A Third of Pensioners Will Struggle Financially Without Winter Fuel Payments: Age UK

A an elderly lady sitting at home in Liverpool with her electric fire on Nov. 19. 2014. Peter Byrne/PA

Some 37 percent of pensioners, around 4.4 million people, will find it difficult to manage financially without the Winter Fuel Payments (WFP), charity Age UK has said.

Research conducted by Age UK found that this proportion rose to 53 percent of pensioners (aged 66 or older) who are not currently eligible for WFP but who are receiving other forms of benefits, “indicating that they are either likely to be on a low income or living in quite difficult circumstances due to disability, ill health or being a carer.”

The report, published on Tuesday, also found that 77 percent of pensioners—equivalent to around 9.2 million people—had spent their fuel allowance last year on energy-related expenditure, such as heating their homes, running household appliances, and hot water.

Nearly a quarter (24 percent) spent it on cooking meals, according to the survey of more than 1,000 people aged 66 and over conducted by Kantar.

This winter, 55 percent of pensioners told the charity that they have had to turn down or reduce the hours they use heating at home to save money, with that figure rising to 63 percent for disadvantaged seniors.

A quarter said they will have to reduce the frequency of their bathing, with that number rising to 36 percent for poorer pensioners. And one in 10 said they will have fewer hot meals, rising to 15 percent among the disadvantaged.

‘Deeply Worried’

The charity said it was “deeply worried” about pensioners who have lost their winter fuel allowance this year.

Charity Director Caroline Abrahams said in a statement: “It’s no surprise to us at Age UK, and it really shouldn’t be to anyone else either, that the great majority of older people spent their Winter Fuel Payment on energy related costs last year.

“With fuel prices having gone up so much compared to five or ten years ago, even older people who expected to be relatively comfortable in retirement have been impacted and forced to tighten their belts. And for those without much money behind them, energy bills have become a source of real fear.”

Responding to the charity’s findings, a government spokesperson said in a statement: “We are committed to supporting pensioners – with millions set to see their state pension rise by up to £1,900 this parliament through our commitment to the triple lock.

“Over a million pensioners will still receive the winter fuel payment, and our drive to boost pension credit take up has already seen a 152% increase in claims. Many others will also benefit from the £150 warm home discount and cold weather payments this winter, while our extension of the Household Support Fund will help with the cost of food, heating and bills.”

100,000 Pensioners Forced Into Poverty

Age UK’s findings were published the same day the government confirmed that WFPs, worth up to £300, would start to be issued to pensioners.

In July, Chancellor of the Exchequer Rachel Reeves ended universal access to the WFP support and restricted it only to those claiming Pension Credit from this winter in a bid to save £1.5 billion a year.

The government said means testing the benefit would reduce the number of people in England and Wales receiving it from 11.4 million to 1.5 million.

Conservative MPs petition the government to stop the planned cuts to the Winter Fuel Payment, on College Green in Westminster, London, on Oct. 29, 2024. Stefan Rousseau/PA Wire

Critics warned it could harm millions of people. The government said the poorest pensioners will still be supported and began a drive to encourage more seniors to apply for Pension Credit.

Last week, the government’s own figures revealed that the cut could force up to 100,000 extra pensioners into relative poverty by 2027.

However, Work and Pensions Secretary Liz Kendall said the figures “are a result of the policy change only” and do not take into account efforts by the government to increase uptake of Pension Credit.

‘Not Clear’ How This Saves Money

Ministers have repeatedly said that means testing the allowance was not something the Labour government wanted to do, but was necessary to correct the “£22 billion black hole“ left in the public purse by the previous administration.

However, the Social Security Advisory Committee (SSAC), which provides advice on benefits to ministers, said it is “not clear” how limiting access to WFPs will save money, given the rise in the number of those applying for Pension Credit.

The SSAC wrote to the DWP last month saying, “The direct savings from the significantly reduced eligibility for Winter Fuel Payments are partially offset by the cost of the rise in the number of claims to Pension Credit and the additional resources being deployed to process them.”

PA Media contributed to this report.