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A new campaign has been launched to reinstate the Winter Fuel Payment for millions of pensioners after the chancellor made significant changes to the cold weather benefit.
Beginning this year, the eligibility for the yearly one-off payment will change. Now, only pensioners who receive Pension Credit (or certain or benefits) will be able to receive the Winter Fuel Payment.
Campaigners have criticised this change, arguing it will cause millions of pensioners to struggle this winter. Age UK estimates around two million struggling pensioners will suffer because of the change.
The older-age charity has launched a petition to halt the measure and urge the chancellor to reconsider. It has received over 100,000 signatures in 48 hours.
Announcing the change amongst a raft of cost-cutting measures on Monday, the chancellor said: “Let me be clear: this is not a decision I wanted to make.”
“But it is a necessary and urgent decision I must make – It is the responsible thing to do to fix the foundations of our economy and bring back economic stability.”
Ms Reeves revealed the plan as part of her measures to close the UK’s “black hole” in public finances, with Treasury calculations saying the move will raise an additional £1.5 billion.
Since being introduced in 1997, the Winter Fuel Payment has been available to all pensioners, regardless of income. There had been calls over the years to make it means-tested to save public funds going to wealthier pensioners who less likely to be struggling with bills.
However, campaigners point out that the chancellor’s changes mean the payment is now going to be missed by many who depend on it. Responding to the change, Money guru Martin Lewis said: “The targeting of Winter Fuel Payments is too narrow with the winter we have coming.
“Pensioners were already due to get less as this will be the first time since winter 2022 they haven’t got the up to £300 extra winter fuel cost of living top-up.”
Age UK says there are several reasons that the changes will mean struggling pensioners won’t be eligible for the Winter Fuel Payment under new rules. For around one million, it is because they make just a bit more than the Penion Credit threshold – no more than £50.
This will usually be because they have a small occupational income on top of their State Pension. But despite an extra £50 only equating to a modest income of around £14,000 a year, a pensioner on this amount will no longer qualify for the Winter Fuel Payment.
There are also estimated to be around 200,000 pensioners who have high energy needs because of disability or illness, or who live in energy inefficient homes which cost more to heat.
On top of this, around 800,000 pensioners who are eligible for Pension Credit do not claim it. Age UK says this has remained consistent for many years, and is usually related to lack of awareness and stigma.
Alexander, 80, told the charity: “We cannot afford to keep the heating on NOW never mind without the Winter Fuel Payment it will be impossible to heat our home. With a serious heart complaint and diabetes this could possibly kill us at our age.”
Shirley, 76, adds: “It will be difficult, as my husband is in heart failure. We have to run our heating whether we can afford to or not. It’s an enormous blow we cannot get pension credit as my husband receives a small pension of £198 per month.”
The changes also come at a time when costs are mounting as winter approaches. Ofgem’s energy price cap is expected to rise by 10 percent in October, while the Household Support Fund – delivered by local authorities to those in need – will end in September.
Caroline Abrahams CBE, Charity Director at Age UK said: “The fact that so many people have taken the trouble to sign our petition within 48 hours and during the hottest week of the year shows the strength of feeling about the Government’s decision to means-test the Winter Fuel Payment.
“Some commentators have suggested that means-testing the Payment is fair because the older people who need it the most will still be protected, but the evidence shows this is sadly not the case. This is why Age UK will be campaigning shoulder to shoulder with older people over the next few months to persuade the Government to think again.”
