Ovo Energy has announced a fresh £50 million energy bills support scheme for the winter months following news the Government is cutting its winter fuel payments for millions of pensioners.
The Big Six energy supplier said it had set aside the funding to cover a series of schemes, including direct financial support for customers struggling to pay their bills.
Other measures include giving customers temporary reductions in direct debit payments, one-to-one energy saving advice, and free or subsidised upgrades to people’s homes, including insulation, a new boiler or, in some cases, a heat pump.
Chief executive David Buttress said it is “on us” to help customers through the winter. Ovo provided a similar £40 million support package in 2023, and a £50 million scheme in 2022.
The announcement comes after the Government’s decision to restrict state winter fuel payments to those receiving pension credit.
It means around 10 million people will lose out over the coming months, with the benefit taken away from all but the poorest pensioners in the country. About 11.5 million people used to receive it.
The Government argues it is right to means-test the benefit, worth up to £300, in order to tackle what it calls a “black hole” in the public finances.
But it has also prompted bitter outcry, including from some Labour MPs, with critics pointing out that pension credit only tops up income to £11,300 a year for individuals, meaning many who do not qualify could still struggle paying bills.
Ovo has about four million customers, making it the fourth-largest energy supplier in the UK behind Octopus Energy, British Gas and Eon Next, according to market share data by regulator Ofgem.
The package opens on the October 1 but Ovo’s website is live from today for customers to check if they’re eligible.
However, Mr Buttress also called for a longer-term solution in the form of a social tariff, something campaign groups have proposed for several years.
The measure would likely take the form of a targeted discount energy deal for poorer customers, and could be below the price of the cheapest available standard energy tariff.
Mr Buttress said: “We know it’s on us to ensure our customers are supported through the winter months.
“That’s why our winter support scheme is bigger than ever this year with £50 million of funds.
“But this isn’t a long term solution. We need to make the energy system work better for everyone.
“That starts with targeted support in the form of a social tariff so we’re not plugging the gaps – no one can be, or no one needs to be left behind.”
Separately, Greg Jackson, chief executive of the UK’s largest supplier, Octopus, has said energy suppliers should “be helpful” to the Government and give extra support to people losing the winter fuel payments.
Octopus announced last month that it will continue its own £30 million assistance fund into this winter.
