Winter Fuel Payment axe excuses DEBUNKED as pensioners face ‘disastrous outcome’

Age UK has challenged the justifications for means-testing the Winter Fuel Payment (WFP), including some used by the Labour Government.

The charity argues that the decision will leave millions of pensioners struggling financially this winter.

Based on Age UK’s Equality Impact Assessment, 82 per cent of pensioners living below or just above the poverty line will lose the Winter Fuel Payment due to the Government’s decision.

This affects 2.5 million older people, including those over 80, disabled, living alone, and female. These households will lose between £200 to £300 in energy bill support, the charity claims.

Additionally, the discontinuation of the £300 cost of living payment means many households could be up to £600 worse off.

According to the organisation, older people are planning to ration heating, food, and personal washing due to losing their Winter Fuel Payment.

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The Government’s claim that the State Pension rise will offset the WFP loss is also being challenged by Age UK. The charity points out that the WFP is paid in November/December 2024, whilst the state pension increase doesn’t occur until April 2025.

Even for those on full new state pension, it will take until March 2026 to receive a full £400 increase. This creates an 18-month gap.

Moreover, the 4.1 per cent increase in April 2025 won’t benefit all pensioners equally. The majority (10.8 million people) are likely not to see increases comparable to those receiving the full rate of the new State Pension.

On top of this, the Government’s assertion that those most in need will claim Pension Credit and receive the WFP is challenged by Age UK.

The charity highlights that Pension Credit is already underclaimed, with one in three eligible pensioners missing out.

This equates to 700,000 households or 830,000 pensioners not receiving an average of £37 per week.

Single women and those over 75 are particularly affected.

Age UK notes that £1.3billion of Pension Credit went unclaimed in 2022/3. The charity emphasises that linking Winter Fuel Allowance eligibility to Pension Credit may exacerbate the problem of underclaiming.

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Caroline Abrahams CBE, the charity director at Age UK, broke down what is at stake for pensioners with the benefit being effectively axed.

She explained: “The overwhelming consensus of expert opinion is that the Government’s cut to Winter Fuel Payment goes too far and will leave millions of pensioners on low incomes or in vulnerable situations in dire financial straits.”

“Age UK’s own equality impact assessment found four in five poor pensioners are set to lose it this year, a disastrous outcome from a social justice point of view and one that should be unacceptable in our country, however strained the public finances may be.”

Abrahams also criticised the Government’s reliance on the State Pension increase, stating it “does nothing to help pensioners this winter”.