Four in five pensioners set to lose Winter Fuel Payment

New Age UK analysis reveals that shockingly high numbers of pensioners living below or just above the poverty line – 82% or four in every five are set to lose their Winter Fuel Payment (WFP) as a result of the Government’s policy change. This includes huge numbers of older people who are aged over 80, disabled, living alone, and female, and whose incomes are so low that they bring them into this group.

With the Government either not carrying out an Equality Impact Assessment or choosing not to publish it, Age UK has done the work instead, using the most up to date official statistics that are in the public domain.

The analysis concludes that in total, under the Government’s plan, 10.7m UK pensioners will lose their WFP of whom almost one in four (23%) live in poverty or just above the poverty line.

Among the more detailed findings, the Charity found that 80% – equivalent to 800,0000 – of the UK pensioners aged 80 and over living in poverty or just above the poverty line, will no longer receive their WFP.

Furthermore, 78% – equivalent to 1.1 million – of the UK pensioners with a disability living in poverty or just above the poverty line, will no longer receive their WFP.

And 75% – equivalent to 1 million – of the UK pensioners who live alone and live in poverty or just above the poverty line, will no longer receive their WFP.

Age UK’s findings also uncovered that a worryingly high proportion – 79% (1.4m) – of female pensioners in the UK living in poverty or just above the poverty line, will no longer receive their WFP.

The Charity’s research into the Government’s policy change looks at its impact by age, sex, living circumstances, disability and geographical location. Unfortunately, it was not possible to analyse the impact by ethnicity because the sample size was too low.

The research also found that there is no region or country in the UK in which fewer than 74%[vi] of pensioners living in poverty or just above the poverty line will lose the Winter Fuel Payment.

In the light of these deeply worrying findings Age UK urges the Government to keep WFP as a universal payment this year, pending the Spending Review in the spring. If they choose to press on however the Charity says that at the very least they must urgently bring in measures to greatly expand the numbers who will still receive Winter Fuel Payment, by automatically giving it to those receiving Housing Benefit, Council Tax Support, Personal Independence Allowance, Attendance Allowance and Carers Allowance. This would be a partial solution but won’t help every older person on low incomes that the Charity is worried about, so further help would also be required for some pensioners who only receive a low proportion of the full State Pension.

If the Government declines to bring forward any mitigating measures at all Age UK says it fears for many pensioners on low incomes this winter. At best their lives will be anxious and miserable, at worst their health could be badly undermined.

Caroline Abrahams CBE, Charity Director at Age UK said: “Because the Government either did not carry out an Equality Impact Assessment or has chosen not to publish it, we thought it important to do the work ourselves. Our analysts used the most up to date data available, and their conclusions are stark. Bluntly, they show that the great majority of pensioners whose incomes take them either below the poverty line or only just above it – about four in every five, will lose their Winter Fuel Payment following the Government’s policy change. This includes big majorities among all the older people on low incomes who are aged over 80, disabled, over 80 and disabled, female or living alone.

“I think most members of the public will be horrified that this is the outcome of the Government’s decision, because it means that millions of pensioners are being exposed to the risk of failing to be able to stay adequately warm this winter, even though they are living on a low income. There will be widespread agreement, I’m sure, that Ministers must act in the Budget to protect them – and the best way for them to do so by far is to retain WFP as a universal entitlement this winter, before giving their policy options careful consideration as part of the Spending Review next Spring.

“However, if the Government is dead set on pressing ahead, the very least they should do is to greatly expand the numbers of pensioners who will receive a WFP beyond the small group they have so far said will retain it. They could achieve this in part by automatically giving the Payment to pensioners on other benefits, such as Housing Benefit, Council Tax Support, Personal Independence Allowance, Attendance Allowance and Carers Allowance. Even this would not be enough though because many pensioners on low incomes or in vulnerable circumstances would still miss out on a WFP when they can ill afford to do so. This means the Government would need to go further; for example, looking to give extra help to the older people who for various reasons receive only a small proportion of the full State Pension, for whom the WFP is an absolute lifeline.

“Some people have asserted that the Government’s cut to eligibility for Winter Fuel Payment means there is no cause for concern because poor pensioners will still be protected, but Age UK’s Equality Impact Assessment drives a coach and horses through that claim. Unfortunately, the research supports our worst fears – that unless Ministers change tack, and quickly, millions of older people on low and modest incomes could be facing potential disaster as the weather chills.”