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Thousands more pensioners in poverty due to winter fuel payment cut – DWP

By Mark Mansfield
A homeowner keeping warm indoors

Tens of thousands more pensioners will be in poverty every year as a result of the restriction to the winter fuel allowance, UK Government estimates have revealed.

Limiting the payment will mean an estimated 50,000 more pensioners are in relative poverty after housing costs next year, and 100,000 more in 2026, official modelling showed.

The winter fuel payment, worth up to £300, is being restricted to only those claiming pension credit from this winter, with the aim of saving the public purse £1.5 billion a year.

Government analysis of the impact of its decision to restrict the payment was published by the House of Commons Work and Pensions Committee on Tuesday.

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Relative poverty

A letter to the committee from Work and Pensions Secretary, Liz Kendall, said: “The latest modelling shows that compared to the numbers that would have been in poverty without this policy, it is estimated that in each year in question there will be an additional 50,000 pensioners in relative poverty after housing costs in 2024-25, 2025-26 and 2027-28, instead.

“The modelling also shows that an additional 100,000 pensioners are estimated to be in relative poverty after housing costs in 2026-27, 2028-29 and 2029-30.

“For all other measures of poverty it is estimated that there will be an additional 50,000 pensioners in poverty each year from 2024-25 to 2029-30.”

Ministers have faced criticism for slashing access to the payment, with opposition MPs urging them to rethink the move.

Ms Kendall said the Labour Government had been “forced” to limit the payment due to the “£22 billion black hole” it blamed the Conservatives for leaving behind.

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'Balance the books'

In her letter, she wrote: “Means-testing winter fuel payments was not a decision this government wanted or expected to take. However, we were forced to take difficult decisions to balance the books in light of the £22 billion black hole we inherited.

“Given the dire state of the public finances, it’s right that we target support to those who need it most while we continue our work to fix the foundations and stabilise the economy – which is the best way to support pensioners in the long term and is what has allowed us to deliver our commitment to the triple lock.”

Shadow work and pensions secretary Helen Whately said: “Finally the dam breaks and we get to see what Labour have known all along.

“Their winter fuel payment cuts are going to plunge 100,000 pensioners into poverty in the next few years.

“Clearly Keir Starmer feels like that’s a price worth paying to make a political point. But I don’t think those pensioners would agree with him.”

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6 comments

Daniel Pitt

The latest report from the Social Metrics Commission (SMC) provides an unequivocal indictment of the state of poverty in the United Kingdom - a profound social and moral failure that has plunged over 16 million people, or a quarter of the population, into deprivation. Of particular note is the devastating rise in child poverty, with over 5 million children now living in conditions of hardship (an increase of 260,000 since before the pandemic). In total, more than one in three children in the UK are now affected by poverty, marking the highest level of deprivation since records began. Yet, as we observe the stark realities of social breakdown, one must ask: how did we arrive at this point? The answer lies not only in the reckless economic policies pursued by the Conservative Party over the past 14 years but also in the lamentable failure of the Labour Party, under its current leadership, to offer any meaningful opposition. Indeed, the report is a damning reflection of a country where inequality is soaring, social mobility is stagnating, and the political establishment - both Conservative and Labour alike - seem determined to do little more than preserve the status quo. It is scarcely possible to overstate the scale of the political abdication that has taken place in recent years. For all the rhetoric of 'fairness' and 'progress,' the Labour Party, under Keir Starmer’s leadership, has become little more than a hollow echo of its former self. Once a party proudly rooted in the ideals of socialism and social justice, Labour has abandoned its traditional commitment to the working class in favour of a technocratic, managerial approach that seeks to appease the very forces of austerity and inequality that have caused such suffering. The party’s capitulation on critical issues such as the two-child benefit cap is both revealing and unforgivable. Introduced by the Conservative government, the two-child benefit cap restricts families’ access to vital financial support, penalising those with more than two children. Under the leadership of a man who once styled himself a 'human rights champion,' Starmer’s Labour has, shockingly, enforced this policy rather than challenging it. The idea that Starmer’s party could force its own MPs into line - under threat of expulsion from the party - over a policy that punishes the most vulnerable families is a betrayal of Labour’s once-proud ideals. This is not the Labour Party of Clement Attlee, Tony Benn, or Nye Bevan. It is a Labour Party that has traded its socialist principles for the hollow promises of fiscal conservatism, all in the name of ‘electability.’ Moreover, Labour’s tightening of eligibility criteria for winter fuel payments - potentially pushing 100,000 pensioners into poverty this winter - further underscores the party’s abandonment of its most vulnerable constituents. How can we reconcile this with the Labour Party’s supposed commitment to social justice? The party now seems more intent on maintaining a veneer of respectability among the political elite than on addressing the urgent needs of the people it was once founded to serve. In the context of these failures, one cannot help but conclude that the Labour Party has degenerated into a tightly controlled ‘opposition in name only.’ Its reluctance to challenge the Conservative government’s austerity agenda - its failure to address the structural causes of poverty - has left untold millions without hope. The result is a political void that the Conservative government has, with characteristic indifference, exploited to the fullest. The rich grow richer, while the poor grow poorer, and the political establishment does nothing but wring its hands and offer platitudes. The glaring absence of a real working-class alternative is perhaps the most pressing crisis facing the UK today. It is increasingly clear that neither the Tories nor Labour can be trusted to effect the kind of radical change necessary to combat the rising tide of poverty. What is required is a new political force - one that is uncompromising in its commitment to the redistribution of wealth, the expansion of social safety nets, and the creation of a fairer, more equal society. Such a force would not simply offer palliative measures, but would address the root causes of inequality - an economy and society that privileges wealth over people. It is not enough to condemn the current situation. One must also demand that we move beyond the stultifying politics of the establishment, beyond a Labour Party that has capitulated to the politics of austerity and beyond a Conservative Party that has made misery a national policy. A real, grassroots-led alternative - rooted in the values of solidarity and social justice - has never been more urgently required. Until this happens, we will continue to witness the rise of inequality, while the political elites on both sides of the aisle continue to fiddle as our country burns.

Reply
Adrian

First class post sir - I applaud you.

Reply
Daniel Pitt

Thank you for the kind words

Reply
Dai Ponty

As soon as Labour got in the first thing they did was take away the WINTER FUEL PAYMENT that is not a thing a socialist Government would do this bunch of evil B are not socialists to do that was pure evil

Reply
A.Redman

Why do none of those Interviewing all those put forward by the Labour Party ask why The WFP payment was NOT in their manifesto? Probably if it had been they would not have had even 33% of the vote and they know it!!!

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Padi Phillips

"However, we were forced to take difficult decisions to balance the books in light of the £22 billion black hole we inherited." Utter poppycock. How about taxing the super rich and the global corporations that pay very little tax and find all sorts of loopholes to evade and avoid paying their dues. How about a financial transaction tax, a land value tax aimed at the very wealthy and those sitting on massive land banks?

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Thank you for the kind words

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