Sir Keir Starmer has been urged to review his decision to scrap the winter fuel supplement for 10 million pensioners after regulator Ofgem announced household energy bills will rise by £150 in October.
The Prime Minister has been warned that the double whammy will spell disaster for pensioners on low and middle incomes or those living in vulnerable circumstances due to ill health.
Analysis shows that energy bills this winter will be the highest ever for seniors who previously received a winter heating allowance, which could be as much as £300.
Campaigners and charities, as well as Conservative and Labour politicians, have called on the Prime Minister to change course.
From this year onwards, only pensioners who receive pension credit (or certain benefits) will receive the winter fuel allowance.
Since its introduction in 1997, the winter fuel payment has been available to all pensioners, regardless of income. There have previously been calls to make it income-related to prevent tax money going to wealthier pensioners who are less likely to struggle with bills.
However, critics believe the measure will leave many people who rely on it without receiving their payments.
Former shadow Chancellor of the Exchequer John McDonnell, who has been suspended as party leader for his opposition to the cap on two children, told The Independent: “This big increase in energy bills puts more seniors at risk this winter and warrants a reassessment by the government of its Winter Fuel Allowance proposal. Too many seniors will be at risk.”
Caroline Abrahams, chief executive of Age UK, said: “In total, an estimated two million older people will have an even steeper mountain to climb to pay their energy bills and stay warm and healthy as the weather turns colder. With pensioners also losing the living allowances they have received over the past two years, we simply cannot imagine how some of them will keep their heads above water.”
She said the lifting of Ofgem’s price cap on energy bills makes it “even clearer” that making the winter fuel payment means-tested “could be dangerous for some older people”.
Personal finance guru Martin Lewis told BBC Radio 4: “I think the government needs to think again about abolishing the winter fuel surcharge, as it has done now.
“While I agree that there is a very strong argument for abolishing the universal winter fuel payment, I think the eligibility criteria are far too narrow.”
Simon Francis, coordinator of the End Fuel Poverty Coalition, said The Independent The government’s “cruel decision” will lead to more vulnerable people succumbing to health complications from living in cold and damp conditions, and turning to the NHS for support. It will create a false economy, with the estimated £1.5bn saving being wiped out by extra pressure on the health service, he added.
Mr Francis said: “Pensioners will be hit hardest by the rise in energy prices this winter.”
Adam Scorer, head of National Energy Action, said the government was “cutting off support to those who have no flexibility in their own budgets, and have no choice but to go into debt or be left out in the cold”.
The change was part of a raft of cost-cutting measures announced by Rachel Reeves after she discovered a £22bn hole in the public finances left by the Conservatives. Announcing the change, she said: “Let me be clear: this is not a decision I wanted to make.
“But it is a necessary and urgent decision that I have to make. It is the responsible thing to do to restore the foundations of our economy and bring back economic stability.”
Tory leadership candidate Mel Stride said The Independent Ms Reeves had crossed the line while “handing out inflation-busting wage increases to unions”.
“This was a political decision by Labour,” he said. Mr Stride added: “With the energy price cap set to rise by 10 per cent for the winter, Labour must now reconsider their decision to remove winter fuel support from millions of vulnerable pensioners. Many older people rely on this vital support to get through the winter and will now see their bills rise.”
And Labour colleague Prem Sikka said The Independent the policy was announced while the government made “no attempt to curb the profit-seeking of energy companies”.
“They are taking away the winter fuel payment entitlements of 10 million people, without any consultation, it was not in the manifesto, they have not done any human cost impact assessment and it will not be voted on,” said Lord Sikka.
When Theresa May announced in 2017 that she wanted to make the benefit means-tested, Labour said the move would lead to the deaths of thousands of pensioners and called it an “attack on pensioners”.
Lord Sikka added: “This is really hitting older people hard and there is no excuse for that. This Government has shown neglect of older people so early in its existence and they should review that. The Government made the wrong judgements, made the wrong choices and there were plenty of alternatives.
“They can no longer blame the Tories because their job is to find new answers and there is no point in playing this blame game.”
Shadow Energy Minister Claire Cousinho criticised Ms Reeves for scrapping the winter fuel surcharge for 10 million pensioners as Prime Minister, saying it was a far cry from Labour’s pledge to save families £300 on their energy bills.
“Because they were not honest about their plans, it means millions of pensioners have no plans in place to cope with higher energy bills this winter,” she added.
Andrew RT Davies, leader of the Welsh Conservatives, said: “With the cap on the bills brought forward by the regulator, Labour’s inexcusable decision to abolish winter fuel payments risks creating a fuel poverty crisis among pensioners in Wales, where we have an older population.
“Labour must reverse its decision and keep pensioners warm this winter.”
The row came after Ofgem announced that the average household energy bill will rise from £1,568 to £1,717 from October 1 – an increase of £149.
Secretary of State for Energy Security and Net Zero Ed Miliband said: “This will be deeply worrying news for many families. The price cap increase is a direct result of the failed energy policies we have inherited, which have left our country at the mercy of international gas markets controlled by dictators.
“The only solution to lower bills and create more energy independence is the government’s mission for clean, home-grown energy. That’s why we got to work right away, lifting the ban on onshore wind, approving unprecedented amounts of solar, and setting the largest budget ever for our renewable energy auction.
“We will also do everything we can to protect bill payers, including by reforming the regulator to become a strong advocate for it, working towards fairer fixed charges and delivering a strong Warm Homes Plan to save families money.”