Chancellor Rachel Reeves has defended her decision to scrap winter fuel payments for around 10 million pensioners. Speaking to the BBC, she explained that she discovered a “black hole” in public finances and “had to act” to “fix the mess.” However, a former pensions minister expressed shock at the decision to restrict these payments.
Reeves accused the previous government and former chancellor Jeremy Hunt of hiding a significant financial shortfall, an allegation Hunt strongly denied. Reeves stated that after uncovering a £22bn hole in public finances, she was compelled to make “tough decisions.”
One of these decisions, announced on Monday, is that pensioners in England and Wales who are not on pension credit or other means-tested benefits will no longer receive winter fuel payments ranging from £100 to £300. Former Conservative pensions minister Baroness Ros Altmann criticized this move, highlighting that it targets some of the poorest people in the country. According to the Department for Work and Pensions, approximately 850,000 eligible households do not claim pension credit, often due to pride.
Reeves mentioned plans to merge pension credit with housing benefit to increase uptake, collaborating with charities and local governments. A pensioner named Vadney told the BBC’s cost of living correspondent, Colletta Smith, that she relies on the winter fuel payment to keep up with gas and electricity bills. She expressed disappointment, saying, “They give you something and then just take it away.”
Charities, including Age UK, have also criticized the decision, warning that up to two million pensioners who need the money to stay warm this winter will not receive it, creating a significant social injustice. Age UK director Caroline Abrahams stated that wealthier older individuals will hardly notice the change, exacerbating the inequality.