Tag: Winter Fuel Payment

MPs have approved plans to axe Winter Fuel Payments to millions of older households.

Politicians approved the measure despite recent research finding five out of every six pensioners living the below the poverty line will lose the support.

Age UK now estimate that at least 2.5m pensioners will suffer hardship as a result.

MPs who backed the cut have claimed that the Household Support Fund could pick up the slack, but this will involve local authorities removing the HSF help from other groups struggling with the cost of living.

A spokesperson for the End Fuel Poverty Coalition, commented:

“MPs have made the dangerous decision to condemn some of the most vulnerable pensioners to living in cold damp homes this winter.

“Many pensioners in poverty will now see energy bills higher than they have ever experienced in their lives.

“Parliamentarians and ministers should examine their conscience and the deluge of correspondence they have had on this issue from worried pensioners and back ways to mitigate the pain of the cut.

“We and others have given the government a number of ways they can target extra support to those pensioners most in need. One clear solution would be to extend eligibility to those on other forms of benefit and making more support available to vulnerable pensioners.

“But the Treasury could also look at a more comprehensive system of support for all of those living in cold damp homes, such as an emergency energy tariff or reform and expansion of the Cold Weather Payment system.”

Caroline Simpson, spokesperson for the Warm This Winter campaign commented

“The government needs to commit to keeping everybody warm this winter. Many people back some form of means testing for the Winter Fuel Payment, but scrapping it for all at short notice carries a very real risk of putting millions of vulnerable pensioners in harm’s way.

“While we back the government’s plans to prioritise home insulation which is the long term way to bring down everyone’s bills for good, no one should be forced to live in a cold damp home this winter.”

Caroline Abrahams CBE, Charity Director at Age UK added:

“We’re deeply disappointed, but not surprised, that the vote to brutally means-test Winter Fuel Payment was passed today. As soon as the Government announced it was instructing its MPs to support it this was the inevitable result, but we would like to thank all those in every party who voted against the policy or abstained.

“There’s been a lot of discussion about the Government’s decision, but at heart Age UK’s critique of their policy is really simple: we just don’t think it’s fair to remove the payment from the 2.5 million pensioners on low incomes who badly need it, and to do it so quickly this winter, at the same time as energy bills are rising by 10%.

“It is crystal clear that there is insufficient time to make any serious impact on the miserably low take-up of Pension Credit before the cold sets in this autumn, and the Government has brought forward no effective measures to support all those whose tiny occupational pensions take them just above the line to claim. It’s true they have agreed to extend the Household Support Fund until April and they deserve some credit for that, but the HSF is an all-age fund that you have to apply for, so we know it will only help a small proportion of all the pensioners who will be in need as a result of their policy change.

“The Government has also tried to suggest that the increase in State Pension for older people next year as a result of the Triple Lock means there’s no need to worry about how they will cope now, but that won’t help anyone this winter and most pensioners will not benefit to the extent being suggested – either because they are on the old State Pension which attracts less of an increase, or because they don’t qualify for a full State Pension in the first place.

“The reality is that driving through this policy as the Government is doing will make millions of poor pensioners poorer still and we are baffled as to why some Ministers are asserting that this is the right thing to do. We and many others are certain that it is not, and that’s why we will continue to stand with the pensioners who can’t afford to lose their payment and campaign for them to be given more Government support.

“Meanwhile, winter is coming and we fear it will be a deeply challenging one for millions of older people who have previously relied on their Winter Fuel Payment to help pay their energy bills and who have no obvious alternative source of funds on which to draw. As a charity we will do everything we can to help them, but with so many in need and no extra support on offer from the Government at the moment it’s looking like an incredibly uphill task.”

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.

This equates to around 2m pensioners forced into fuel poverty. In addition, Warm This Winter data suggests that another 2.9m pensioners will now face financial difficulty this winter due to the decision. [1]

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 almost half 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.”

A spokesperson for Independent Age commented:

“Today’s decision to end the Winter Fuel Payment for those not receiving Pension Credit risks driving hundreds of thousands of older people into further financial hardship. We welcome the Chancellor’s intention to tackle the low uptake of Pension Credit, however means testing the Winter Fuel Payment now will mean too many older people will fall through the cracks and not get the vital financial support they desperately need, especially when household bills like energy are still extremely high.

“Pension Credit has an unacceptably low uptake at just 63%. This means a staggering 880,000 older people who are eligible could be missing out on money they need to turn their heating on. On top of this, every day we hear from older people who just miss out on Pension Credit but still struggle to pay their energy bills. They could now be heading into winter without this important lifeline.

“We understand the UK Government needs to make some tough choices, but today’s announcement demonstrates just how important it is for all older people facing financial hardship to receive the money they are entitled to. We also hope the new UK Government will take this opportunity to work cross party to determine what an adequate income in older age is and ensure that everybody receives it so that nobody lives in poverty in later life.”

ENDS

[1] 2m based on Age UK calculations. 2.9m based on Opinium data for Warm This Winter (December 2023) and based on the number of pensioners with an income of GBP20-30k a year combined with population estimates from the ONS.