State pensioners will wake up to £621 missing from bank accounts

State pensioners will notice £621 is missing from their bank accountsin January - thanks to the latest Ofgem price cap. Pensioners are grappling with the Cost of Living crisis and the loss of both the £300 Winter Fuel Payment and also £300 Cost of Living payment.

Now, they face a £21 energy price cap rise in January from Ofgem. Ofgem have today announced a £21 (1%) increase in the energy Price Cap, rising to £1,738 from January. BFY Group warns Ofgem’s Price Cap will rise by £21 (1%) to £1,738 in January 2025.

Bills are stabilising, but are 70% higher than pre-crisis levels, as more customers opt for cheaper fixed tariffs. The group says it estimates up to 7m households (25%) are spending 10% or more of their disposable income on energy - with a total fuel poverty gap of £6bn.

READ MORE: Major update over £10 Christmas Bonus being increased by DWP after demands

READ MORE: DWP announces PIP, DLA and Attendance Allowance payment rates for 2025/2026

READ MORE All the nine parts of UK facing 15 inches of snow on Saturday

Restrictions to the Winter Fuel Payment will raise bills by 15% for past recipients, While Ofgem are considering options to help address affordability challenges, this won't provide immediate relief, and proactive support remains crucial.

“The latest increase in Ofgem’s Price Cap to £1,738 reflects stabilising wholesale prices, but it doesn’t ease the strain for households grappling with bills that are 70% higher than pre-crisis levels", said Ian Barker - Managing Partner at BFY Group.

"While it’s encouraging to see more customers saving by switching to fixed tariffs and exploring innovative options like time-of-use deals, the industry must continue to prioritise targeted, proactive support for vulnerable households this winter.”

“The latest increase in Ofgem’s Price Cap to £1,738 reflects stabilising wholesale prices, but it doesn’t ease the strain for households grappling with bills that are 70% higher than pre-crisis levels," he said.

“With record-high levels of domestic debt, affordability continues to be a major concern. While it’s encouraging to see more customers saving by switching to fixed tariffs and exploring innovative options like time-of-use deals, the industry must continue to prioritise targeted, proactive support for vulnerable households this winter.”