Chancellor Rachel Reeves has announced the end of universal winter fuel payments previously provided to all pensioners.
Individuals born before 25th September 1957, could receive between £250 and £600 to help pay heating bills.
This assistance, known as a “Winter Fuel Payment,” includes a “Pensioner Cost of Living Payment” ranging from £150 to £300.
In a statement in the House of Commons earlier today, Ms Reeves clarified that starting this year, only those pensioners who receive pension credits or other means-tested benefits will be eligible for winter fuel payments.
“Let me be clear, this is not a decision I wanted to make,” she said, emphasising the difficulty of the decision.
Rachel Reeves described the move as “the responsible thing to do,” suggesting it was necessary in the current economic climate.
Chancellor Rachel Reeves has announced that the new government is facing a projected £22 billion budget deficit inherited from the previous Conservative administration.
The Conservative Party has criticised the new government, labelling their claims “nonsense.”
Shadow Chancellor Jeremy Hunt argued that the state of the public finances was already understood and suggested that the new administration’s actions are setting the stage for increased taxes.
In response to the announcement of the end of universal winter fuel payments, Martin Lewis, Founder of Money Saving Expert, said: “The targeting of winter fuel payments is too narrow with the winter we have coming.
“Pensioners were already due to get less as this will be the first time since winter 2022 they haven’t got the up to £300 extra winter fuel cost of living top-up.
“The energy price cap is likely to rise 10% this October and stay high across the winter, leaving most energy bills nearly double those pre-crisis, at levels unaffordable for millions.
“Many pensioners eke out the £100 to £300 winter fuel payments to allow them to keep some heating on through the cold months.
“While there’s an argument for ending its universality due to tight national finances, it’s being squeezed to too narrow a group – just those on benefits and Pension Credit.
“Yet again, those just above the thresholds will be hardest hit. This is often justified as there’s a ‘lack of household income data’ to allow other targeting.
“However, there’s a usable precedent from the emergency energy crisis measures announced in April 2022, which I’d urge the government to look at.”
