NE pensioners' Winter Fuel Benefit cuts

Age UK publishes its own Equality Impact Assessment of the Government's cut to eligibility for the Winter Fuel Payment

New analysis finds that 74% (0.1m) of pensioners in the North East living in poverty or just above the poverty line will no longer receive Winter Fuel Payments

In the light of these deeply worrying findings the Charity calls on the Government to take action in the Budget to avert a potential disaster for many pensioners this winter

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[i], are set to lose their Winter Fuel Payment (WFP) as a result of the Government’s policy change. For the North East, the Charity found that 74% (0.1m) of pensioners living in poverty or just above the poverty line will no longer receive Winter Fuel Payments.

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[ii], of whom almost one in four (23%) live in poverty[iii] or just above the poverty line[iv]. 

Among the more detailed findings[v], 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 74% of pensioners living in the North East, whose incomes take them either below the poverty line or only just above it, will lose their Winter Fuel Payment following the Government’s policy change.

“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.”

Age UK continues to urge the public to show solidarity and sign its petition to Save the Winter Fuel Payment for struggling pensioners.  The petition has now received more than 553,000 signatures showing the strength of public feeling behind the rushed decision to means test the Winter Fuel Payment.

Here are just a few of the comments the Charity has received via its petition:

“Last year it was a choice between heating and eating. This year there won't even be a choice.” Anon.

“We will not cope. I am a carer to my husband who has Alzheimer’s and is registered blind.  We live in a park home and we need to heat our home day and night in the winter.” Pauline, 82.

“My husband is terminally ill with cancer, he has a state pension, no work pension and very little savings. I have a very small state pension plus an extremely small work pension. I will have to use my own limited savings to keep my husband warm, leaving me in a financial hole when my husband passes.” Jill, 80.

“We will not be able to cope.  My wife is disabled and has a severe vascular problem which causes her to feel the cold terribly.  Even with the Winter Fuel Payment last year we struggled to meet the gas and electricity monthly bill, so we will not be able to cope now.” John, 86

“I use the £200 to pay for the energy bill, not luxuries. My husband is seriously ill and during the winter the heating is on constantly. I am an unpaid caregiver on a pension above the threshold for Pension Credit.” Kathleen, 74.

“I live with my 98-year-old mother with dementia who is house bound. Our heating bills will make little money left over for the limited social care that I need to support me.” Diana, 73.

We are urging any older person living on a low income or struggling with their bills to contact Age UK North Tyneside. You can call our Customer Service team on 0191 280 8484 or visit our head office. Our Information & Advice team has support you with a benefits check to see if you’re eligible to receive Pension Credit.

Age UK hosts a free and anonymous Benefits Calculator which can provide an estimate of the benefits that people could be entitled to.

To sign Age UK’s petition offline, people can request one by writing to FREEPOST Age UK Campaigns or asked a friend or loved one to print a template of the petition and send back to FREEPOST, Age UK Campaigns.

[i] Age UK analysis of Department for Work and Pensions (DWP) Household Below Average Income (HBAI) 2022-23 dataset. UK Data Service. SN: 5828, DOI: http://doi.org/10.5255/UKDA-SN-5828-16

[ii] There are around 11.8m pensioners in the UK of whom 10.7m (84%) will longer receive Winter Fuel Payments from the winter of 2024-25. Among these 10.7m pensioners are:

• 6m pensioners who live in poverty
• 9m pensioners who live just above the poverty line

0.4m pensioners who live with income below that required for minimum living standards (but not in poverty or just above the poverty line)

[iii] Pensioners living in poverty are those in households with a net equivalised disposable household income after housing cost below a threshold set at 60% of median income. This is the Government’s preferred definition of poverty and is called relative poverty.

[iv] Pensioners living just above the poverty line are those in households with a net equivalised disposable household income after housing cost above 60% but below 70% of median income.

[v] Age UK analysis of Department for Work and Pensions (DWP) Household Below Average Income (HBAI) 2022-23 dataset. UK Data Service. SN: 5828, DOI: http://doi.org/10.5255/UKDA-SN-5828-16

[vi] Age UK analysis of Department for Work and Pensions (DWP) Household Below Average Income (HBAI) 2022-23 dataset. UK Data Service. SN: 5828, DOI: http://doi.org/10.5255/UKDA-SN-5828-16