Winter fuel payments fell by 9.3 million before U-turn
Winter Fuel Payments: Millions of Pensioners Regain Support After U-turn
The number of pensioners receiving winter fuel payments collapsed to just 1.3 million last year after the government restricted eligibility to low-income households, new figures reveal. In previous years, about 11 million people across England, Wales, and Scotland had benefited from the scheme, designed to help older people cover energy bills during the coldest months.
The sharp drop followed a Treasury decision to means-test the payment, limiting it to those on pension credit or similar benefits. But after a fierce backlash, Chancellor Rachel Reeves announced in June that the majority of pensioners will once again receive support this winter.
The payment will be worth up to £300 per household, with letters going out in October and November to pensioners with an annual income of £35,000 or less. A government spokesperson said around nine million pensioners will qualify this year.
Regional Gaps
The Department for Work and Pensions’ (DWP) data shows how uneven the cuts were. In areas with high levels of pensioner poverty, such as Tower Hamlets in London, nearly 49% of pensioners received the allowance. In wealthier districts such as Hart, Hampshire and Wokingham, Berkshire, only around 5% qualified. The average across England and Wales was just 13%.
Political Pressure
The U-turn followed mounting pressure from Labour MPs, who blamed the cuts for poor results in May’s local elections. Reeves argued that the original changes were necessary to stabilise public finances but admitted that the scale of the backlash required a rethink.
In Scotland, ministers have pledged to increase the payment in line with inflation, raising it to either £203.40 for most households or £305.10 for those with members aged 80 or over.
Meanwhile, Ofgem has confirmed that electricity bills will rise by 2% in October under its latest price cap. Pensioners are also braced for a possible state pension increase in April under the government’s commitment to the triple lock.
“Because of our efforts to raise pension credit, over 57,000 additional pensioner households were given the benefit—worth on average £4,300 a year,” a government spokesperson added.
