The campaign against the Chancellor's decision to remove the Winter Fuel Payment from millions of older people has continued into a fourth week, according to the End Fuel Poverty Coalition1. In a speech in Downing Street, the Prime Minister defended the decision, pointing to what he called "rot" in the system and describing the payments as "not a particularly well designed scheme", while saying that "support" would be there for the pensioners who need it most1. He also indicated that those with the "broadest shoulders" could expect tax rises in the Budget1.
The decision followed a report from Age UK which found that nearly 2 million pensioners could face poverty this winter1. Analysis cited by the coalition found that some older people will face 131% year-on-year bill increases, and that the Pension Credit system has been hit with delays in processing applications1.
Public response has been substantial. More than 400,000 people have signed an Age UK petition, 300,000 have signed a 38 Degrees petition, and over 4,500 members of the public have shared their concerns with MPs through the Warm This Winter campaign1.
A spokesperson for the End Fuel Poverty Coalition said:
"Axing Winter Fuel Payments is not about rot in the system, it is about basic fairness for older people facing soaring energy bills."
The coalition also called for ending energy debt, extending the Household Support Fund, expanding Warm Home Discounts and reforming standing charges, and for a clear timetable for the benefits of cheaper renewable energy and the Warm Homes Plan1. Jonathan Bean of Fuel Poverty Action said urgent action was needed from the Government and Ofgem on inflated energy prices, high standing charges and "obscene profits"1.
Why it matters for households
The Winter Fuel Payment has until now been paid automatically to most people over State Pension age, so its removal changes the starting position for a large group of households that had counted on it arriving without an application. Under the change, entitlement is tied to means-tested benefits, which places the eligibility rules and the claims process at the centre of whether a household receives anything at all. The reported delays in processing Pension Credit applications matter because a claim that is not decided before winter leaves a household without both the Pension Credit and the payment linked to it.
For a home's energy independence, the practical effect is a smaller margin between income and bills at the point in the year when consumption is highest. Households that previously used the payment to clear a winter bill or to cover a top-up now face that cost directly, and the coalition's figure of 131% year-on-year increases for some older people indicates how far that gap can widen. The Warm Home Discount is a separate scheme with its own eligibility, and the coalition states that expanding it, along with the other measures it lists, is needed to offset the change1.
What happens next
The Budget is the next dated point at which the Prime Minister's hint of tax rises for those with the "broadest shoulders" would be set out1. No timetable has been reported for the Warm Homes Plan or for the support the Prime Minister said would be available to the pensioners who need it most1.
Sources1 cited
- Winter Fuel Payment backlash enters fourth week, endfuelpoverty.org.uk