The new Labour Government’s decision to effectively axe the Winter Fuel Payment is in line to be a “potential disaster” for millions of pensioners, a landmark report has found.
Analysis from Age UK has found that 82 per cent of pensioners living below or just above the poverty line are set to lose up to £300 in energy bill support following the move to means-test the benefit.
The charity’s research shows that 10.7 million UK state pensioners will be affected, with nearly a quarter living in poverty or on the brink.
Particularly concerning is the impact on vulnerable groups, including 80 per cent of low-income pensioners aged 80 and over, and 78 per cent of those with disabilities
This assessment is in response to Prime Minister Sir Keir Starmer’s Government’s apparent lack of an Equality Impact Assessment, using the most up-to-date official statistics available.
Among UK pensioners aged 80 and over living in poverty or just above the poverty line, 800,000 will lose their payment For disabled pensioners in similar financial circumstances, 1.1 million will no longer receive the payment.
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Labour is under fire over its decision to means-test the energy bill benefit
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The impact extends to those living alone, with one million low-income pensioners in this category set to lose the benefit.
Female pensioners are particularly affected, with 79 per cent (1.4 million) of those living in poverty or just above no longer eligible for Winter Fuel Payment.
Based on Age UK’s research found that in every region and country, at least 74 per cent of pensioners living in poverty or just above the poverty line will lose their Winter Fuel Payment.
In response, the charity is urging the Government to maintain the WFP as a universal payment this year, pending the Spending Review in the spring.
As well as this, the organisation suggests expanding eligibility criteria to include those receiving Housing Benefits, Council Tax Support, Personal Independence Allowance, Attendance Allowance, and Carers Allowance.
Caroline Abrahams CBE, Charity Director at Age UK, expressed deep concern over the findings.
She stated: “Bluntly, they show that the great majority of pensioners whose incomes take them either below the poverty line or only just above it – about four in every five, will lose their Winter Fuel Payment following the Government’s policy change.”
Abrahams urged immediate action, saying, “Ministers must act in the Budget to protect them and the best way for them to do so by far is to retain WFP as a universal entitlement this winter”.
She warned of potential consequences if the Government proceeds without mitigation measures.
“At best their lives will be anxious and miserable, at worst their health could be badly undermined,” Abrahams cautioned.
“Some people have asserted that the Government’s cut to eligibility for Winter Fuel Payment means there is no cause for concern because poor pensioners will still be protected, but Age UK’s Equality Impact Assessment drives a coach and horses through that claim.
“Unfortunately, the research supports our worst fears – that unless Ministers change tack, and quickly, millions of older people on low and modest incomes could be facing potential disaster as the weather chills.”
