Octopus Energy is to extend an energy bills support scheme for pensioners, after the Government removed winter fuel payments for millions of elderly people.

The energy supplier said it will continue its £30 million assistance fund into this winter, and that pensioners who do not meet the new criteria for receiving state support will be eligible.

Labour said in July that it is changing the rules around the Government’s winter fuel payments scheme, so that it will no longer be universal for all pensioners in England and Wales.

Now, only pensioners on means-tested benefits will qualify for the help, which is estimated to take the payments away from about 10 million people.

Energy bills
Octopus Energy founder Greg Jackson (Octopus Energy/PA)

Chancellor Rachel Reeves has said making the scheme more targeted was a “difficult decision”. About 11.5 million who previously received them.

The payments are devolved, meaning Scotland and Northern Ireland make their own rules.

Octopus, the UK’s largest energy supplier, said it will allow lower-income pension households who don’t receive pension credit to claim from its so-called Octo Assist fund.

Discretionary credits of £50, £100 and £200 will be available to those who apply.

Greg Jackson, founder of Octopus Energy, said: “At times like this, we can’t expect the government to do everything – companies need to work hard on affordability too.

Treasury audit
Chancellor Rachel Reeves said she would narrow the support scheme in July (Jordan Pettitt/PA)

“That’s why we’ve expanded our Octo Assist fund to introduce extra support for the pensioners who need it most.

“There’s a lot of Government and other support for pensioners but many don’t realise it – Government data shows one in three pensioners eligible for pension credits are not claiming, so we’re training our team to help with this too.”

Ms Reeves has said the Government will keep paying winter fuel payments of £200 to households receiving pension credit, or £300 to those who also have someone over 80 years old.

Making the fund more targeted will save the public finances an estimated £1.4 billion this year, Ms Reeves has said.

Critics of the previous system said the money was going to people who did not need it. Some more wealthy people have given theirs to charity or opted out of the scheme.

Octopus’ assistance fund comes alongside several other support schemes for customers, including free electric blankets, which it has handed out 60,000 of so far.

It also offers customers the chance to borrow thermal imaging cameras to help people find draughts and in-person energy-saving advice visits.