Recent figures indicate a significant decrease in the number of recipients of winter fuel payments, dropping to 1.3 million from approximately 11 million in previous years across England, Wales, and Scotland. The decline is attributed to a Treasury decision to implement means-testing for the payments, which is designed to assist pensioners with their winter energy costs.
In July 2024, the government announced that future winter fuel payments in England and Wales would be limited to those with low incomes, specifically individuals receiving certain benefits like pension credit. However, a policy reversal occurred in June, led by Chancellor Rachel Reeves, allowing the majority of pensioners to receive payments again, which can amount to about £300 per household this winter.
Previously, all pensioners were eligible for the winter fuel payment to help mitigate energy expenses during colder months. In response to criticism and electoral challenges from Labour MPs, who noted the policy’s effect on their performance in local elections, Reeves revealed that pensioners with an annual income of £35,000 or less would qualify for the payment. Approximately 75% of pensioners are now expected to receive this support.
In England and Wales, the payments are set at £200 for individuals aged 66 to 79 and £300 for those aged 80 and older. In Scotland, the payment will be adjusted for inflation, amounting to either £203.40 or £305.10 per household. As energy costs are projected to increase by 2% in October under Ofgem’s price cap, the urgency for this support remains pronounced.
A government spokesperson estimated that nine million pensioners will benefit from the payment this winter and reaffirmed a commitment to maintaining the state’s triple lock on pensions. Additionally, there has been an increase in pension credit uptake, benefiting over 57,000 additional households, averaging £4,300 annually.
Source: https://www.bbc.com/news/articles/cgrq5049j0yo?at_medium=RSS&at_campaign=rss