Charities warn older households just above the threshold will be hit hard by the move
Age UK has warned the Government that two million vulnerable pensioners could struggle to stay warm this winter as a result of the Chancellor’s decision to restrict the Winter Fuel Payment (WFP) scheme.
From this coming winter, pensioners not in receipt of pension credit will no longer be eligible to get the WFP, Rachel Reeves said on Monday in a series of announcements on Britain’s finances.
Reeves said it was not a decision she wanted or expected to make but said it was “necessary and urgent” as she blamed overspend from the previous government. The decision has caused a backlash from charities who have said many older households will be hit hard by the restriction.
Director of Age UK Caroline Abrahams said the charity “strongly opposes” the policy change which it said could result in more older people having to choose between ‘eating or heating’.
“We strongly oppose the means-testing of Winter Fuel Payment because our initial estimate is that as many as two million pensioners who badly need the money to stay warm this winter will not receive it and will be in trouble as a result – yet at the other end of the spectrum well-off older people will scarcely notice the difference – a social injustice,” said Abrahams.
The leading charity for older people estimated that there are a million pensioners whose weekly incomes are less than £50 above the poverty line who will be hit by the loss of the payment. Money saving expert Martin Lewis also criticised the move and highlighted that “those just above the thresholds will be hardest hit.”
The founder of MoneySavingExpert said the Government now has a “huge moral imperative” to help inform and educate the 800,000 people who are eligible for Pension Credit but don’t get it.
He said: “It is planning an awareness-raising campaign, but it needs to ensure that reaches every corner – and if possible proactively and personally contact people.”
Jonathan Bean from the Fuel Poverty Action campaign group called it a “cruel and reckless move” that will “cause widespread suffering” and increase NHS admissions in winter.
He suggested: “Instead we need an energy pricing system that guarantees everyone the essential energy they need to stay warm and safe.”
Rachel Reeves said in her annoucement: “The government will continue to provide winter fuel payments worth £200 to households receiving pension credit or £300 to households in receipt of pension credit with someone over the age of 80.
“Let me be clear, this is not a decision I wanted to make, nor is it the one I expected to make – but these are the necessary and urgent decisions that I must make.”
(Image credit: The Independent / Screenshot YouTube)
Hannah Davenport is news reporter at Left Foot Forward
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