Millions of pensioners are being warned of tough months ahead, with a number of bills going up after they lost their Winter Fuel Payments. Experts fear things will become more challenging for poorer pensioners, particularly after around two million on low incomes did not receive their Winter Fuel Payments, worth up to £300, after they were made means-tested by the Government.
It’s created a massive hole in their finances, just as households bills are about to go up. While some pensioners may be able to access certain discounts and support, millions will be left having to pay more each year.
In April, energy bills are set to rise by £87 a year for the typical household, on top of a £21 increase in January. Average water bills are also expected to soar by £86 a year. Combined it will leave impacted pensioners some £473 worse off.
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Some of this pain will be offset by a 4.1% increase to the state pension from April. Experts from Spencer Churchill Claims Advice said: “The decision to reduce Winter Fuel Payments has added to the strain on many households, particularly at a time when heating costs are soaring. While some pensioners are still waiting for their payments, the delay highlights the urgent need for a more streamlined and reliable support system to help them manage these costs effectively.
They added: “Pensioners are grappling with unprecedented financial challenges as inflation continues to drive up the cost of essentials such as food, heating, and water. For many, these rising expenses are outpacing their state pension increases, leaving a significant gap that is hard to bridge.
“Inflation hit 2.6% in November, continuing its sharp rise through late 2024, while wages have remained largely stagnant. The state pension will rise by 4.1% this year, benefits by just 1.7%, and the national living wage by 6.7%. However, these changes are unlikely to keep pace with the mounting costs pensioners face this winter.”