UK Money News

Money News

12th March 2008

Winter allowance topped up in Budget

Pensioners have received a fillip in today's Budget with the news that the lump sum they receive as winter fuel allowance is to be increased.

Speaking in his inaugural Budget address, the chancellor of the exchequer Alistair Darling confirmed that pensioners in their eighties will now receive £400, a rise of £100.

Meanwhile, those in their sixties are in line for a £50 increase to £200.

Mr Darling also used the Budget to reiterate the need for energy companies to move towards giving customers on pre-payment meters a "fairer deal".

Under current pricing plans these customers, who are typically among the company's poorest clients, pay more for their power than those who use standard or online tariffs.

Mr Darling said: "We will work with the companies to take forward further action.

"Energy companies spend £50 million on social tariffs. I want to see that rise to £150 million."

Government figures show there are 2.2 million energy customers currently using pre-pay meters.

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