As the Government has already announced a £30m contribution to help pensioners pay off their old heaters, this consultation has sought to explore the scope and cost-effectiveness of offering a lump sum payment to those who have had their heaters replaced during 2015. It is hoped that the cash-back scheme will reduce the number of older people who decide to heat their home with a coal fire.
Is my pension already covered by a fuel scheme?
The Government is currently developing new schemes to replace fuel used in homes in older households with new low-carbon fuel alternatives. These schemes will include the provision of low carbon energy supplies to homes that are in the majority of homes and those living in areas experiencing high energy demand.
Will the scheme be affordable?
Pensions and the energy market do not share the same regulatory framework. Therefore, it is necessary to ensure that the schemes operate within the bounds of the existing rules. The Government’s recent Climate Change Act introduced a requirement to make the payments affordable for current and future pensioners by making a minimum contribution to their annual benefits, ensuring that the scheme is sustainable for those who sign up.
How may I join?
Individuals on Pensioner Support Allowance (PSA) may join a Scheme for Pensioners (formerly known as Carers’ Support Allowance) free of charge. Other schemes for pensioners offer a small monthly fee or may even not give money at all to those who are eligible.
How can I make sure I keep my pension?
The Government is working to get the vast majority out of their savings and ensure that the public interest is protected for future generations. The first step towards this is ensuring that any new pension scheme is affordable to current and future pensioners. In order to achieve this we will require the following changes to schemes offered by private industry:
No more lump sum payments will be paid.
The cost of the scheme will need to be covered by the pensioner’s household income
No additional payments will be made if the scheme is not affordable to those who have signed up.
Who can join?
Individuals on PAYE-eligible pension schemes are entitled to help from Pensioner Support Allowance or PSA for their heaters if:
They are currently on the Pensioner Support Allowance (PSA)
They are 65 or over (whether or not they are a member of PSA)
They are not living with a partner
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