Millions of pensioners will “really struggle” this winter following Labour’s plan to axe the Winter Fuel Payment worth up to £300.
The warning has been sounded by leading charities who say it will cause real hardship and threaten the health of vulnerable people who cannot afford to keep warm.
One group went so far as to warn it would be a “death sentence” for sick and elderly people whose illnesses will be made worse if they cannot afford to keep the heating on.
In a shock move, the Chancellor Rachel Reeves, announced that the Winter Fuel Payment will be removed for all pensioners – other than those on Pension Credit and some other means tested benefits.
Age UK said the worst hit will be the 800,000-900,000 who are so vulnerable that they qualify for Pension Credit but are not getting it.
It said this is largely because of the difficulty these elderly and vulnerable people have in navigating the application process that is wrapped in red tape and involves an astonishing 243 questions.
Simon Francis, coordinator of the End Fuel Poverty Coalition, which speaks for a number of charities, said: “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 percent 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.”
Charity Director at Age UK, Caroline Abrahams, 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.”
She added: “A big reason for this disastrous outcome is that more than one in three pensioners entitled to Pension Credit, the qualifying benefit for WFP under this proposal, don’t receive it, a proportion that’s been roughly constant for many years.
“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 they are entitled to get to boost their incomes, will now lose the WFP that helps them to pay their fuel bills.
“In addition, 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.
“Older people in this group often tell us they really struggle financially; the proposed change will make it even harder for them to afford to stay warm when it gets chilly.
“Finally, there is a third group who will find it extremely difficult to heat their homes adequately this winter as a result of the proposed change: older people whose incomes are a little higher though still limited, 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.
She continued: “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.”
She condemned the decision, adding: “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.”
Rachel Reeves said the change is needed to help fill a black hole in government finances left by the last Conservative government. It is expected to save £1.4bn this year and £1.5bn next year. It will reduce the number of people receiving the benefit from around 10m to 1.5m households.
The Chancellor said the decision was a “difficult” one she did not want to make. But she said it was necessary to maintain economic stability.
