The new Labour Government has admitted that an extra 10,000 pensioners will be plunged into poverty following Chancellor Rachel Reeves’s decision to effectively cut the Winter Fuel Payment for millions.
In a letter to the Work and Pensions Committee, Department for Work and Pensions (DWP) minister Liz Kendall revealed tens of thousands of older Britons will fall into relative poverty due to the up to £300 in energy bill support being means-tested.
Kendall shared: “The latest modelling shows that compared to the numbers that would have been in poverty without this policy, it is estimated that in each year in question there will be an additional 50,000 pensioners in relative poverty after housing costs in 2024/25, 2025/26 and 2027/28, instead.
“The modelling also shows that an additional 100,000 pensioners are estimated to be in relative poverty after housing costs in 2026/27, 2028/29 and 2029/30.
“For all other measures of poverty, it is estimated that there will be an additional 50,000 pensioners in poverty each year from 2024/25 to 2029/30.”
Earlier this year, Chancellor Rachel Reeves revealed that the up to £300 in energy bill support will be means-tested going forward instead of being made universal for older Britons.
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Reeves is under fire for means-testing the allowance Getty/PAThe pensioners minister highlighted in her letter these figures “represent the change in the numbers in poverty as a result of the policy change only”
As such, the statistics are not reflective in what the overall figures will be for the year or in the years to come and should “not be added together or interpreted as cumulative data”, Kendall emphasised.
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Rachel Reeves has defended the decision to means-test Winter Fuel Payments
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