After Chancellor Rachel Reeves announced plans to cut the pensioner fuel allowance, the news sent shockwaves through the UK’s elderly community. A financial journalist is now urging a reconsideration of the decision.
Pensioners Are the Most at Risk
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 meagre 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.
The Great Escape: Wealthy Brits Flee to Dodge Labour Taxes
As the UK prepares for potential tax reforms, the wealthy flee in droves to avoid paying their fair share, sparking a contentious debate over tax avoidance and economic unfairness. Here’s the full story. The Great Escape: Wealthy Brits Flee to Dodge Labour Taxes
20 Signs Millennials Are Rejecting the UK’s Woke Culture
Are Millennials across the UK starting to question the pervasive ‘woke’ culture? As they navigate an increasingly complex social and economic landscape, many are seeking more practical, nuanced approaches. 20 Signs Millennials Are Rejecting the UK’s Woke Culture
New Era: Labour Enforces Strict Immigration Control With Deportations and Convictions
More than 40 criminals and migrants are sent back to Vietnam and Timor-Leste. It’s a victory as a UK-based criminal gang is sentenced. Here’s the story. New Era: Labour Enforces Strict Immigration Control With Deportations and Convictions
Featured Image Credit: Shutterstock / Monkey Business Images.
The images used are for illustrative purposes only and may not represent the actual people or places mentioned in the article.