New Age UK analysis reveals 2.5 million older people on low incomes are set to lose their Winter Fuel Payment as a result of the Government’s means-testing decision and will struggle without it – an appreciably higher number than the Charity’s initial estimate of 2 million.
This new figure also excludes the unknown number of pensioners with higher incomes who are sick or disabled and who face unavoidably high energy bills as a result. For example, their homes may need to be especially warm to keep health conditions under control, or they may have to run the washing machine every day because of incontinence.
Age UK analysed data from The Department for Work and Pensions and found that:
- 1.6 million older people who are living in poverty will lose their WFP as they are not receiving any of the qualifying benefits.
- A further 900,000 older people whose incomes are just above the poverty line will also lose the WFP. These people have incomes which are no more than £55 per week above the poverty line.
The Charity says the majority of the estimated one million pensioners who are eligible for and not receiving Pension Credit are likely to have incomes below the poverty line and so be included in this number.
The reason many of the 900,000 older people have incomes just above the line is that they have a small occupational pension. They saved during their working lives to try to ensure they could enjoy a more comfortable retirement, but when the time comes the unfairness of the Pension Credit ‘cliff-edge’ means they are still struggling financially.
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.
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 won’t 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.
- Finally, it has been suggested that as a result of the triple lock, the State Pension will rise by some £400 next year. This may or may not turn out to be accurate, but in any event, unfortunately pensioners will not receive the new rate until April 2025 so it will not help them get through this winter.
The Government has also briefed that since the WFP announcement was made, applications for Pension Credit have risen by 115%, 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. The Charity 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.
Caroline Abrahams CBE, Charity Director at Age UK said: “New Age UK analysis shows that when we said we thought two million 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 two and a half million, comprising 1.6 million 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%.
“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.
“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 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.”
Since the Government announced it intended to means-test Winter Fuel Payment Age UK has been inundated by calls and emails from pensioners who are shocked and anxious about how they will navigate a challenging winter without the £200 or £300 they have previously relied on from their WFP to help them pay their energy bills.
Age UK is campaigning to save the Winter Fuel Payment for struggling pensioners. Click here to sign Age UK’s petition or for those offline, people can request one by writing to FREEPOST Age UK Campaigns or asked a friend or loved one to print a template of the petition and send back to FREEPOST, Age UK Campaigns.
Leave a Comment