by Sir Keir Starmer has been asked to review his decision to scrap winter fuel payments for 10m pensioners after regulator Ofgem announced a £150 rise in household energy bills in October.
The prime minister has been warned that there will be a disaster for pensioners on low and moderate incomes or who live in vulnerable circumstances due to ill health due to the double blow.
Analysis shows that this winter’s energy bills will be the highest on record for older people who have previously received a winter fuel payment, worth up to £300.
Campaigners and charities, as well as Tory and Labor politicians, called on the Prime Minister to change course.
Starting this year, only pensioners in receipt of pension credit (or certain benefits) will receive the winter fuel payment.
Since it was introduced in 1997, the winter fuel payment has been available to all pensioners, regardless of income. There have been previous calls to make it means-tested to prevent taxpayer money going to wealthier pensioners who are less likely to struggle with bills.
But critics say the move will mean many who rely on it will lose the payment.
Former chancellor John McDonnell, whose party whip was suspended for rebelling against the cap on child benefit, said. The Independent: “This huge increase in energy bills will put more elderly people at risk this winter and the Government needs to reassess its Winter Fuel Allowance proposal. Too many elderly people will be put at risk.”
Age UK director Caroline Abrahams said: “It is estimated that around two million older people, in total, will face an even steeper mountain to climb to pay their energy bills and stay warm and healthy when the weather turns cold. With pensioners losing the cost of living payments they have received for the last two years we can’t see how some will cope.”
She said Ofgem’s rise in the price cap for energy bills has made it “even clearer” that making a means-tested winter fuel payment could be “dangerous for some older people”.
Personal finance guru Martin Lewis told BBC Radio 4: “I think the government should rethink getting rid of the winter fuel payment in the way it did.
“While I agree that there is a very strong argument for getting rid of the universal winter fuel payment, I think the eligibility criteria are far too narrow.”
Simon Francis, co-ordinator of the End Fuel Poverty Alliance, said The Independent The government’s “cruel decision” will leave more vulnerable people succumbing to health complications from living in cold and damp conditions, turning to the NHS for support. It will create a false economy, wiping out the estimated £1.5bn savings by putting further pressure on the health service, he said.
Mr Francis said: “Pensioners will feel the brunt of the rise in energy prices this winter.”
National Energy Action chief executive Adam Scorer said the government is “cutting support from those who have no flexibility in their own budgets, with no choice but to go into debt or go cold”.
The change was among a series of cost-cutting measures announced by Rachel Reeves after she identified a £22bn hole in the public finances left by the Conservatives. Announcing the move, she said: “Let me be clear: this was not a decision I wanted to make.
“But it is a necessary and urgent decision that I have to make. It is the responsible thing to do to fix the foundations of our economy and restore economic stability.”
Tory leadership contender Mel Stride said The Independent Ms Reeves had made the cut while “pay rises that exceeded inflation were handed out to the unions”.
“This was a political decision by Labour,” he said. Mr Stride said: “With the energy price cap set to rise by 10 per cent before winter, Labor must now rethink its decision to take winter fuel support from millions of vulnerable pensioners. Many older people rely on this vital support to get them through the winter and their bills will now rise.”
And said Labor peer Prem Sikka The Independent the policy was announced while the government made “no attempt to restrict the profitability of the energy companies”.
“They are taking the winter fuel payment rights away from 10m, without any consultation, it wasn’t in the manifesto, they haven’t done any human cost impact assessment and there won’t be a vote,” Lord Sikka said.
When Theresa May announced plans to means-test the payment in 2017, Labor said thousands of pensioners would die as a result of the move and called it an “attack on pensioners”.
Lord Sikka added: “This is taking a toll on the elderly and there is no excuse for it. Early in its life, this government has shown neglect of the elderly and they should be reviewing this. The government has made wrong judgments, wrong choices and there were plenty of other options.
“They can’t keep blaming the Tories, because their job is to find new answers and this blame game is no good.”
Shadow energy secretary Claire Cousinho criticized Mr Reeves for one of her first acts as chancellor to remove the winter fuel payment from 10m pensioners, which she said was a far cry from Labour’s promise to save £300 on their energy bills for families.
“Because they weren’t honest about their plans, that means millions of retirees will have no plan to deal with higher energy bills this winter,” she said.
Andrew RT Davies, leader of the Conservatives in Wales, said: “With the cap on bills raised by the governor, there is a risk of a fuel poverty crisis among pensioners in Wales due to Labour’s incomprehensible decision to cut Fuel Payments Delete winter.
“Labour must reverse their decision and keep pensioners warm this winter.”
The row came as Ofgem announced that the average household energy bill will rise from £1,568 to £1,717 on October 1 – a rise of £149.
Secretary of State for energy security and net zero Ed Miliband said: “This will be a huge concern for many families. The increase in the price cap is a direct result of the failed energy policy we inherited, which left our country at the mercy of international gas markets controlled by dictators.
“The only solution to reducing bills and achieving greater energy independence is the government’s mission of clean, indigenous power. That’s why we’ve started anew, lifting the onshore wind ban, allowing unprecedented amounts of solar power and setting the biggest ever budget for our renewable energy auction.
“We will also do everything in our power to protect bill payers, including by reforming the regulator to be a strong consumer champion, working to make fixed charges fairer, and a right-to-money Warm Homes Plan to save families.”
