The cut to the Winter Fuel Payment will impact 1.5 million pensioners this year, a charity has warned.
According to Age UK, those on low-incomes who just miss out on the new eligibility criteria for the support, as well as people who have unavoidable high energy costs as a result of a disability or illness, are likely to face “serious trouble”.
The state handout, which pays up to £300 per household and is used to help pensioners keep up with energy bills during the colder months of the year, was previously available to everyone who had reached state retirement age. But, from this winter, it will be means-tested.
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It has led to fears that many elderly people who are close to the cut-off could be trapped in freezing homes this winter - especially given energy bills are set to rise 10% from 1 October. But the government has argued the cuts are necessary as they are faced with a £22 billion budgetary black hole. It appears to be unlikely to U-turn, despite coming under pressure from unions at the Labour Party conference this week.
If you’re concerned that either you or a loved one could struggle to afford to switch on the heating, it could be worth approaching energy suppliers to find out what support they offer. Most providers run schemes targeted at vulnerable consumers.
So, what help is out there? We’ve rounded up all of the support that’s available from the UK’s biggest suppliers.
Could your energy supplier plug the Winter Fuel Payment gap?
If you’re concerned about your energy bills, you should get in touch with your supplier in the first instance. They are required to advise or help you with your affordability concerns. Many also offer additional support that you may be eligible for.
To find out what support energy suppliers are offering this winter, MoneyWeek has approached the UK’s biggest providers. Here’s what they had to say.
British Gas
The country’s biggest energy supplier points to two schemes it is running that could support struggling customers. Its ‘You Pay: We Pay’ initiative, which launched in June, is aimed at people whose accounts are in - or at risk of falling into - debt.
The £15 million scheme promises to match payments made by those who can afford to pay towards clearing their debt. Say the customer can pay in £500 for six months, British Gas will pay an equal amount into their account.
As well as meeting - or being close to - the definition of fuel poverty in each of the three nations in Great Britain, British Gas customers looking to get this support must also be seeking or receiving debt advice. They also need to have been with the supplier for at least six months, and must agree to a payment amount before they can get support.
The other scheme on offer is from the British Gas Energy Trust - the charitable arm of the Centrica-owned company. Its Individual and Families Fund offers grants to pre-payment and credit customers who have a certain amount of debt in their account (at least £50 on a prepayment meter, and £250 for a credit one). You can’t have accessed a grant from the fund in the last two years, and households in Northern Ireland are excluded.
Octopus Energy
Octopus has extended its £30 million ‘Octo Assist’ fund in a bid to cover those who have been most affected by the Winter Fuel Payment cuts. Lower-income pensioner households that aren’t eligible for Pension Credit can get account credit of £50, £100 or £200 by applying.
Applications can be submitted online, over the phone or in writing. By submitting one, you may be able to access other help, such as payment holidays or a break from standing charges. The supplier says it will also flag up any government benefits these households could be missing out on.
As well as its support fund, Octopus is distributing up to 20,000 free electric blankets to its neediest customers. The supplier says this measure could save the average home £150 on their bills given the blankets are cheap to run.
It is also loaning out thermal imaging cameras to households so they can spot and fix draughts, leading to a reduction in their energy use. Another initiative it offers is its ‘Energy Helpers’ scheme, which means you will get a home visit from an expert who can advise you on how to make your home more energy-efficient.
E.on Next
E.on didn’t respond to our enquiries. But its website says struggling customers can access its ‘Energy Fund’. This support will initially stop your account’s debt total from growing, if you can prove you are attempting to stabilise your finances. After a certain amount of time, your debt may be cleared entirely. The supplier may also be able to supply you with energy-efficient appliances, as well as smaller items, like hot water bottles and electric blankets.
Last winter, the supplier offered vulnerable customers discounted energy, and wrote off their debts. It hasn’t said whether this scheme will be coming back this year.
Ovo
From next Tuesday (1 October), Ovo will be launching its ‘Extra Support Package’ for the colder months of the year. This will be open to struggling bill payers, including some of those who are now set to miss out on the Winter Fuel Payment.
The fund will be used to reduce direct debits, provide emergency credit and run more affordable payment plans. Customers will also be able to get energy-saving items for free, such as electric throws, mattress toppers and energy-efficiency kits.
Some will be able to get comprehensive efficiency support, which could include loft insulation and a new boiler or heat pump. For prepayment customers, Ovo says it will grant payment holidays and keep emergency credit at an increased amount of £15.
EDF Energy
EDF told MoneyWeek that struggling customers should seek out its ‘Customer Support Fund’. This is similar to the support offered by British Gas, in that people can receive grants or support from the supplier to help them manage debt on their energy account - so long as they’re in the process of seeking out debt advice. But the fund also offers to replace inefficient or broken white goods.
In addition, the supplier runs a ‘Warmer Winter Shop’, from which customers can get items and “energy efficiency bundles” for free. On top of this, it has pledged to support “targeted groups” with credit, prepayment vouchers and debt clearance. More information on its winter support will be made available over the coming weeks.
Specifically for pensioners, it says its partnership with IncomeMax - a financial support company that’s also partnered with several other energy suppliers - can help them identify state benefits and tax credits they are eligible for, and how to claim them.
Scottish Power
Pensioners who get their energy from Scottish Power can get support from the supplier’s ‘Hardship Fund’. While it’s principally targeted at those who receive certain forms of benefit, you may be able to qualify if your household income is lower than £18,723 a year, or special circumstances mean you need further support.
To access the fund, you first need to contact a debt advice charity, such as StepChange. You then have to head to the operator of the supplier’s fund - Sigma Connected - where you can find an application form. To get support, your account needs to be at least £100 in debt and you’ll need to agree to making a certain level of payment towards your energy costs. You also cannot have received support from the fund at any time in the last three years.
If your application is accepted, you will get credit that either partially or fully covers your account’s debt. Sigma will contact you when your account receives the funds.
In terms of other support, Scottish Power is offering to improve the energy efficiency of low-income households and says it runs partnerships with foodbanks. It also has a team of Community Liaison Officers who can visit properties around Britain to offer energy account advice and support.
For prepayment customers, if you run out of credit on your meter you can receive emergency credit. Credit advances are also available to non-pay as you go customers who use the supplier’s app. These people can get them by using the ‘self-serve’ function. The process is automated, so you won’t need to chat to an agent.
Finally, you may be able to access a trial initiative Scottish Power is taking part in. The Warm Home Prescription (WHP) programme works with local NHS providers to identify low-income households where people live with health conditions that are worsened by the cold or damp. These customers can then receive things like loft insulation and more efficient heating systems for free.
Utilita
The pay as you go provider offers support through its ‘Helping Hand Fund’. This offers consumers who have an energy debt, and have not received a grant from Utilita in the last three years, the chance of having their energy debt partially, or fully, cleared.
Utilita says it will also absorb its customers’ standing charge costs this winter if they use little or no energy. It adds that it has a dedicated team that supports customers on its priority services register by providing energy efficiency advice, account support and financial assistance. Eligible customers will also be contacted if they could take advantage of its debt relief scheme.
Through its partnerships with charities, the supplier adds that some customers may be able to get new white goods and appliances, as well as a boiler upgrade or repair. The provider also says its high street outlets across the UK offer energy advice and act as warm spaces for anyone, regardless of whether or not they are customers. It told MoneyWeek that people could visit to shelter from the winter cold, have some social interaction and get a free cup of tea.
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