Charities and campaigners are urging the Labour Government to U-turn on its decision to means-test Winter Fuel Payments following “alarming” Government statistics.
Over the next two years, 100,000 pensioners will be pulled into poverty due to the up to £300 in energy bill support being effectively axed for millions by the Chancellor.
Earlier this year, Rachel Reeves confirmed Winter Fuel Payments would be reserved for those claiming means-tested support from the Department for Work and Pensions (DWP).
With the benefit no longer being made universal for pensioners, households will now need to be in receipt of payments such as Pension Credit.
Yesterday, pensions minister Liz Kendall revealed figures from the Government’s own impact assessment into the effects of means-testing.
According to Kendall, “an additional 100,000 pensioners are estimated to be in relative poverty after housing costs in 2026/27, 2028/29 and 2029/30”.
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Pensioners are concerned about the lack of Winter Fuel Payments to rely on
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This has provoked the ire of poverty campaigners which have taken at the Government for removing this support just before the winter months.
Some 10 million pensioners are expected to lose access to the Winter Fuel Payment but Labour ministers are calling on anyone eligible to apply as soon as possible.
Morgan Vine, the director of Policy and Influencing at national charity Independent Age, outlined her concerns over the policy move.
She explained: “It’s extremely alarming to learn that an estimated 100,000 older people could be pushed into poverty as a direct consequence of changes to the Winter Fuel Payment.
“The UK Government’s own analysis has now revealed the extent of the devastating impact of limiting the payment to just those on Pension Credit. With this information now in the open, it is essential Ministers put a stop to this policy change right away.
“At Independent Age we can already see the terrible impact this policy decision is having, the older people living on a low income that we speak to feel forced into making drastic cutbacks.
“We have heard harrowing stories of people going to bed in hats and coats, washing in cold water, only heating one room and visiting public places to stay warm.
“This is unacceptable. With almost two million older people already living in poverty, this data is further evidence that the UK Government should change course and ensure everyone who needs the Winter Fuel Payment continues to receive it.”
Caroline Abrahams, Charity Director at Age UK, previously warned that older households are put most at risk during the winter months.
Abrahams added: “It comes to something when the best policy option older people on tight budgets now have left is to hope and pray for a mild winter.
“But even if the weather is kind we know that millions will face impossible choices over how to make their money stretch far enough to keep them fed and warm through the colder months. The Government’s cut to Winter Fuel Payment is coming in too quickly and hitting too many older people, and their decision not to right the wrong in this Budget is a source of enormous regret.
“We fear there will be severe consequences for some older people as a result and we will be monitoring this carefully over the coming weeks and months, while continuing to campaign.”
