The Department for Work and Pensions (DWP) has admitted Winter Fuel Payment cuts will plunge tens of thousands of pensioners into poverty in the coming years.
According to the DWP’s own modelling, around 50,000 more pensioners will be pushed into absolute poverty each year from 2024/25 to 2029/30 as a result of the winter fuel payment cuts.
These pensioners are also included in the ‘relative poverty’ estimates.
Work and Pensions Secretary Liz Kendall revealed the Government’s assessment of the impact in a letter to MPs, but stressed the figures did not take into account plans to increase the numbers on pension credit.
Our plan to #GetBritainWorking will spread opportunity and prosperity to every part of the country.
— Liz Kendall (@leicesterliz) August 18, 2024
No more writing people off then blaming them. Instead, a long-term plan that tackles the root causes of worklessness.
My interview with @michaelsavagehttps://t.co/EMOXWT3e1c
She told the Work and Pensions Committee: “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.”
Households in relative poverty have less than 60% of average (median) income in the current year.
The number of additional pensioners in absolute poverty – compared to the median in 2010/11 – is estimated to be 50,000 in each year.
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.
Recommended reading:
DWP Winter Fuel Payment changes considered after cuts
Thousands more pensioners in poverty due to winter fuel payment cut – DWP
All NI pensioner households hit by winter fuel support cut to get £100
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.”
She said the “modelling does not take into account any impacts of the measures we are taking to increase pension credit take-up and to ensure pensioners get the benefits to which they are entitled”.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel