Four in five pensioners living in poverty to lose winter fuel payment

Nearly two and a half million pensioners living  close to the breadline are set to lose their winter fuel payment this year, analysis by charity Age UK has found.

The research estimates that a total of 10.7 million pensioners will be affected by Chancellor Rachel Reeves' decision to means test the lifeline payment, including 1.1 million disabled people.

Almost one in four (23%) of those who will lose out on the winter fuel payment – 2.46 million people – either live below the poverty line or just above it.

What’s the winter fuel payment?

Winter fuel payments help pensioners pay for higher heating bills during the winter months. Last year, around 11.5 million pensioners received a payment of between £250 and £600, depending on their circumstances.

To qualify for a winter fuel payment, you need to be born before 25 September 1957. This winter, you will now also need to receive either pension credit or another means tested benefit.

Vulnerable pensioners left without support

Age UK's new figures reveal that 800,000 pensioners aged 80 or over who are living near the poverty line will no longer receive the winter fuel payment.

As pension credit is only available to single people with a weekly income below £218.15 or couples with an income below £332.95, many will be losing out as they are just above the threshold.

Several groups and charities are concerned that millions of vulnerable pensioners who do not qualify for pension credit will be left without support.

On top of this, 1.1 million pensioners with disabilities and one million pensioners who live alone, all with low incomes, will miss out on this crucial support.

One 80-year-old woman told Age UK:

"My husband is terminally ill with cancer, he has a state pension, no work pension and very little savings. I have a very small state pension plus an extremely small work pension."

“I will have to use my own limited savings to keep my husband warm, leaving me in a financial hole when my husband passes.”

Age UK is calling for Reeves to reconsider her decision, or at least to widen the criteria so more people are eligible for the payment.

They’re asking for pensioners receiving housing benefit, council tax support, personal independence payment, attendance allowance and carer’s allowance to  also be eligible for the payment.

In response, a government spokesperson said they were “committed” to supporting pensioners through measures such as:

• the triple lock promise on state pensions
• giving the winter fuel payment to over a million pensioners
• boosting take-up of pension credit
• the warm home discount
• extending the household support fund