Cutting winter fuel payments for pensioners will drive 100,000 more into poverty by 2026, the government has admitted
Tens of thousands more pensioners will fall into relative poverty next year as a result of Labour’s decision to means test the payment, worth up to worth up to £300, government estimates have showed.
The change, unveiled by Rachel Reeves in July, will strip winter fuel payments from around 10m pensioners.
And, while 50,000 additional pensioners will face relative poverty as a result of the change next year according to an official impact assessment, the figure jumps to 100,000 additional pensioners facing poverty from 2026 onwards.
The winter fuel payment 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.
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.
