Fuel poverty tax plan could help elderly avoid debt

A committee of MPs has suggested that winter fuel payments should not be paid to higher-rate taxpayers, and the money saved should be spent on helping the `fuel poor`, according to the BBC.

The Environment Committee report said that taxing payments and stopping fuel payments to wealthier individuals would free up £250m per year.

Currently, the winter fuel allowance pays £250 to over-60s and £400 to over-80s to help towards energy bills.

A spokesperson for debt management company Gregory Pennington said: "We all use more fuel in the winter - and for low-income households, particularly the elderly, the additional cost can be a financial strain.

"Some people may assume that debt is a more common problem for younger people, but debt affects the elderly too. A new winter fuel allowance scheme could help to reduce the number of elderly people getting into debt due to higher costs of living."

---

Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.