The Chancellor has dropped a bombshell on the Winter Fuel Payment system, announcing significant cuts.
In a move that’s set to shake up financial support for the elderly this winter, the government has slashed the Winter Fuel Payment scheme. Rachel Reeves, addressing MPs in the Commons today (July 29), admitted it was a tough call but insisted it was “the responsible thing to do”.
Gone are the days when every person over the State Pension Age could count on extra cash to cover their energy bills. Now, as Ms Reeves outlined to Parliament, only those on pension credit or certain other means-tested benefits will be entitled to the payment from now on.
Here’s the list of benefits that won’t qualify you for Winter Fuel Payments anymore.
Following the Chancellor’s announcement, only recipients of Pension Credit and some means-tested benefits will be guaranteed Winter Fuel Payments. This means claimants on the following benefits will miss out this coming winter:
- Attendance Allowance.
- Bereavement Support Payment.
- Carer’s Allowance.
- Disability Living Allowance.
- New style Employment and Support Allowance.
- Personal Independence Payment (PIP).
- State Pension.
Winter Fuel Payment now “too narrow”
Personal finance expert Martin Lewis has criticised the new Winter FUel Payments as being “too narrow”. He said: “The targeting of Winter Fuel Payments is too narrow with the winter we have coming.
“Pensioners were already due to get less as this will be the first time since winter 2022 they haven’t got the up to £300 extra winter fuel cost of living top-up. The Energy Price Cap is likely to rise 10% this October and stay high across the winter, leaving most energy bills nearly double those pre-crisis, at levels unaffordable for millions.
“Many pensioners eke out the £100 to £300 Winter Fuel Payments to allow them to keep some heating on through the cold months. While there’s an argument for ending its universality due to tight national finances, it’s being squeezed to too narrow a group – just those on benefits and Pension Credit. Yet again, those just above the thresholds will be hardest hit.
“This is often justified as there’s a ‘lack of household income data’ to allow other targeting. However, there’s a usable precedent from the emergency energy crisis measures announced in April 2022, which I’d urge the Government to look at.
“Then, a payment was made to homes in council tax bands A to D – as an imperfect but workable proxy for lower household incomes. That’d allow an additional group of lower to middle-income pensioners to keep the payments and mitigate bill shocks. Councils’ discretionary funds could also be funded as in April 2022, for the limited numbers who still need help but don’t qualify.
“Plus, with this announcement, the Government has a huge moral imperative to ensure the 800,000 people eligible for Pension Credit who don’t get it, are informed, educated and helped through the process. It is planning an awareness-raising campaign, but it needs to ensure that reaches every corner – and if possible proactively and personally contact people.
“Pension Credit is a crucial gateway benefit, giving access to a host of other entitlements, and now with the link to the Winter Fuel Payment, it makes it even more important to ensure fewer miss out.”