Millions of state pensioners are set to experience major benefit cuts as the government wants to achieve £1.5 billion in budget savings.
State Pensioners Face Up to £600 Loss in Winter Fuel Payments
The upcoming payment cuts could mean that many state pensioners will lose up to £600 this winter due to stricter rules for winter payments.
Right now, Winter Fuel Payments are provided automatically to eligible state pensioners born before September 25, 1957, with amounts ranging from £250 and £600
Generally, any UK resident born before 1957 gets this benefit, unless they've been in hospital for over a period exceeding a year or have been in incarcerated.
Chancellor Announces Cuts to Winter Fuel Payments Amid £22 Billion Shortfall
Labour Chancellor Rachel Reeves unveiled a series of funding cuts to address a £22 Billion shortfall, she referred to as a ‘black hole’ in the nation’s finances.
As a result, Winter Fuel Payments will no longer be paid automatically, and will be provided only to those who receive specific benefits, including, Pension Credit, Universal Credit, Income Support, Jobseeker’s allowance and any income related support.
The Chancellor declared: “Around £1.5 billion will be saved per year by targeting Winter Fuel Payments meaning households with someone aged over State Pension age receiving Pension Credit, Universal Credit, Income Support, income-based Jobseeker’s Allowance and income-related Employment and Support Allowance will continue to receive Winter Fuel Payments. This will better target support for heating costs at those who need it.”
She added: “This is not the statement I wanted to give today, and these are not the decisions I wanted to make. But they are the right decisions in difficult circumstances.”