MPs to vote on winter fuel payment cuts amid widespread opposition

A vote on winter fuel payments is taking place tomorrow, 10 September, in parliament. Prime minister Sir Kier Starmer faces the possibility of a rebellion, with up to 50 Labour MPs potentially refusing to support the government’s controversial proposal to cut the winter fuel allowance for all but those on the lowest incomes. Opposition centres around fears those still on a relatively small income may lose out.  

What is the winter fuel allowance, and how is changing?

The winter fuel allowance is intended to help older people with the cost of their heating during the colder months. Introduced in 1997 by the then-chancellor Gordon Brown, the payment has traditionally been available to all older people, regardless of their wealth or income. Each autumn, recipients receive £200 or £300, depending on their age.

In July, chancellor Rachel Reeves announced that only older people who receive pension credit would be eligible for the benefit. Pension credit provides additional financial support to people over the state pension age who are on low incomes. The change is expected to reduce the number of winter fuel allowance recipients from over 11 million to around 1.5 million.

The proposed cut is part of the government’s efforts to address a £22bn gap in public finances, which Labour say their predecessors left them. The government argues that “unpopular decisions” are necessary to resolve the economic crisis and promote long-term economic growth.

Controversy and opposition

The announcement has sparked outcry, particularly because there was no mention of the cut in the Labour manifesto. Organisations representing older people, trade unions and other political parties, including the Liberal Democrats, Conservatives and Scottish National Party, have criticised the proposal.  

The leaders of the UK’s two largest unions, Unite and the Public and Commercial Services Union (PCS), are adding further pressure on the government to abandon the policy. Fran Heathcote, head of the PCS, called the move a “misstep” that needed to be “put right.” Unite general secretary Sharon Graham said the government should “do a U-turn.” Paul Nowak, head of the Trade Union Congress (TUC), also called for a rethink, suggesting that alternative support measures for older people should be considered.

Pension credit eligibility concerns

Adding to the controversy are figures by the Department for Work and Pensions (DWP) estimating that around 880,000 households eligible for pension credit do not claim it.

Eligibility for pension credit applies to those above the state pension age with a weekly income of less than £218.15 for individuals or £332.95 for couples. Savings and additional factors, such as caregiving responsibilities, disability and housing costs, are also considered when determining eligibility.  

We have joined a number of organisations and charities in signing an open letter urging the government to reconsider the proposed changes to the winter fuel payment. Initiated by the charity Independent Age, the letter notes how around two million older people across the UK live in poverty, and at least a further one million are experiencing financial insecurity. The letter states concern that many older people, who are just above the pension credit eligibility threshold but still struggle to make ends meet, will be negatively affected by the policy change.

Our requests to the government

We are asking the government to:

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

 Check you’re not missing out on money you’re entitled to with our free-to-use benefits calculator.