The annual tax-free payment of between £100 and £300 was introduced in 1997 to help eligible pensioners meet the costs of heating their homes
The increase to the energy price cap comes as the Government removes winter fuel payments for around 10 million pensioners. The Government announced in July it would issue payments only to pension credit recipients or claimants of some other means-tested benefits, including universal credit. Around 10 million people are set to lose the allowance this year.
Caroline Abrahams, charity director at Age UK, said restricting the winter fuel payment to those on pension credit was "reckless and wrong" and "spells disaster for pensioners on low and modest incomes". Means testing the winter fuel payment is expected to save the Government £1.4 billion this year, which Labour said was necessary to make up the gap between the previous government's spending plans and the money that was made available to fund them.
Andy Manning, head of energy policy at Citizens Advice, said: "This price rise means bills are now around two-thirds higher than before the energy crisis. With record levels of energy debt, the removal of previous support and changes to the eligibility of the Winter Fuel Payment, people are in desperate need. The Government must urgently introduce targeted bill support that reflects the realities of people's energy needs.
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