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Politics
17 September 2024

Councillors Demand Action On Fuel Payment Cuts

Lincolnshire councilors urge restoration of winter fuel payments as Ovo Energy announces new support fund

Councillors Demand Action On Fuel Payment Cuts

Plea from Lincolnshire County Councillors to Reverse Government’s Blunt and Insensitive Winter Fuel Allowance Cuts

Concerned councillors have urged the Labour government to review its decision to remove the winter fuel allowance for all but the most financially vulnerable pensioners. During a full council meeting on Friday, county councillors from across Lincolnshire described the decision to limit the winter fuel allowance to only those claiming pension credit or other means-tested benefits as "reckless" and "insensitive".

Waddington and Hykeham East Councillor Tom Dyer (Conservative) brought forward a motion urging Chancellor of the Exchequer Rachel Reeves to reconsider the policy and to publicly support the 'Save the Winter Fuel Payment' petition run by Age UK. "It is deeply disappointing," Dyer stated, voicing his concerns over the impact this could have on vulnerable residents.

Dyer explained, "Scrapping the winter fuel allowance is a blunt and insensitive measure. It completely disregards the plight of pensioners relying on support to stay warm during the winter months. While they may not qualify for additional benefits, they still heavily depend on the winter fuel payment to handle energy costs, especially during the colder months." This allowance had benefited around 170,000 people in Lincolnshire last year, and with the new reforms, only about 21,000 will continue to receive it.

Last week, Conservative MP for Harborough, Neil O’Brien, provided data showing the extent of the cuts, which revealed alarming figures: 215,897 individuals across Lincolnshire were set to lose their winter fuel payment. Addressing the council, Dyer emphasized the moral obligation to step up for pensioners "where the government has failed. We cannot and must not stand by as pensioners face abandonment."
Fellow Conservative councillor Hilton Spratt expressed strong support for Dyer's motion. He mentioned how his own pensioner friend was "absolutely disgusted" by the government’s move. He articulated his concerns stating, "The poor will still receive some aid, but if this continues, where will it lead? Will we see similar cuts to old age pensions?"

The motion advocating for the retention of winter fuel payments passed overwhelmingly by 51 votes to five abstentions.

Meanwhile, Lincoln's Labour MP Hamish Falconer, during questions from the BBC, acknowledged the backlash but defended the decision as part of addressing the staggering £22 billion deficit. "We must rectify it, and nobody wants to make these kinds of decisions, but it’s something we’re forced to do." This statement has not quelled the growing indignation over the cuts, especially among those genuinely struggling to maintain warmth during the cold winter months.

On the other side, Ovo Energy has announced its own response to these developments. Following reports of the government cutting winter fuel payments for millions of pensioners, Ovo unveiled a £50 million energy bills support scheme. This initiative includes various forms of assistance for customers having difficulties paying their energy bills.

The funding will facilitate direct cash support for customers, reduced direct debit payments, personalized energy-saving advice, and even home improvements like insulation or new boilers. Ovo's chief executive, David Buttress, emphasized the company's commitment to helping "customers navigate the winter months."

This new support scheme builds on Ovo's previous aid packages of £40 million last year and £50 million the year before. The announcement came amid criticisms of the UK government’s decision to restrict winter fuel payments to pensioners who only qualify for pension credit, which Truthfully, means approximately 10 million people will now miss out on this payment.

The government justified this cut by citing fiscal responsibility, asserting it needed to address what they call a financial "black hole". Critics, including some Labour MPs, counterargue this rationale. Considering pension credit only provides additional support for those making under £11,300 annually, many who do not qualify remain at risk of being unable to cover their bills.

At present, Ovo is one of the largest energy suppliers, trailing behind Octopus Energy, British Gas, and Eon Next. The company's latest support initiative is set to commence on October 1; customers are encouraged to visit the Ovo website to determine their eligibility. Buttress, highlighting the urgency of sustainable solutions, urged the need for implementing social tariffs which would offer targeted discounts for customers with low incomes.

"We’re not just here to help our customers during the cold today, but we must implement longer-term strategies to support them effectively," Buttress stated. He continued expressing this new focus on equity access within the energy sector.
Meanwhile, another major player, Octopus Energy, is also stepping up its efforts to aid those adversely affected by the withdrawal of the winter fuel payments. Chief executive Greg Jackson remarked on the responsibility of all energy suppliers to provide assistance to customers impacted by these changes. Octopus has announced it will extend its £30 million assistance fund throughout this winter.

These collective actions from energy suppliers highlight the increasing recognition of the challenges the cold seasons present for vulnerable populations, particularly those relying heavily on government assistance for basic needs.

With winter fast approaching and energy costs expected to climb, this remains not just about energy payments but about how society, through its policies, chooses to protect its most vulnerable members. The outcomes of these developments will continue to draw public attention and pressure on both the government and energy companies.

Residents throughout Lincolnshire and beyond are closely watching how this will affect their financial stability this winter.

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