It was revealed earlier this week that winter fuel payments were going to be restricted but upcoming fixed-rate tariffs from energy suppliers could be the answer to beating it. Chancellor Rachel Reeves revealed a plan that is set to shut a £22 billion loss in public finances and a big part of the plan was to squeeze the winter fuel payments for pensioners, a plan she claims is not a ‘decision’ she wanted to make.
What Are Winter Fuel Payments?
Winter fuel payments were a way of helping pensioners with their heating bills every single winter. Implemented in 1997, the payments could have been anywhere between £100 and £300, based on those claiming a state pension and any other benefits.
Is it Worth Getting a Fixed Rate Tariff?
Energy suppliers have introduced worthy fixed rate tariffs that could combat the cancellation of winter fuel payments. The new tariffs offer a guaranteed unit price and standing charge that will remain in place for the next year. An energy bill under one of these fixed tariffs would depend on how much energy is used.
Out of all the suppliers, Outfox the Market ‘Fix’d Dual Jul24 v3.0’ is fixed at a total of £1,558 for a household under a casual amount of energy consumption. Customers should sign up through the company rather than through a switching website.
Suppliers with fixed tariffs:
- British gas
- EDF
- Octopus Energy
- Co-Op Energy
How Much Could Be Saved with a Fixed Rate Tariff?
Cornwall Insight analysts have predicted that the energy cap will increase in October to over £1,700 and remain this high until the next energy price cap in March, though the new tariffs should save around 10% to combat difficulties created by the suppression of the winter fuel payment.
Could Home Energy Upgrades Help?
There are a few government-backed grants that could help alleviate some of the stress brought on by changes to the Winter Fuel Payments:
To find out if you are eligible to apply for any of these grants, and receive free or discounted energy upgrades, click the button below!
See what Martin Lewis had to say about the ‘squeeze’ in our article below.
Martin Lewis is against the Winter Fuel Payment being ‘squeezed’
