The Chancellor’s hated Winter Fuel Payment cut may save hundreds of millions of pounds less than projected, according to data.
The decision taken by Rachel Reeves, branded “cruel” by Labour-turned-Independent MP Rosie Duffield, will see pensioners lose their winter fuel handout unless they get Pension Credit or certain other means-tested benefits.
However, data analysis seen by the Observer revealed that the savings made by the Treasury as a result of the cut may not reach £1.3 billion as expected.
The embattled Chancellor, who today revealed her plans for growth in Oxford, has faced widespread criticism from within her own party as well as from opposition MPs over the move.
Around 10.8 million people used to receive winter fuel payments. But under Reeves’ plans only 1.5 million will receive the help.
But, after the plan was announced in the summer, there was a surge in Pension Credit claims.
In total the increase in claims shot up by 152%. That means the number of recipients of winter fuel payments could be far higher than expected.
If way more Brits successfully claim Pension Credit, then that will mitigate the savings the Chancellor is hoping to make from the brutal cut.
After slashing the Winter Fuel Payment, the Chancellor today announced her vision for Britain’s green energy future.
She insisted “net zero is the industrial opportunity of the 21st century”, from a Siemens site in Oxfordshire.
But David Walsh, head of public affairs at WWF, argued there was “no trade-off” between economic growth and net zero.
“As the Chancellor rightly recognises, building a clean economy is the industrial opportunity of the 21st century,” he said.
“Now is the time to put pounds back in people’s pockets by insulating homes, decarbonising power, and investing in public transport,” he added.
