Rachel Reeves cuts payments for pensioners

Rachel Reeves has addressed parliament to disclose her findings of a Conservative fumble over £22 billion of overspending. This overspending now means that the Labour government will have to find a way to make this back and ensure public spending is going where necessary.

Rachel Reeves has announced the plan to restrict the winter fuel payments this year. This news has come as a shock to those who receive the payment which helps them with their energy bills during the colder months of the year.

 

Update - September 2024

It was confirmed in parliament that the Winter Fuel Payments will be cut, only pensioners who receive pension credit or other means tested will be offered a winter payment this year. This will reduce the eligible pensioners from 11.4 million to 1.5 million. Many are concerned about how they will cope through the colder months with energy bills rising as well as other living costs.

Labour are cutting costs due to the missing funds from Conservative overspending.

 

Are you eligible for pension credit?

Those who have reached state pension age and live in England, Scotland and wales could be eligible if you have a disability or a low income. Your income includes, state pension, private pension, earning from employment and most social security such as carer's allowance. If you have a partner, your income will be calculated together.

You could be eligible if you income is lower than;

  • your weekly income to £218.15 if you’re single
  • your joint weekly income to £332.95 if you have a partner

 

Who was getting these payments?

In the Winters over 2022-23 around 11.3 million people were receiving the Winter Fuel Payments.

 

How much were the payments?

Winter fuel payments were around £100-300 depending on the specific situation of each household. This offered significant support for pensioners who are only receiving the state pension. The money was paid in November or December to allow pensioners to keep their heating on.

Age UK has expressed their concern over the new restrictions on Winter fuel payments as they report around 1 million elderly people have a weekly income less than £50 above the poverty line. Without the help of this government funding they could struggle to heat their home over winter.

 

Who will be eligible now?

Reeves has tightened restrictions which will mean around 10 million people will now miss out on this payment. Only those above state pension age and receiving pension credit or some benefit alternative and on a low income will be eligible.

If your income is below £218.15 a week or £332.95 joint with a partner you will be eligible.

Savings will be taken into account to determine eligibility.

If you suffer from a disability or severe illness then you could also be eligible despite the above.

 

 

Not only will the winter fuel payments be restricted this year but the energy price cap is predicted to increase in October meaning bills will be higher again this winter. Pensioners will be without further support to keep their homes heated and safe during the cold winter months. If you need to find way to reduce your energy usage then look for tips here.