Chancellor Rachel Reeves has confirmed that the Winter Fuel Payment system will be one area subject to cuts, as “difficult decisions” need to be made.
Ms Reeves cited ongoing issues left over from the previous government has led to tricky choices being made on tax, spending and welfare, including cuts being made to Winter Fuel Payments.
These payments are designed to help pensioners pay to heat their homes in the winter months, when fuel costs become more expensive.
Previously, it had provided between £250 and £600 during the winter months, depending on the claimant's eligibility.
On July 29, Reeves told the House of Commons that the cuts were "the responsible thing to do". The reduction in the number of beneficiaries is thought to affect ten million people in England and Wales.
Previously, the payments were available to all people above the State Pension Age, but now it will be more selective.
"Those not in receipt of pension credit or certain other means-tested benefits will no longer receive the winter fuel payment from this year onward,” said Ms Reeves in the House of Commons.
The plan has been criticised by both the Shadow Chancellor Jeremy Hunt and MoneySavingExpert CEO Martin Lewis.
"Many pensioners eke out the £100 to £300 Winter Fuel Payments to allow them to keep some heating on through the cold months,” Mr Lewis said.
He added: “While there's an argument for ending its universality due to tight national finances, it's being squeezed to too narrow a group – just those on benefits and Pension Credit. Yet again, those just above the thresholds will be hardest hit.”
Here’s a full list of benefits that are not expected to make claimants eligible for Winter Fuel Payments.
Every benefit that will no longer be eligible for Winter Fuel Payments
According to the Chancellor’s new plan, only those claiming Pension Credit or some means-tested benefits will definitely be eligible for Winter Fuel Payments.
This means pensioners claiming the following benefits will not be eligible this winter:
- Attendance Allowance
- Bereavement Support Payment
- Carer's Allowance
- Disability Living Allowance
- New style Employment and Support Allowance
- Personal Independence Payment (PIP)
- State Pension
