12 March 2010 – More winter help on way to poorest pensioners

Hundreds of thousands of the poorest pensioners should benefit from lower fuel bills this winter thanks to a deal announced today between the big six energy suppliers (British Gas, EDF Energy, EON, Npower, Scottish Power and Scottish and Southern Energy) and the Government.

As a result, up to 250,000 of the poorest pensioner households should see an £80 rebate off their electricity bills

As part of the deal, the Government will share data securely with the energy suppliers so that they can identify the most vulnerable pensioners.

Secretary of State for Work and Pensions, Yvette Cooper said:

"I don’t want any vulnerable pensioners to be afraid to turn up their heating. That's why we’ve spent a record £295 million in cold weather payments and £2.7bn in winter fuel payments so far this winter.

"This deal will now deliver extra help of £80 to some of the poorest of pensioners over 70 and give them the reassurance they need as we come out of the coldest winter in decades.

Energy and Climate Change Secretary Ed Miliband said:

“This breakthrough should provide cut price energy this year to those poorest and most vulnerable pensioners struggling with bills. It will also test how future energy bill rebates could reach those most in need of help.

“As part of our efforts to tackle fuel poverty, we’ll be requiring energy companies to double their collective spend to £300m a year by 2013, helping more of their most vulnerable customers with their energy bills.”

In most cases the rebate will be awarded automatically by electricity suppliers, without the need to claim. Where this will not be possible, we will write to individuals advising what they need to do so that they do not lose out.

Those pensioners covered by the scheme do not have to do anything at the moment. They will be contacted by DWP if the scheme applies to them. Full details about all the qualifying criteria are expected to be available by the end of March. An enquiry line has been set up, which can provide more details on the Scheme.  0845 600 0033.

Help will be targeted at households where a person, or one person in a couple, is aged 70 or over, and in receipt of only the guarantee credit element of pension credit on the qualifying date of 26 March 2010.

Notes to Editors:

1. The scheme will deliver a rebate this year on electricity bills to some older people. They may be eligible if, on 26 March 2010, all of the following apply to them (or their spouse or partner):

• they are aged 70 or over 
• they receive the guarantee credit element of Pension Credit but not the savings credit element 
• they are responsible for the electricity account where they live

Further criteria may apply which we will specify by the end of March.

2. The energy companies covered in the deal are;

British Gas, EDF Energy, E.ON, Npower, Scottish Power and Scottish and Southern Energy.

The trading names of the energy suppliers involved in the scheme are:

British Gas, Scottish Gas,  EDF Energy, Sainsbury's Energy, E.ON, Npower , npower juice, National Trust Green Energy , Utility Warehouse, ScottishPower, Manweb, Southern Electric, SWALEC, Scottish Hydro, Atlantic, Ebico, M&S Energy.

3. The Energy Bill, if approved by Parliament, will provide mandatory social price support, such as in the form of an electricity bill rebate. This builds on the success of the voluntary agreement with energy companies which ends in 2011 and has helped reduce the fuel bills of more than one million vulnerable customer accounts. The level of support to be provided through the new mandated scheme will be £300m a year by 2013-2014.

4. The £80 rebate forms part of the voluntary agreement between Government and energy suppliers. This voluntary agreement followed an announcement in the Budget 2008, when the big six energy suppliers agreed to increase their collective annual spend on programmes of social assistance to £100 million in 2008-09, £125 million in 2009-10, rising to £150 million in 2010-11. In 2007-08, the year before these agreements were signed, spending on these programmes stood at £57million. In the first year of the agreement suppliers spent an extra £57m from what they had agreed with Government.

5. Anyone aged 60 or over on or before 27 September 2009 may qualify for a Winter Fuel Payment of £250 per household. Households with someone aged 80 or over could get a payment of £400. Where 2 or more eligible people share a household payments made at a shared rate. The Winter Fuel Payment is one of a number of initiatives the government has introduced to help older people keep warm and well during the winter months.

6. People over 60 who are newly eligible and who need to claim, and have not already received a claim form, can get one by visiting the Winter Fuel Payment website – http://www.direct.gov.uk/winterfuel, or by calling the helpline on 08459 15 15 15 (0845 601 5613 for textphone users).

7. The vast majority received their Winter Fuel Payments before Christmas. Over 60s who haven’t yet claimed the Winter Fuel Payment have just weeks to get in touch with The Pension Service to receive help with energy costs

8. All claim forms for the Winter Fuel Payment must be received on or before 30 March 2010 to meet the deadline.  To get a claim form Call the Winter Fuel Helpline on 0845 9 15 15 15 or go online at http://www.direct.gov.uk/winterfuel

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Website: www.dwp.gov.uk