Age UK analysis shows 2.5 million older people on low incomes are set to lose their Winter Fuel Payment and will struggle without it

MPs are set to vote on controversial government plans to scale back the Winter Fuel Payment, a move that could see millions of pensioners lose up to £300 in annual support.

Under the proposed changes, the payment, which has traditionally been available to everyone above the state pension age, would be means-tested and restricted to those claiming Pension Credit. If approved, an estimated 10 million pensioners will lose access to the payment this winter.

The government has defended the decision, citing a need to address a £22 billion deficit in this year’s budget.

However, the move has sparked widespread concern, particularly from the charity Age UK, which warns that 2.5 million older people on low incomes could be significantly affected.

Age UK’s analysis, based on data from the Department for Work and Pensions, shows that 1.6 million pensioners living in poverty will lose their Winter Fuel Payment, while an additional 900,000 with incomes just above the poverty line will also be affected.

These pensioners, often with small occupational pensions, will struggle to meet rising energy costs as a result of the proposed cuts.

Caroline Abrahams, Charity Director at Age UK, said:

“We underestimated the scale of the problem caused by the government’s policy approach. In total, 2.5 million older people will face a harsher winter without the Winter Fuel Payment, just as energy bills rise by 10%.”

Abrahams called the situation “unfair and unsustainable,” adding that Age UK fears many pensioners will be forced to choose between heating their homes or facing potentially unaffordable fuel bills.

The cuts have triggered a public outcry, with more than 500,000 people signing an Age UK petition calling on the government to reverse its decision. The charity also expressed concern over the lack of an Equality Impact Assessment, which has yet to be published by the government.

Several pensioners have shared their concerns directly with the charity. Arnold, 87, said:
“As a senior couple, it will be very hard to make ends meet. Every week living costs get harder with rising food, gas, and electric prices.”

Another pensioner, Andrew, 69, added:
“We have obsolete storage heaters, and our winter costs exceed £380 a month. Losing the Winter Fuel Payment will hit us hard.”

While the government has highlighted the continuation of the Household Support Fund and potential future increases in the state pension, Age UK argues these measures will not adequately support pensioners through the coming winter. The charity has urged ministers to delay their decision and consider the long-term impact of the changes.

The outcome of today’s vote will determine whether millions of pensioners face a colder, more difficult winter ahead.