It’s a worrying time for pensioners. With rising bills and cuts to support, it’s crucial to understand the changes and take steps to protect your finances.
The Government is ending the £300 Winter Fuel Payment for millions of pensioners. This is on top of the energy price cap rising by £149 in October, with another increase planned for January. This means some pensioners, especially those already on a tight budget, could face a real financial crisis.
The National Pensioners Convention (NPC) has warned that some pensioners are “only just above the pension credit qualification” and “only need one bill to increase and their budget goes out the window.”
What’s Being Done?
The Government argues that axing the Winter Fuel Payment will save £1.5 billion. However, they’re also extending the Household Support Fund to help struggling pensioners. This fund is run by local councils and offers help with energy bills, food, and other essential items.
5 Steps to Protect Your Finances
Here are five practical steps you can take to shield yourself from rising costs:
1. Check Your Pension Credit Eligibility
Did you know that over 800,000 people eligible for Pension Credit aren’t claiming it? Pension Credit could mean an average of £3,900 per year extra for you, even if you have savings. This payment is also crucial to qualify for the Winter Fuel Payment in 2024/2025. You can check your eligibility on the GOV.UK website.
2. Find Out About Your Local Household Support Fund
The Government’s Household Support Fund could provide some financial help with bills and other essential items. Contact your local council to find out more about what’s available in your area.
3. Reduce Your Energy Use
Here are some tips to cut down on your energy bills:
- Use timers for your heating.
- Unplug unused devices (even if they’re turned off).
- Take showers instead of baths, and keep them short.
- Dry clothes naturally, not in a tumble dryer.
- Turn off radiators in unused rooms.
- Insulate your loft.
- Install a free smart meter to monitor your energy usage.
4. Consider Fixing Your Energy Bills
Locking into a fixed-rate energy deal might save you money in the long run. Check with energy suppliers like British Gas, Octopus Energy, and Eon to see what fixed-rate deals are available. You can use comparison websites like Moneysupermarket or Uswitch to compare deals and find the best option.
5. Review Your Budget and Look for Savings
Take a close look at your budget and see where you might be able to cut back. This might help compensate for the loss of the Winter Fuel Payment.
Remember, it’s important to stay informed about the latest changes and to take steps to protect your finances.