How winter fuel payments are changing – and the energy bill is helping to make alternatives available to retirees

Hundreds of thousands of pensioners will miss out on up to £300 in winter fuel payments this winter. But there is still other help available to help pay their energy bills.

Yesterday, MPs voted to allow the government to press ahead with plans to make winter fuel payments means-tested, designed to help pensioners cope with high winter energy bills.

Previously, Winter Fuel Payment was paid to all pensioners. However, these payments have now been reduced so that only those on benefits such as Pension Credit will receive it from this winter.

The loss of the winter fuel payment is a blow to pensioners, but the good news is that there is other help available to pensioners with paying their energy bills.

Pension credit

The pension credit tops up the weekly income of poorer pensioners to a minimum of £218.15 for single people and £332.95 for couples.

If your income is higher, you may still be eligible for pension credit if you have a disability, care for someone, have savings or housing costs.

With pension credit you also get access to a lot of extra help with paying your household bills, such as the winter fuel payment.

The problem is that you have to claim the pension credit and that it is not paid out automatically.

Six out of ten households that qualify for pension credit do not apply.

Warm home discount

The Warm Home Discount scheme gives certain low-income households a discount on their energy bill.

The scheme works like this: a one-off annual payment of £150 is paid directly to the electricity supplier of eligible households.

It is paid to retirees who are entitled to the guaranteed credit portion of the pension credit, and to working-age retirees if they have other qualifying benefits.

The Department for Work and Pensions (DWP) will let energy suppliers know if any of their customers fall into this group, and the money will then be automatically added to the customer’s electricity bill.

Payment in cold weather

The Cold Weather Payment is a benefit paid by the DWP to households in areas where the temperature is zero degrees Celsius or below for seven consecutive days.

Pensioners must claim pension credit to qualify. The money must be paid directly into their bank account by the DWP.

The scheme will come into effect on 1 November 2024 and will run until 31 March 2025.

Household Support Fund

The Household Support Fund is a pot of government money provided by local governments to people who are struggling to meet the cost of living.

Work and Pensions Secretary Liz Kendall topped up the fund with £421 million in early September 2024.

The way the money is distributed by councils varies. Some pay in cash, usually less than £200, while others prefer to use vouchers that can be spent in shops.

To access the Household Support Fund, you must submit an application directly to your municipality.

They check whether you really need the money. For this they probably have to show that you cannot meet your needs in any other way, for example because you cannot afford the heating you need.

Help from your energy company

Energy companies are required by regulator Ofgem to provide support to people who have difficulty paying their bills.

In rare cases, this may take the form of bill reductions or access to emergency fund subsidies.

Your energy company is more likely to offer you an evaluation of your payments or grant a payment extension to give you more time.

To find out what you are eligible for, you can contact your energy supplier directly.