130,000 Pensioners to Lose Winter Fuel Payments Under New Government Policy
August 5, 2024Tens of thousands of pensioners are facing financial difficulties due to the government's recent decision to restrict winter fuel payments.
Chancellor Rachel Reeves has introduced a means test for winter fuel payments, limiting eligibility to those on pension credit.
An analysis by Policy in Practice estimates that around 130,000 pensioners will miss out on winter fuel payments because they exceed the pension credit threshold by up to £500 annually.
Experts warn that those just above the threshold may be worse off than those qualifying for the payment.
Heléna Herklots, the older people's commissioner for Wales, has urged the government to reconsider the winter fuel allowance decision to avoid increasing poverty levels among older people.
Jan Shortt, general secretary of the National Pensioners Convention, expressed concern over potential increases in hospital admissions and mortality rates among those affected.
Greg Fell, president of the Association of Directors of Public Health, emphasized the health risks associated with fuel poverty, including respiratory and cardiovascular diseases.
Deven Ghelani, founder of Policy in Practice, highlighted that the benefit system's 'cliff edges' can lead pensioners to be financially disadvantaged.
An Opinium poll revealed that Reeves's approval ratings have dropped significantly following the announcement of the cuts, from +11% to -12%.
The decision to scrap winter fuel payments has been deemed unpopular, with 49% of respondents opposing it in the same poll.
Ros Altmann, a former Conservative pensions minister, criticized the government's decision as a significant mistake, resulting in widespread anger among pensioners.
This policy change will affect approximately 10 million pensioners in England and Wales.
Summary based on 1 source
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Source
The Guardian • Aug 4, 2024
UK pensioners left on ‘financial cliff edge’ by cuts to winter fuel payments