State pensioners warned Winter Fuel Payment axe will turn into £732 blow

State pensioners have been warned they face a fresh £21 blow - after losing the Winter Fuel Allowance. Ofgem has confirmed that the price cap will increase to £1,738 a year between January and March 2025, representing a £21 hike in energy bills for the typical household.

It marks a £144 monthly bill - which on top of losing the Winter Fuel Payment, means state pensioners face a £732 blow between January and spring. Caroline Abrahams, the charity director at Age UK, broke down why older households are concerned about the cost of living over the upcoming festive period.

"Older people, struggling without their Winter Fuel Payment, who were praying for a reduction in energy prices to help them in the New Year, will be bitterly disappointed today," she shared. "The news that the energy price cap is instead slightly rising is the latest in a series of blows for pensioners living on a low or modest income, who do not receive Pension Credit because they don't claim it or are not eligible.

READ MORE All the nine parts of UK facing 15 inches of snow on Saturday

"There are millions of older people in this situation and we know that many are hoping against hope that something will turn up to help ease their situation over the next few months, when the weather is at its coldest.

"If you are an older person for whom every penny counts, managing your energy bills until the rise in your State Pension starts coming through from April, just got harder." Holly Holder, the deputy director of Homes at the Centre for Ageing Better, explained: "This week we learned that the removal of the winter fuel payments will drive 100,000 more pensioners into poverty by 2026.

"Today’s news of the increase to the energy price cap will only add to the gloom of many older people who will be wondering how they will keep themselves warm this winter. Yesterday’s announcement on the Warm Homes Plan is welcome but it does not go far enough to tackle an issue of this magnitude and severity.

"This national strategy must be backed by sufficient, long-term funding and include a mechanism for delivery at the local level, such as Good Home Hubs which would allow people to access trustworthy support to guide their home improvements.”