Money Wellness signs open letter addressing winter fuel payment changes

We’ve now joined a range of charities and organisations in signing an open letter asking the government to re-think their planned changes to the winter fuel payment.

It follows Labour Chancellor Rachel Reeves’ announcement on 29 July that winter fuel payments would be means tested, so only those claiming pension credit now eligible for the extra support.

As a result, 10 million pensioners will no longer qualify for the additional payment, which was previously offered to anyone aged 66 and over.

 The letter, drafted by charity Independent Age, asks the chancellor not to change the policy now or hold off until take-up of pension credit has significantly increased.  

What are winter fuel payments?

Winter fuel payments help pensioners pay for higher heating bills during the winter months. Around 11.5 million pensioners received between £250 and £600 last year depending on their circumstances.

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

Why do we oppose the changes?

Nearly two million older people  currently live in poverty and  strongly rely on the winter fuel payment to help cover rising fuel costs.

These cuts mean 80% of pensioners below the poverty line are set to lose their winter fuel payment because they either don’t claim pension credit, or don’t qualify for it, LCP research has found. So only 300,000 of the 1.9 million of older people living in poverty will retain their payments.

We’re worried there will be serious risks to the health of older people who can’t afford to turn their heating or stove on. Living in a cold, damp home and not eating enough can worsen existing physical issues and create new ones.  

Prime Minister Keir Starmer has said the move will ‘free up’ funding for other causes, such as reforming the NHS. But there’s concern it will lead to public health emergency, which would only put the NHS under even more pressure.

What are we asking for?

Almost 40% of pensioners who are eligible for pension credit don’t currently claim it –  we’re all deeply concerned that they’ll miss out on this crucial payment if the changes go through this autumn.

We’re also worried about the older people who are just above the pension credit eligibility threshold, but don’t have enough money to live on.

As outlined in Independent Age’s letter, we’re urging the government to not change the policy now, but instead work with others to make sure older people on low incomes get the financial support they need.

We’re asking the government to:

• enact a pension credit take-up action plan so that all those entitled to the benefit receive it
• in the long-term, set up an adequate level of income needed in later life to avoid poverty, and ensure everyone receives it

MPs to vote next week

After pressure to reconsider from within its own party and the Conservatives, the government have confirmed there will be a binding vote next Tuesday (20 September) on whether or not to axe the payments.