The number of older people affected by means testing the winter fuel payment is being underestimated by the government, leaving many pensioners with no choice but to “make dangerous cutbacks”, charities have warned.
From this winter, the government announced households in England and Wales will no longer be entitled to the winter fuel payment unless they receive pension credit or certain other means-tested benefits.
While government figures estimate 100,000 pensioners will be pushed into poverty this decade by its decision, charity Age UK believes the number of people badly affected is closer to 2.5 million.
Many more making ‘dangerous cutbacks’
Charity Independent Age has warned that the decision to limit the payment has gone “too far” and happened “too fast”, with the numbers providing “yet more evidence that this policy must be stopped”.
“We know that almost a million eligible older people are currently missing out on pension credit, and that many more sit just above the line and won’t receive the winter fuel payment either,” Joanna Elson CBE, chief executive of Independent Age told Yahoo News.
“Ministers must not make this change to the winter fuel payment now because there is not time to get pension credit to everyone who is eligible. The current policy risks older people in financial hardship having to make many more dangerous cutbacks.”
While the government’s figures may seem “bad enough”, they “understate” the impact on pensioners with low and modest incomes, Caroline Abrahams, the charity director at Age UK said.
“Age UK’s own impact assessment found that as many as two and a half million older people who can ill afford to lose the payment will do so – because they don’t claim pension credit, aren’t eligible, or have especially high energy needs due to ill health or disability.”
‘It’s draconian’
Robert Trewhella, who lives in Penzance, is one of the pensioners who will miss out on the winter fuel payment – as he is just £2.80 over the eligibility threshold for the allowance.
When he stops working in the next few months, he will be left with around £60 a week to live on after paying his rent, energy bills, food and fuel costs.
To get by, he will have to “eat away” at his life savings.
The 68-year-old told Yahoo News he has found the government’s approach “draconian”, saying that he will have to ‘eat away’ at his life savings just to get by.
“I was reminded that Theresa May was considering stopping the winter fuel allowance and Labour came up with their reasoning that it could cause 4,000 extra deaths. Now, we’re talking about throwing people into poverty,” he said.
“I personally don’t put my heating on. I can’t claim winter fuel allowance because I get £2.80 a week too much. It’s a stupid figure really.
“For those who cannot claim for the winter fuel allowance, they’re going to have to put their hand into their savings and pay for their heating, if they’re prepared to put it on.
“I think the government’s figure is alarmingly low. Removing the winter fuel allowance affects at least 10 million people,” he added.
‘Significant work’ on pension credit take-up
The government said the 100,000 figure was produced as part of “routine policy advice” and does not take into account “the significant work” it is doing to encourage pension credit take-up.
Its awareness drive has resulted in a 152% increase in claims since July, meaning that those people will still be eligible for the payment.
A spokesperson from the Department for Work and Pensions said: “The modelling is subject to a range of uncertainties and does not take into account the significant work we’re doing to encourage pension credit take-up.
“The modelling also doesn’t reflect that we have put in place extra support for those who need it most, such as our extension of the household support fund.
“Many pensioners will also benefit from the £150 warm home discount and cold weather payments to help with energy bills and millions of pensioners are also set to benefit from an increase of up to £470 to the state pension in April.
“This government inherited a £22bn black hole in our public finances, which means we needed to take tough decisions to balance the books.
“We continue to urge pensioners to check their eligibility for pension credit to ensure as many people as possible receive the support they’re entitled to.”
