MP David Chadwick says the £1.5 billion profit the UK Government has reportedly made from the Octopus-Bulb deal should be used to reinstate winter fuel payments for this year.

The government temporarily stepped in to support Bulb when the business went bust in November 2021, before it sold Bulb a year later to Octopus Energy.

Octopus Energy has paid more than £3 billion to the UK Government following the acquisition.

The final payment was made on September 30 2024 - the energy company says this has generated a total profit of £1.5 billion for the government.

The Lib Dems calculate that the cost of reinstating the winter fuel payments for this year would be £1.4bn.

“This Labour Government must use this windfall responsibly by reinstating the winter fuel payments for this year giving itself the time to come forward with a better solution for future winters,” said MP for Brecon, Radnor and Cwm Tawe, David Chadwick.

"Part of the problem with the crushing cuts to winter fuel payment is they have come into place just before winter, leaving millions of the most vulnerable pensioners with the terrifying prospect of choosing between heating and eating this winter. 

"The timing of Labour's decision meant pensioners didn't even have time to plan ahead with their budgets.

“The Labour Chancellor now has the opportunity to think again and stop these hammer-blow cuts from impacting some of the most vulnerable in our society. Rachel Reeves must take it.”

The winter fuel payment was previously paid to all pensioners to help with energy bills.

But in July, the government announced the payment would now be made only to those on low incomes who received certain benefits.

The changes mean that more than 10 million pensioners will no longer receive the payment, which is worth up to £300.