Consumers call for change to winter fuel payments

Consumers would give the Government a green light to overhaul the winter fuel allowance, according to new research from uSwitch.com. Over eight in ten (82%) would like to see winter fuel payments restricted to those living in the UK, while the consensus is that eligibility should be based on more than just date of birth.
 
Currently the allowance goes to anyone born on or before 5th July, 1951. However, almost half of consumers (49%) want winter fuel payments to be means tested, while almost six in ten think health should be taken into account as well as age (58%). With households battling with the rising cost of living, over half (55%) also think that payments should automatically increase in line with inflation.
 
But while wishing to see eligibility tightened in some areas, many also want to see the allowance go to a broader range of people, including those with disabilities. Six in ten (60%) believe that people with disabilities should be entitled to the money while 52% think lower income households should get the extra help. Almost a quarter (23%) think the unemployed should get the extra cash to help with winter energy bills.
 
The high profile campaign by wealthier, celebrity ‘pensioners', such as Joanna Lumley and Esther Rantzen, has also touched a nerve. Two thirds of consumers (66%) think that people should be allowed to opt-out of winter fuel payments if they can afford their energy bills without them. At the moment, those who don't need the cash cannot give it back.
 
But despite the media spotlight, consumers are also confused about winter fuel payments. Four in ten consumers (41%) do not know how much the allowance is (£100 - £300 a year) and just 18% are aware that anyone born on or before 5th July, 1951 is eligible.
 
Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "With household energy bills at a record-high, winter fuel payments can be a life-line for state pensioners struggling to get by. Our research shows overwhelming support for the allowance to continue, but a growing recognition that payments could be better targeted at those who actually need the extra help.
 
"Almost seven in ten households (69%) have gone without heating at some point this winter to keep their energy costs down, while over a third of people (35%) say that cutting back on energy usage is affecting their quality of life or health - up from 15% last year. Limiting winter fuel payments to those living in the UK and giving wealthier recipients the right to opt-out could prove popular moves and would put more money in the kitty for those in greater hardship.
 
"Britain is on the cusp of an energy affordability crisis and while the Government should do all it can to help, consumers must also protect themselves. There are two simple steps we can all take to keep a lid on our bills: use less energy by making our homes more energy efficient and make sure we are paying the lowest possible price for the energy we do use. There is currently almost £250 difference between the cheapest and most expensive tariffs on the market - this could make a huge difference in helping people to afford to keep warm."