State pensioners could be eligible for extra £270.30 a week to pay energy bills | Personal Finance | Finance
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Pension Credit is a benefit administered by the Department for Work and Pensions (DWP) which gives recipients extra cash. Claimants must be of the state pension age, which is 66, and be on low income to be eligible for this support. The payment tops up a recipient’s weekly income to £177.10 if they are single but this can be extended to £270.30 if they have a partner.
This means of support is being recommended by charities to help pensioners through the cost of living crisis, which has been exacerbated by soaring energy bills.
Earlier this month, the energy price cap was increased by Ofgem which means the average energy bill per household is set to rise by £693 this year.
Three-quarters of pensioners across the country, around 9.4 million people, are concerned about the rising cost of living, according to data from Age UK.
Through its “The Cost of Cold” campaign, Age UK is encouraging eligible households to reach out to the DWP for payments such as Pension Credit.
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Speaking to Age UK, one pensioner said: “I have a very small pension and live on savings and I rent privately. My cost of living will be unaffordable before long.
“Terrified to have the heating on too long to keep my home warm. Everything is spiralling out of control in price leaving us pensioners struggling to live.”
Tony, 75, said to the charity: “I have always carefully budgeted to cover my utility bills and have been grateful for the various payments from the Government. In particular the warm home discount makes a big difference.
“I did fix my gas and electricity rates last year but this ends at the beginning of February. So, with the anticipated increases to come this year I can see my bills possibly doubling and putting unsustainable strain on my resources.
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“I only receive a basic state pension and pension credits and have fully explored all available government schemes.
“Unfortunately these fall short of covering these unprecedented increases. The possibility of a one-off payment or an increase to the warm home scheme would really help.”
Caroline Abrahams, Charity Director at Age UK, said: “With the energy crisis deepening and nothing but price hikes on the horizon, the time has surely come for the Government to stop dragging its feet.
“It’s high time Ministers took action and provided a much-needed safety net for the millions of older people who are fighting to stay afloat.
“Many older people are reliant on the state pension as their main source of income and simply do not have the flex in their finances to cope with such enormous price rises.
“At Age UK, we are being contacted every day by desperate older people in this position, people for whom there are only ‘bad choices’ – ration your energy use, cut back on food or other essentials, or go into debt.”
In light of this crisis, the poverty expert is calling on the Government to do more to assist those in need with their energy bills.
She added: “We need urgent and decisive government action to protect the millions of older people who are struggling financially but who are either not eligible for or not claiming Pension Credit.
“Cutting the five percent rate of VAT on energy bills would be a good start and is important because it would help those just above the benefits line, though there are many other options available to the Government too.”
A Government spokesperson said: “We are committed to supporting vulnerable households with heating their homes, which is why we have announced a £9.1billion support package to help families dealing with rising energy costs.
“Our winter fuel payments are supporting over 11 million pensioners with their energy bills and we are continuing to encourage those eligible for Pension Credit, and the wide range of other benefits available, to make a claim.”
Recently, the Government also announced a council tax rebate to help households in bands A to D with the cost of living crisis.
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