Pensioners: Fuel Poverty

(asked on 15th October 2021) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the steps her Department could take to help pensioners avoid fuel poverty ahead of energy bill increases.


Answered by
Guy Opperman Portrait
Guy Opperman
Parliamentary Under-Secretary (Department for Transport)
This question was answered on 21st October 2021

The Government is committed to tackling fuel poverty and protecting low income and vulnerable households.

The Winter Fuel Payment provides pensioners with support for their energy bills over winter. Government has committed to keeping the Winter Fuel Payment and will continue to pay £200 to eligible households with someone between State Pension age and 79, and £300 to a household with someone aged 80 or over. The payment is intended to give reassurance to pensioners that they can keep warm during the colder months.

Cold Weather Payments are also available for periods of extreme weather to those in receipt of Pension Credit, including those receiving the Savings Credit element. The Scottish Government will in due course replace Winter Fuel and Cold Weather Payments with its own provision under the terms of the Scotland Act 2016.

The Warm Home Discount scheme, worth £354 million this year, further provides eligible low-income and vulnerable households with £140 off their fuel bill over winter. Around one million low-income pensioner households – in receipt of the Guarantee Credit element of the Pension Credit – will receive a rebate this winter. Most eligible pensioners will receive their rebates automatically, without having to take any action. The scheme will be extended to 2026 and continue to support low-income pensioners with their energy bills.

We recognise that some people continue to require extra support, which is why we have introduced a £421 million Household Support Fund to help vulnerable people in England with essential household costs over the winter as the economy recovers. The Barnett Formula will apply in the usual way, with the devolved administrations receiving almost £80 million (£41m for the Scottish Government, £25m for the Welsh Government and £14m for the NI Executive), for a total of £500 million.

This winter, the energy price cap will continue to protect around 15 million British households on default tariffs, saving them between £75 and £100 a year on dual fuel bills. In addition, the Department for Business, Energy and Industrial Strategy reached a Voluntary Agreement with energy suppliers last year which remains in place this winter. Vulnerable people and those experiencing financial difficulty should contact their supplier to discuss support available under the agreement, including reassessing, reducing or pausing debt repayments.

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