Usdaw calls for the reinstatement of Winter Fuel Allowance and standing charges to be scrapped

Addressing conference delegates in Blackpool’s Winter Gardens, Paddy Lillis – Usdaw general secretary said: “The decision on Winter Fuel Payments as well as the ongoing issues around standing charges is close to the hearts of many people. We all know the new Labour Government inherited an economy that was in a real mess and many would agree that some tough measures needed to be taken to get Britain's economy back on the right track. But removing the Winter Fuel Allowance wholesale, for all pensioners who don't receive Pension Credit, took the decision too far. It has left too many people vulnerable, without the money they need to cover their sky-high fuel bills.

“When we talk about the price of our energy as it increases and decreases, we often hear about the 'Unit Rate' or 'Kilowatt Hours' as it is often known, but very little discussion or focus is placed on 'standing charges'. Standing charges are a fixed daily charge you pay in addition to your unit rate. It's basically an amount paid to your supplier to be connected to their system, but increasingly, consumers are questioning why this additional tariff is placed on customers over and above the unit rate.

“Households that use prepayment meters are particularly impacted by these charges. When their credit has been used up, standing charges accrue as a debt on the meter that must be cleared in full before accessing energy again. So new credit can be immediately wiped out by standing charge debt when you top your meter up after a break.

“To protect low-income households, standing charges should be scrapped and the Winter Fuel Payments reinstated.”