A recent study suggests that most pensioners living below the poverty line could lose their winter fuel payments under the government’s new plans.
The changes, announced by Chancellor Rachel Reeves, are part of efforts to address an estimated £22 billion gap in the country’s finances.
The study by Lane Clark & Peacock (LCP) focuses on the 1.9 million pensioners who earn less than 60% of the national average income, a commonly used measure of poverty.
LCP found that only 300,000 of these individuals receive Pension Credit and will keep their winter fuel payments.
The remaining 1.6 million pensioners, who fall below the poverty line, do not qualify for the benefit and are set to lose out.
LCP has proposed several ways to prevent the poorest pensioners from losing their winter fuel payments.
One suggestion involves limiting payments to households in Council Tax bands A-D, a method previously used for cost of living payments in 2022.
Another option would be to target the payments to older pensioners, aged 80 and over, who may spend more time at home.
