Millions of pensioners will 'find it hard to manage without winter fuel payment'

The winter fuel payment for pensioners will be limited to only those claiming pension credit or other means-tested benefits under changes announced by the Chancellor in July

More than three-quarters (77%) of pensioners used their winter fuel payment for fuel-related expenses such as heating, hot water, and running appliances last year, says Age UK.

The charity also found that nearly a quarter (24%) spent it on cooking meals. Over a third (37%) of older individuals admitted they would struggle financially without this payment, with the figure rising to over half (53%) among those not eligible for the payment this year but receiving other benefits like housing benefit or carer’s allowance.

More than half (55%) said they would have to cut down on heating. One in 10 said they would have to reduce the number of hot meals they eat, according to the Kantar survey of more than 1,000 people aged 66-plus in September.

In July, Chancellor Rachel Reeves announced that the winter fuel allowance would be restricted to pensioners on pension credit or other means-tested benefits, a move to address a "black hole" in public finances. This change is set to reduce the number of recipients by about 10 million, from 11.4 million to just 1.5 million.

Age UK is calling on low-income individuals to check if they qualify for pension credit, sharing an example of an 81 year-old-man who said: "We try and only use one hour of heating a day." Another person in their 80s said: "I will have to stay in bed longer and only get up to eat."

Meanwhile, Caroline Abrahams, charity director at Age UK, commented: "It’s no surprise to us at Age UK, and it really shouldn’t be to anyone else either, that the great majority of older people spent their winter fuel payment on energy-related costs last year."

She added: "With fuel prices having gone up so much compared to five or 10 years ago, even older people who expected to be relatively comfortable in retirement have been impacted and forced to tighten their belts. And for those without much money behind them, energy bills have become a source of real fear."

As households face financial hardships this winter, Age UK is advising those in need to reach out to their local council for possible support from the Household Support Fund.

Marie Curie has put forward a plea for assurances that anyone suffering from a terminal illness receives the winter fuel payment whether they are retired or still employed. Dr Sam Royston, executive director for policy and research at Marie Curie, said: "The festive season is meant to be one of warmth, joy, and celebration. No one should have to face their final days worrying about money or whether they can afford to heat their home or even switch on Christmas lights."

James Sanderson, chief executive at charity Sue Ryder, has voiced his concern: "With ice and snow on the ground across much of the UK, terminally ill people will already be feeling the devastating effects of cold weather on their symptoms. And the recent announcement of the energy price cap rise for January will have struck a further blow to their stretched finances and quality of life, leaving many uncertain of how they will keep warm over winter.

"The sad truth is that cold weather could mean many terminally ill people die before they should. They desperately need more support through social energy tariffs and compensation schemes to help with the increased costs of keeping their home warm and running the essential medical devices they rely on."

In response, a Government spokesperson stated: "We are committed to supporting pensioners – with millions set to see their state pension rise by up to £1,900 this parliament through our commitment to the triple lock."

The spokesperson also mentioned ongoing support measures: "Over a million pensioners will still receive the winter fuel payment, and our drive to boost pension credit take up has already seen a 152% increase in claims. Many others will also benefit from the £150 warm home discount and cold weather payments this winter, while our extension of the Household Support Fund will help with the cost of food, heating and bills."