Chancellor Rachel Reeves sidestepped questions over her decision to means-test the Winter Fuel Payment in her Autumn Budget speech yesterday but official documentation has confirmed the benefit cut is going ahead.
In the official statement, the Government states: “The Winter Fuel Payment will be targeted to those in receipt of Pension Credit or certain other income-related benefits from winter 2024-25, saving an average £1.5billion of taxpayers’ money each year.
Previously, Britons have been able to claim the up to £300 in energy bill support once they reach the state pension age which is currently 66.
With the Winter Fuel Payment becoming means-tested, households will now need to be in support of means-tested benefits from the Department for Work and Pensions (DWP), such as Pension Credit.
The decision to effectively cut the benefit is projected to disenfranchise up to 10 million pensioners, following on the back of Ofgem’s recent hike to the energy price cap.
Upon announcing the decision this summer, the Government launched a campaign to improve uptake of Pension Credit which is now a gateway benefit to the Winter Fuel Allowance.
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MPs voted to means-test the Winter Fuel Payment in September
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Also included in the Budget 2024 document was the Government’s pledge to improve the uptake of Pension Credit which is essentially a gateway benefit to the allowance.
“The Government has been working to maximise Pension Credit take up and ensure those eligible for this benefit are receiving it,” it stated.
“There has been a significant increase in Pension Credit claims following the announcement to target Winter Fuel Payments.
“The Government is optimising the use of Housing Benefit data and individuals applying for Housing Benefit from Spring 2025 will be proactively encouraged to apply for Pension Credit.
“The Government is contacting 120,000 pensioners currently in receipt of Housing Benefit inviting them to claim Pension Credit too.”
Despite being announced prior to today’s Budget, this decision has remained one of the most controversial policies put forward by the Government.
Campaigners, charities and MPS, including from within the Labour Party, have pushed back on the move as households prepare to pay more for gas and electricity over winter.
Recently, Age UK debunked many of the defences cited by ministers for implementing means-testing.
TV personality Dr Hilary Jones warned that pensioners at risk of serious health issues due to the allowance being scrapped for millions.
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The Winter Fuel Allowance is intended to help people who have reached state pension age with the cost of heating in the winter GETTY
He explained: “The colder months make people more susceptible to serious illnesses such as bronchitis, pneumonia, and even heart attacks.
“This happens because colder temperatures can thicken the blood, increasing the risk of clots.
“Additionally, shorter days and longer nights can contribute to Seasonal Affective Disorder (SAD), also known as the winter blues, which often leads to depression and physical exhaustion.
“With heating becoming more expensive and many facing the absence of Winter Fuel Payments, the threat of hypothermia is ever more present.”