Millions of state pensioners dealt new £21 blow

Millions of state pensioners who have already lost their Winter Fuel Payments have been warned they will face more financial pain from the start of the new year. Around 10 million older people will no longer get the winter support payments worth either £200 or £300 after they were made means tested.

And in a fresh blow, it has now been confirmed energy bills will be rising again from January. It will no doubt come as more frustration to low-income pensioners who will not only be missing out on the Winter Fuel Payment, but will also have to find more money to cover energy bills.

It follows warnings tens of thousands of more pensioners could be pushed into poverty as a result of the Government's decision. Energy regulator Ofgem confirmed gas and electricity charges would increase by £21 a year for the typical household from January.

READ MORE: Households told £147 cost of living payments to enter bank accounts

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Experts have warned bills will likely remain high throughout 2025, while pensioners often pay more as they generally spend more time at home. Only the poorest pensioners will continue to receive the Winter Fuel Payment, though Age UK says around two million on low incomes will no longer get it and could be left struggling to heat their homes as a result.

According to the Government's own estimates, in the years ending March 2025, March 2026 and March 2028 there will be an additional 50,000 pensioners in relative poverty after housing costs. Labour MP Debbie Abrahams, chair of the DWP committee, voiced concerns about her own Government's policies and said: "We understand the rationale as part of the effort to restore the UK's finances, but it's concerning that potentially tens of thousands would sink below the poverty line without other kinds of support.

"Just one falling into it is a tragedy. It gives just a hint of how many pensioners could be struggling, but are we doing enough for them?"