Winter Fuel Payment alert: Pensioners in ‘worse situation’ after energy bill benefit axe
Pensioners across the UK are set to experience a “worse” winter following the new Labour Government’s decision to means-test the Winter Fuel Payment.
Earlier this year, Chancellor Rachel Reeves confirmed the benefit, which offers up to £300 in energy bill support, would no longer be universal and instead be reserved for older people on Pension Credit.
Charities and campaigners are lobbying Reeves to reverse her decision to avoid plunging more pensioners into poverty.
This warning comes following regulator Ofgem’s decision to raise the energy price cap by 10 per cent as of today, which will raise costs for the typical household.
An estimated 10 million people will lose the Winter Fuel Payment this year as a result of the decision to means-test the allowance.
Based on figures released by the Department for Work and Pensions (DWP), the number of individuals on the payment last winter was 214,000 more than the 11.4 million in 2022-23.
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This figure has slowly grown up from 11.1 million during the 2020-21 tax year.
Rival political parties to Labour have called on Prime Minister Keir Starmer to keep the Winter Fuel Payment universal for pensioners.
Last week, delegates at Labour’s annual conference supported a motion pushing for the benefit cut to be U-turned.
However, this vote is not binding on the Government and ministers have been adamant that the policy will remain in place.
Citizens Advice is campaigning for “targeted bill support” while the End Fuel Poverty Coalition is lobbying for the expansion of other support funds.
Andy Manning, head of energy policy at Citizens Advice, said: “This price rise means bills are now around two-thirds higher than before the energy crisis.
“With record levels of energy debt, the removal of previous support and changes to the eligibility of the winter fuel payment, people are in desperate need.
“The Government must urgently introduce targeted bill support that reflects the realities of people’s energy needs.”
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Simon Francis, co-ordinator of the End Fuel Poverty Coalition, explained: “For older people who previously received the Winter Fuel Payment, but will no longer do so under the Chancellor’s new rules, the situation is even worse.
“For many pensioners, this winter will feel like the most expensive on record. What’s worse, there are more price increases on the horizon.
“We welcome the Government’s long-term plans to boost home energy efficiency to bring down bills and to improve energy security to stabilise prices, but these reforms will take time to take effect and will be cold comfort to those struggling this winter.
“That’s why it is so vital the ministers bring in more support for vulnerable households this winter, reductions in standing charges and a social tariff.
“The energy industry has made more than £457billion in profit since the start of the crisis, so there is plenty of money in the system to be able to ensure everyone stays warm this winter and next.”