Plaid Cymru urges UK Government to rethink Winter Fuel Payment cut amid energy bill hike

Plaid Cyrmu has urged the UK government to reconsider its cut to Winter Fuel Payments.

It comes after Ofgem announced a 10 per cent increase in the energy price cap starting from 1 October 2024.

The increase will see the average annual energy bill for a dual-fuel household paying by direct debit rise to £1,717, adding approximately £12 per month to the typical bill

This increase comes as part of Ofgem’s quarterly adjustment of the energy price cap, which limits the maximum amount energy suppliers can charge customers per unit of energy and through standing charges.

Although the new cap represents a significant increase over the previous quarter, it is still six per cent lower than the same period last year, when the average bill was £1,834.

Ofgem has stated that the primary driver behind this latest hike is ongoing volatility in the global energy market, exacerbated by geopolitical tensions and extreme weather events that have intensified competition for gas supplies.

The announcement from Ofgem comes just weeks after the UK government announced plans to introduce means-testing of the Winter Fuel Payment, which is designed to help pensioners manage higher heating costs during the colder months.

This means that the payment will be restricted to individuals over the state pension age who are also receiving pension credit or a select few other benefits, including income support, income-based jobseeker’s allowance, income-related employment and support allowance, and universal credit.

As a result, eligibility has been drastically reduced from 11.4 million people to approximately 1.5 million.

According to Plaid Cymru cutting the Winter Fuel Payments will “put the health of millions of older people at risk.”

The party is now calling on the UK government to reconsider its proposals to scrap the Winter Fuel Payment of up to £300 for 10 million pensioners.

Plaid Cymru Westminster leader, Liz Saville Roberts MP said: “A typical household’s energy bill will rise by £149 in October under the new Ofgem price cap, in yet more worrying news for households as we approach winter.

“In this harsh context, the Labour UK Government’s decision to scrap the Winter Fuel Payment of up to £300 for 10 million pensioners risks putting the health and finances of millions of older people at risk.

“This follows a painful reduction in support for disabled people when cost-of-living payments for those on benefits were cut in February this year.

“Labour holds the power to protect vulnerable households this winter. Plaid Cymru urges them to act now and ensure no pensioner is left to suffer in the cold.

“The UK Government must reconsider its decision to axe the Winter Fuel Payment for most pensioners.”

Speaking in the House of Commons earlier this month Chancellor Rachel Reeves said: “I am making the difficult decision that those not in receipt of Pension Credit will no longer receive the Winter Fuel Payment from this year onwards.

“Let me be clear: this is not a decision I wanted to make, nor is it one that I expected to make.

“But it is a necessary and urgent decision I must make – it is the responsible thing to do to fix the foundations of our economy and bring back economic stability.”