Thousands could fall into relative poverty by 2025 because of the Winter Fuel Payment police change. Should it be reinstated for all in time for Christmas?
Winter Fuel Payment restriction could leave many in fuel poverty (Image: Getty)
Rachel Reeves has been feeling the heat since she announced a significant change to the Winter Fuel Payment that could leave thousands of pensioners feeling the cold.
In her October Budget, the Chancellor restricted the benefit to only the poorest pensioners. The decision has been widely condemned by campaign groups such as Age Uk.
To help those affected, the government launched a campaign encouraging eligible individuals to claim Pension Credit.
However, the government’s own projections suggest that an extra 50,000 pensioners could fall into relative poverty by 2025 due to this policy shift.
Rachel Reeves has been under fire (Image: Getty)
From January 1 to March 31, gas prices will be capped at 6.34p per kilowatt hour (kWh), and electricity at 24.86p per kWh, external factors permitting.
Consequently, the annual bill for a typical dual-fuel direct debit household will rise to £1,738, marking a £21 increase from the previous cap.
Reeves said she is dedicated to safeguarding the most vulnerable.
She said: “I am determined to ensure that the poorest pensioners are protected and will still get winter fuel payments, and indeed, to ensure that pension incomes continue to increase with the triple lock.”
Many want the Winter Fuel Payment resinated for all pensioners (Image: (Image: Getty))
Prime Minister Sir Keir Starmer also stood by the decision to revise winter fuel payments, acknowledging that while the move “makes sense,” some of the choices in the Budget were made with reluctance. During a round of BBC local radio interviews, he recognised the difficulties brought about by these changes and addressed queries from several hosts regarding their possible effects on susceptible groups.
Nevertheless, detractors caution that this policy could worsen fuel poverty in the face of escalating energy prices, leaving those at risk battling to keep their homes warm this winter.
Many people might think the simplest solution would be to reintroduce the Winter Fuel Payment for all pensioners. Should the Government spread some festive joy by doing this before Christmas?
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