Pensioners: Fuel Poverty

(asked on 11th January 2022) - View Source

Question to the Department for Work and Pensions:

To ask Her Majesty's Government what new measures they have put in place, or plan to introduce, to ensure elderly pensioners who are facing sharply rising fuel bills are able to afford to keep their homes sufficiently warm this winter.


This question was answered on 25th January 2022

The Social Security (Up-rating of Benefits) Act 2021 introduced a double lock and allowed the Government to increase pensions by the higher of inflation or 2.5 per cent. From April 2022 state pensions will be increased by 3.1 per cent and this represents an additional £4bn spend on pensioner benefits in 2022/23. It should also be remembered that last year when earnings were negative this would have resulted in pensions being frozen, despite CPI being 0.5 per cent pensioners in receipt of state pension saw an increase of 2.5 per cent.

Pension Credit also provides invaluable financial support for vulnerable pensioners. Around 1.4 million eligible pensioners across Great Britain receive some £5bn in Pension Credit, which tops up their retirement income and is a passport to other financial help such as support with housing costs, council tax, heating bills and a free TV licence for those over 75.

Local Authorities in England have discretion to design their own bespoke local schemes within the overall parameters of the Household Support Fund, with support primarily focused on food, energy & water bills and wider essentials. Up to 50 per cent of the Fund is available for councils to spend on households without children, including those of State Pension age.

Other support for pensioners includes Winter Fuel Payments which continue to be payable to customers of State Pension age. We pay £200 to households with a customer aged between 66 and 79 and £300 to a household with someone aged 80 or over. We pay over 11 million winter fuel payments annually at a cost of £2bn which is a significant contribution to winter fuel bills.

Cold Weather Payments are also available and help vulnerable people in receipt of certain income-related benefits to meet additional heating costs, during periods of unseasonably cold weather between 1 November and 31 March. This includes older people in receipt of Pension Credit.

The Warm Home Discount Scheme provides those in receipt of Pension Credit Guarantee Credit a discount of £140 on their energy bill providing their supplier is part of the scheme. There are now 200 thousand fewer pensioners in absolute poverty (both before and after housing costs) than in 2009/10.

There are now 200 thousand fewer pensioners in absolute poverty (both before and after housing costs) than in 2009/10.

Reticulating Splines