Major energy provider pledges to plug winter fuel payment gap for pensioners

Octopus Energy will cover winter fuel payments for struggling customers following the government’s decision to cut support to only those receiving pension credit.

Almost 10m pensioners will miss out on the winter fuel payment this year, which are worth between £200-£300. Only 1.5m households will receive the support going forward.

In response, Octopus Energy has extended its £30m Octopus Assist fund to offer £50, £100 and £200 ‘winter fuel payments’ to thousands of households affected by the changes.

The Octopus Assist fund has helped 80,000 people over the past three years in a range of different ways including payment breaks, standing charge holidays, and clearing energy bill debt.

It has also given out 60,000 free electric blankets, loaned thermal imaging cameras to help customers in leaky homes find and fix draughts to save on heating bills and visited more than 300,000 homes to give tailored in-person energy-saving advice. While its energy-saving sessions have helped 2m customers save £10m by using less energy during peak periods.

What is the winter fuel payment?

The winter fuel payment is a yearly payment of either £200 or £300 to help pension-aged households cover their bills in the winter.

Until last month, the payment went to all UK households with someone over state pension age. But, under the new Labour government, this support will now only go to households claiming pension credit.

Charities have criticised the changes, which could save £1.5bn, warning people who fail to claim pension credit could face ‘heat or eat’ dilemmas this winter.

Caroline Abrahams of Age UK said: “Our initial estimate is that as many as two million pensioners who badly need the money to stay warm this winter will not receive it and will be in trouble as a result – yet at the other end of the spectrum well-off older people will scarcely notice the difference – a social injustice.”  

According to the Department for Work and Pensions (DWP), last year around 770,000 eligible people failed to claim pension credit, worth a total of £1.5bn.

What is pension credit?

Pension credit is extra money to help with living costs if you’re over state pension age and on a low income. It can also help with housing costs such as ground rent or service charges.

Pension credit is separate from your state pension.

You can get pension credit even if you have other income, a pension, savings or your own home. Even a small award of pension credit can open doors to a wide range of other benefits, such as a free TV licence if you’re over 75, help with NHS dental treatment, glasses and transport costs for hospital appointments.

Am I eligible for pension credit?

Check our benefit calculator to see if you qualify for pension credit.