Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
Saturday 14 September 2024 6:23 pm

Government accused of trying to hide ‘horrific’ impact of winter fuel squeeze

By: City PM Reporter

Add as a preferred source on Google
The Government has insisted its plan to means-test winter fuel payments is necessary to help fill a “£22bn black hole” in public finances.
The Government has insisted its plan to means-test winter fuel payments is necessary to help fill a “£22bn black hole” in public finances. (Photo by Daniel Berehulak/Getty Images)

Sir Keir Starmer’s government faced accusations of trying to hide from the “horrific” impact of the decision to strip winter fuel payments from millions of pensioners.

More than 80 per cent of people aged 80 and over will lose out, as will more than 70 per cent of pensioners.

Even among those who should still receive the payments, worth up to £300, an estimated 780,000 will miss out because they have not claimed pension credit.

The figures were quietly slipped out on Friday night, which shadow Treasury chief secretary Laura Trott said was a “downright disgrace”.

Downing Street has said that a full impact assessment of the change, coming into effect this year, has not been carried out.

The Department for Work and Pensions released figures, published in response to a freedom of information request, are based on “equality analyses” which “are not impact assessments and not routinely published alongside secondary legislation”.

From this winter, only people on pension credit or certain other benefits will receive the payments, while about 10m others are set to be stripped of the allowance.

The Government has insisted the move is necessary to help fill a “£22bn black hole” in the public finances inherited from the Tory government.

Around 71 per cent of those with a disability and 83 per cent of those aged 80 or over will now miss out on the payment.

However, in its FOI response, the DWP said that while those with a disability will be disproportionately likely to retain the payment, “around 71 per cent – 1.6m – of people with a disability will still lose entitlement”.

Read more

Andy Burnham commits to triple lock despite backlash over ‘unsustainable’ policy

Andy Burnham speaking to supporters during his campaign to re-enter UK parliament, engaging with the public in outdoor set...

And about 880,000 people currently set to lose the benefit this year are pensioners entitled to pension credit who have not claimed it, according to the analysis.

The assessment assumes a five percentage point “loss aversion” increase in pension credit take-up, which the DWP said then cuts the number of eligible pensioners failing to claim to about 780,000.

The DWP said: “The Government has followed its legal and statutory duties ahead of introducing these changes and will continue to do so.”

Ms Trott said: “The publication of these analyses is a damning indictment of this entire Labour government.

“Not only do these reports confirm that thousands of pensioners will suffer this winter as a result of Rachel Reeves’ cold-hearted decision, but they were also hidden until after Labour forced their MPs to vote through this cut.

“It is a downright disgrace.

“Labour have cut winter fuel payments for 10m pensioners knowing the horrific impact it will have, but they will not be able to hide from the consequences of it. We will bring them to task every step of the way.”

The revelations have reignited a row over the policy, which has been attacked by both unions and opposition critics as it sets out to strip about 10m pensioners of the support with their energy bills.

The Government has said the measures are expected to save about £1.3bn in the first year.

By David Hughes and Nina Lloyd, PA

Read more

HMRC has been overtaxing pensioners for a decade- have you been affected?

HMRC overcharged pensioners thousands

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business

People & Organisations

  • Keir Starmer
  • Laura Trott
  • pensioners
  • State for Work and Pensions
  • UK Government
  • winter fuel payments

Trending Articles

  • Exclusive: Big Four giant KPMG to cut more jobs

  • Music tycoon Simon Cowell sued by prominent City lawyer

  • The former African gold miner taking on the billionaire Issa brothers

  • Tesco ‘in talks’ to exit eastern Europe

  • Easyjet agrees to £5.7bn Apollo takeover

More from City PM

  • Andy Burnham commits to triple lock despite backlash over ‘unsustainable’ policy

    Politics
    Andy Burnham speaking to supporters during his campaign to re-enter UK parliament, engaging with the public in outdoor set...
  • HMRC has been overtaxing pensioners for a decade- have you been affected?

    Personal Finance
    HMRC overcharged pensioners thousands
  • Frying squad: England’s World Cup bid fuelled by cooking oil and leftover food

    Sport Business
    Getty Images logo on a digital display, representing the brands impact in digital media and stock photography industry.
  • Revealed: Secret Treasury plan to tax State Pension before it is paid out

    Politics
    Keanu Reeves in a business meeting setting, engaging with colleagues around a conference table, discussing project strateg...
  • Pension funds must ’embrace’ private markets to fuel growth

    Investing
    Skyline of Canada with iconic financial district buildings, highlighting UK investments and economic growth.
  • The next Prime Minister can change the conversation on the fiscal rules

    Opinion
    Treasury Department building with government bonds signage, representing financial management and bond issuance responsibi...
  • Five graphs that reveal Burnham’s fiscal headache

    Politics
    Burnham smiling broadly at a community event, surrounded by enthusiastic supporters, conveying a sense of positivity and u...
  • Jeremy Hunt: Pension triple lock is an ‘anchor drag’ on economic growth

    Politics
    Jeremy Hunt has promised to cut more taxes as “hard work is rewarded”.

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Editorial Policy
  • Corrections
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
About · Editorial Policy · Corrections · Contact · Privacy · Facebook