22 charities have sent an open letter to the Chancellor, Rachel Reeves, calling on her to urgently review the change to the Winter Fuel Payment for older people.
The change announced by Ms Reeves, the Chancellor of the Exchequer, on Monday mean that people aged 66 and over who don’t receive Pension Credit or a small number of other means-tested benefits, will no longer receive automatic annual payments of between £100 and £300 to help with energy costs through the winter.
Right now, Pension Credit has a low take-up of just 63%, meaning up to 1.2 million older people who are eligible will now miss out on this additional support. Many more are just above the level of eligibility for Pension Credit but still can’t afford to pay their bills.
Independent Age, one of the charities leading the call, has launched an open letter today calling on the Chancellor of the Exchequer to not make these changes now while Pension Credit is not received by everyone it should be. The charity also says the UK Government needs to make sure that everyone receives an adequate income in later life so that those who aren’t eligible for Pension Credit but still face financial hardship have enough to live on.
In the letter, the organisations say:
“Linking the qualification of the Winter Fuel Payment to whether an older person receives Pension Credit could mean up to 1.2 million older people on low incomes miss out on even more vital financial support.
“As a result, many of them will inevitably be pushed further into poverty.
“Restricting the Winter Fuel Payment this autumn does not give the UK Government time to significantly boost Pension Credit take-up to a level that would reduce some of the side-effects of this measure. It will leave many older people on low incomes facing a cold and dangerous winter.”
Morgan Vine, Head of Policy and Influencing at Independent Age added: “It is not an overstatement to warn that, in its current form, this sudden change puts lives as risk. Too many people on a low income now face an uncertain winter where their budgets are even more stretched and will be forced to make dangerous and stressful decisions.
“While we understand that the UK Government must make difficult decisions, this is too much, too soon. We urge the Chancellor to not make this change now, and instead ensure every older person has an adequate income to avoid financial hardship before removing the Winter Fuel Payment. Any less risks serious consequences for older people in poverty.”
Members of the public are being invited by Independent Age to email their MP to ask for a halt to the changes. They can do this by visiting this webpage.
Pension Credit is a form of financial support which ‘tops-up’ the income of people over State Pension age who fall below an income threshold of £218.15 for a single person and £332.95 for a couple. Many of those eligible could also unlock additional benefits worth thousands a year such as the Warm Home Discount, a free TV licence, Council Tax Reduction and free NHS dental treatment.
To apply, visit the gov.uk website on Pension Credit, or you can visit the Independent Age website at https://www.independentage.org/get-advice/money/benefits/pension-credit or call the free Independent Age helpline on 0800 319 6789 during working hours for help with understanding whether you could be eligible.
