Pensioners Affected by Winter Fuel Payment Changes Prompt Union's Legal Challenge

The UK government's plan to scrap universal Winter Fuel Payment for around 12.7 million pensioners has prompted trade union Unite to threaten legal action. In a bid to save money, the Labour government has said that only people over the age of 66 and in receipt of means-tested benefits such as Pension Credit would be eligible, meaning that around 10 million pensioners will no longer receive this one-off annual payment of up to £300.

Implications for Pensioners and Government Justifications

Ministers claimed the move was necessary to help plug a £22 billion “black hole” they said the previous government had left in this year's budget plans. However, Unite said it believed millions of pensioners would suffer a “terrible effect” from the cut in winter heating allowances and called on the UK government to change its mind or face a legal review.

As a result of this policy change, around 1.5 million people who have reached State Pension age, including over 125,000 in Scotland, will continue to be eligible for heating bill relief, which should be paid before the end of next month. According to recent confirmation from the Department for Work and Pensions (DWP), all pensioners are receiving letters informing them of their eligibility; Scots should expect to receive their letters this month.

Unite general secretary Sharon Graham said: “People do not understand; I do not understand how a Labour government has taken away the fuel allowance of millions of pensioners just as winter approaches. Given the failure to rectify this in the budget, Unite has now commenced judicial review proceedings challenging the legality of the policy.

“It is not too late for Labour to register the hurt that this cruel policy has caused, step back from picking the pockets of pensioners, and do the right thing.”

As well as failing to send the reduction to the Social Security Advisory Committee (SSAC), the union claimed that the Labor government had breached its legal obligations by failing to consider the impact on disabled people.

If a benefit rule is an "urgency," ministers are not obliged to recommend it to the SSAC. This is what the British government did when it adopted the policy change concerning Winter Fuel Payment.

Further criticism has been leveled at the government for failing to fully consider the impact of the policy in its “equality analysis," which was made public under the Freedom of Information Act.

To avoid having to seek permission from the High Court for a full judicial review, Unite has given the Labour government until Thursday November 7 to respond to a pre-action letter submitted last week and cancel the reduction.

The application for judicial review of this policy will only further strain relations between the Labour Party and the Unite union, which was once one of the party's major donors.The union has already voiced its opposition to the reduction in winter heating allowances and staged a protest on the subject outside the Labour Party conference this year.

Pension Credit Awareness to Winter Fuel Payment

A government spokesman told the Press Association: “We are committed to supporting pensioners, with millions set to see their State Pension rise by up to £1,700 this parliament through our commitment to the Triple Lock.

“Over a million pensioners will still receive the Winter Fuel Payment, and our drive to boost Pension Credit take-up has already seen a 152 per cent increase in claims. While many others will also benefit from the £150 Warm Home Discount to help with their energy bills over winter.”

The DWP's latest figures suggest that 760,000 pensioners are entitled to Pension Credit, but are not claiming it. Some elderly people believe that, because they have savings or own their own home, they are not entitled to this means-tested benefit, in addition to helping with housing costs, heating bills, and council tax.

A weekly award of £1 is all that's needed to qualify for extra help. If a new application submitted before December 21, 2024, is subsequently deemed eligible, it will also qualify for a backdated winter heating allowance.

How to check eligibility for Pension Credit

By using the online Pension Credit calculator on GOV.UK, older people, or their friends and relatives, can easily determine their eligibility and receive an estimate of what they could receive.

Pensioners can also submit an application by calling the Pension Credit helpline directly on 0800 99 1234, which is open Monday to Friday from 8 a.m. to 6 p.m.

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