Ofgem Energy Price Cap increasing by 10 per cent

August 23^rd 2024 an announcement by Ofgem that the energy price cap will rise in October to £1717, this is an increase of 10% .

A spokesperson from Age UK had a number of comments, whilst we support what was said we wanted to open up the conversation and give a supporting comment and also play devil advocate and give a counter argument.  These comment in no way express the views of Jolliman are merely meant  to be thought provoking and open the conversation

The comments express strong concerns about means-testing the Winter Fuel Payment (WFP) and its potential impact on vulnerable pensioners. Let’s examine the arguments for and against each point:

“Means-testing Winter Fuel Payment (WFP) when fuel prices are rising by 10% spells disaster for pensioners on low and modest incomes or living in vulnerable circumstances due to ill health.”

Support:
This argument highlights the vulnerability of low-income pensioners and those with health issues. Means-testing could leave many struggling to afford adequate heating, potentially exacerbating health problems.

Counter-argument:
Means-testing ensures that limited resources are directed to those most in need, potentially allowing for more substantial support to the most vulnerable pensioners.

“This latest bad news about the Energy Price Cap rising quite significantly makes it even more obvious that means testing WFP with virtually no notice & with no protections to safeguard vulnerable groups was the wrong policy choice and one that is potentially hazardous for some older people.”

Support:
The sudden implementation of means-testing without adequate preparation or safeguards could indeed leave many pensioners unprepared for rising energy costs, potentially putting their health at risk.

Counter-argument:
The rising energy costs make it even more crucial to allocate resources efficiently, which means-testing aims to achieve by focusing support on those who need it most.

“There’s scarcely any time to tackle the long-term under-claiming of Pension Credit – for more than a decade a third of pensioners who are entitled to it have consistently missed out.”

Support:
This highlights a significant issue with means-testing – the persistent problem of benefit under-claiming. Many eligible pensioners might miss out on crucial support due to lack of awareness or difficulty in claiming.

Counter-argument:
This could be seen as an opportunity to increase awareness and improve the claiming process for Pension Credit, potentially benefiting more eligible pensioners in the long run.