Chancellor announces £300 fuel payment for pensioners and £400 energy discount for all households

Britons aged 65 and over are to be given an extra £300 winter fuel payment as part of the Chancellor’s cost of living rescue package.

The extra £300 combined with the £400 energy bill discount for all households in October plus the £150 council tax rebate which has already been announced, will see pensioners receive financial help of £850.

The package of financial support will also see eight million low-income households on benefits receive a one-off payment of £650.

While people on disability benefits will receive a one-off payment of £150.

Rishi Sunak said the rescue package would be partly funded with a windfall tax on the profits of oil and gas companies.

Caroline Abrahams, charity director at Age UK welcomed the announcement, saying: "Age UK is pleased and relieved that the government has recognised the extreme risks soaring inflation pose to the health and welfare of pensioners, particularly those on low incomes, and has announced a package of measures today with the aim of mitigating them.

“With prices continuing to go up for everything they buy, life is certainly not going to be easy for many older people over the next few months, but the extra support the Chancellor is bringing forward will make a difference and will protect most from the worst of the unprecedented surge in the cost of living they face.”

She added: “Targeting most of the support on offer to pensioners who receive means-tested benefits, that is Pension Credit, was undoubtedly the right thing to do, but as a result it is more important than ever that every older person who qualifies receives their due.”

Age UK said it will continue to campaign for more investment in energy efficiency and for the reintroduction of a social energy tariff as in the longer term, these would help pensioners to keep on top of their energy bills.

The UK's specialist think tank on the impact of longevity welcomed the suggestion in The Chancellor's statement that the Department for Work & Pensions is "doing more to get older people back into the jobs market".

David Sinclair, director of the International Longevity Centre (ILC-UK) said "The question is what - and how? The UK must have a well-thought-out strategy to fully realise the potential of older people's contributions - both paid and unpaid.

"Getting older people back into the job market will be vital as the Government seeks to ‘build back better’ and level up. But we need to invest in health and skills if we are to realise this.

“We know that investing in health results is an economic dividend. People who are healthier work longer, spend more, care more and are more likely to volunteer. The Government must also focus and spend more on preventative health to keep people healthier throughout their working lives.”

In his speech, Rishi Sunak also reiterated his pledge to reinstate the ‘triple-lock’ which was suspended this year, in April 2023. This mechanism sees pension payments increase by whatever is higher out of wage growth, inflation, or 2.5 per cent.