This move, led by Rachel Reeves, aims to focus winter fuel support on pensioners with lower incomes. Critics argue that this decision could push more vulnerable pensioners into poverty. As the state pension increases annually, the number of retirees who no longer qualify for winter fuel payments is expected to grow.
State Pension : A Rising With Its Consequences
The main reason for the reduction in eligible pensioners is the widening gap between the state pension and the income threshold for pension credit. The state pension has risen to £221.20 per week, surpassing the £218.15 threshold for single pensioners who become ineligible for pension credit, a key requirement for receiving winter fuel payments.
This change is expected to reduce the number of pensioners receiving winter fuel payments from 1.427 million to 1.252 million by the end of this Parliament. The decision to means-test the benefit — limiting it to those who qualify for pension credit — has already resulted in a drop in the number of eligible pensioners.
At the same time, pension credit uptake has surged by 145% since the announcement, although many eligible pensioners still fail to claim it. Notably, around 880,000 eligible households do not claim pension credit, according to government estimates.
Government Response: Efforts to mitigate the impact
The administration has defended the strategy, claiming that millions of retirees will benefit from the “triple lock” system, which assures that the state pension grows annually in line with inflation, salary growth, or 2.5%. They also mention other measures, such as the £150 warm house discount and cold weather payments, which are intended to relieve financial strains on seniors.
“We are committed to supporting pensioners – with millions set to see their state pension rise by up to £1,900 this parliament through our commitment to the triple lock. Over a million pensioners will still receive the winter fuel payment. Our drive to boost pension credit take-up has seen applications more than double with over 40,000 more pensioners now receiving pension credit, as well as the winter fuel payment”, a government spokesman said.
Government officials add that these initiatives, together with a push to encourage pension credit use, will benefit individuals affected by the loss of winter heating subsidies. They report a 51% rise in the number of cleared pension credit claims after the introduction of means-testing for winter fuel subsidies.
However, critics, including the Labour Party, warn that this move could push tens of thousands of pensioners into poverty, with some estimating that as many as 100,000 retirees could be at risk by 2026. “The number of pensioners receiving pension credit is expected to fall steadily over the coming years but now also means the numbers qualifying for winter fuel payments and other ‘add-on’ benefits will fall as well.”, adds Steve Webb, of pension consultants LCP and a former pension minister.
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It is unfair that pensioners are being attacked this way does she lose her winter fuel allowance no she don’t it not just on