The UK government has recently made the contentious decision to cut winter fuel payments for a significant portion of older people. This move has sparked widespread criticism and concern, particularly as the country grapples with the continuing cost of living crisis and rising energy prices. At the same time, the government has launched a campaign to encourage around 880,000 older people to claim Department for Work and Pensions (DWP) Pension Credits. It’s a benefit that many are either unaware of or not claiming. However, all this still leaves countless older people at risk this winter. And moreover, the Labour Party government’s sums really don’t add up.
The cut in Winter Fuel Payments: a blow to older people
Winter fuel payments have traditionally been a vital lifeline for older people during the colder months. These payments help pensioners cover the increased costs of heating their homes, which is particularly important given that many older people live on fixed incomes and are more vulnerable to the effects of cold weather.
The decision to reduce these payments comes at a time when energy costs are soaring, making the cut especially harsh. Also, now only people receiving DWP Pension Credits will get the payment – meaning currently only around 1.5 million people will be entitled to it.
The government argues that the cuts are part of a broader strategy to balance public finances and ensure that welfare spending is sustainable. It says restricting winter fuel payments will save £1.4bn this financial year. However, critics argue that this approach disproportionately affects the most vulnerable, particularly those who are already struggling to make ends meet.
The reduction in winter fuel payments is seen by many as a short-sighted measure that fails to account for the real and immediate needs of older people during the winter months.
Real-world impacts of cuts
The decision to cut winter fuel payments has been met with strong opposition from advocacy groups and charities that work with older people. Many argue that the cuts could have serious consequences for people’s health and well-being.
Cold weather is known to exacerbate a range of health conditions. So, without adequate heating, the risks of respiratory infections, hypothermia, and other cold-related illnesses increase significantly.
Moreover, the cuts are expected to push more pensioners into fuel poverty. This is a situation where households are unable to afford to keep their homes adequately warm. It is particularly concerning given that older people are already disproportionately represented among those living in fuel poverty.
The government’s decision has been criticised as both insensitive and counterproductive, especially in the context of its broader public health goals.
DWP Pension Credits campaign: a mixed message?
In parallel with the cuts to winter fuel payments, the UK government has launched a campaign to raise awareness about DWP Pension Credits. Pension Credits is a means-tested benefit designed to top up the income of the poorest older people.
It is estimated that up to a 880,000 eligible pensioners are not claiming the benefit. This either because they are unaware of it or because of the complexity of the application process – which has over 240 questions.
The government’s push to increase the uptake of pension credits is a welcome initiative. It aims to provide additional support to those who need it most. However, the timing of this campaign, coming alongside cuts to winter fuel payments, has led to criticism that the government is giving with one hand while taking away with the other.
Critics argue that while pension credits can help alleviate some financial pressure, they do not address the immediate need for support during the winter months.
What is Labour thinking?
The decision to cut winter fuel payments has been widely condemned by opposition parties, charities, and the general public. Many view it as a misguided and unfair policy that will disproportionately impact those who are already struggling.
This is because DWP Pension Credits only tops up people’s income to that of the new state pension for single older people. This means that if a person already receives the new state pension amount of £221.20 a week, then they’re not entitled to DWP Pension Credits – as the cut off for eligibility is £218.14. If you’re in a couple, the cut off is £332.94 of income – anything below that and you may get the benefit.
So, for a single person who just gets the new state pension, they’re not entitled to DWP Pension Credits support. All this is without the issue of so-called WASPI women, who successive governments robbed of part of their pensions.
Overall, as the Big Issue reported, research from the Centre for Aging Better found that the state pension leaves a single pensioner more than £50 short each week, plunging them into poverty. DWP Pension Credits would not help with this.
Labour’s sums on DWP Pension Credits don’t add up
While the campaign to increase the uptake of DWP Pension Credits is a positive step, it does not mitigate the impact of the cuts to winter fuel payments.
Moreover, unless we’re missing something, it makes no economic sense either.
The average value of DWP Pension Credits is £3,900 a year. That means it will cost the DWP £3.4bn in the next 12 months – £2bn more than Labour is saving by restricting the winter fuel allowance.
Either the government has made a catastrophic miscalculation, or it will do some accounting sleight of hand to cover the loss. However, what’s more likely is that in chancellor Rachel Reeves’s Autumn Budget, she’ll make cuts to other people’s benefits to clear up this mess.
Whatever the outcome, countless older people will still be plunged into poverty this winter – and no amount of campaigning around DWP Pensions Credits will change that.
Featured image via the Canary
By Steve Topple
This post was originally published on Canary.