British life-style: UK pensioners left on ‘financial cliff edge’ by cuts to winter fuel payments

Analysis suggests about 130,000 older people will miss out on winter fuel payments in the UK because they are up to £500 a year over the threshold for receiving pension credit.
Photo: PA

Tens of thousands of pensioners are on a financial cliff edge because of the government’s decision to radically restrict winter fuel payments, a new analysis has revealed. The chancellor, Rachel Reeves, opted to introduce a means test for the payments, with only those on pension credit qualifying, stating it was one of the “difficult decisions” she had to make, as she accused the Tories of leaving £22bn in unfunded commitments, writes ‘The Guardian’.

The decision removes the payments from about 10 million pensioners in England and Wales.

A new analysis by Policy in Practice, a social policy software and analytics company, suggests about 130,000 people will miss out on winter fuel payments in the UK because they are up to £500 a year over the threshold for receiving pension credit, making them ineligible for the benefit. Experts warned they may end up worse off than some of those qualifying for the payment. An estimated 850,000 older people are also eligible for pension credit in the UK, but not claiming it.

Deven Ghelani, the founder of Policy in Practice and one of the architects of the universal credit system, said: “We will get more cold, damp and mouldy homes because people will turn off their heating just to get by.”

Greg Fell, president of the Association of Directors of Public Health, said: “Fuel poverty can lead to cold, damp living conditions, which in turn can cause an increase in illnesses, including respiratory disease, cardiovascular disease and mental health problems.“There are a number of ways the government can act to limit fuel poverty and its effects, and all these mitigations, including the winter fuel allowance, should be maximised for those most in need of support.”

A government spokesperson said: “Given the dire state of the public finances we have inherited, this government must take difficult decisions to fix the foundations of the economy. In these circumstances, it is right that winter fuel payments are targeted at those in most need, and we will work with local authorities to boost uptake of pension credit, reaching the many pensioners who could still benefit from this year’s winter fuel payments.”

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