After cuts to those eligible for the winter fuel payment were confirmed in July, many of the UK’s most vulnerable people were left wondering how they would pay for fuel this winter.
The cuts were confirmed by Chancellor of the Exchequer Rachel Reeves in July. Under the new rules the payments, worth up to £300 a year, are only available to those in receipt of Pension Credit.
The number of potential recipients has therefore dropped from 11.4 million people in 2023 to just 1.5 million in 2024.
What is the winter fuel payment?
The winter fuel payment is an annual grant of either £200 or £300. It’s paid by the UK government to vulnerable households to help cover winter fuel bills.
Prior to this year, the payment was available to anyone born before September 1958 and in receipt of a state pension. Now, only those who receive Pension Credit qualify for the payment.
This limits the support to the bottom 13% of the lowest-income pensioners, leaving millions without support.
What is Octopus Energy doing to help?
Octopus Energy have confirmed their support fund Octo Assist will be available this winter.
The £30 million fund is open to applications from those experiencing financial hardship, including pensioners no longer set to receive the winter fuel payment.
Applicants can receive bill credit of £50, £100 or £200 to help with winter bills.
Other help is also available depending on your financial situation. Vulnerable customers can receive a waiver of their standing fees, free electric blankets or a bill payment holiday.
Octopus’s other energy initiatives
The Octo Assist fund is available on a needs-tested basis, but Octopus Energy is also experimenting with new initiatives for all its customers to help save energy and keep bills down.
As part of their Octoplus rewards programme, Octopus currently offer ‘free energy’ sessions when the grid is at a surplus. When the wholesale price of energy drops below £0, customers will be alerted that they can use electricity for free at home.
Another scheme is the ‘Octoplus Saving Sessions’, currently on hold but scheduled to return in winter 2024. Customers with a smart meter can register to be part of the scheme for free. They’re notified of periods of expected high energy demand, the saving sessions.
Cutting their household usage during these sessions earns the participants ‘Ocotopoints’, which can be exchanged for rewards including bill credit. The savings are in comparison to the expected usage for a household of that size.
With energy costs expected to rise in October and again in January, customers on standard variable tariffs will see their bills climb this winter. Along with changes to the winter fuel payment, the increase will leave more households struggling with the cost of energy.
We currently recommend switching to a fixed rate tariff to beat the price jumps. Read more about what that means for your bills and how to switch here.
