Charities have lined up to condemn the new Chancellor's decision to restrict the Winter Fuel Payment (WFP) to a smaller group of older households.
Age UK estimate that more than 800,000 older people living on very low incomes – under £218.25 a week for single pensioners and under £332.95 for couples – who are already missing out of the Pension Credit, will now lose the WFP that helps them to pay their fuel bills.
In addition, the charity estimates that there are also about a million pensioners whose weekly incomes are less than £50 above the poverty line, who will also be hit hard by the loss of the Payment.
Finally, older people whose incomes are a little higher, but who live in energy inefficient homes and/or who are seriously unwell and need to keep the thermostat turned up high in order to protect their health will also suffer.
Caroline Abrahams, charity director at Age UK said:
"We strongly oppose the means-testing of Winter Fuel Payment (WFP) because our initial estimate is that as many as two million pensioners who badly need the money to stay warm this winter will not receive it and will be in trouble as a result – yet at the other end of the spectrum well-off older people will scarcely notice the difference – a social injustice.
"It is well established that pensioners tend to do everything possible to avoid going into debt so if they are worried about their future energy bills we know their likely response will be to ration their fuel use and economise by reducing their spending on other essentials. This proposed policy change is therefore certain to result in more older people experiencing a horrible 'eating or heating' dilemma.
"Means-testing WFP this winter, with virtually no notice and no compensatory measures to protect poor and vulnerable pensioners, is the wrong policy decision, and one that will potentially jeopardise their health as well as their finances – the last thing they or the NHS needs. With winter now just over the horizon, the Government should halt their proposed change to WFP and think again, given the clear evidence of how it will hurt the older people who need it the most."
National Pensioners Convention General Secretary Jan Shortt said:
"This is devastating news for millions of older people whose income is literally just a few pounds above the threshold to receive pension credit.
"These people are already barely able to make ends meet – this move effectively wipes out any benefit they receive from the triple lock increase on the state pension.
"I seriously believe the Chancellor has underestimated the harm her decision will cause to older people still struggling with energy costs and facing higher rates in October. It is absolutely shocking that the new Labour government should treat older, vulnerable people in this manner. The triple lock alone will not enable them to keep up with energy bills."
Matt Copeland from National Energy Action commented:
"Today the Chancellor announced that the Winter Fuel Payment will only be given to pensioners receiving benefits going forward. Although this would make the policy more progressive, it will leave many pensioners who need support, without it. One third of fuel poor households do not receive benefits. They should not be forgotten.
"Energy prices remain high and are due to increase again this winter. This creates a significant challenge for low income households. Any funds raised from this policy change should go towards helping low income and vulnerable energy customers this winter as a priority.”
A spokesperson for the End Fuel Poverty Coalition added:
"When Rishi Sunak threatened to axe Winter Fuel Payments in September 2023 we said that this could be a death sentence for pensioners who are only just about managing to keep out of fuel poverty.
“Nothing has changed.
"Energy prices are still high, people are still struggling with the cost of living and this dangerous decision by the Chancellor could condemn pensioners to living in cold damp homes this winter.
"Figures for the Warm This Winter campaign suggest that around 41% of over 75s could now see their winter heating budget torn to shreds as they have modest incomes and will not now be eligible for the payment.
"The Chancellor must urgently think again and consult with older people’s charities on a better way to target this support to a wider group of pensioners."
Jonathan Bean from Fuel Poverty Action said:
"Making heating even more unaffordable for those trying to survive on basic pensions is a cruel and reckless move that will cause widespread suffering, and increased NHS admissions this winter. Instead we need an energy pricing system that guarantees everyone the essential energy they need to stay warm and safe."
Originally published by the End Fuel Poverty Coalition here.
