Octopus Energy hands pensioners £200 lifeline after winter fuel axe

Pensioners who missed out on this year’s Winter Fuel Payment can instead claim up to £200 from Octopus Energy as part of a new scheme.

The major energy supplier, which serves around 6.8 million customers in the UK, has set up its own Winter Fuel Payments for state pensioners, offering payouts of £50, £100 and £200.

Octopus says it has launched the scheme to help support thousands of pension-age households to cover their bills this winter after Labour changed the criteria for the government scheme.

Up until last year, the Winter Fuel Payment was available to all UK households with someone over State Pension age, providing an annual payment of either £200 or £300.

But changes made 2024 mean the payment now only goes to households who are in receipt of Pension Credit, or any of the following benefits:

It means that the number of households eligible for the payment has dropped dramatically from around 11 million to just over one million.

The decision to change the payment from a universal benefit to one that is now means-tested was to ensure the support goes to those who need it most, but it means that some pensioners who are only just above the affordability threshold now miss out.

In response, Octopus has extended its £30 million Octopus Assist fund to support thousands of customers missing out on Winter Fuel Payments.

The supplier said: “Fewer UK households are now eligible for the government’s £200-300 Winter Fuel Payment this year. And we know many customers depended on this help.

“That’s why we’re stepping up to help bring this support back to customers who need it most: offering our own £50, £100 and £200 ‘Winter Fuel Payments’ to thousands of Octopus customers who’ll no longer be eligible with the recent changes.

“We’ll ask you to share some information about your health, any vulnerabilities, income and monthly costs so we can work out the best ways we can help you. Applying is quick and straightforward, and you can do it online, over the phone, or by mail.

“We’ll also check if you’re entitled to any other government support or benefits – which for some customers, add up to £10,000 a year – and can help you apply.”

Customers can apply for the scheme online via the Octopus Energy website.