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An update from our Parlimentary Advisors
The Guardian have published an article on the impact of changes to winter fuel payments by Chancellor Rachel Reeves.
The Treasury announced that the winter fuel payments will now be targeted at households over state pension age in England and Wales that receive pension credit and universal credit. Eligible individuals will receive either £200 or £300 if they are over 80. The government argues that this change will better direct support for heating costs to those who need it most, while still maintaining the triple lock for pensions.
Additionally, the government has scrapped long-delayed social care charging reforms, known as the social care cap, which was intended to protect individuals from having to sell their homes to pay for care. The cap, introduced under Boris Johnson in 2021, aimed to raise the threshold for assets eligible for state funding from £23,250 to £100,000 and cap lifetime care costs at £86,000. However, this plan faced delays and funding issues, prompting local authorities to warn that proceeding without additional investment could lead to financial crises.
Campaigners have warned that up to 2 million financially struggling older individuals may lose annual payments worth hundreds of pounds due to government plans to restrict the winter fuel allowance to only the poorest pensioners.
The proposed changes, which could save £1.5 billion, have drawn criticism from charities. They argue that pensioners who do not claim the main qualifying benefit, pension credit, could face dire financial choices this winter, potentially leading to situations where they must choose between heating and food. The winter fuel allowance, which helps those aged 67 and older with heating costs during the cold months, previously provided payments ranging from £100 to £300. In the winter of 2022-23, about 11.4 million people received this allowance, in addition to one-off cost-of-living payments.
Caroline Abrahams, director at Age UK, stated that approximately 2 million pensioners who rely on the winter fuel payment may not receive it due to these changes, labelling it a social injustice. She emphasised that means-testing the payments without adequate notice or protective measures for vulnerable pensioners could jeopardise their health and financial stability.
Age UK estimates that around 800,000 older individuals on very low incomes are eligible for pension credit but do not claim it.
Save the Winter Fuel Payment for struggling pensioners
Millions of struggling pensioners won’t receive up to £300 they rely on to pay their bills.
The Government should halt their proposed change to the Winter Fuel Payment and think again.
Sign Age UK’s petition to save the winter fuel payment for struggling pensioners.
