Octopus boss issues urgent message over winter fuel payment cut --[Reported by Umva mag]

THE BOSS of Octopus Energy has issued an urgent message after the winter fuel payment was cut ahead of this winter season. Greg Jackson said energy suppliers should “be helpful” to the Government and give extra support to elderly people who will be missing out on their allowance. GettyGreg Jackson said energy suppliers should help people losing their winter fuel allowance[/caption] GettyHundreds of thousands of pensioners will miss out on the allowance[/caption] The British entrepreneur, who founded Octopus in 2016, said: “We all know there were some people receiving the winter fuel allowance who didn’t need it – that costs everyone else money.” He added: “But then there’s the grey area of people losing it that need it – that’s where we can help.” Under plans announced by Chancellor Rachel Reeves in July, winter fuel payments will be restricted to those receiving Pension Credit and other means-tested benefits. It means around 10 million people will lose out this winter, with the benefit taken away from all but the poorest pensioners in the country. About 11.5 million people used to receive it. The Government argues it is right to means-test the benefit, which is worth up to £300, in order to tackle what it calls a “black hole” in the public finances. But it has also prompted bitter outcry, including from some Labour MPs. Critics have pointed out that Pension Credit only tops up income to £11,300 a year, meaning many who do not qualify could still struggle paying bills. Mr Jackson said this is where energy firms can step it and help their vulnerable customers. He added that the Government has got to “make difficult decisions. “So now let’s be helpful in making sure that when you make those decisions, we can look after the people who will be worst affected.” However, he urged ministers to keep a “close eye on the impact” of the policy if this winter is colder than usual and be “ready to act” if more support is needed. Octopus, the UK’s largest energy supplier, announced last month that it will continue its £30million assistance fund into this winter for pensioners who do not qualify for state support. Through the scheme, customers can get discretionary credit of between £50 and £200. And Octopus said it is now broadening the eligibility criteria to help pensioners affected by the tightening of winter fuel payments. The company also has a range of other measures, including giving out free electric blankets to vulnerable customers. What is Octopus’ support fund? Octopus Energy offers a range of support including cash from its Octopus Energy Assist Fund. The fund has helped more than 80,000 customers struggling financially with support such as payment breaks, standing charge holidays and help clearing energy bill debt. It could also include the loan of a thermal imagery camera to find heat leaks at home that you can fix to reduce energy usage and your bill. It also does home energy visits to help discuss how households can reduce their usage. Plus it has previously gives out free electric blankets. What you can get depends on your circumstances and needs. Octopus is encouraging all customers to get in contact if they’re struggling with their bills. Direct bill support could include vouchers up to £500 or a payment holiday. You can contact Octopus via its website. Octo Assist fund is still open for applications and there is no deadline for customers to apply. What are other energy firms offering? The country’s biggest supplier, British Gas, previously had an energy grant scheme in place, with the hardest-pressed households receiving a grant of up to £2,000. The firm also has also launched a debt reduction scheme called ‘You Pay: We Pay’. Struggling customers will also be able to get part of their debts wiped via what’s known as debt matching. For instance, if a customer pays £100, British Gas will pay off £100 too, effectively wiping half the amount owed and getting them back on track sooner. Through their Warm Home Discount, E.ON give a one-off £150 credit on electricity bills to help customers who may be struggling to pay their bills during winter. OVO Energy, which has around four million customers, will give out an extra £50million worth of support over the winter months, including direct cash to customers who are struggling to pay their bills. The company said applications for the support will open on October 1. EDF has a customer support fund which on average wipes £1,250 off customers’ bills. It is available to vulnerable customers experiencing hardship. To apply you must visit EDF’s website and make sure you have details of your account number (find it on your energy bills or EDF emails) and the current debt balance on all EDF accounts you have. Check

Sep 19, 2024 - 18:25

Octopus boss issues urgent message over winter fuel payment cut --[Reported by Umva mag]

THE BOSS of Octopus Energy has issued an urgent message after the winter fuel payment was cut ahead of this winter season.

