After Chancellor Rachel Reeves’s announcement to axe the pensioner fuel allowance, it sent shockwaves throughout UKs elderly community. A financial journalist begs for a reconsideration.
Pensioners Are Most Vulnerable
With UK headed for winter soon, low-income homes are concerned about the recent mention of gas and electricity cap increases. Still, one of the most impacted groups is the pensioners after Rachel Reeves’ announcement regarding the state of the public finances.
Government “Please” Reconsider
Martin Lewis, a British financial journalist championing consumer fairness, has recently spoken out. Lewis implored the government to rethink the reduction of fuel allowance for UK pensioners as they would be the most impacted.
Nearly 1 Million Need Support
According to reports, there are nearly 1 million British households eligible for the added support during winter who won’t get it. Lewis said that if the government went through with limiting the fuel allowance, a staggering number of pensioners are going to feel it the most.
England & Wales Are Affected
While the winter payments are said only to affect England and Wales, Scotland has reportedly also followed suit in their own fuel-cutting initiative. Lewis told The Guardian that he was going to meet with Rachel Reeves sometime soon to discuss.
Lewis Has an Idea
The financial journalist has a different approach to resolving the winter fuel cut. He noted that he wanted the Chancellor to consider cutting the allowance based on “council tax bands.” Since council tax bands are according to the value of the house, he suggests that the fuel limitation should be for houses in the A – D categories.
House Categories – Council Tax Bands
According to Gov.UK, the council tax bands are from 1991 and continue to this day. Properties in the A to D category band values are between £40,000 to £88,000. For houses in the E to H categories, the band value is £88,000 to £320,000.
Adjusting Eligibility
Lewis also mentioned that the bands are linked to property values, and in the A to D category, the homes have the least value. He further noted that this strategy should help “raise eligibility above just who are on pension credit,” he concluded.
Labour Members Opposing the Cut
A fellow Labour MP, Rachael Maskell has called for a policy review, according to The Guardian.
Lives May Be at Stake
Maskell is the chairman of the all-party parliamentary group on ageing and older people. She noted that nearly 5,000 people had passed away as a direct result of cold homes in winter.
The Most Vulnerable Needs Protecting
Maskell also expressed concern and felt the Chancellor was taking away some of the protection towards the most vulnerable in this situation. She reiterated, “we’ve got to protect the most vulnerable in society.”
Social Tariff Instead
Meskell also plans to suggest a “social tariff on energy” so the poorest can truly have lower energy bills, the Guardian reported.
Changes to the Increase in Cap Starts Year End
According to the Office of Gas and Electricity Markets (Ofgem), the increase in the energy cap is set from 1 December 2024. The cost of electricity will increase to £149 per year, around £12 more per month to the bill.
Cap on Kilowatts Charged
The Ofgem sets a cap on energy each year. However, this cap only protects the consumer against providers overcharging. The energy cap covers the maximum per kilowatt charged by providers.
Reevaluated Energy Cap per Annum
The energy cap is reevaluated and changed accordingly each year. Protecting households from paying too much by the provider is a good thing. However, it may “come with a cost.”
Nobody Is Protecting Massive Bills
Sure, the more energy you use, the more you’ll pay, but that doesn’t mean there’s a limit to how much you’ll pay. The cap doesn’t protect utilities.
Unaffordable Winter Heating
For many people struggling to keep things together financially, pensioners will directly feel the negative effects. Some can barely afford the cost of heating and cooling, let alone extra heating costs in winter.
Brits Share Their Anger
Locals shared some of their experiences after hearing the bombshell drop of pensioner winter fuel allowance.
From Suffolk
Cathrine Fuller said her 86-year-old mother broke down in tears after hearing the announcement. She only earns a meager pension left behind by her late husband and cannot afford the cost of heating in winter.
Catherine said she would, fortunately, be able to cover her mum’s £300 heating costs for winter and added that her mum “felt betrayed” by Labour.
From Herefordshire
Jannette Ward recalled the Chancellor’s words: “If we cannot afford it, we cannot do it,” she also added; that’s why she won’t be turning on the heat this winter.
Brace for Impact: The Tax Increase Labour Denied Has Arrived, Reeves Delivers a Grim Outlook
Rachel Reeves delivers the gloomy news, and citizens have to accept the inevitable. The tax increase might complicate finances for some households and businesses. Brace for Impact: The Tax Increase Labour Denied Has Arrived, Reeves Delivers a Grim Outlook
Russia Issues Ultimatum to UK Over Ukraine’s Use of British Arms
Russia has threatened to attack British targets if Ukraine uses UK-supplied weapons amid rising tensions and the recent arrest of a British man charged with spying for Russia. Here’s the full story. Russia Issues Ultimatum to UK Over Ukraine’s Use of British Arms
Tommy Robinson Sparks National Outrage With Far-Right ‘We Want Our Country Back’ Protest in London
Police had their work cut out at a recent protest led by Tommy Robinson in London. Full story. Tommy Robinson Sparks National Outrage With Far-Right ‘We Want Our Country Back’ Protest in London
Featured Image Credit: Shutterstock / Monkey Business Images.