Thousands more pensioners in poverty due to winter fuel payment cut – DWP

Tens of thousands more pensioners will be in poverty every year as a result of the restriction to the winter fuel allowance, Government estimates have revealed.

Limiting the payment will mean an estimated 50,000 more pensioners are in relative poverty after housing costs next year, and 100,000 more in 2026, official modelling showed.

The winter fuel payment, worth up to £300, is being restricted to only those claiming pension credit from this winter, with the aim of saving the public purse £1.5 billion a year.

Government analysis of the impact of its decision to restrict the payment was published by the House of Commons Work and Pensions Committee on Tuesday.

A letter to the committee from Work and Pensions Secretary, Liz Kendall, said: “The latest modelling shows that compared to the numbers that would have been in poverty without this policy, it is estimated that in each year in question there will be an additional 50,000 pensioners in relative poverty after housing costs in 2024-25, 2025-26 and 2027-28, instead.

“The modelling also shows that an additional 100,000 pensioners are estimated to be in relative poverty after housing costs in 2026-27, 2028-29 and 2029-30.

“For all other measures of poverty it is estimated that there will be an additional 50,000 pensioners in poverty each year from 2024-25 to 2029-30.”

Ministers have faced criticism for slashing access to the payment, with opposition MPs urging them to rethink the move.

Finally the dam breaks and we get to see what Labour have known all along.

Ms Kendall said the Labour Government had been “forced” to limit the payment due to the “£22 billion black hole” it blamed the Conservatives for leaving behind.

In her letter, she wrote: “Means-testing winter fuel payments was not a decision this government wanted or expected to take. However, we were forced to take difficult decisions to balance the books in light of the £22 billion black hole we inherited.

“Given the dire state of the public finances, it’s right that we target support to those who need it most while we continue our work to fix the foundations and stabilise the economy – which is the best way to support pensioners in the long term and is what has allowed us to deliver our commitment to the triple lock.”

Shadow work and pensions secretary Helen Whately said: “Finally the dam breaks and we get to see what Labour have known all along.

“Their winter fuel payment cuts are going to plunge 100,000 pensioners into poverty in the next few years.

“Clearly Keir Starmer feels like that’s a price worth paying to make a political point. But I don’t think those pensioners would agree with him.”