Greg Jackson said energy suppliers should “be helpful” to the Government and give extra support to elderly people who will be missing out on their allowance.

a man leaning on a railing with his hands folded

Greg Jackson said energy suppliers should help people losing their winter fuel allowance[/caption]

an elderly couple sitting at a table looking at a piece of paper

Hundreds of thousands of pensioners will miss out on the allowance[/caption]

The British entrepreneur, who founded Octopus in 2016, said: “We all know there were some people receiving the winter fuel allowance who didn’t need it – that costs everyone else money.”

He added: “But then there’s the grey area of people losing it that need it – that’s where we can help.”

Under plans announced by Chancellor Rachel Reeves in July, winter fuel payments will be restricted to those receiving Pension Credit and other means-tested benefits.

It means around 10 million people will lose out this winter, with the benefit taken away from all but the poorest pensioners in the country. About 11.5 million people used to receive it.

The Government argues it is right to means-test the benefit, which is worth up to £300, in order to tackle what it calls a “black hole” in the public finances.

But it has also prompted bitter outcry, including from some Labour MPs.

Critics have pointed out that Pension Credit only tops up income to £11,300 a year, meaning many who do not qualify could still struggle paying bills.

Mr Jackson said this is where energy firms can step it and help their vulnerable customers.

He added that the Government has got to “make difficult decisions.

“So now let’s be helpful in making sure that when you make those decisions, we can look after the people who will be worst affected.”

However, he urged ministers to keep a “close eye on the impact” of the policy if this winter is colder than usual and be “ready to act” if more support is needed.

Octopus, the UK’s largest energy supplier, announced last month that it will continue its £30million assistance fund into this winter for pensioners who do not qualify for state support.

Through the scheme, customers can get discretionary credit of between £50 and £200.

And Octopus said it is now broadening the eligibility criteria to help pensioners affected by the tightening of winter fuel payments.

The company also has a range of other measures, including giving out free electric blankets to vulnerable customers.

What is Octopus’ support fund?

Octopus Energy offers a range of support including cash from its Octopus Energy Assist Fund.

The fund has helped more than 80,000 customers struggling financially with support such as payment breaks, standing charge holidays and help clearing energy bill debt.

It could also include the loan of a thermal imagery camera to find heat leaks at home that you can fix to reduce energy usage and your bill.

It also does home energy visits to help discuss how households can reduce their usage. Plus it has previously gives out free electric blankets.

What you can get depends on your circumstances and needs.

Octopus is encouraging all customers to get in contact if they’re struggling with their bills.

Direct bill support could include vouchers up to £500 or a payment holiday.

You can contact Octopus via its website.

Octo Assist fund is still open for applications and there is no deadline for customers to apply.

What are other energy firms offering?

The country’s biggest supplier, British Gas, previously had an energy grant scheme in place, with the hardest-pressed households receiving a grant of up to £2,000.

The firm also has also launched a debt reduction scheme called ‘You Pay: We Pay’.

Struggling customers will also be able to get part of their debts wiped via what’s known as debt matching.

For instance, if a customer pays £100, British Gas will pay off £100 too, effectively wiping half the amount owed and getting them back on track sooner.

Through their Warm Home Discount, E.ON give a one-off £150 credit on electricity bills to help customers who may be struggling to pay their bills during winter.

OVO Energy, which has around four million customers, will give out an extra £50million worth of support over the winter months, including direct cash to customers who are struggling to pay their bills.

The company said applications for the support will open on October 1.

EDF has a customer support fund which on average wipes £1,250 off customers’ bills.

It is available to vulnerable customers experiencing hardship.

To apply you must visit EDF’s website and make sure you have details of your account number (find it on your energy bills or EDF emails) and the current debt balance on all EDF accounts you have.

Check directly with your supplier to see what help is available.

The firm is also offering customers the opportunity to run their homes for no cost if they take part in a new challenge.

To get the hours of free electricity, customers must cut down on using electrical devices during “peak hours”, which tend to be between 4pm-7pm Monday to Friday.

In return, EDF will give customers free electricity on Sundays, when demand to the energy grid tends to be lower.

