Millions of pensioners not on means-tested benefits face a ‘double hit’ on their energy bills in April 2023 according to LCP partner Steve Webb.
The two hits which highlights as a result of today’s Autumn Statement announcements are:
- The energy price cap is set to rise from £2,500 to £3,000 in April 2023; this would cost £500 but pensioner households will receive a £300 grant, leaving them with £200 a year extra to find, or £17 per month;
- All households are currently receiving £66 per month towards energy bills (to dampen the impact of the rise in the cap to £2,500 in October 2022) but these payments will stop in March 2023; households will therefore need to find an extra £66 per month compared with the current situation;
Taken together, these two measures mean that compared with March 2023, pensioners will need to find an extra £83 per month from April towards their fuel bills.
Commenting, Steve Webb, partner at LCP said:
“The full force of rising energy bills has been dampened so far by £66 per month payments to all households, but these will stop next March. In addition, pensioners not on benefit will only get £300 towards a £500 increase in the energy price cap, leaving them up to £200 short. Taken together, this ‘double hit’ means that pensioners will have to find an extra £83 per month towards their energy bills, which will make next year’s pension increase look much less like a windfall”
