Major DWP Winter Fuel update as thousands of pensioners to be forced into poverty by cuts
by Sophie Huskisson · ChronicleLiveOfficial government data released on Tuesday reveals that cuts to winter fuel payments will push hundreds of thousands of pensioners into poverty. Ministers were forewarned about the repercussions of reducing this crucial aid for OAPs before deciding to proceed with the policy.
By 2030, approximately 450,000 elderly individuals will be thrust into relative poverty and 300,000 into absolute poverty after housing costs. Relative poverty refers to a situation where people can afford basic necessities like food, health needs and drinking water but nothing else, while absolute poverty is when people cannot meet these basic needs.
Labour announced in the summer that it was slashing the £300 winter fuel allowance for 10 million pensioners. Chancellor Rachel Reeves declared that the support would now only be available to OAPs on pension credit or other benefits.
She claimed she had no other choice after discovering a £22 billion deficit in the public finances left by the Tories. .
The Department of Work and Pensions (DWP) published an internal analysis of the policy on Tuesday. It revealed that ministers were cognisant of the number of pensioners that would be plunged into poverty but chose to proceed with the decision regardless, reports the Mirror.
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In September, Keir Starmer vehemently denied concealing an impact assessment on the reduction of winter fuel payments. "I know you think there's a report on my desk which somehow we're not showing you. There isn't a report on my desk I'm not showing you, it's as simple as that," he stated.
The latest modelling, which incorporates more recent data on wages and economic growth, suggests that the number of pensioners falling into poverty could rise even more sharply than initially thought. The initial models were used to guide ministers in their policy decisions.
However, the Prime Minister has contested the analysis, stating that it fails to consider government initiatives designed to support older citizens. He pointed out that an increase in older adults applying for pension credit, as well as benefits from the Government's household support fund or warm home discount, were not included.
At a press conference in Rio de Janeiro, Brazil, on Tuesday, Mr Starmer said: "And of course, on top of that, as we now know, the figure for the increase in state pensions for next year under the triple lock, because we've stabilised the economy, is about £470. And therefore pensioners will be better off because we've stabilised the economy."
Previously, ministers had estimated that around 880,000 households eligible for pension credits had not yet claimed them, which also meant missing out on the winter fuel allowance. In response, the Department for Work and Pensions (DWP) has launched a campaign to raise awareness and encourage those eligible to claim the benefit.
Following these developments, Scottish Labour announced its intention to restore the winter fuel allowance for pensioners should it triumph in the Holyrood elections set for 2026. Anas Sarwar, the leader of Scottish Labour, stated that while all older adults would qualify for the allowance, the amount would decrease progressively so that the wealthiest would receive less.
Liberal Democrat Treasury spokeswoman Daisy Cooper has slammed the latest figures as "shocking" and urged the Government to reverse its stance on the policy. She stated: "The Government must step up and do the right thing: finally reverse the Winter Fuel Payment cut. Cutting this allowance will drive more vulnerable older people into poverty, forcing them to choose between heating and eating."
She further criticised the current administration by saying, "While the Conservatives undoubtedly left this Government a dire fiscal inheritance, that's no excuse to push more pensioners into poverty as the temperature plummets. We cannot stand by and leave millions of older people to endure another winter in a cost of living crisis."
DWP Secretary Liz Kendall responded to the criticism, explaining the tough choices made by the government: "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 £22billion 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."
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