over Energy Bill Hike Impact on Pensioners

A charity has expressed deep concern that up to 1.2 million individuals may face financial difficulties this winter following Ofgem's announcement of a significant increase in energy bills. The average household energy bill is set to rise from £1,568 to £1,717 annually, coinciding with changes to Winter Fuel Payments that will affect millions of pensioners. The new eligibility criteria, introduced by Labour Chancellor Rachel Reeves, will limit these payments to households receiving means-tested benefits, such as Pension Credit, leaving many older individuals without crucial financial support. Independent Age has highlighted that approximately 800,000 people may be missing out on Pension Credit, with estimates suggesting the actual number could be as high as 1.2 million. Joanna Elson CBE, Chief Executive of Independent Age, emphasized the urgency of the situation, noting that many older adults who are just above the eligibility threshold still struggle financially. The loss of Winter Fuel Payments, worth up to £300, could exacerbate the challenges faced by these individuals as energy costs rise. Campaigners are urging pensioners to verify their eligibility for Pension Credit, which not only provides additional income but also unlocks various benefits, including free dental care and a free TV license for those over 75. The average annual Pension Credit award exceeds £3,900, making it a vital resource for many. As households grapple with rising energy costs, financial experts are advising consumers to consider fixing their energy deals. With the new Ofgem price cap in effect, some fixed-rate tariffs may offer savings compared to the variable rates tied to the cap. MoneySavingExpert.com has recommended specific tariffs for consideration, urging consumers to act quickly to secure the best deals.