Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown: The announcement will give some certainty for pensioners worried about escalating fuel bills this winter. Energy prices are still sky high with the cap at around £2,500 but this is much better than the £3,549 cap that was due to kick in in October and a mile away from the eye watering further increases predicted for next year.
Added to the package of measures previously announced – for instance the £300 pensioner cost of living payment and the £400 payment to energy suppliers, it should keep payments at a similar level to what they are paying now. However, this comes as little comfort to those already struggling to make ends meet and the reality is, we still face a long hard winter with many pensioners facing difficult decisions about how they manage their fuel bills alongside soaring food prices.
The average income for a pensioner couple is around £5111 per week so even at this new level some pensioners could see fuel bills taking up almost 10% of their income. Single pensioner households could find it harder still – if their fuel needs hit the price cap that’s a whopping 19% of their income allocated to keeping the lights on and the heating running.
Those pensioners solely dependent on the state pension will find it hardest of all – a full new state pension pays out just over £9,600 a year while those on the basic pension get just under £7,400 – energy bills will continue to be an enormous source of stress. Under the triple lock, pensioners are in line for a blockbusting inflation-linked increase next April, but with the cost of bills biting now that feels like a very long way away.
It is hugely important that pensioners on a low-income check if they are eligible for Pension Credit. This tops up your income to £182.60 per week if you are single or £278.70 if you are in a couple. It will also act as a gateway to other benefits such as help with Council tax, Cold Weather Payments and a free TV licence for the over 75s. Most notably it also means claimants are eligible for a £650 cost of living payment. It is a hugely important benefit that remains underclaimed. If you think you or a loved one might be eligible you can find out more here Pension Credit: How to claim - GOV.UK
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