BILL CHANGE
Martin Lewis issues urgent warning for 11.5million households set to miss out on up to £600 energy bill help this winter
Watch Martin Lewis give his verdict on Ofgem's new energy price cap
MARTIN LEWIS has issued an urgent warning for millions of households that are set to miss out on up to £600 energy bill help.
It comes as the energy regulator Ofgem confirmed the new price cap figure this morning, which comes into effect on October 1.
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The cap will rise from the current rate of £1,568 a year to £1,717.
It means the average household paying by direct debt for dual fuel will see their annual bill go up by £149, or around £12 a month - a 10% increase.
Martin Lewis has expressed concern that households, particularly pensioners, will now be going into the colder months facing higher bills.
The new Labour Government decided to stop winter fuel payments for those who are not in receipt of pension credit or other means-tested benefits.
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Last year, payments of up to £600 were available to 11.5million households on the state pension and other benefits.
The amount included the winter fuel payment, worth up to £300, and a Pensioner Cost of Living Payment, worth between £150 and £300.
Figures released earleir this month by the government show a 3% fall in new Pension Credit claimants and put the number of eligible individuals not claiming at 1.2million.
These households risk being cut off from the winter fuel payment.
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Martin Lewis, the founder of MoneySavingExpert (MSE), took to X, formerly known as Twitter, to remind households that they won't be receiving the full amount of support this year, and some may miss out completely.
Martin Lewis wrote: "The government must rethink winter fuel payments or almost all pensioners will need to find £100s more than last winter.
What is the energy price cap?
"While energy will cost less than during last winter’s crisis time, the reduction in rates only equates to a drop of roughly £100 over the six winter months for a household with typical usage.
"Yet specific pensioner energy support has dropped by far more.
"Piling on top of that is the government's new decision to means-test Winter Fuel Payments, which will leave all except usually those who claim Pension Credit missing out on a further £200 - £300."
Pension Credit tops up your weekly income if it's below £218.15 if you are single or to £332.95 if you have a partner.
What does the new price cap mean for me?
OFGEM has confirmed the new energy price cap, which comes into effect on October 1.
Senior Consumer Reporter Olivia Marshall explains what it means for you.
The cap will rise from the current rate of £1,568 a year to £1,717.
It means the average household paying by direct debt for dual fuel will see their annual bill go up by £149, or around £12 a month - a 10% increase.
But bear in mind the exact amount you pay can be higher or lower depending on your usage, and the cap is reviewed every three months.
Around 29 million households are on standard variable tariffs which are affected by the price cap, according to Ofgem.
The energy regulator said the price a supplier can charge for gas will rise from 5.48p per kWh today, to 6.24p from October 1.
The price of electricity will rise from 22.36p per kWh to 24.50p, Ofgem said.
Standing charges, which cover things like maintaining the network and operational costs, will rise to 31.66p from 31.41p a day for gas and from 60.12p to 60.99p for electricity.
The price cap also varies depending on the way you pay.
The £1,717 price cap from October will apply to those who pay by direct debit.
For those on prepayment meter it will be £1,669 and £1,829 for those paying on receipt of bills.
Those with income over this can still get the help too if they have certain other costs, like housing.
The benefit is worth an average of £4,000 a year to claimants and give entitlement to a number of other benefits and freebies, including a free TV licence, which together can be worth an additional £8,000 a year.
To qualify for this year's winter fuel payment, you must have been claiming Pension Credit payments during the qualifying week.
This will take place between September 16 and 22.
With this in mind, it's wise to put in an application as soon as possible, as the Department for Work and Pensions can take up to two months to process new claims.
What is Pension Credit?
Pension Credit is extra money to help with living costs.
It’s available to those who are over the state pension age of 66 and on a low income.
Pension Credit tops up your weekly income to £218.15 if you are single or to £332.95 if you have a partner.
It can also help with housing costs such as ground rent or service charges.
Pension Credit is separate from your State Pension and can be claimed even if you have other income, savings or own your house.
And, if you’re a carer, are severely disabled, or are responsible for a child or young person, you could be entitled to extra help.
Who’s eligible for Pension Credit?
To be eligible for Pension Credit, you must live in England, Scotland or Wales and have reached State Pension age (currently 66).
You must include your partner on the application if you live together and to be eligible you must have both reached state pension age or receive housing benefit for people over state pension age.
To be eligible, your income must be below £218.15 if you’re single, or £332.95 jointly if you’re applying with a partner.
Income includes State Pension, other pensions, earnings from employment or self-employment and most social security benefits.
Some benefits are not included such as:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Personal Independence Payment
- Social fund payments like Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction
If you’re entitled to a personal, state or workplace pension and you have not claimed it yet, the amount you’d expect to get still counts as income.
If your income is above the threshold, you could still be eligible if you have a disability, you care for someone, you have savings or have housing costs.
Savings under £10,000 will not affect your Pension Credit, if you have more than £10,000, every £500 over £10,000 counts as £1 income a week.
How do you apply?
You can start your application for Pension Credit up to four months before you reach .
To apply you’ll need to provide your National Insurance number, information about any income, savings and investments you have, and your bank account details.
If you live with a partner you’ll also need to provide their details.
You can apply online or by calling 0800 99 1234.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity works out what you could get.
Entitledto's determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto's data.
You can use to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
What else can you get?
Pension Credit tops up your weekly income to £218.15 if you’re single, or £332.95 jointly if you have a partner.
You may get extra amounts if you have other responsibilities and costs.
If you have a disability, you could get an extra £81.50 a week if you receive any of the following:
- Attendance Allowance
- Disability Living Allowance (middle or highest rate)
- Personal Independence Payment (daily living component\0
- Armed Forces Independence Payment
- Adult Disability Payment (daily living component at the standard or enhanced rate)
You could get an extra £45.60 a week if care for another person and you receive:
- Carer’s Allowance
- Carer Support Payment
- Or if you’ve claimed Carer’s Allowance but are not being paid because you receive another benefit of a higher amount
If you and your partner have both claimed or are getting Carer’s Allowance, you can both get this extra amount.
You could also get an extra £66.29 a week for each child or young person you’re responsible for, increased to £76.79 a week for the first child if they were born before 6 April 2017.
The young person must normally live with you and be under the age of 20.
If they’re aged between 16 and 20 they must be studying for GCSEs, A-Levels or similar, or be in approved training.
If the child or young person is disabled you could claim an extra £35.93 a week.
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Pension Credit can also be granted to help with housing costs if you pay ground rent on a leasehold, service charges or site rents.
If you receive the Guarantee Credit part of Pension Credit, you can also get help with NHS costs.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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