New DWP rule for state pensioners has 'split people down the middle'

State pensioners have been warned nearly HALF are supportive of Labour Party government and the Department for Work and Pensions (DWP) Winter Fuel Payment shake up. Which? Principal Researcher Paul Davies says pensioners have thrown their weight behind the move.

Speaking on the Which? Money Podcast, Davies said: "It’s one we’ve been tracking for a number of years." He explained: "We asked people what they felt about their winter fuel payment a few months ago, 49% said it should be kept for everyone, and 46% said it should be means-tested.

"Pensioners are split down the middle. A lot of pensioners understand that it’s unfair that everyone gets it." He said: "We’ve spoken to people who say they use it to give money to their grandchildren at Christmas or towards their next holiday, a lot of people give it to charity. It feels like the system hasn’t been quite right."

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He said: "Whether the change is exactly spot on will be seen." He added: "One of the positive consequences of the change is more people applying for Pension Credit. It’s a positive unintended consequence." Winter fuel payments have been restricted so only those claiming pension credit from this winter are eligible to receive the benefit worth up to £300.

The government made the decision in the hope of saving £1.5bn a year, although a boost in people securing pension credit will naturally reduce the amount of money saved. Earlier this week, Liz Kendall said: “I would like every pensioner who is entitled to pension credit, up to £3,900, to get it, yes,” she told the Commons work and pensions committee.

Pressed on whether this would be the case regardless of costs to the government, she added: “Regardless, because they are entitled to it. That is what I want to see.” When asked specifically if there was a tension in government about this, Kendall said: “For me there is no tension because I think it is a scandal that over 800,000 pensioners, the poorest pensioners, are losing up to £3,900 in pension credit that they should be entitled to.”