Labour’s changes to Winter Fuel Payments are being challenged by over 260,000 people. Initially, the scheme was available for almost every British citizen born before 25 September 1957, and it was meant to cover their heating bills.
Now, only those who are in receipt of Pension Credit or other means tested benefits will get this benefit. These receiving Pension Credit will receive £200 or if they are above 80 years old they will receive £300.
According to the Treasury’s estimates, these changes would reduce the number of recipients from 11.4 million pensioners to about 1.5 million, thus leaving nearly 10 million ineligible. Consequently, this measure might save around £1.5 billion per year by making payments better targeted.
Age UK has warned that millions of households may be without heating this winter as a result. Therefore, they began a petition that so far has been supported by over two hundred and sixty thousand signatures requesting the Government to reconsider.
The petition states: “Reducing the Winter Fuel Payment with little notice and no protective measures for vulnerable pensioners is misguided. Many pensioners, who depend on up to £300 for their bills, will be affected. Around 2 million pensioners struggling with energy costs, including those just above the Pension Credit threshold and those with high energy needs, will be seriously impacted.”
Energy Bill Increase for Pensioners
More than 50 organisations have written an open letter to Chancellor Rachel Reeves expressing their disagreement with her decision on limiting the winter fuel allowances. The End Fuel Poverty Coalition cautioned that elderly citizens not getting assistance based on need might see their energy costs rise up by fifteen percent during winters.
Their letter to the Chancellor states: “Restricting payments to a small minority will force millions into cold, damp homes.”
Martin Lewis Condemns Decision on Winter Fuel Payment
Martin Lewis, the Money Saving Expert, has also denounced “too narrow with the winter we have coming”. He observed that the cap on energy prices may go up by 10% in October, thereby keeping bills high all through the winter, and making them unaffordable to many.
Lewis argued that while financial constraints might be used to justify ending universal payments, this is just too harsh. The people who will suffer most are those who are just above the benefit thresholds.
In addition, he emphasized that there was a need to reach out to inform and help 800,000 persons eligible for Pension Credit who have not been receiving it.
“Pension Credit is a vital gateway to other benefits,” he said, “and with its link to the winter fuel payment, it's crucial to minimise the number of those missing out.”