Mark’s story: How cuts to winter fuel payments are leaving pensioners in the cold

The government’s decision to push ahead with cuts to the winter fuel payment, despite widespread opposition, is causing apprehension for many pensioners. After a parliamentary vote yesterday (10 September), which saw 348 MPs in favour and 228 against, the policy will strip around 10 million pensioners of up to £300 in annual energy bill support. Only pensioners receiving pension credit will continue to qualify.

Opponents argue that the policy change could force many pensioners, who don't meet the threshold for pension credit, to choose between heating and other essentials. With pension credit only boosting annual income to £11,300 for individuals and £17,300 for couples, even those marginally over the limit could struggle. Shockingly, about a third of those eligible for pension credit haven’t applied.

Mark’s story

72-year-old Mark* has an income of £1553 a month, meaning he doesn’t qualify for pension credit. Living in council housing in Nottingham, his utility expenses are just over £300 a month, 20% of his income. With total living expenses of £1,794 a month, Mark has a negative disposable monthly income of £241.

Mark has used a pre-payment meter to help manage his energy budget for the last seven years, but as energy prices climbed, his payments soared from £40 a month to over £60 a week. In desperation, last winter, he turned off his heating altogether.

Mark approached Money Wellness for debt advice as his living expenses continued to rise. By this time, his debts had reached over £9,000. Speaking to our Money Wellness colleague, Mark admitted that the “last two years have been really hard”.

Now, with winter fuel payments no longer on the table and energy prices set to rise by another 10% in October, Mark has no idea how he’ll make ends meet. “I’ll have to go without something this winter. Simple as that,” he said.

Like many, Mark has relied on family support to get by and expects to do the same again this year. He says he is very disappointed in the Labour government.

“If there was an election tomorrow, I’d vote Conservative and I’ve been a working man all my life. He [Keir Starmer] has let a lot of people down, to be honest,” he said.

His fears don’t stop with the fuel payments. Mark also worries about the potential removal of the single person council tax discount, which reduces his bill by 25%. While the government hasn’t yet made any decisions on this, it’s another source of anxiety for pensioners like Mark, who already feel the burden of financial uncertainty.

Silver Voices speaks out

Dennis Reed, of the senior citizen campaign group Silver Voices, shares Mark’s concern. He said:

"The single-person discount helps many widows and widowers. They are already going to be struggling after the winter fuel allowance cuts, which came out of the blue and are cruel as well as crude. The punishment for older people is adding up by the day."

Our recommendation to Mark

After assessing Mark’s financial situation, we found no way for him to cover his debts while still managing basic living costs. With over £9,000 in debt, we recommended a debt relief order (DRO). This will give Mark a 12-month reprieve from debt repayments. If his situation doesn’t improve during that time, the debts will be written off.

Could a DRO help you?

A DRO is just one of a range of solutions we offer customers struggling with problem debt.

When you contact us for help, we’ll look at your finances in detail and let you know which, if any, debt solutions are suitable for your situation.

DROs are available in England, Wales and Northern Ireland.

A DRO may be suitable for you if, like Mark:

• owe £50,000 or less
• aren’t not a homeowner
• don’t own anything of much value
• have very little spare money at the end of the month

A DRO lasts 12 months. After that time, if your situation hasn’t improved, the debts included in your DRO are written off.

During your DRO, lenders aren’t allowed to chase you to pay.

Before applying for a DRO, it’s important to bear in mind that it will stay on your credit file for six years. You’re likely to find it difficult to borrow from mainstream lenders during that time.

You also need to be aware that if your financial situation improves during the 12 months, your DRO will end and you’ll need to arrange to repay your debts.

Money Wellness’ concerns about the winter fuel payment decision

We’re deeply concerned about the impact this policy will have on pensioners like Mark. Removing winter fuel payments from those who don’t receive means-tested benefits is a risky move, potentially pushing vulnerable individuals into debt and exacerbating health risks during the cold months.

We’re calling on the government to:

• scrap (or at least pause for this winter) the decision for winter fuel payments to be available only to pensioners on means-tested benefits 
• develop a pension credit take-up strategy to ensure everyone eligible for pension credit gets it 
• make sure sufficient support is available for pensioners who aren’t receiving payments and may be vulnerable to financial hardship, to ensure they can keep warm this winter 

Want to find out how we can help you?

To get help with your debts, you can either complete our online advice journey at a time and place to suit you. Or you can ring us on 0161 518 8285. We’re here Monday to Friday 8am to 8pm and over the weekend between 10am and 4pm.

*Name changed to protect our customer’s identity.