British pensioners are set to face a stark £500 increase in their energy bills this winter, whilst their French counterparts will see costs fall.
This increase comes at a particularly challenging time for pensioners, as Chancellor Rachel Reeves has decided to axe Winter Fuel Payments for most elderly households.
French households on the state-regulated tariff can expect their electricity bills to drop by up to 15 per cent from February, thanks to falling global fuel prices.
The French regulator announced that a family paying an annual electricity bill of €2,000 (£1,690) would save at least €200 from February onwards, whereas British billpayers will see a surge from October due to a change in the energy price cap.
The absence of last year’s cost-of-living support and the axing of Winter Fuel Payments will compound the issue for elderly households with elderly households expected to face their “worst winter on record”.
Simon Francis, at the End Fuel Poverty Coalition warns that pensioners’ bills will jump by 39 per cent in real terms, around £483 a year.
The average household energy bill is instead set to rise by 10 per cent in October
PA
Dr Craig Lowery of Cornwall Insight described the situation as “a perfect storm for households”, citing Britain’s heavy reliance on imported energy and a volatile wholesale market.
Analysts predict further increases, with the price cap potentially rising to £1,762 in January.
While bills will be lower than last winter’s peak of £1,834, the absence of universal cost-of-living support leaves many elderly households vulnerable.
The situation in France stands in stark contrast to the UK. Most French households are signed up to EDF’s tariff bleu, regulated by the national energy commission.
French households will see a reduction in prices due to falling global fuel prices, which are being passed on to consumers.
The French regulatory system reviews tariffs twice a year, compared to Ofgem’s quarterly adjustments in Britain. This difference in approach appears to be providing more stability and savings for French consumers in the face of fluctuating energy markets.
MPs and charities are urging Labour to reconsider the axing of Winter Fuel payments, which could offset the price cap increase for many pensioners.
The decision to restrict these payments to those receiving Pension Credit was made without an impact assessment, raising concerns about its consequences.
There are many ways for British pensioners to cut their energy bills this winter if they are worrying about the rising costs.
Greg Marsh, CEO of Nous.co has explained four ways British pensioners can cut their energy costs this winter:
1. Check Pension Credit eligibility: Marsh urged pensioners to check their eligibility for Pension Credit. It is a benefit aimed at people over state pension age – currently 66 – offering a top-up to their income.
It’s made up of two parts. While some people get both, many qualify for just one of the two. Either way, claimants could be due extra cash:
- Guarantee credit – this is the main part of Pension Credit, giving people a top-up of your weekly income to a minimum guaranteed level. For 2024/25, this is £218.15 a week if they’re single, and £332.95 a week if they’re in a couple
- Savings credit – for those who reached state pension age before April 2016, there’s an extra boost available if they’ve made provision for their retirement via savings, work or a private pension. This gives people up to £17.01 a week if they’re single, and £19.04 if they’re in a couple. To qualify, claimants have to earn above a threshold amount of £189.80 if they’re single and £301.22 if they’re in a couple.
About 2.2 million households are eligible for Pension Credit, but it’s estimated that around 880,000 don’t claim – in many cases because they don’t realise they could be entitled to it.
2. Take a meter reading on September 30 to avoid being charged higher rates for earlier usage.
3. Monitor credit balances if paying by direct debit. By November, credit should equal at least one month’s payment.
4. Consider switching providers. Many households can save around £150 without committing to a fixed deal.
Marsh also warned against ditching direct debits, as it remains the cheapest payment method.
He said: “Customers who pay by standard credit – cash or cheque – currently pay around £100 per year more than direct debit customers.”
