Loss of winter fuel payment criticized by charities as budget confirms axe

Pensioners will be “severely” hit by the loss of winter fuel payments, experts say, as yesterday’s budget confirmed millions of people would lose the benefit.

The Government yesterday maintained its plans to reduce the number of homes receiving the Winter Fuel Payment in Chancellor Rachel Reeves’ Budget.

Previously, winter fuel payment was paid to all pensioners. But these payments have now been cut so that only those receiving benefits such as Pension Credit will get them from this winter.

The Budget came and went without the Chancellor making any mention of reversing the cuts to the Winter Fuel Payment.

In fact, budget documents show the cuts will save the Government £1.5bn in fiscal years 2024 and 2025, then £1.6bn in 2026, 2027 and 2028 and £1.7bn in 2029.

Several charities have criticized the Government’s commitment to scrapping the benefit for most pensioners.

Caroline Abrahams, charity director at Age UK, said: “Nothing in the budget changes the plight of four in five pensioners on low and modest incomes who will lose their winter fuel payment this year when they simply cannot afford do it, and that is a huge disappointment.

‘The Government could have introduced measures to safeguard these older people but decided not to, despite compelling evidence showing how seriously up to two and a half million people will be affected in this situation.

“It comes down to something when the best policy option left for seniors on tight budgets is to hope and pray for a mild winter.”

Steve Vaid, chief executive of the charity Money Advice Trust, said: “We remain concerned about the impact of the removal of the winter fuel payment for pensioners on lower income levels. And there was no help for energy arrears, which they now stand at £3.7bn.

‘With energy prices so high, more and more people are at risk of being left behind. The Government and Ofgem must bring forward a help-to-pay scheme to reduce energy debt and introduce a social energy tariff to reduce the bills of those on the lowest incomes.’