What energy bill help is available?

THERE'S a number of different ways to get help paying your energy bills if you're struggling to get by.

If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.

This involves paying off what you owe in instalments over a set period.

If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.

Several energy firms have grant schemes available to customers struggling to cover their bills.

But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.

For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.

British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.

You don’t need to be a British Gas customer to apply for the second fund.

EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.

Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).

The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.

Get in touch with your energy firm to see if you can apply.

It comes as energy suppliers have come under pressure for making large profits over the last two years, while bills have rocketed as a result of soaring gas prices.

Octopus turned its first ever profit of £203million for the year ending April 2023, the most recent year on record, while revenue tripled to £13billion.

The company’s UK energy retail arm took on £69million of costs to lower customer bills over the same period.

Mr Jackson’s comments come weeks before energy bills are due to get more expensive again this winter.

Regulator Ofgem said the average household bill is set to increase by £149 from October after it increased the quarterly price cap for the winter months.

Last month, Labour’s energy consumers minister Miatta Fahnbulleh held talks with suppliers including Octopus, asking for help with a marketing campaign to alert customers to bills support that is already available.

Sources with knowledge of the matter said ministers also asked firms about longer term market reforms for energy bills, including a social tariff, something campaign groups have proposed for several years.

The measure would likely take the form of a targeted discount energy deal for poorer customers, and could be below the price of the cheapest available standard energy tariff.

Mr Jackson said it is “important” to bring energy costs down for everyone, but added that “the question is who pays” for a social tariff.

He said: “It’s either going to be the Government, in which case they need to put taxes up, or it’s going to be paid for by other energy customers, in which case bills go up for everyone who’s not getting it. The challenge is that bills are already too high.”

Instead, the Octopus boss has been lobbying ministers to introduce another pricing system, based on proximity to where clean energy is generated, to reform bills.

The system, known as locational marginal pricing, would see people living near wind farms pay less for electricity.

Regional pricing is “the critical thing we need to do”, Mr Jackson said, citing a recent report carried out by FTI Consulting, which claimed it could save bill payers £51billion by 2040.

Octopus already offers time-specific discounts for people living near wind farms of up to 50% in high winds, when the turbines generate more power.

The initiative has led to tens of thousands of people contacting Octopus since 2021 asking for turbines to be built near their homes, he said.

Critics say it would be unfair for people to pay less based on where they live.

Mr Jackson said that while the biggest discounts “will be the areas with the most electricity generation”, such as areas of Scotland, the price would drop “in every region” because the transmission system would also be “more efficient”.

The Labour Government has introduced a swathe of changes since the general election, including forming a new state energy investment firm, GB Energy, to help boost renewables in recent months.

It is also consulting on reforms to the planning system designed to make it easier to upgrade the power grid and build clean energy projects, which Mr Jackson said he supports.

But it is “early days” for the new Government, he said, adding: “We need to see the hard stuff happening to push energy costs down for good.”

How do I calculate my energy bill?

BELOW we reveal how you can calculate your own energy bill.

To calculate how much you pay for your energy bill, you must find out your unit rate for gas and electricity and the standing charge for each fuel type.

The unit rate will usually be shown on your bill in p/kWh.The standing charge is a daily charge that is paid 365 days of the year – irrespective of whether or not you use any gas or electricity.

You will then need to note down your own annual energy usage from a previous bill.

Once you have these details, you can work out your gas and electricity costs separately.

Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type – this will give you your usage costs.

You’ll then need to multiply each standing charge by 365 and add this figure to the totals for your usage – this will then give you your annual costs.

Divide this figure by 12, and you’ll be able to determine how much you should expect to pay each month from April 1.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

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The following news has been carefully analyzed, curated, and compiled by Umva Mag from a diverse range of people, sources, and reputable platforms. Our editorial team strives to ensure the accuracy and reliability of the information we provide. By combining insights from multiple perspectives, we aim to offer a well-rounded and comprehensive understanding of the events and stories that shape our world. Umva Mag values transparency, accountability, and journalistic integrity, ensuring that each piece of content is delivered with the utmost professionalism.