Low income pensioners losing Winter Fuel Payment ‘500,000 higher than feared’ | Personal Finance | Finance

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The total number of low-income pensioners who will struggle to heat their homes after the removal of the Winter Fuel Payment is a higher-than-estimated 2.5 million, according to a new analysis.

The figure, which comes from Age UK, is some 500,000 higher than originally estimated and points to real hardship for elderly people amid claims cutting the benefit will lead to thousands of deaths due to health conditions made worse by the cold.

The charity has called on the Chancellor to halt the cut to Winter Fuel Payment, which is worth up to £300, to allow for proper research into its impact and consultation to identify an alternative plan.

Age UK said its new figure of 2.5 million does not include many thousands of higher-income elderly people who are sick and disabled and have unusually high energy demands, perhaps for heating and running medical equipment.

The Age UK analysis identifies 1.6 million older people who are living in poverty plus another 900,000 whose incomes are no more than £55 per week above the poverty line. The charity says the majority of the estimated 1 million pensioners who are eligible for and not receiving Pension Credit are included in the figures.

It said the 900,000 older people who are just above the poverty line fall into this category because they have a small occupational pension.

Age UK continues to urge the public to show solidarity and sign its petition to Save the Winter Fuel Payment for struggling pensioners. The petition has now received more than 503,000 signatures showing the strength of public feeling behind the rushed decision to means test the Winter Fuel Payment.

Caroline Abrahams, charity director at Age UK, said: “When we said we thought 2m pensioners were set to lose their Winter Fuel Payment and would struggle badly this winter as a result, we underestimated the scale of the problem caused by the Government’s policy approach.

“In fact the number is 2.5m, comprising 1.6m older people who are already living below the poverty line and a further 900,00 whose incomes are less than £55 a week above it. All these older people will be made poorer this winter as a direct consequence of the Government’s decision when they really can’t afford to be – at the same time as their energy bills are rising by 10 percent.

“This is unfair, and it is also unsustainable, so it’s no wonder there’s growing public concern. We would like to thank everyone who is standing with struggling pensioners this winter by signing Age UK’s Petition – which has gone through the half-a-million mark now – and to encourage everyone else to show solidarity by signing up too.”

She added: “As the weather chills – as it is forecast to do as early as this week – older people on low incomes will be trying to decide whether they can afford to turn their heating on or not.

“Our biggest fear at Age UK is that many in the two-and-a-half million group will choose not to even try to stay adequately warm, for fear of a fuel bill they won’t be able to pay.

“The fact that appreciably more older people are going to face this dilemma as a direct result of a policy decision from our incoming Government is extremely regrettable, and not at all what we expected. But there is still time for Ministers to change their minds.”

The charity warns that the other policies the Government is seeking to rely on to help older people on low incomes to get through the coming winter are inadequate or will not be implemented until later next year:

• The Government has decided to continue the Household Support Fund (HSF) until Spring 2025, with £421 million available in England and £79 million in the devolved administrations. This is very welcome, but it’s important to understand that the HSF is for people of all ages who are in financial crisis. As a result, the Charity understands that typically pensioners receive about £1 for every £10 the fund has paid out, the rest going to other groups in need in localities. The fund is administered by local authorities and people have to apply for support or be otherwise identified as needing help. It is therefore not a replacement for WFP and although some older people will receive support from it, the vast majority will be missed.

• In July the Chancellor also announced her intention to bring forward plans to merge Housing Benefit and Pension Credit to streamline administration and boost take-up. This is expected to lead to Pension Credit having a housing element included in future, to support the phasing out of Housing Benefit which has already been announced. However, it is a major administrative change that cannot be achieved immediately. It will not help pensioners this winter.

• The State Pension will rise by some £460 next year. Unfortunately, pensioners will not receive the new rate until April 2025 so it will not help them get through this winter.

The Government has briefed that since the WFP announcement was made, applications for Pension Credit have risen by 115 percent, an additional 38,000 claims. The charity says these numbers are encouraging, but they need to be put alongside the overall number of a million individuals who are estimated as being entitled to Pension Credit but who are not claiming it.

It warns that however hard everyone tries, there is simply not enough time this autumn to turn the long-standing problem of low Pension Credit take up around. On the latest figures take up is 63%, and it has never exceeded 66% in a decade.

Age UK is also expressing surprise that the Government has not published an Equality Impact Assessment or other report, showing the impact on pensioners at different income levels. The Charity is calling for the Treasury to publish its analysis before the vote taking place in the House of Commons today, so Members of Parliament can take it into account before going through the voting lobbies.

Age UK has been inundated with calls for help from worried pensioners. Among the comments it has received are:

Arnold, aged 87, said: “As a senior couple it will be very hard to make ends meet, as every week daily living gets harder and harder ie food/ gas /electric is getting dearer all the time.”

Andrew, aged 69, said: “We are with a housing association in a bungalow with obsolete storage heaters heating. Costs during winter are in excess of £380 per month! Currently paying £250 per month to cover winter costs.”

Peter, aged 87, said: “I rely on oil and electric to heat my home and the winter fuel payment is a very welcome help in providing this. I am 87 and partner 81 and losing £600 this year is a huge loss for those of us who claim no other benefits.”

Catherine, aged 68, said: “I am a pensioner and full-time carer for my 92-year-old mum, who is bedbound. Our energy bills are high because I have to have heating on a lot during the cold weather because of mum. Up to now we have both received winter fuel payment, which has helped enormously during the winter months. It will mean we have to have a very lean Christmas if this is removed from us.”

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